REAL ESTATE SALES REDUCED DUE TO LACK OF AVAILABLE HOUSING INVENTORY
The past year has seen great success in home sales in both Seeley Lake and Condon. The market has great buyer interest and activity. However, lack of available inventory has resulted in some buyers staying on the sidelines as they are unable to find homes with the qualities and features that they are seeking.
Median days on market for homes in Seeley Lake is currently 163 days, down dramatically from 266 days in 2016. The presence this summer of the Rice Ridge Fire did reduce buyer traffic significantly further impacting home sales. Buyers still made offers at that time with creative agent advised contingencies up to the closing such as "buyer to approve of view shed following fire containment, property shall be in the condition it was in at the time the offer was made, or the buyer's ability to obtain homeowners insurance at an acceptable rate." The use of these contingencies gave prospective buyers comfort to proceed in transactions and close as soon as the fire was contained.
New home construction continues throughout the valley, a drive through the roads of Double Arrow Ranch and roads off of the highway in Condon will discover several homes under construction. Most all of the general building contractors are booked well in advance to build custom homes, resulting in virtually no new spec homes being built and placed on the market. Market inventory is being completely supplied by existing homes offered for resale. There is very strong buyer demand for homes under $300,000 as well as lakefront homes and land. Buyer demand for lakefront properties remain very strong with very limited available property on the market.
We continue to see 63 percent of our buyers coming from Montana, primarily Missoula, Helena, Bozeman and Great Falls, as well as many farming and oil industry families from east of the divide. Out-of-state buyers are primarily coming from Washington, Colorado, California, Arizona, Texas and the southeast.
SEELEY LAKE HOME SALES
Currently in Seeley Lake, there are 42 homes for sale, plus five homes that are currently under contract to be sold. The median listing price of homes currently active is $397,750. There were 62 homes for sale at this same time period one year ago. Inventory of homes currently for sale, especially with homes priced under $300,000 is short, and is sustaining a strong sellers' market. The average home value in Seeley Lake has increased 15.7 percent over the past 12 months.
SEELEY LAKE LAND SALES
The number of vacant land sales have remained steady over last year. There are currently 104 land parcels for sale. The listed parcels have a median listing price of $95,000 and an average of 566 days on the market. This means there is currently 38 months of land inventory for sale at the current sales pace.
CONDON - Swan Valley HOME SALES
Home sales in the Swan Valley have rebounded in 2017 and the market is moving forward with a lot of buyer activity. Even the median sales price statistics sometimes skew as properties in the valley vary a lot based upon acreage, waterfront etc. making the market conditions more difficult to clearly see trends. Currently in the Swan Valley, there are 23 homes for sale, plus two homes that are currently under contract to be sold. There is 22 months of home inventory for sale.
CONDON - Swan Valley LAND SALES
There are currently 30 land parcels for sale. The listed parcels have a median listing price of $300,000 and an average of 97 days on the market.
HOME LOAN INTEREST RATES
Interest rates are currently around 4.0 percent for a 30-year fixed rate mortgage and 3.5 percent for a 15 -year fixed rate mortgage.
THE TAX CUTS AND JOBS ACT – WHAT IT MEANS FOR HOMEOWNERS
Congress recently passed The Tax Cuts and Jobs Act, which when enacted, will become effective retroactively to January 1, 2018. The following items have been the primary factors affecting homeowners.
EXCLUSION OF GAIN ON SALE OF PRINCIPAL RESIDENCE
• The final bill retains the current law – For married couples, up to $500,000 of actual gain, may be excluded from tax upon the sale of your primary residence provided criteria is met.
Mortgage Interest Deduction
• The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after Dec. 14, 2017. Current loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap. Neither limit is indexed for inflation.
• Homeowners may refinance mortgage debts existing on Dec. 14 up to $1 million and still deduct the interest, so long as the new loan does not exceed the amount of the mortgage being refinanced.
• The final bill repeals the deduction for interest paid on home equity debt through Dec. 31, 2025. Interest is still deductible on home equity loans (or second mortgages) if the proceeds are used to substantially improve the residence.
• Interest remains deductible on second homes, but subject to the $1 million / $750,000 limits.
DEDUCTION FOR STATE AND LOCAL TAXES
• The final bill allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes. This $10,000 limit applies for both single and married filers.
CAPITAL GAINS AND 1031 TAX Deferred EXCHANGES
• The final bill retains the current Section 1031 Like Kind Exchange rules for real property. It repeals the use of Section 1031 for personal property, such as art work, auto fleets, heavy equipment, etc.
• The final bill retains the previous law with favorable rules for capital gains
If you have any questions regarding the local real estate market or the purchase or listing of property, please contact your local real estate professional.
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