ANNUAL REAL ESTATE SALES CONTINUE TO TREND UPWARD THROUGH 2018
The year of 2018 has seen great success in home sales in both Seeley Lake and Condon. The local market is maintaining a great balance and generally is not tipped in favor of either buyers or sellers being at a negotiating advantage.
Summer is generally the "selling season" and May through September is when a majority of the sales in the valley close. Tourism numbers in Glacier Park have tripled over the past four years, and we have observed the increase as well, as our beautiful valley is in the path of tourists as they travel to and from Glacier Park.
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.
Buyer demand for lakefront properties remain very strong with limited availability. Currently there are only four lakefront land parcels and three lakefront homes and cabins on the market. There have been a record 15 lakefront properties sold this year, including eight at Emerald Lake.
SEELEY LAKE HOME SALES
Currently in Seeley Lake, there are 39 homes for sale, plus three homes that are currently under contract to be sold. The median listing price of homes currently active is $325,000. Of the homes currently for sale, four are under $200,000 and 10 are priced between $200,000 and $300,000.
There are 14 homes listed in the Double Arrow Ranch ranging in price between $226,000 and $529,000. Inventory of homes currently for sale, especially with homes priced under $300,000 is short and is sustaining a strong sellers' market in that price range. The average home value in Seeley Lake has increased 10.5 percent over the past 12 months. There were 51 homes sold in 2018 versus 46 sold in 2017.
SEELEY LAKE LAND SALES
The number of vacant land sales in 2018 has remained nearly the same over 2017 with 32 vacant land parcels sold. There are currently 92 land parcels for sale. The listed parcels have a median listing price of $95,000 and an average of 626 days on the market. This means there is currently 33 months of land inventory for sale at the current sales pace.
CONDON - Swan Valley HOME SALES
The number of home sales in the Swan Valley increased 15 percent in 2018 and the market in the Swan is moving forward with a lot of recent 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 21 homes for sale, plus two homes that are currently under contract to be sold. The lowest price home is $324,000 with 10 homes priced over $1 million.
CONDON - Swan Valley LAND SALES
There were seven land parcels sold in the Swan Valley in 2018, up from five in 2017. There are currently 29 land parcels for sale. The current listed parcels have a median listing price of $275,000 and an average of 97 days on the market.
HOME LOAN INTEREST RATES
Interest rates are currently around 4.75 percent for a 30-year fixed rate mortgage and 4.125 percent for a 15-year fixed rate mortgage. These rates are up substantially over the past nine months but based upon historical rates they remain reasonable. A loan of $200,000 at 4.75 percent would result in a monthly principle and interest payment of $1,043.
THE TAX CUTS AND JOBS ACT – WHAT IT MEANS FOR HOMEOWNERS
As we begin to think about our tax return preparation for 2018, Congress passed this bill resulting in some tax law changes for homeowners:
EXCLUSION OF GAIN ON SALE OF PRINCIPAL RESIDENCE
• 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, 2017 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.
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 artwork, auto fleets, heavy equipment, etc.
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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