With 2014 now in the books, the real estate and development markets in the Flathead Valley are reporting a year of moderate-to-strong growth, sending positive signals that the recession’s chilling grip has loosened.
While overall residential sales in Flathead County in 2014 came in slightly under 2013’s numbers, with 1,504 total sales compared to 1,539, the median price point increased from $210,150 in 2013 to $230,000 in 2014, according to Jim Kelley of Kelley Appraisal.
The number of bank-owned sales decreased, with 2014 bringing in 121 compared to 2013’s 198. Short sales of property were nearly cut in half from 2013 to 2014, with 29 last year to 2013’s 59.
Permitting within Flathead County stayed consistent if it didn’t increase. Tom Jentz, planning director for Kalispell, said the city’s permitting came in at about what he expected, with 98 new residential units.
The city issued 270 building permits in 2014, with 79 for commercial projects, 156 for residential permits of all types, and 34 for government and public projects.
“We did $45 million worth of construction, which is a lot of activity for a city the size of Kalispell,” Jentz said. “It is just slightly down from the last several years, but still reflects a fairly healthy construction market.”
The city also issued two preliminary plat subdivision applications, as well as four final plat subdivision applications.
Looking at Kalispell’s recent development activity, 2014 is a picture of markets holding steady after bouncing back in 2012 and 2013. The city did nearly $55 million worth of construction in 2012, followed by $46 million in 2013. Compared to the $29 million in 2011, the last few years have showed a righting of the ship, Jentz said.
“There are communities all over the state that aren’t growing, and we are growing,” he said.
The type of growth is important, he said. It’s not the overwhelming boom seen in 2004 and 2005, but more of a sustainable pace of increasing by about 1 percent each year. It might not seem like much, but a decade means 10 to 12 percent increases.
“That’s growth that keeps people employed, that keeps activity happening,” Jentz said.
In 2015, Jentz believes highway construction will be a shining point for the valley, with an expected $42 million in projects, such as the U.S. 93 Bypass, slated for the next two years.
Victory Commons, the fourth phase of commercial development on U.S. 93 North, on the lots just south of Kalispell, is also expected to start up in 2015.
In Whitefish, the city issued 73 permits for single-family residences, according to reports issued by the city’s planning department throughout the year, as well as 22 permits for new townhouses or apartments.
The new construction permits in Whitefish in 2014 outpace recent years, especially the low point in 2009 when the city had only 14 starts for single-family residences.
Columbia Falls is also experiencing sustained growth, according to city manager Susan Nicosia. The city issued 55 permits for fiscal year 2014, the second half of which ran from January through June, for a total of $5.6 million worth of residential projects and $3.2 million commercial. About 40 of those permits were for houses.
July through December, the city issued another 31 permits, with another $4.8 million in residential and $2.4 million in commercial. Twenty of the permits were for houses.
“In 2013, we only had just under $2.9 million, we had 41 permits, and commercial was $237,000,” Nicosia said. “I see continued growth and pretty strong residential growth.”
According to the Flathead County Planning and Zoning Office, 2014 brought two more active preliminary plat subdivision applications, upping the total to 54. As of Jan. 1, the county had 1,322 subdivision lots with preliminary approval, compared to 2013’s 1,228.
On Flathead Lake, waterfront sales experienced “stabilization” in 2014, according to real estate broker David Fetveit. There were 44 total sales of lakefront property in 2014, compared to 57 in 2013 and 61 in 2012.
“Even though our prices bumped up a little bit, total sales and number of transactions were actually down,” Fetveit said. “Prices are holding, and the sales that did take place were quality sales.”
There was only one foreclosure sale in 2014, Fetveit said, which is another indicator of the market gaining an even-keel. There wasn’t wild growth last year, but there weren’t wild decreases either. Inventory is holding steady, and prices indicate a steady market, he said.
“I would say ’12 and ’13 were righting the ship, and in ’14 the ship stayed up.”