Page 37 - Flathead Beacon // 11.2.16

KELLEY’S MARKET TRENDS
FLATHEAD REAL ESTATE IN PERSPECTIVE
BY JIM KELLEY
JUST FOR FUN, LET’S TAKE a look at how home values in Flathead County have pre- formed against the stock market and the price of gold. We all have friends and family who want to tell us how to invest, so this week’s graphs illustrate the past history of three commonly recommended alternatives.
These graphs use the median home price in Flathead County for the home price index. The stock market is represented by the S & P 500 index at the end of each year. Gold is represented by the price per ounce at the end of each year.
The rst graph shows the per- centage price changes from 1990 to the present. The stock market has increased around 550 percent, the price of gold has increased around 250 percent and the median home price in Flathead County has increased a little over 300 percent. Flathead home prices have out- performed gold, but not the stock
market over the last 26 years.
The second graph uses 2000
as the base year and shows a dif- 600%
S & P 500 Gold
Homes
ferent story. The stock market increased around 62 percent, gold increased around 370 percent and
the median home price increased 300% around 112 percent. Over the last
HOMES VS. STOCKS VS. GOLD 1990 TO PRESENT
500% 400%
549.5% 301.6%
251.5%
16 years, Flathead home prices outperformed the stock market,
200%
100%
but not the gold market. 0%
If we just take a look at the last six years, since 2010 we nd that the stock market increased 70 per- cent and the gold market declined 19 percent. Again Flathead home prices were in the middle with a 29 percent increase in value.
Dependant upon the time period analyzed, markets do 200%
-100%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
600% 500% 400% 300%
S & P 500 Gold
Homes
HOMES VS. STOCKS VS. GOLD 2000 TO PRESENT
369.9%
112.5%
62.4%
change. What has been consistent
is that Flathead home prices have
been much less volatile then either
the stock market or the gold mar- -100% ket, but have still performed com- petitively over time with both.
100% 0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
In 1981, Jim started Kelley Appraisal in Kalispell and has since built an extensive data base of economic and real estate-related data on northwestern Montana. Over the last several years, he has published annual reports on the Flathead Real Estate Market and been a guest speaker on numerous occasions for various groups in the Flathead.
BY GEORGIA CHRISTIANSON
FLOORSPACE
WHAT CAN YOU BUY FOR ABOUT $200,000 NEXT WEEK: $250,000
KALISPELL
WHITEFISH
KALISPELL
BIGFORK
490 Triple Creek Dr.
6005 Saint Moritz Dr.
97 Financial Dr.
108 Sunrise Terrace
PRICE: $213,000
WHAT: Three-bedroom, two-bath home SQUARE FEET: 1,232
Under construction now, this home has an open oor plan, vaulted ceilings, kitchen island, ample storage and a double garage.
Montana Brokers, Inc.
MLS#: 21611535
PRICE: $192,000
WHAT: One-bedroom, two-bath condo SQUARE FEET: 990
Enjoy great views of Big Mountain from this Monterra unit with an open con- cept. Includes access to the clubhouse, which features swimming pool, hot tub and workout facility.
PureWest Real Estate
MLS#: 21610875
PRICE: $199,000
WHAT: Three-bedroom, three-bath condo
SQUARE FEET: 1,531
This brand new condo is in a convenient location and features a custom wrought iron stair rail, vinyl plank ooring and modern xtures.
PureWest Real Estate
MLS#: 21610344
PRICE: $184,900
WHAT: Three-bedroom, three-bath condo
SQUARE FEET: 1,752
This wonderful condo includes a trav- ertine replace, travertine counters and oors in the bathrooms, stainless appliances, hardwood birch oors and fenced backyard.
Dean & Leininger, Inc.
MLS#: 21610149
If you would like your property listed in the Floor Space section,
please e-mail editor@ atheadbeacon.com. Entries are compiled by the Beacon sta and Georgia Christianson, Montana Brokers.
What would 30 years of successful real-estate experience do for you?
Call Georgia, a certi ed residential specialist for a free one-hour consultation.
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