Kalispell Market Report: Land - October 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 October 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 November, there were 184 residential land parcels for sale in Kalispell which is essential flat compared with October's inventory of 183. Although a gain of one is very small, it is still the seventh month in a row of increasing inventory.

Five or more acres

Of the land currently for sale 33% 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 - October 2022 pie chart of active listings by size

The currently active properties over five acres range in price from $225K to $4.9M with an average price of $915K.

Same as last month, 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 795 acres that borders 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 .09 of an acre to 4.9 acres and in price from $125K to $1.8M with an average price of ~$255K. 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 - October 2022 table of 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 ten 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 October, 14 land parcels sold which was 26% fewer than last year but 17% more than last month. Last October saw 19 sales compared to 14 this October and as the chart below indicates, sales in 2022 have been lower in every month compared to last year. There are currently 41 land sales under contract which is lower than last month.

Kalispell Market Report: Land - October 2022 bar chart 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 2021 was 5.1 months which was significantly less than the previous year. In October 2022, it took six months on average for the 14 parcels to sell. Year to date land has taken on average 4.4 months to sell but with the longer time required in the last few months, this metric is on its way up.

 
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 October 2022, $4.1M of land was sold, 10% more than last October and 66% more than last month. Land parcels currently under contract have a list price value of close to $12.2M. So many factors go into the $ value of land sold that this is more of an informational fact than a predictive one.   Kalispell Market Report: Land - October 2022 bar chart of $ sold

 

In terms of the lowest and highest prices for a land parcel sold, the lowest price parcel in October sold for around $40K. It was .9 of an acre in town. At the other end of the price range was a 12 acre parcel with mountain views and use of a Foys Lake dock. 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.

 

Comments (10)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat loved your detailed Land Market Snapshot.... note to self copy and do something similar for the greater Los Angeles Land Market, Endre

Nov 05, 2022 10:46 PM
Kat Palmiotti

I look forward to reading it Endre Barath, Jr. !

Nov 06, 2022 04:28 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

A great report, Kat, as always. Not surprised to see land sales mirroring a lot of what we see in residential housing sales right now.

Nov 06, 2022 05:01 AM
Kat Palmiotti

Nina Hollander, Broker - yes, land is even slower now that homes.

Nov 06, 2022 06:22 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

Kat, Your Kalispell Market Reports are so thorough. Both land buyers and sellers in the area need to call you for your knowledge and expertise. Land selling must be an exciting niche!

Nov 06, 2022 05:14 AM
Kat Palmiotti

Thank you Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 - I certainly love it!

Nov 06, 2022 06:22 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, thanks for sharing the land report for October, and 5 months on the market doesn't sound too bad, for land.

Nov 06, 2022 07:24 AM
Kat Palmiotti

Joan Cox - Sellers are disappointed to hear that before they put it on the market!

Nov 06, 2022 08:35 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Kat,

Great report.  You are so right.  There is a lot of nuance with land.  Views, size of property, easements, utilities, roads, natural resources, etc., etc.  Fortunately, Kalispell has your expertise to help buyers and sellers through it all.

Nov 06, 2022 01:41 PM
Kat Palmiotti

Thank you Sheri Sperry - MCNE® ! I hope you are enjoying your Sunday.

Nov 06, 2022 02:21 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Kat Palmiotti - there are two things that stands out to me that you are a cut above the rest when it comes to marketing land in your areas of Montana.

1) The content is exceptional; 2) Your video sums it all up succinctly without a minute wasted. 

I like your intro with a beautiful Business Card with stunning photograph. Second seeing you on video to know who you are and learn more about how you present marketing with confidence and knowledge. And third a very well executed marketing report.

Kat, you are the Best!

Nov 07, 2022 03:20 AM
Kat Palmiotti

Thank you so much for all your kind words Patricia Feager, MBA, CRS, GRI,MRP ! That photo was taken a few weeks ago of the valley at the bottom of my driveway. I love that view in the morning!

I hope your week is stupendous!

Nov 07, 2022 04:38 AM
Patricia Feager, MBA, CRS, GRI,MRP

Kat Palmiotti - you have a beautiful view at the bottom of your hill. It has to bring a smile to your face everyday. As the seasons change, the beautiful landscape changes too. You chose wisely when you bought land and built a home. 

I wish the same to you!!!

Nov 07, 2022 04:46 AM
Roy Kelley
Retired - Gaithersburg, MD

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

Have a very productive week.

Nov 07, 2022 06:19 AM
Kat Palmiotti

You too Roy!

Nov 07, 2022 02:22 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Kat - you do a great job with you market reports.  It appears to be a changing market just about everywhere.

Nov 07, 2022 08:21 AM
Kat Palmiotti

Thank you Grant Schneider - it definitely is here!

Nov 07, 2022 02:22 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

You never fail Kat to answer all my questions before I am able to think them 🙂

Nov 14, 2022 02:25 PM
Kat Palmiotti

Haha, Paul S. Henderson, REALTOR®, CRS - thank you!

Nov 15, 2022 04:23 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Hi Kat,

Beautiful land and amazing prices, thanks for sharing the knowledge of the market.

Bob

Nov 25, 2022 10:37 PM
Kat Palmiotti

And thank you for your comment, Bob Crane !

Nov 26, 2022 04:44 AM