The Revel Roundup

Are we in a (housing) recession?

Our office has been fielding many queries and discussing this topic often. Because of this, today’s Revel Roundup email will be fully dedicated to this subject. If there are specific questions that arise from this update, do not hesitate to reply directly to this email. It is our job – and our great pleasure – to assist you in navigating the real estate industry in calm waters, and otherwise. So, without further ado, let’s dive in to this month’s Revel Roundup, dedicated to keeping you informed and up-to-date on all things Real Estate in Western Montana.

Market Activity

In a recent report, Lawrence Yun, chief economist for the National Association of Realtors, said "We’re witnessing a housing recession in terms of declining home sales and home building." While, nationally, that might compute, here in Western Montana, we continue to see a rise in inventory – and sales.

This month, we’ve seen an increase in the number of properties under contract. Between August 1-25, 2022, the number of residential listings under contract jumped by more than 58% in Flathead County, to 137 listings (versus only 57 last month). We saw similar increases in Kalispell (+59%), Bigfork (+70%) and Whitefish (+32%).

Additionally, the average price per square foot of those listings under contract is higher than those from July ($713/ppsf in Whitefish in August, versus $553/ppsf in July).

Land listings under contract also increased across the board, ranging from a 76% increase in Flathead County, to +70% in Kalispell and +116% in Bigfork. (Whitefish saw a slight decline at -33%, from 4 listings under contract in July to 3 in August).

Time To "Pending"

Gone are the days of listings going under contract in hours or days. Now, listings are taking weeks or months to change status. Of the 25 residential listings that went under contract or pending in August (dates: 8/1 – 8/25) in Whitefish, they sat, on average, for 54 days before going under contract. In Whitefish, there were 3 land listings under contract (8/1 – 8/25), with an average days on market at 49, before going under contract.

Remember the term "velocitization" we used in the June Revel Roundup? Velocitization: the condition of being accustomed to high speeds, so they no longer seem as fast. Things are still selling, so be patient.

While buyers have begun to slow their buying pace, much in part to the increased mortgage rates that have jumped to 5.72%, once below 3.3% at the end of last year, keep in mind that today’s mortgage rates are still well below those of their predecessors. While we might never see rates below 3% again in our lifetime, what one industry expert dubbed "a gift from the gods," it’s important to see the possibility and potential of rates that sit at 5.72%. Local lenders have some excellent packages ready to help first-time or experienced home buyers. Allow us make introductions to help bring your real estate goals to life.

Flathead Valley Friends! The Great Fish Community Challenge, dedicated to raising funds and awareness for local nonprofits, is on now! Since 2015, the Great Fish Community Challenge has raised over $17M for more than 75 local nonprofit organizations.

Revel Real Estate is proud to support our community. So far this year, we've donated to DREAM Adaptive, Two Bear Therapeutic Riding Center, Whitefish's Backpack Assistance Program and Girls on the Run Flathead Valley. Will you join us?

Sitting amongst the splendor of the Elk Highlands community, overlooking Whitefish Lake and nestled up to the side of Big Mountain, sits this luxurious and immaculate 2,896 sq ft custom home. Zoned for short-term rentals and offered fully furnished, it sits on 2 acres with ski-in/ski-out access and private chairlift. Boasting 3 bedrooms (sleeps 8), 3 bathrooms, gorgeous vaulted ceilings and all the upgrades you’d expect in a luxury mountain home, including radiant heat flooring, ski gear room, complete with a 16 boot Cyclone dryer, California Closets, Lutron window treatments, and 2nd downstairs kitchen, to name a few. Its spacious yard was leveled and is ready for an ice rink (equipment included) and the deck has a gas-assist fireplace with gorgeous views of Whitefish Lake and the Valley, straight down to Blacktail Resort.

Sited on a small bluff on the 11th fairway of the Northern Pines golf course, this classic villa style home enjoys big views of the golf course, the Stillwater River and mountain ranges. Extensive landscaping of verdant garden beds and mature deciduous trees surround warm and inviting outdoor living spaces, creating a superb environment for entertaining or relaxing. With an open layout, stylish design, and a wealth of amenities; gourmet kitchen, luxurious master suite, great room with vaulted ceilings, office, lower level with two rec room areas and a theater, this home is one not to miss. Less than 15 minutes from the vibrant downtown of Whitefish, yet with proximity to all of Kalispell’s conveniences, this coveted neighborhood provides true lifestyle living.