Whitefish home sales slow in 2015; median price up

Whitefish home sales took a tumble in 2015 and one local appraisal firm says it's because prices in the resort town are too high.

Only 139 homes sold within city limits last year, according to a report from Kelley Appraisal of Kalispell. That’s a 23.6 percent cliff drop over the previous year, and follows an 8.1 percent slide from 2013.

While home sales fell off, the median price in Whitefish continues to march skyward. The median price of $320,000 nearly matches the 10-year high set in 2007.

Jim Kelley complies the annual home sales report.

“The combination of rapidly increasing prices and the decreasing number of sales suggest that Whitefish is pricing itself out of the market,” Kelley said.

All other markets in the Flathead showed increased home sales. In fact, 2015 was the best year for sales since 2006, Kelley said. There were 1,673 home sold in the county, up 11.2 percent.

The largest increases were in Columbia Falls and the Lakeside area.

The 90 homes sold in Columbia Falls represents a 34.3 percent jump over 2014. The median price there is $178,750.

The Kalispell market was up just slightly — 450 homes sold, up 2 percent over 2014. The median price in Kalispell is $189,500.

When looking at the Whitefish market including the rural area 3.5 miles outside of city limits, the volume of sales was actually up about 5 percent.

Rob Keller, immediate past-president of Northwest Montana Association of Realtors, notes that MLS statistics show Whitefish had about an 11 percent increase in total dollars sold last year.

“The other market areas are generally going to have better percentages based on sales price,” Keller explained. “There are many more buyers in the price ranges of the other communities than there are in Whitefish, so yes Whitefish is definitely a higher end market.”

He said Whitefish often is more reliant on buyers from out of the area, especially north of the border.

“There is also some concern about the strong dollar compared to the Canadian currency which will have some negative impact on the market,” Keller said.

Low interest rates remain a factor in the strong sales county-wide with the average 30-year mortgage rate last year at just under 4 percent. Kelley notes that the Federal Reserve bumped the interest rate in December, which will likely result in higher mortgage interest rates this year.

“As we go into 2016, it will be interesting to see if the strong market that existed all through 2015 will continue,” he said.

There are currently 142 homes for sale in Whitefish, compared to 131 this month last year.

Kelley says that accounts for 12.3 months of inventory in the city. Last year at this time there was 8.6 months of inventory available.

Whitefish only recorded five foreclosures or distressed sales last year, “which represents a very small part of the Whitefish housing market,” Kelley said.

“Bank-owned and short sales are no longer a primary factor in the market,” he adds.

Nine homes sold on Whitefish Lake, which is flat with last year. The median price of those homes is at $2 million, up 25 percent over 2014.

The report also looks new home construction, which was down compared to 2014.

Whitefish reported 67 permits issued for new home construction. There were 81 permits recorded in 2014.

Forty new lots were created last year, the report notes, and there are preliminary plats for 20 lots that are likely to be built this year.

The full report is available at www.kelleyappraisal.net.