Seeley-Swan valley real estate is white hot

2021 - THE REAL ESTATE BREAKOUT

The past year has seen intense buyer pressure in the local real estate markets. Montana buyers primarily from Missoula, Helena, Bozeman and Great Falls continued buying in the Seeley-Swan Valley. Many of the Montanans coming here are seeking weekend and summer homes to bring families together for recreation. Others are seeking homes or land for their retirement.

Out of state buyers primarily from Washington, Oregon, California, Colorado, Texas and the southeast are seeking a new way of life to work remotely or to retire. It has become very common for real estate agents to assist buyers in learning available Internet speeds in specific areas for those looking to relocate here to work remotely.

The intense buyer pressure has depleted nearly all of the home and land inventories resulting in competitive bidding, multiple offers and shelves of active listings being wiped out. Most buyers and their agents are checking the multiple listing service several times per day for any new listings. When a new property is listed for sale, buyers rush out to see the property then, in many cases, make an offer and hope that their offer beats out any others.

SEELEY LAKE RESIDENTIAL SALES FAST FACTS

Over the past 12 months, there has been a total of 70 homes sold for a total of $37.1 million. The average home price in Seeley Lake has risen from $399,000 to $553,000 a 39% increase! The average home is closing 137 days after being placed on the market in Seeley Lake. This number has skewed higher because houses were listed to be built, thus including construction time. There are currently six homes active on the market. five of the active listings are over $950,000. Currently there is huge buyer demand for virtually no home inventory. This will likely cause continued appreciation in home values the coming year.

SEELEY LAKE LAND SALES FAST FACTS

Over the past 12 months, there has been a total of 80 land parcels sold. The average land price in Seeley Lake has risen from $80,000 to $95,000 a 19% increase! The average land parcel is closing 197 days after being placed on the market in Seeley Lake.

Of the 80 parcels sold, the most areas with the most sales were 40 lots in Double Arrow Ranch and 12 lots in Alpine Trails.

There are 12 vacant land parcels currently for sale. This is half as many as there were in September and is a critical low level. Of these, three are in the golf course, five in Alpine Trails, and three are highway commercial properties. The least expensive vacant land is a lot in the new development of Alpine Trails for $105,000. It is amazing that out of approximately 840 lots in all phases of the Double Arrow Ranch, there is only one vacant land parcel currently for sale. It is 3.26 acres bordering public lands and great views listed at $199,000.

The unavailability of land for sale will trigger additional, and perhaps rapid appreciation on land in the coming spring/ summer.

CONDON RESIDENTIAL SALES FAST FACTS

Over the past 12 months, there has been a total of 18 homes sold. The median home price in Condon has risen from $594,000 to $710,000 a 19.3% increase! seven of those sales were over $1 million. The average home is closing 53 days after being placed on the market in Condon. There are currently only four homes active on the market. Three of the four are listed over $1 million.

CONDON LAND SALES FAST FACTS

Over the past 12 months, there has been a total of 30 land parcels sold. The average land price in Condon has risen from $100,000 to $130,000 a 30% increase! The average land parcel is closing 238 days after being placed on the market in the Swan Valley.

Of the 30 parcels sold, the most sales were eight lots in Glacier Creek Meadows and two parcels in Glacier Ridge and Cougar Run. There are currently three land parcels for sale including 640 acres on Barber Creek for $5 Million, and three parcels are under contract to be sold.

The unavailability of land in the Swan for sale may result in rapid appreciation on land in the coming spring/ summer

HOW LONG WILL THIS MARKET CONTINUE?

The question I get asked most often is "How long will this market continue? Is it near a top?" No one knows for sure but the market data that is available to you can certainly help.

In order to detect a slowing market, I recommend watching market inventory, if market inventory begins rising beyond the normal seasonal declines that occur in our area, that could indicate softening in the market. The other two factors to watch are increasing average days on market and frequent price reductions.

Presently, inventory remains extremely low, average days on market are still going down and there is virtually no inventory, resulting in a very strong market that seems to have the momentum to continue.

AVERAGE MORTGAGE INTEREST RATES

Mortgage interest rates have risen approximately 0.75% in the past four months and more increases in rates are anticipated through 2022 as the Federal Government increases rates in an effort to curb inflation. Current average mortgage loan rates are:

30- year mortgage is 3.625%

15- year mortgage is 2.75%

REAL ESTATE AS A HEDGE AGAINST INFLATION

Real estate has historically been viewed as an investment hedge against inflation. Values of homes that are your residence or a rental property will traditionally keep up with inflation and when you have a mortgage, you lock in a fixed payment for the length of the loan. Rents and new construction costs will continue to rise through inflation, which will act to improve the value of your investment.

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.