Kalispell Market Report: Land - September 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 September 2022. Land sales continue to remain low and available inventory continues to increase. The residential land market in Kalispell has slowed from the robustness of the last few years.

 

 
INVENTORY

As of early October, there were 183 residential land parcels for sale in Kalispell which is 6% more than August's inventory of 173. It is the sixth month in a row of increasing inventory.

Five or more acres

Of the land currently for sale ~34% 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 $225K to $4.7M with an average price of $934K.

There are two 5+ acre parcels for sale at the low price point. One is 20 acres of forested land with access issues and one is 8 acres of land with county road access. The highest priced parcel includes 20 acres of riverfront land with rezoning opportunities. Last month's highest priced listing ($4.9M) has expired without selling.

 
Below five acres

In terms of the listings below five acres, many are located in developments. These parcels currently range in size from .09 of an acre to 4.9 acres and in price from $125K to $425K with an average price of ~$240K. 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.

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 nine months of land sales in Kalispell, you can see that as you purchase more land, the average price per acre decreases.

 
 
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 August, 12 land parcels sold which was 63% fewer than last year but twice as much as last month. Last September saw 32 sales compared to 12 this September, which reflects a major market slowdown. There are currently 50 land sales under contract which higher than last month. Those numbers indicate next month may show an improvement over September.

 
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. In September, it took four months on average for the 12 parcels to sell. Property that is priced well for its location, services and amenities can sell relatively quickly, even in this market.

 
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 September 2022, $2.5M of land was sold, 69% less than last September and 16% less than last month. Land parcels currently under contract have a list price value of close to $14.6M. Therefore, next month's results should be better 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 September sold for around $70K. It was .03 of an acre in town. At the other end of the price range was a 5 acre parcel on the west side of town. This sold for around $450K. 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.

This was originally published at thehousekat.com.

 

Comments (18)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

A great, easy to understand report, Kat. And good point about not being able to sell land purely on a price per acre basis. I don't often sell land, but am always telling people you can't just look at price per acre... not too different than trying to buy a home based on price per square foot.

Oct 06, 2022 08:23 AM
Kat Palmiotti

That's a good comparison, Nina Hollander, Broker - exactly, buying a home based on price per square foot and nothing else just doesn't work.

Oct 06, 2022 01:49 PM
Roy Kelley
Retired - Gaithersburg, MD

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

Have a productive autumn.

Oct 06, 2022 08:24 AM
Kat Palmiotti

Thank you Roy!

Oct 06, 2022 01:50 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kat, was thinking your Kalispell land report would be out today.   Love reading on how your properties (land or residential) are selling and what inventory you have.

Oct 06, 2022 08:56 AM
Kat Palmiotti

Haha, Joan Cox -  I guess I'm getting predictable!

Oct 06, 2022 01:50 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I just closed on another building lot this week and I do like selling dirt Kat 🙂

Oct 06, 2022 10:42 AM
Kat Palmiotti

Paul S. Henderson, REALTOR®, CRS - Maybe I should be the dirt diva. hahahahahah

Oct 06, 2022 01:50 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Kat,

A well thought out and easy to understand report on land in Kalispell, Montana. It means a lot more to me know that I have been in Kalsipell (where my friend has a condo) and Whitefish. You have dilgently learned so much and become an expert through your research, love of the land and now envious experience in selling! Kudos to you!!

Oct 06, 2022 01:11 PM
Kat Palmiotti

Thank you so much Dorie Dillard Austin TX - yes, actually being somewhere certainly does help with the visualization process!

Oct 06, 2022 01:51 PM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Kat and Thank You for sharing this great information with us here in the Rain.  Make it a great day!

Oct 06, 2022 01:38 PM
Kat Palmiotti

I hope you have a great day as well Will Hamm 

Oct 06, 2022 01:51 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Kat,

You have a lot of specific info to help buyers and sellers understand the process more.  This helps to point out your expertise in your market.  I have listed and sold many parcels of land or lots, and there is much to know.  Your clients can trust that you will have the necessary information to make the proper decision.

 

Oct 06, 2022 01:51 PM
Kat Palmiotti

Thank you very much for your kind words Sheri Sperry - MCNE® !

Oct 07, 2022 04:20 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Kat- I've learned quite a bit from your market reports on land. You're not just buying the dirt and trees...there's a lot more to it. I wouldn't know where to begin if I were buying land. 

Oct 06, 2022 06:37 PM
Kat Palmiotti

If you were buying here, I'd help you with the process Kathy Streib !

Oct 07, 2022 04:20 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

The Land Kat will certainly help you find the perfect lot in Kalispell, you better give her a call right away!

Oct 07, 2022 03:09 PM
Kat Palmiotti

haha, thank you Brian England !

Oct 07, 2022 03:26 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Hi Kat,
Thank you for sharing the Kalispell real estate information.
Buyers and sellers in your area will benefit from your expertise.
Wishing you continued success.

Bob

 

Oct 07, 2022 10:31 PM
Kat Palmiotti

Thank you Bob Crane - I wish the same for you.

Oct 08, 2022 04:28 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

Your Kalispell reports are always so informative Kat. Have only sold land a couple of times in our career and it's a totally different niche. You are great at this!

Oct 08, 2022 06:03 AM
Kat Palmiotti

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

Oct 08, 2022 07:20 AM
Roy Kelley
Retired - Gaithersburg, MD

Good Saturday morning, Kat.

Have a great day and a very special holiday weekend.

Oct 08, 2022 07:08 AM
Kat Palmiotti

Thank you Roy! Until you said that, I didn't realize it was a holiday weekend!

Oct 08, 2022 07:20 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Kat Palmiotti, the "Dirt Diva!" I like your comprehensive marketing reports. They are like you, upfront and honest. After meeting you and having conversations, that's exactly how I think of you. 

Oct 08, 2022 10:11 AM
Kat Palmiotti

Thank you Patricia Feager, MBA, CRS, GRI,MRP ! Haha, isn't the dirt diva funny? And thank you for your compliments. :-) I appreciate you!

Oct 08, 2022 10:21 AM
Patricia Feager, MBA, CRS, GRI,MRP

Kat Palmiotti - I love it! It's funny, memorable, and could be a selling point for you in marketing and sales! Keep going, Dirt Diva!!!

Oct 08, 2022 10:22 AM
Roy Kelley
Retired - Gaithersburg, MD

Good Monday morning, Kat. Have a great day and an outstanding week.

Oct 10, 2022 07:26 AM
Kat Palmiotti

Thank you Roy!

Oct 10, 2022 08:24 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Kat - your report looks like more of a normal market now.  You have many opportunities for buyers depending on lifestyle.

Oct 10, 2022 07:31 AM
Kat Palmiotti

True Grant Schneider - buyers have a lot of options at the moment.

Oct 10, 2022 08:24 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Good morning, Kat Palmiotti - I just thought I'd stop by again to say, it's always nice to visit with you in person, by phone, or via ActiveRain.

Enjoy your day and keep making others smile. 

Oct 12, 2022 05:51 AM
Kat Palmiotti

Thank you Patricia Feager, MBA, CRS, GRI,MRP !

Oct 12, 2022 08:08 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat every time I see your Land Market Report, I keep saying to myself SELF need to do one of these:)Endre

Oct 13, 2022 10:48 PM
Kat Palmiotti

I can't wait to see it Endre Barath, Jr. !

Oct 14, 2022 04:28 AM
Roy Kelley
Retired - Gaithersburg, MD

Good Friday morning, Kat.

Have a great day and a very special weekend.

Oct 14, 2022 09:06 AM
Kat Palmiotti

Thank you Roy - the same to you!

Oct 14, 2022 11:52 AM