The real estate market in 2021 was definitely one for the record books. Let’s take a look at some trends that we have seen in 2021 and will give us some insight as to what is to come in 2022.
- While we have seen some increases in the inventory, it still remains low. Last spring in March/April we saw the lowest inventory with less than 1 month of inventory in Flathead County. At the end of 2021 we saw 1.5 months…a small increase. We don’t believe that we will see a dramatic difference throughout 2022. There are many new developments are coming online but it will still be difficult to create enough inventory to keep up with the demand.
- Average sales prices are still quite ahead of that of a year ago. In Flathead County we saw a 23% increase from Q4 2020 to Q4 2021.
- Median sales prices have seen a 36% increase in Flathead County from Q4 2020 to Q4 2021.
- Closed sales are quite a bit down from a year ago, although the Average list price to sales price ratio is still 100%.
- Price per sq ft has risen dramatically across Northwest Montana and the Flathead Valley. At the end of 2021 the average price per sq ft was $370 in Flathead County which was a 47% increase from Q4 2020.
- We don’t expect to see the real estate market cool much over the upcoming year.
- We do expect to see rising mortgage rates. Inflation is continuing to surge and mortgage rates will more than likely follow. Last week saw the largest increase since March 202, rising by 23 basis points vs the previous week. Rates are now at levels equal to 2 years ago but are still lower than pre pandemic levels.
Whether you are looking to buy or sell in the Flathead Valley, its important to partner with someone who has a pulse on the ever changing market statistics to help you make the best decisions.