Kalispell Market Report: Land - April 2022

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 April 2022. Land sales increased slightly, properties under contract decreased and available inventory remained relatively unchanged. The total value of land sold increased.

 

 

INVENTORY

As of early May, there were 49 residential land parcels for sale in Kalispell which is relatively flat with April's inventory of 46. It is the first time inventory has increased in the last nine months. That being said, inventory remains low.

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 - April 2022 pie chart of listings by acreage

The currently active properties over five acres range in price from $225K to $7.8M with an average price of $1.6M.

The lowest and highest priced parcels are the same as last month. The five+ acre listing at the lowest end of the price spectrum is ~8 acres of forested land along a county road. The highest priced parcel is 115 acres adjacent to Route 93, with potential for commercial, industrial or residential building.

 
Below five acres

In terms of the listings below five acres, many are located in developments. These parcels currently range in size from .34 of an acre to 4.57 acres and in price from $165K to $1.2M with an average price of ~$407K. 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 $200K and another $500K 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 in Kalispell 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 - April 2022 table of sold price/acre by size

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 four months of land sales in Kalispell, you can see that as you purchase more land, the average price per acre decreases. Prices remained relatively flat in all categories except in the <1 acre group which saw an 8% increase.

 
 
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 April, 22 land parcels sold which was 31% fewer than last year and just slightly higher than last month. In last month's report I suggested April would be relatively flat with March. It was, with only 2 more sales this month. Next month should continue at about the same rate.

Kalispell Market Report: Land - April 2022 bar chart of number of sales

 
 
Length of Time to Sell

Land listings typically take longer to sell than home sales. The average days on market for land in 2021 was 5.1 months which was significantly less than the previous year. For the last four months, land has been taking about 5 months to sell on average. It will be interesting to see how this measurement changes over the next few months. 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.

In April 2022, $9.7M of land was sold, 11% more than last March and 57% more than last month. Land parcels currently under contract have a list price value of close to $18M. Next month's results may be similar to this month's, depending on which of those under contract deals close.

Kalispell Market Report: Land - April 2022 bar chart of total $ sold  

 

In terms of the lowest and highest prices for a land parcel sold, the lowest price parcel in March sold for less than $190K. It was approximately a third of an acre in the Aspen Creek subdivision. At the other end of the price range were 147 acres of land with views and no covenants or zoning. This sold for around $1.8M. 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.

Comments (22)

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

Hello Kat and always great to see your blogs  and thank you for the great information to share with us here in the Rain.  Make it a great day!

May 04, 2022 10:51 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Happy Hump Day!

Thank you for sharing the information. Buyers and sellers in your area will benefit from your expertise. Wishing you continued success.  Have a wonderful day and sell a house.  bill

May 04, 2022 11:27 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Kat - looks like a nice selection of land to find a buyers wants.  No change in inventory?  We will be waiting for the next report to see the trend.

May 04, 2022 12:18 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Will Hamm - I wish the same for you!

Thank you Bill!

Grant Schneider - We shall see!

May 04, 2022 03:51 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat love your market reports and I keep telling myself I need to do one one of these days:)Endre

May 04, 2022 11:02 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Endre Barath, Jr. - Thank you! If I had your schedule, I'd definitely hire that task out!

May 05, 2022 04:39 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Kat, for sharing your excellent local real estate reports.

May 05, 2022 04:58 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

There definitely is a lot of beautiful lands to be purchased in Kalispell and if I were looking for land there, you would certainly be the one helping me find it.

May 05, 2022 06:16 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Roy Kelley!

When are you coming, Brian England ? haha

May 05, 2022 08:14 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Friday morning, Kat.

Have a great day and a very special weekend.

May 06, 2022 05:21 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 with tons of valuable information for anyone looking to buy land in and around Kalispell.

May 06, 2022 07:48 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I can’t begin to tell you that your thoroughness is incredible, I really mean it. I gained so much insight from your market reports, I am eager to dissect each and everyone of them. Happy Cinco de Mayo Kat 🙂

May 06, 2022 09:33 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

I hope your weekend is wonderful also Roy Kelley!

Thank you Joan Cox !

Paul S. Henderson, REALTOR®, CRS - You made me smile! Thank you. And Happy 6 of Mayo! :-)

May 06, 2022 02:42 PM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Excellent explanation as to why you can't just average the land price and apply it to a parcel...there are many factors that weigh in.

May 07, 2022 04:22 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you 1~Judi Barrett !

May 08, 2022 05:07 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Kat,

I bet it is just beautiful up in Kalispell this time of year.  Great analysis of pricing land.  II have had to price a lot of different parcels over the years and besides views, water rights are a big factor in pricing.  I also have to determine the cost of bringing utilities to the property.  Kalispell buyers and sellers are lucky to have you! 

May 08, 2022 03:38 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you for your kind comments Sheri Sperry - MCNE®  - it IS beautiful here at this time! The grass is green, the trees are sprouting leaves, flowers are growing, birds are singing. Ahh.

May 09, 2022 05:08 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Tuesday morning, Kat. Thank you very much for your comments on my posts.

May 10, 2022 07:41 AM
Kat Palmiotti

And thank you Roy

May 10, 2022 01:14 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Kat Palmiotti - since the first time I landed in Montana I was cognizant of the beautiful land and it didn't take long for me to start snapping photos. All I know how to do is take photos of great land/landscaping. Clearly your love for the land took you on another adventure and now you are the Queen of Selling Land in Montana here on ActiveRain. When it comes to marketing land and real estate opportunities in Flathead, you surely excel!

May 14, 2022 04:29 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you Patricia Feager, MBA, CRS, GRI,MRP - And you know how to take those photos! I love how you can make an adventure out of everything and anything! I hope there comes a day when you can once again snap photos of the Montana mountains and lakes and streams and wildlife.

May 14, 2022 04:43 AM
Patricia Feager, MBA, CRS, GRI,MRP

Thank you, Kat Palmiotti! By the way, a few days ago I received my invitation to the Flathead River Writers Conference - oh, so tempting!!! I'll let you know if I decide. All I can say now is that I need updated land photos! 

May 14, 2022 05:52 AM