Kalispell Market Report: Land - September 2021

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 in Kalispell Montana as of the end of September 2021. The land market remains strong.

 

 

 
INVENTORY

As of early October, there were 85 residential land parcels for sale in the Kalispell area which is slightly less than the previous month, for the second time in a row. That being said, there are still choices for buyers.

 
Five or more acres

Of the land currently for sale, slightly more than half of the listings include five or more acres. I define rural as those properties in the 5+ acre category. Those are most likely to be parcels located on a gravel mountain road, agricultural farming land, or acreage 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 usage options. Kalispell Market Report: Land - September 2021 pie of number of listings by acreage

 

The currently active properties over five acres range in price from $185K to $22.6M with an average price of ~$1.5M. The listing at the lowest end of the price spectrum is ~20 acres of property southwest of Kalispell. The property could have views with some tree clearing. The highest priced parcel is listed as residential but is marketed for future development. It includes 226 acres of land off Route 93 near the Majestic Valley Arena.

 
Below five acres

In terms of the listings below five acres, many are located in developments. These parcels currently range in size from .19 of an acre to 4.97 acres and in price from $75K to $1.1M with an average price of ~$273K. 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.

 

 

PRICING

Price per acre can vary dramatically and often doesn't seem to make sense when viewing prices. Why is one 20 acre parcel priced under $100K and another $300K or more? Great question. Following are some pricing rules that seem to be true for land.

 

The first is, every parcel is unique. With land, you can't say the average price is $/acre, and this is a 20 acre parcel and therefore it should be $/acre times 20 acres. Instead, the specific topography, physical and legal access, utility availability, distance from town, potential usage, views, zoning, covenants and more need to be taken into account in order to come up with a legitimate price point. If you are thinking of selling your property and are told by an agent that the average price for land is a certain amount, and that you can just multiply that by the number of acres you have, call me. That's simply not the way the process works. Kalispell Market Report: Land - September 2021 table with average sale price/acre based on # acres sold

 

The second general rule is that the more land you are selling or buying, in general, the less you should expect to pay per acre. For example, looking at the last nine months of rural land sales in Kalispell, you can see that as you purchase more land, the price per acre has decreased. Price per acre generally drops as you buy or sell more land.

 
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.

 
 
SALES

In September, 32 land parcels sold which was only slightly less than August's record setting months. In addition, September sales were also similar to September 2020 when 36 parcels were sold.

 

Kalispell Market Report: Land - September 2021 bar chart of # 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. In September, land sales took only 3.25 months and year to date sales have averaged at 5.3 months. Obviously land is moving a lot quicker than it has in the past. Property that is priced well for its location, services and amenities can sell quickly.  

 
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 in the chart below, 2020 total land sales equaled $52M which was more than double the previous year. Through the end of September, $56M worth of land has sold, already exceeding the entire year of 2020. In September 2021, $8M of land was sold, which was similar to the same time last year and ~27% less than last month. Even with that drop, land value in Kalispell remains very strong. Also of interest, the 31 land parcels currently under contract have a list price value of nearly $16M. Next month should continue similar to this month.

 

Kalispell Market Report: Land - September 2021 bar chart of $ sold 

In terms of the lowest and highest prices for a land parcel sold, the lowest price parcel in September sold for around $80K. It was 1/4 acre of land in a subdivision on the west side of town. At the other end of the price range were 20 acres of land with highway frontage and a potential for zoning changes. This sold for around $850K. 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. I love walking land with clients! 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.

 

Originally published at thehousekat.com.

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)

Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Kat,

This is another excellent report of the land and residential real estate in Kalispell.  There is no doubt in my mind that you would be the perfecct one to refer.  A

Oct 08, 2021 01:27 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Kat - the  takeaway about the land is that there are no assumptions and each parcel has its own opportunities. Very well  explained.

Oct 08, 2021 06:36 PM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Kat- there is so much to know in real estate, and especially so when dealing with the sale of land.  You have shown that you really have become the local expert for Kalispell. 

Oct 08, 2021 06:50 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Thank you for your kind words, Ron and Alexandra Seigel !

Grant Schneider - That's the takeaway! I could have done an 11 word post and be done with it. Hahaha.

Kathy Streib - I appreciate your comment!

Oct 09, 2021 04:40 AM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

When I think of Kalispell, I think of the House Kat, she always has the best real estate advice for the area!

Oct 09, 2021 05:52 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Kat Palmiotti - You always do a nice job with your videos!  I always enjoy learning about land opportunities in your area.  Thank you. 

Oct 09, 2021 08:52 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Kat, for sharing this report.

Take care, be safe and have a lovely weekend.

Oct 09, 2021 08:53 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

You have so much knowledge about this area Kat, and that's why anyone interested in buying in this area need to call and work with you!

Oct 09, 2021 02:13 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Aww, thank you Brian England .

And thank you Sheri Sperry - MCNE® !

I hope you have a wonderful weekend also Roy Kelley !

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

Oct 09, 2021 06:22 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Kat Palmiotti - Having met you in person and spending time talking with you, I can honestly say that your video presentation is very convincing and impressive. You know your market. When it comes to answering questions and telling people what they need to know, you know the answers without needing a script or looking up to fetch for answers with your eyes, or shooting from the hip. You tell it straight. I would definitely hire you for my representation buying land or real estate. 

Oct 10, 2021 06:25 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Thank you so much Patricia Feager, MBA, CRS, GRI,MRP !!!  Since I'm not a huge fan of the way I appear on video (not many people are), I appreciate any positive feedback!

Oct 10, 2021 06:30 AM
Patricia Feager, MBA, CRS, GRI,MRP

Kat Palmiotti - you look great and you are authentic. 

Oct 10, 2021 06:49 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 report for the Kalispell land market.   Same thing here - the more acres you buy, the price goes down/acre.

Oct 10, 2021 07:15 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

I'm not surprised, Joan Cox - that makes sense to me!

Oct 10, 2021 09:54 AM
Dick Betts
TOUCHSTONE REAL ESTATE - The Villages, FL
REALTOR® The Villages, Florida

Kat Palmiotti you live in such a beautiful area, I spoke once at your association many years ago and so much enjoyed the milk truck plane ride coming and going!

Oct 11, 2021 07:59 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Thank you Dick Betts for your memory! It is indeed such a beautiful place!

Oct 12, 2021 04:50 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

As I have said before; your market reports are a work of art and hard work Kat Palmiotti 

Oct 13, 2021 10:25 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Thank you Paul S. Henderson, REALTOR®, CRS !!

Oct 13, 2021 02:07 PM