Kalispell Market Report: Land - December 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 December 2021. Land sales remained relatively low, properties under contract increased slightly and the total value of land sold was slightly less in December. Sales might decrease as we move into the winter months, but buyers are still active!

 

 
INVENTORY

As of early January, there were 67 residential land parcels for sale in the Kalispell area which is 15% less than the previous month, the fifth decrease in a row.  

Five or more acres

Of the land currently for sale, slightly less 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 - December 2021 pie chart of listings by acreage

 

The currently active properties over five acres range in price from $175K to $4.9M with an average price of $1.2M.

 

The listing at the lowest end of the price spectrum remains the same as last month. It is ~20 acres of property southwest of Kalispell that could have views with some tree clearing. The highest priced parcel is 795 acres bordering Forest Service land.

 
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 4.57 acres and in price from $150K to $1.2M with an average price of ~$305K. 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 $400K 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 - December 2021 sale price/acre by acres

 

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 past year 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. These numbers have remained fairly steady.

 
 
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 December, 13 land parcels sold which was the same as December 2020 and just 1 more than last month. With only 29 land parcels under contract at this time, next month's sales results should be similar to this month's. The number of sales is fairly typical of this time of year.

Kalispell Market Report: Land - December 2021 line chart total 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 December, land sales took 2.8 months and year to date sales have averaged 5.1 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. For example, in December one parcel sold just three weeks after listing!  

 
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. In 2021, $69M worth of land sold, an increase of 33% year over year.

 

In December 2021, $4.3M of land was sold, which was 23% less than the same time last year and 6% less than last month. The 29 land parcels currently under contract have a list price value of close to $13.7M. Next month's results may be higher than this month's, depending on which of those under contract deals close.

Kalispell Market Report: Land - December 2021 bar chart $ sold  

In terms of the lowest and highest prices for a land parcel sold, the lowest price parcel in December sold for less than $100K. It was .29 acre of land in a development on the west side of town. At the other end of the price range were 59 acres of land with no covenants or zoning and views of Flathead Lake and Glacier National Park. This sold for around $1M. 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 posted at thehousekat.com.

 

Comments (30)

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

Wanda Kubat-Nerdin - Wanda Can! - I originally didn't care for that because whose ever heard of a land cat.....  But it's growing on me!

Jan 05, 2022 07:15 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 on Kalispell's land sales, and buyers and sellers would be wise to contact you when ready to move.

Jan 05, 2022 12:35 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank  you Joan Cox !

Jan 05, 2022 01:50 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Thursday morning, Kat.

I hope you are having a productive week.

Jan 06, 2022 05:48 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Roy Kelley  - I wish the same to you

Jan 06, 2022 08:59 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Happy Thursday Kat. Thank you for sharing your Land market report. It is full of useful information Kat 🙂

Jan 06, 2022 08:35 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

This is a really good solid piece of land that kind of looks like a paradise if I do say so myself

Jan 06, 2022 08:46 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Paul S. Henderson, REALTOR®, CRS - Enjoy your Friday!

There is some beautiful land here, Laura Cerrano !

Jan 07, 2022 04:33 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Friday morning, Kat.

Have a great day. I've been out shoveling snow this morning.

Jan 07, 2022 08:18 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Roy Kelley - I know what that's like! Enjoy the rest of your day!

Jan 07, 2022 08:35 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Hi there Kat, what a great job you've done establishing yourself  in the market. I'm so appreciative of your efforts and attitude. Bravo. 

Jan 07, 2022 10:27 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you so much Debb Janes EcoBroker and Bernie Stea JD !

Jan 07, 2022 11:27 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

You are a dynamo, Kat! Love your market report and I can't IMAGINE calling anyone else to help me list or buy Kalispell property!

I love the Land Kat idea Endre Barath, Jr. proposed - definitely fitting for you! 

Jan 09, 2022 08:05 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Debe Maxwell, CRS - I appreciate you kind comment. And the Land Kat is interesting.

Jan 10, 2022 04:37 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Monday morning, Kat.

Take care, be safe and have an outstanding week.

Jan 10, 2022 09:51 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Kat - I really enjoyed your panel presentation.  There are so many adventure available in Kalispel but I see that you also have expensive land.  It is all relative.

You know I think "the land Kat" sounds great!

Jan 12, 2022 08:03 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Wednesday morning, Kat.

Have a great day and an outstanding week.

Jan 12, 2022 08:06 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Kat Palmiotti - The Kalispell area of Montana is filled with beauty.  Clients looking for property there will be well represented by you. 

Jan 12, 2022 09:43 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Roy Kelley - I wish the same to you.

Thank you so much Sheri Sperry - MCNE® - it sure is pretty here!

Jan 12, 2022 10:37 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Grant Schneider - this idea (Land Kat) seems to be gaining traction...

Jan 12, 2022 10:38 AM