While many of us might want to leave 2021 behind forever, there are many insights to glean from the Real Estate market of past. As we look ahead to this new year, let’s analyze the Residential Real Estate market report of October, November and December 2021 and what we think 2022 will bring.
The Biggest Takeaways
- While still low, inventory has begun to rebound from its lowest point last spring (March/April 2021 saw less than 1 month of inventory in both Whitefish and Flathead County). At the end of Q4, Whitefish saw 1.8 months of inventory while Flathead County registered 1.5 months.
- Home prices remained relatively consistent from Q3 to Q4, yet still significantly higher than the same quarter last year.
- In Whitefish, the Average Sales Prices crept up slightly to $1,096,151, +4% vs Q3 but +25% vs Q4 2020.
- In Flathead County, Average Sales Prices rose 23% versus the same quarter last year, to $766,249, while dropping slightly from the previous quarter (-3% vs Q3).
Average Sales Price
| Q4 2021 | Q3 2021 | % ∆ vs Q4 2020 | |
| Flathead Co. | $766,249 (-3% vs LQ) | $791,127 | +23% |
| Whitefish | $1,096,151 (+4% vs LQ) | $1,049,900 | +25% |
Median Sales Price
| Q4 2021 | Q3 2021 | % ∆ vs Q4 2020 | |
| Flathead Co. | $562,500 (+2% vs LQ) | $550,000 | +36% |
| Whitefish | $699,000 (-3% vs LQ) | $719,000 | +27% |
Closed Sales
| Q4 2021 | % vs LY | % List Price | |
| Flathead Co. | 609 (-17% vs LQ) | -27% | 100% |
| Whitefish | 125 (-32% vs LQ) | -49% | 100% |
Average Days on Market
| Q4 2021 | % ∆ vs Q4 LY | |
| Flathead Co. | 37 (+42% vs LQ) | -36% |
| Whitefish | 42 (+45% vs LQ) | -45% |
Average Price per Square Foot
Price per Square Foot has risen dramatically across Western Montana and the Flathead Valley, but none more so significantly than Whitefish, as seen from the below graph. As of Q4 2021, average PPSF in Whitefish was $529 (+49% vs Q4 2020), and $370 (+47% vs Q4 2020) in Flathead County.
2022 Outlook
Looking ahead, while it has slowed, we don’t believe the pandemic-driven real estate frenzy is over. Expect for demand to outpace supply in strong real estate markets in desirable areas, Whitefish, Montana and Flathead County being two of them.
Expect rising mortgage rates. With inflation continuing to surge, we can expect mortgage rates to follow suit. Last week’s increase was the largest weekly increase since March 2020, rising by 23 basis points vs the previous week. Rates are now at levels not seen since April 2020, almost two years ago. However, despite the increase, mortgage rates are still lower than pre-pandemic levels.
If you plan to sell your home or property this year, make sure to do everything possible to stand out. From general decluttering to staging and home improvements, these efforts will produce results. Curious what might need to be done ahead of listing your property? From small changes to big improvements, providing recommendations and guidance is one of the roles of a Real Estate Agent, and our team is ready to roll up their sleeves and help.
Finally, whether buying or selling in the Flathead Valley, partner with an Agent that is a true expert on the local market. Water rights, easements and access points are all common topics when buying and selling real estate in Western Montana. Partnering with an experienced, knowledgable and seasoned Agent will allow your transactions to continue smoothly through to close.
When you’re ready, we’re here to help. Give us a call or shoot us a note, we can’t wait to meet.
