Kevin Wetherell of Clearwater Montana Properties, Inc.
Thus far in 2023, there has been a total of 34 homes sold, which is behind the pace of the 45 total homes that sold in 2022. The number of homes for sale has continued to rise as sales have slowed not only in our area but throughout Montana. All markets have seen increases in inventory, price reductions and increasing days on the market.
SEELEY LAKE RESIDENTIAL SALES FAST FACTS
In 2023, the average home price in Seeley Lake has dropped to $517,000 compared to $653,000 in 2022. The average home closes in 92 days after being placed on the market in Seeley Lake. There are currently 21 homes active on the market, which is up from 14 for sale at the beginning of summer. The homes range from $215,000 to $9 million, with the average list price being $1,148,000 and have been on the market an average of 178 days. There are currently four homes under contract to be sold. While values have remained relatively at the same level for the past year, if inventory of active listings continue to build, home values will begin to decline. This could create an entry opportunity for those who are unable to purchase at present values.
CONDON RESIDENTIAL SALES FAST FACTS
Thus far in 2023, there have been eight homes sold in the Swan Valley, which is behind the pace of the 10 total homes that sold in 2022. This year to date, the average home price in Condon has risen to $1,001,000 compared to $761,350 in 2022. There are currently nine homes active on the market in Condon. Four of these are listed over $1 million, and the least expensive is $539,000. The average home list price is $1,703,000 and has been on the market an average of 248 days. The average home closes in 120 days after being placed on the market in Condon. The Condon/ Swan Valley market remains very strong, especially for larger parcels of land.
SEELEY LAKE LAND SALES FAST FACTS
Thus far in 2023, there have been 20 vacant land parcels sold in the Seeley Lake area, which is substantially behind the pace of the 49 total parcels that sold in 2022. This year to date, the average land parcel price (excluding lakefront land) in Seeley Lake has dropped to $217,000 compared to $224,000 in 2022. There are currently 17 land parcels active on the market in Seeley Lake. These parcels range in price from $150,000 for 0.53 acre in Alpine Trails to $6 million for 297 acres on the Clearwater River on the outlet of Salmon Lake. Three vacant land parcels are under contract to be sold. The average land parcel closes in 170 days after being placed on the market.
CONDON LAND SALES FAST FACTS
Thus far in 2023, there have been seven vacant land parcels sold in the Condon/ Swan Valley area for an average of $2,185,000, which is well behind the pace of the 19 total parcels that sold in 2022. This year to date, land parcels have been selling in the $16,000/ acre range, even for larger parcels of 120-160 acres. There are currently three land parcels active on the market in Condon with an average list price of $1,375,000. No vacant land parcels are presently under contract to be sold. The average land parcel closes in 180 days after being placed on the market. The Condon/ Swan Valley market remains extremely strong with many buyers in the market, especially for larger parcels of land. The Glacier Creek Meadows development, which includes one acre building sites with expansive mountain views and surrounded by large areas of open space, is selling very well in the $200,000 range. The Condon/ Swan Valley market remains strong for larger parcels of land, inventory is lacking to achieve more sales.
INTEREST RATES, CASH AND BUYER CONFIDENCE
Thirty-year mortgage rates have more than doubled this year and are currently around 7.4% and 15-year rates are currently at 6.8% which has dropped in the last 60 days. Over the past eight years most homeowners have obtained new mortgages with 3-4% interest rates, and many have been unwilling to sell their current home and give up their 3% mortgage rate and move on to a new home with a 8% interest rate. This has resulted in less buyers entering the market and less market turnover, slowing the entire housing market.
Although there are a lot of buyers sitting on cash, they are less willing to use cash to purchase real estate than they were previously. This is primarily because they can now receive over 5 % interest on their savings ad an overall lack of confidence to part with their cash resources given the current economy.
THE MOST EFFECTIVE UPDATES YOU CAN MAKE ON YOUR HOME
If you have decided to stay in your present home during this market time, you might want to consider the most cost-effective updates to make to increase your home desirability and value. Listed in the order of maximum benefit:
Kitchen countertops – update to quartz or granite, with new tile backsplash. Light colors and grays are in.
Kitchen appliances – update to higher quality GE or Maytag appliances in stainless steel, black stainless steel or matte black. Gas stoves are preferred by many buyers in the area.
Bathroom – New countertops, sinks and large walk-in tile showers are most desired.
Build a large shop or garage – Outbuildings such as this are very desirable and are frequently requested. The current cost to build one certainly makes your home and property more desirable, but you are likely "trading dollars" and not increasing your home value.
New flooring – Always a good idea. Lighter colored vinyl plank or wood laminate are desired for cleanliness and durability.
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.
Reader Comments(0)