THE SUMMER SLOWDOWN
Following four years of a dramatic real estate market that saw rapid price appreciation, very limited inventory and multiple offers on many properties, the market has begun to stabilize. This year has seen the Federal Reserve raise rates in their effort to slow inflation. This has resulted in home mortgage rates rising from 3% in January for a 30-year fixed rate mortgage to 5.9% for the same mortgage today. This results in the monthly payment for a home purchase today to be nearly double what it was six months ago.
Rising rates have contributed to a cooling market, with slower sales and some price drops amongst sellers. Locally, we are coming off of a real estate run with virtually no inventory, to now slowly adding inventory. This is good news for buyers, as sellers begin to adjust their pricing expectations to the current market and other sellers may see that the steep curve in their home value appreciating is beginning to moderate and decide to place their property on the market. Nationally, active inventory is 21% higher than it was this same time last year.
Properties with unique aspects like creek front, bordering Forest Service, mountain views and lakefront continue to get a lot of interest from buyers as there still is not a lot of properties available. Lakefront properties remain very hot. Usually when a lakefront lot or cabin is listed for sale, there will be multiple offers within the first 48 hours.
SEELEY LAKE RESIDENTIAL SALES FAST FACTS
Thus far in 2022, there has been a total of 16 homes sold. The same period last year resulted in 32 homes sold. In 2022, the average home price in Seeley Lake has risen from $553,000 to $588,000, a 6% increase! The average home is closing 121 days after being placed on the market in Seeley Lake. This number has skewed higher because houses were listed to be built, thus including construction time. There are currently 12 homes active on the market. The homes range from $325,000 to $1,225,000. An example of these is a new 1,814 square foot home that is under construction on 1.5 acres in the Double Arrow Ranch for $597,000. There are 10 homes currently under contract to be sold.
SEELEY LAKE LAND SALES FAST FACTS
Thus far in 2022, there has been a total of 34 land parcels sold. The same period last year resulted in 39 land parcels sold. In 2022, the average land price in Seeley Lake has risen from $93,000 to $193,074, more than double! The average sale price has been 100.2% of asking price. The average land parcel is closing 118 days after being placed on the market in Seeley Lake. Of the 34 parcels sold, the areas with the most sales were nine lots in Double Arrow Ranch and 11 lots in Alpine Trails. There are 18 vacant land parcels currently for sale. This is similar to the number at the first of the year. Of active listings, one is on the golf course, three are in Alpine Trails, five are in Double Arrow and four are commercial properties, including at least two that are approved for enough septic flow to facilitate a new hotel.
CONDON RESIDENTIAL SALES FAST FACTS
Thus far in 2022, there has been a total of three homes sold. Two of those sales were over $1 million. The same period last year resulted in nine homes being sold. In 2022, the average home price in Condon has risen to $928,000. The average home in Condon is closing 100 days after being placed on the market. There are currently nine homes active on the market in Condon. six of these are listed over $1 million, and the least expensive is $975,000.
CONDON LAND SALES FAST FACTS
Thus far in 2022, there has been a total of 12 land parcels sold. The same period last year resulted in 10 land parcels sold. In 2022, the average land price in Condon has risen to $932,000. The average sale price this year has been 96.9 % of asking price, meaning that land has been selling for nearly asking price. There was a sale large sale of 640 acres on Barber Creek which was listed for $5 million and five parcels are under contract to be sold. The average land parcel is closing 278 days after being placed on the market in Condon. There are currently six land parcels for sale starting at $115,000. The star of the past year has definitely been vacant land sales in Condon.
HAS THE MARKET TOPPED, IS IT GOING DOWN?
The question I get asked most often is “has the market topped, is the market going down?” No one knows for sure but the market data that is available to you can certainly help. In order to detect a slowing market, I recommend to watch market inventory. If market inventory begins rising beyond the normal seasonal declines that occur in our area, that could indicate softening in the market. The other two factors to watch are increasing average days on market and frequent price reductions.
Presently, we are seeing these things begin to occur. Inventory is slowly rising but remains tight. The average days on market are beginning to rise. Despite these conditions, our area remains very sought after by people seeking to leave their home states for a better quality of life and rural living.
AVERAGE MORTGAGE INTEREST RATES
Mortgage interest rates have risen approximately 2.5% so far in 2022 and more increases in rates are anticipated through the year as the Fed increases rates in an effort to curb inflation. Current average mortgage loan rates are:
• 30- year mortgage is 5.90%
• 15- year mortgage is 5.25%
If you have any questions regarding the local real estate market or the purchase or listing of property, please contact your local real estate professional.