HOW WE GOT HERE
Between the years of 1970 and 2001, the Seeley-Swan Valley real estate market was a consistent market demonstrating slow upward trends in values and sales. Land sales in 2000 were between $2,000 and $4,000 per acre.
Beginning in the early 2000’s, real estate in the Seeley-Swan Valley experienced increased awareness from buyers from around the world due to the proximity to two major airports in Missoula and Kalispell, mountain views, scenery, wildlife and wilderness access to the Bob Marshall and Mission Mountain Wilderness areas.
This resulted in an increase of buyers purchasing in a limited inventory market. Land values began to increase dramatically through 2006 when land values peaked in the $8,000 to $15,000 per acre range. During this time, purchase of lands in the Seeley-Swan Valley had been discretionary second homes and retirement homes for clients from around the world.
After 2007 and through the recession into 2012, property sales fell off dramatically in the Seeley-Swan Valley. During the recession, these types of properties fell off in priority resulting in a substantial lag in the market. Property values dropped to levels that were half of their previous highs. Because of this, home ownership became a reality for many local families who were able to purchase homes. Suddenly, homes had become affordable because of reduced values and interest rates that were at their lowest point in 30 years.
Beginning in 2014, the market became increasingly healthy and had modest annual gains through 2020.
Seemingly, when the COVID related lockdowns began in April, everyone was staying at home and on their computer. They began looking at real estate. These buyers, who were from all parts of the country, began buying homes and land sight unseen or contingent upon viewing it in the future. These purchases rapidly began depleting available home and land inventories and have brought us to a frenzied sellers’ market today.
RESIDENTIAL SALES DATA Seeley Lake Condon
Homes sold in last 12 months 69 43
Current homes for sale 6 1
Average price of homes available $504,000 $589,000
Number of homes sold over $1 Million 3 7
April 1, 2020 Seeley Lake had 65 active home listings. Now there are only six homes for sale. The average price of the homes currently listed for sale is $504,000. Of these homes, only one is in the Double Arrow Ranch.
Homes are often selling at, or over asking price and with competing offers. Local agents don’t anticipate a lot of new inventory being added this spring, as most of the homeowners who had thought of selling have done so. This lack of available homes will continue to push values higher. Interestingly, local agents have described that they are “filling orders.” When a buyer describes the home and property they desire, if a match is not currently listed for sale, they begin contacting homeowners with a property that matches, to inquire if they would like to sell.
Several owners have sold as a result, but many ask “What would I do then?” Despite selling for a high value, they find it difficult to financially downsize or improve their position elsewhere.
There is only one home available in the Swan Valley. It is located in the Summit area for $589,000.
LAND SALES DATA: Seeley Lake, Condon
Land sold in last 12 months: 121, 17
Current number for sale: 17, 8
Number of parcels sold over $200,000: 11, 9
Lots sold in Double Arrow Ranch: 65
April 1, 2020 Seeley Lake also had 95 land listings. Today, there are only three lots for sale in the Double Arrow Ranch and 11 building parcels that are not on the Double Arrow.
There are only eight land parcels available in the Swan Valley and three land parcels for sale in the Ovando area.
THE OUTLOOK
It is anticipated that tourism and travel may hit an all-time high this summer. There continues to be a tremendous amount of cash available to buyers, indirectly through stimulus funds, stock market gains and increases in their available cash equities on their primary residence and investment properties. This will continue to bring more buyers into the market and may further deplete inventories of available properties.
AVERAGE MORTGAGE INTEREST RATES
30- year mortgage is 3.36%
15- year mortgage is 2.81%
WHAT WE HAVE LEARNED TO IMPROVE THE VALUE AND DESIRABILITY OF YOUR HOME
Throughout the pandemic, there has been a huge shift when it comes to amenities that buyers prioritize when purchasing a home. More than ever, the home has become the office, the gym, and the restaurant. Amenities that are highly desirable to buyers are:
Outdoor Living - Consider adding amenities to your outdoor patios, decks and living areas. Add or upgrade fire pits, outdoor kitchens, sitting bars, barbecues, enhance water features and outdoor fireplaces.
Kids and Adult Entertainment – People are recreating at home more, consider fenced areas, play equipment, basketball, roller sports, sand pits, batting cages and indoor simulated putting greens or golf.
Work from Home (Zoom Rooms) – Quiet, spacious and well-finished home office areas are important.
Home Fitness/Work Out Areas – Buyers are interested in state-of-the-art work out spaces, Pilates equipment, Peloton space and fitness/weight rooms.
Kitchens – Buyers are seeking well-equipped, high quality kitchens with large areas. Upgraded countertops, food prep sinks, beverage refrigerators, large pantry with plenty of storage and extensive comfortable seating.
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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