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Kelley’s Market Trends: Residential Sales 2016

Number of 2016 residential sales in Flathead County matched the near record number that occurred in 2015

By Jim Kelley

What will 2017 bring? The number of 2016 residential sales in Flathead County matched the near record number that occurred in 2015. In 2015 there were 1,683 home sales and 2016 finished with 1,680 sales.

The median price finished at $255,000, which is 5.2 percent above the 2015 median of $242,500. The 2016 median was higher than the 2007 median of $250,000, representing the first time the median price has exceeded the high median that occurred prior to the recession.

Overall, the entire year mostly matched 2015 with the number of sales being up 8 percent in the first quarter, down 5 percent in the second quarter, down 2 percent in the third quarter, then finishing off the year with a plus 4 percent.

As we go into 2017, interest rates will be a key factor. The overall average 30-year rate in 2016 was 3.7 percent and the current 30-year rate is nearly 4.1 percent. The 15-year rate averaged around 3.1 percent in 2016 and is now nearly 3.6 percent. The question here in the Flathead is, how much will this affect our market?