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

 

 
INVENTORY

As of early November, there were 178 residential land parcels for sale in Kalispell which is slightly less than November's inventory of 184. This is the first drop in inventory since early this year.

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 $2.9M with an average price of $843K.

The lowest priced property includes 8 acres of land with county road access and nearby electric. The highest priced parcel has 13 acres that border Highway 2 with sewer and city water access. The 795 acre parcel that was priced at $4.9M and was last month's highest priced listing 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 4.88 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 - November 2022 table of price by sized parcels

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 11 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 November, only five land parcels sold which was 58% fewer than last year and 64% less than last month. Last November saw 12 sales compared to 5 this November. Land sales in 2022 have been lower in every month compared to last year. There are currently 37 land sales under contract which is also lower than last month.

Kalispell Market Report: Land - November 2022 Bar chart 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. In October 2022, it took nearly six months on average for the five parcels to sell.

 
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 November 2022, $1.6M of land was sold, 65% less than last November and 61% less than last month. Land parcels currently under contract have a list price value of close to $8.5M. 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 - November 2022 bar chart of $ sold      

 

In terms of the lowest and highest prices for a land parcel sold, the lowest price parcel in November sold for around $170K. It was 1.2 acres on the east side of town. At the other end of the price range was a 20 acre parcel with a hunters cabin and outhouse about 20 minutes outside of town. This sold for around $375K.  

SUMMARY

The land market has slowed significantly since last year. If you are interested in purchasing land in Kalispell, now is the time to do so with lower competition and more choices. 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 (16)

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

Hi Kat... is this drop in sales due to market shifts or season changes? I suppose it could be both.

Dec 06, 2022 08:58 AM
Nina Hollander, Broker

Kat Palmiotti 😂🤣😂

Dec 06, 2022 11:56 AM
Kat Palmiotti

Both Nina Hollander, Broker - I think most is market.

PS - if you noticed my shirt, I wore that for you so you'd think it was flannel and shudder (it's not)

Dec 06, 2022 11:34 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Great report, Kat. The uniqueness of each parcel would, no doubt, make it confusing without someone like you to explain the various factors involved.

Dec 06, 2022 08:59 AM
Kat Palmiotti

Thank you Carol Williams - the phone line is open! :-)

Dec 06, 2022 11:34 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Kat,

Many people, including realtors,  forget the demands of positioning land in the market.  There are so many factors that go into this. You have the skill to determine an accurate and fair price for land due to your vast experience in this market.

Dec 06, 2022 09:09 AM
Kat Palmiotti

Thank you so much for your comment Sheri Sperry - MCNE® !

Dec 06, 2022 11:33 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Great info, thanks for sharing! 

Dec 06, 2022 09:27 AM
Kat Palmiotti

Thank you Lise Howe !

Dec 06, 2022 11:33 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, sounds like everything is slowing down up there, and hopefully will pick back up after the New Year!

Dec 06, 2022 09:30 AM
Kat Palmiotti

I hope so Joan Cox !

Dec 06, 2022 11:33 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

Land sales is such an interesting niche to be in Kat.  Without comparisons as to their uniqueness, buyers really need your expertise in this field!

Dec 06, 2022 12:31 PM
Kat Palmiotti

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

Dec 06, 2022 01:19 PM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

What a great, informative and truly detailed market report. Fantastic job for sure.

Dec 06, 2022 01:42 PM
Kat Palmiotti

Thank you Rocky Dickerson !!

Dec 06, 2022 03:10 PM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Lots of beautiful land for sale in the Kalispell area and anyone that is interested should definitely be giving the House Kat a call!

Dec 07, 2022 05:06 AM
Kat Palmiotti

Thank you Brian England !!  The phone line is open!

Dec 07, 2022 05:18 AM
Roy Kelley
Retired - Gaithersburg, MD

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

Have a very productive December.

Dec 07, 2022 08:01 AM
Kat Palmiotti

I hope you have a very non-vertigo December!

Dec 07, 2022 10:09 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Kat - I know it is getting cold there now.  I might be a good time for a determined buyer to explore what is available.

Dec 07, 2022 09:42 AM
Kat Palmiotti

Yes, it's a bit cold now Grant Schneider !

Dec 07, 2022 10:09 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Kat Palmiotti - with each land parcel being unique, the price must rest on what the buyer is willing to pay and how much the land owner is willing to sell. Knowing land values as well as you do, buyers and sellers are in good hands. 

Dec 07, 2022 05:56 PM
Kat Palmiotti

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

Dec 08, 2022 04:40 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Kat  and thank you for the great market report to share with us here in the Rain.  Make it a great day!

Dec 08, 2022 10:04 AM
Kat Palmiotti

Thank you Will Hamm !

Dec 08, 2022 10:04 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I have begun hearing people who own RVs looking for land in Montana; the next one I will refer to you my friend 🎅

 

 

Dec 08, 2022 04:18 PM
Kat Palmiotti

I wold love to help an RV owner look for land, Paul S. Henderson, REALTOR®, CRS !!

Dec 11, 2022 05:11 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Kat- I am in awe of how much you've learned about selling land in Kalispell. 

Dec 10, 2022 06:47 PM
Kat Palmiotti

Thank you Kathy Streib !

Dec 11, 2022 05:11 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, buying land for different uses would be exciting in Montana.   RV, tent camping, hunting, and just enjoying some land.

Dec 16, 2022 06:38 AM
Kat Palmiotti

Joan Cox - one person bought land just so he'd have plenty of firewood and timber to be used as needed.

Dec 16, 2022 10:30 AM
Joan Cox

That's a good reason.

Dec 16, 2022 10:55 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Love your report, Kat - so much more to know about land than one thinks when they set out to purchase a parcel. You are clearly THE go-to Kalispell real estate agent. 

Fantastic video as well - you are such a natural!

Dec 18, 2022 05:35 PM
Kat Palmiotti

Thank you Debe Maxwell, CRS - since I only do 1 minute videos it's not too difficult. If I had to remember 5 minutes of material I'd be a wreck!

Dec 18, 2022 06:06 PM