The number of residential sales in Flathead County in the first four months of 2017 is down by 6 percent from the near record number in 2016.
Mortgage interest rates are starting to increase. The current average 15-year rate is around 3.27 percent, compared to 3.06 percent at this time a year ago. The average 30-year rate is around 4 percent compared to 3.7 percent in May of 2016. The increasing mortgage interest rate tends to decrease affordability.
There were 410 residential sales in Flathead County in the first four months compared to 436 at this same time in 2016. In the first four months, 52.7 percent of residential sales were on small urban or suburban lots, 20 percent were on half-acre to three-acre lots and 14.1 percent were on three- to 20-acre tracts.
The median sales price for a home in the first four months was $264,000, which is 8.1 percent higher than the same period in 2016.
The current overall inventory level is 27 percent lower that what it was in May of 2016. The median asking price of the active listings is $484,500. Only 22.5 percent of active listings are priced at or below the median sold price of $264,000.
In the first four months there were 18 bank-owned or distressed sales, compared to 28 in 2016. Non-distressed sales represent 95.6 percent of the market, compared to 93.5 percent for the same period in 2016.
The combination of higher prices, decreasing inventory and decreasing affordability appears to be slightly slowing the number of sales in 2017.
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