Kelley’s Market Trends: Residential Sales First Seven Months

After the strongest start in several years, number of residential sales has started to slow

By Jim Kelley

After the strongest start in several years, the number of residential sales has started to drop. In the first seven months of this year  there have been 898 sales, compared to 943 sales in 2015, representing a 4.8 percent decline.   

Mortgage interest rates continue at record lows with the average 15-year rate at around 2.95 percent and the average 30-year rate at around 3.54 percent.

In the first seven months, 54.3 percent of residential sales were on small urban or suburban lots, 22.2 percent were on half-acre to three-acre lots and 14.4 percent were on three to 20-acre tracts.   There were also 31 water front home sales, representing 3.5 percent of the market.

The median sales price for the first seven months of this year was $252,000, compared to $233,000 for the same period in 2015.  The seven-month median of $252,000 is up from the six-month median, which was $246,637. The median home price of the 157 homes sold in July of this year was $275,000.

The current overall inventory level is lower than what is was a year ago, but up slightly from July. Currently there are 1,284 residential listings, compared to 1,254 in July.  Of  the 1,284 active residential listings in Flathead County, only 224 (17.4 percent) are priced below the median sold price of $252,000.

In the first seven months there were 51 bank-owned or distressed sales, compared to 92 in 2015.  Non-distressed sales represent 94.3 percent of the market, compared to 90.3 percent for the same period in 2015.

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