Kalispell Market Report: Land - December 2020

By
Real Estate Broker/Owner with 406-270-3667, kat@thehousekat.com, Broker, eXp Realty RRE-BRO-LIC-75443

This report covers the residential land market (active listings and sales) in Kalispell Montana as of the end of December 2020. Similar to the housing market, land sales have been very strong.

 
Inventory

As of early January, there were 98 residential land parcels for sale in the Kalispell area, which is an 18% decrease since the last month's report. The decrease is attributable both to properties going under contract and some listings expiring.

Kalispell Market Report: Land - December 2020 pie chart of land listings by size
 
Five or more acres

Of the land currently for sale, 45% of listings include five or more acres. While most of the land in Montana could be considered rural, I define rural as those properties in the 5+ acre category. Those are most likely to be parcels located on a gravel mountain road, or adjacent to National Forest or lumber parcels. They are often not located in a development, but by themselves, and provide privacy and multiple building and use options.

 

This month, the active properties over five acres range in price from $90,000 to $3.5M with an average price of $678K. The listing at the lowest end of the price spectrum is 20 acres of secluded property, with views of mountains. The highest priced property includes 185 acres adjacent to a conservation easement and located in between the Flathead River and Ashley Creek. This is billed as a wildlife and hunting landowner dream and it's listed for $3.5M.

 

As you can see, price per acre can vary dramatically from listing to listing. The 20 acre parcel is approximately $4,500 per acre while the 185 acre plot is more than $18,900. Looking at all the rural parcels for sale, the least expensive price per acre is $3,718 and the most is $129,268 an acre. Now that is a huge difference!

 
Below five acres

In terms of the listings below five acres, many are located in developments. These parcels range in size from .12 of an acre to 4.6 acres and in price from $59,900 to $790,000 with an average price of $155K. Many of these come with monthly or annual HOA fees. They are also often covered by CCRs or Covenants, Conditions and Restrictions which define rules for building and living in that area.

 
Bottom line

The bottom line with land in Kalispell, Montana is that every piece is unique, with different requirements, rules, views, utility options, amenities and of course prices. If you want to purchase land, in addition to knowing what you want to spend, you'll need to know how you want to use it, what kind of amenities you might like, and what kinds of rules you could live with. That will help you and your real estate professional select the right locations and parcel sizes!  

 
Sales Trends

Land listings continued to sell at a very strong rate all year. In fact, there were 43% more land sales in 2020 than the year before. In addition, there are currently 27 pending/under contract land deals, so the strong results should continue into 2021.

Kalispell Market Report: Land - December 2020 bar chart of land sales

 
Length of Time to Sell

Land listings typically take longer to sell than home sales. The average days on market for land in 2020 was 7.3 months. Last year, the average for the same time period was 8.6 months. Land listings are, on average, selling slightly faster. But it's not that big of a difference to move the residential land market to a seller's market.

 

As mentioned previously, my explanation of the longer timeframe to sell land has to do with the buyer market. There are fewer buyers who want to start from scratch, buying the land and then waiting for a home to be built. And those buyers who ARE interested in doing so have very particular requirements.

 

It sometimes takes them quite a while to find the right parcel that has the right views. Or the one that is facing in the correct direction, has the right kind of building site, has the required utilities, the desired covenants (or not) and so on. Once they do find that perfect parcel, it takes some time to do their due diligence. Can they get appropriate internet and cell service? Are the roads passable in the winter? Who plows them? What might it cost to dig a well or add a septic system? So the estimated 7 months from listing to sales is not unreasonable.  

 
Sales Prices

Average or median sales prices are meaningless when discussing land sales. The qualities of one lot over another are so different as to make most comparisons moot. That being said, I am including a view of the total dollar value of all land sold per month to provide some kind of comparison to the previous year.

 

As can be seen by the red bars in the chart below, the total value of land sold in 2020 far exceeds 2019. In 2020, $52M of residential land sold. The total amount sold the previous year was less than $25M. So 2020's results were more than double the previous year. Also of interest, there are currently 27 land parcels under contract with a list price value of nearly $6M. The January 2021 results should be higher than both January 2020 and 2019.

Kalispell Market Report: Land - December 2020 bar chart of $ spent

In terms of the lowest and highest prices for a land parcel, the lowest price parcel in December sold for around $70K. It was 0.20 of an acre in a subdivision with access to city sewer and water. At the other end of the price range were 171 acres of land with potential for a residential development. This sold for more than $3M. The bottom line about prices for land - no matter your budget, you can find options in your price range!

 
Summary

Every piece of land is unique, even those in a development. Views can be dramatically different just moving from one acre to another. If you are interested in selling or buying land, and you want to work with a boot-wearing broker who is ready to find the borders, call me at 406-270-3667. I'd be happy to help!

 

To see previous land-related market reports, click here.

 

For current land for sale in the Kalispell area, scroll to the bottom of this link. 

Posted by

Licensed Broker, CBR®

 

eXp Realty LLC

P.O. Box 10458

Kalispell, MT 59904

 

email: kat@thehousekat.com

www.thehousekat.com

 

406-270-3667 (MT)

 

facebook    Kat's Homes

 

 

Comments (17)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Kat and good job with your land report for your area.  Always good to see you at a zoom meeting.

 

Jan 06, 2021 09:03 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Looks like the market rocked in the second half of the year. Love those large properties.

Jan 06, 2021 10:54 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Will Hamm - Thank  you and you too!

Jeffrey DiMuria 321.223.6253 Waves Realty - I love them also!

Jan 06, 2021 01:41 PM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

You definitely do a great job of showing off the land for sale in Kalispell and before too long, you will certainly be the go-to gal for all things land in Kalispell.

Jan 07, 2021 06:11 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Seems that a land expert is what buyers will need to find the right location and property in Montana. In Kalispell, Kat Palmiotti is the REALTOR to work with!

Jan 07, 2021 07:57 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Nice market report for land in Kalispell. Hope you're having a good week. D

Jan 07, 2021 09:28 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Thank you Brian England !

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 - Thank you!

Yes, Debb Janes EcoBroker and Bernie Stea JD  - the week is going well. I wish the same for you!

Jan 07, 2021 11:14 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat you are so good at this I always talk about doing reports and well it remains in the dream stage:)Endre

Jan 09, 2021 10:03 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Haha, Endre Barath, Jr. - Once you do the first one, the next ones can just be an update!

Enjoy your Sunday!

Jan 10, 2021 05:05 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kat, great market report on the land sales for Kalispell, and really like that you incorporated a video.

Jan 10, 2021 10:44 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Thank you Joan Cox - I don't really like watching videos, but apparently lots of people do!

Jan 10, 2021 03:09 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for sharing your outstanding local real estate reports.

Jan 13, 2021 08:06 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

And thank you for stopping by Roy Kelley !

Jan 13, 2021 10:28 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I'm so impressed with your reports, Kat! Love the comparisons of lots - that's a huge difference in price per acre too. I'm assuming the views have everything to do with that?!

Jan 17, 2021 10:27 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

There are a lot of factors in the price per acre, Debe Maxwell, CRS - Whether it's waterfront, whether utilities are already in place, whether there's a house site prepared, whether the access road is maintained by the county or not, and on and on!

Jan 17, 2021 12:33 PM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

That's why anyone looking to buy in Kalispell would be wise to call YOU, Kat! 

Jan 17, 2021 12:47 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Just thought I would take a look back at some of your previous Kalispell blog posts, for reference Kat. It was worth the journey, thank you...

Oct 17, 2021 03:35 PM