Kalispell Market Report: Land - October 2021

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

This report covers the residential land market in Kalispell Montana as of the end of October 2021. Land sales, property under contract and the number of active listings have all decreased, as has total dollar value of land sold. The land market may be finally slowing down after the last few years of very strong sales.

 

 
INVENTORY

As of early November, there were 81 residential land parcels for sale in the Kalispell area which is slightly less than the previous month, for the third time in a row.

 
Five or more acres

Of the land currently for sale, 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.

 

The currently active properties over five acres range in price from $185K to $5.9M with an average price of $1.1M. The highest priced property listed in last month's report (at $22.6M), has expired.

 

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 20 acres of riverfront property that could be rezoned for multi-family use.

 
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 3.42 acres and in price from $75K to $899K with an average price of ~$257K. 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.

 

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 average 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 October, 19 land parcels sold which was 30% less than October of last year and 41% less than last month. This is the second month in a row with decreasing sales. With only 23 land parcels under contract at this time, next month's sales results should be similar, or less than, this month's.

 

 
 
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 October, land sales took 4.5 months and year to date sales have averaged 5.3 months. Obviously land is moving quicker than it has in the past. Property that is priced well for its location, services and amenities can sell relatively 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 October, $60M worth of land has sold, already exceeding the entire year of 2020.

 

That being said, the market does appear to be slowing down. In October 2021, $3.8M of land was sold, which was less than the same time last year and ~50% less than last month.

 

The 23 land parcels currently under contract have a list price value of close to $11M. Next month's results may be higher than this month's, depending on which of those under contract deals close.  

In terms of the lowest and highest prices for a land parcel sold, the lowest price parcel in October sold for less than $65K. It was 20 acres of rural land with physical and legal access challenges. At the other end of the price range were 1.6 acres of land with a 40'x50' shop with 400 amp electric and no covenants. This sold for around $500K. 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! 

 

Originally published at thehousekat.com.

Comments (14)

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

Kat,

I like reading your market reports.  You keep them simple and clear, and I appreciate that.  I am looking forward to the day someone asks me about land in Monana.  I know who to send them to...A

Nov 05, 2021 03:31 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you very much Ron and Alexandra Seigel - I appreciate you!

Nov 05, 2021 06:06 PM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Kat- thank you for another detailed and informative market report for Kalispell!  You really have to find an agent who is knowledgable in land sales!!!

Nov 05, 2021 06:23 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat I loved your market report and all I can say is I hope you are contributing to these statistics, Endre

Nov 05, 2021 11:12 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Kat. If you get a compliment about vacant land from the Los Angeles king of vacant, Endre Barath, Jr., nuff said! Great report. 

Nov 06, 2021 05:26 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Good morning Kathy Streib and thank you!

Thank you Endre Barath, Jr. !

Thank you Wayne Martin and I do love hearing from the Los Angeles king!

Nov 06, 2021 05:45 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

You always give such an extensive report for Kalispell and anyone with questions should certainly pick up the phone and give you a call.

Nov 06, 2021 05:56 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Kat... your report totally underscores why anyone looking to buy or sell land in Kalispell should be hiring a professional like yourself.

Nov 06, 2021 06:15 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Very thorough and easy to understand your market reports Kat. Happy sales to you!

Nov 06, 2021 08:22 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello kat and Thank You for sharing your market report with us here in the Rain.  Love you sharing on facebook about your event this past week!

 

Nov 06, 2021 08:34 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Kat - anyone going west to Kalispell to live absolutely must contact you for the best place to build.

Nov 06, 2021 11:06 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Brian England !

Nina Hollander, Broker - Happy Saturday and thank you.

Thank you Wanda Kubat-Nerdin - Wanda Can!

Grant Schneider  - or east, north or south! haha

Nov 06, 2021 12:31 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Hi Kat,

Thank you for sharing the real estate information. 

Buyers and sellers in your area will benefit from your expertise. 

Wishing you continued success.

Bob

Nov 19, 2021 11:11 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Bob Crane !

Nov 19, 2021 01:57 PM