Realtor Kevin Wetherell has noted home prices in the Seeley area have jumped by 53%...to an average price of $399,000. So much for affordable housing in Seeley Lake.
What he does not mention, discuss or analyze is the impact realtors’ sales commissions have on housing prices. I would submit realtors’ commissions have a direct effect on the increased cost of housing AND the growth of local government.
Here’s how:
The realtors commission becomes part of the sales price of a home. That 4-6% increase in cost translates as a direct increase on any “comparable” house sales in the area and generally raises those housing costs as well. It is a never-ending spiral of artificial inflation. And realtors are famous for “flipping” homes - purchasing a bargain property themselves and offering it for resale at a higher price.
Who loves this increase in property valuation the most? Your local county commissioners. These increased home values translate to increased tax collections which give the commissioners more money, to do bigger, better and more things.
What are the answers to this “problem?” Our local representatives Shannon O’Brien and Mike Hopkins need to figure them out. The obvious shortage of housing supply coupled with a high demand for rural housing as a result of the COVID pandemic needs to be addressed at the state government level. There are some obvious solutions which I don’t hear them discussing.
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