Flathead Lake Real Estate
April ended with a week of record-breaking temperatures in the 80s bringing an “instant spring” to Flathead Lake. Cherry trees are in bloom along with early spring bulbs. It is amazing to see the end of a long, snowy winter convert to lush green practically overnight!
While the weather warmed up quicker than expected, the low inventory environment and cold winter resulted in no closed sales on Flathead Lake for the month of April.
There were two significant sales that closed within the first several days of May – stay tuned to next month’s market report for details. Rising interest rates and inflationary pressures have imposed a cooling effect on the primary residential market that is spilling over into the waterfront sector. Several high-priced listings have been withdrawn from the market and buyer demand has ebbed in some segments.
Overall prices are still relatively high, but the lack of inventory will result in significantly fewer transactions and lower sales volume in 2023.
Active Waterfront Listings
Residential and land waterfront inventory continues to hold record low levels. The combination of record sales over the past 24 months along with a lack of motivation for sellers to give up their Montana real estate continues to put downward pressure on inventory.
The combined land and residential listing total of 35 listings is significantly down, especially compared to the pre-Covid era market. In May 2019, we were carrying 101 residential listings and 25 land listings on the lake.
With several high-priced listings exiting the market, median residential prices have been hovering around $4M but jumped to over $5M in the past five months with only 15 higher-priced listings. Land prices held at just under $1.5M.
With such limited inventory of both residential and land listings, median price trends have become volatile with higher-priced listings coming on and off the market.
Based on these data, it appears we have reached a plateau in prices and the sustainable bottom of inventory for the time being.
Flathead Lake Condominium Market
With nearly two dozen waterfront condominium communities around Flathead Lake, there has historically been plenty of options for buyers who want the waterfront lifestyle without having to worry about maintaining a lake home. Below is a summary of currently active and sold units so far this year. The condo market has followed the single-family waterfront market to record low inventories and increasing prices.