It’s hard not to be consumed by media headlines these days. On the heels of the Silicon Valley Bank collapse, the Signature Bank failure and FDIC takeover, many could be left wondering – where is my money safe? Here in Western Montana, real estate is a safe, secure investment and a hedge you can trust, even as you use it. Here’s why:
Don’t let the headlines fool you. Demand is still strong, especially in Western Montana. Typically, the resort market is less impacted by interest rates, as these purchases aren’t primary residences, and buyers have a more ‘disposable income’ to purchase with cash. Regardless of how the purchase is made, demand remains strong in our market, especially for the “really special” properties (ie: Flathead Lake or Whitefish Lake waterfront). Properties are selling at a premium, and quickly. In recent weeks, many waterfront properties have gone under contract within days. Western Montana is a special and rare place with many pristine lakes offering waterfront homes, with many Buyers eagerly waiting to backfill those that come available.
Editor’s Note: Revel Real Estate currently has several waterfront offerings, many of which are on Western Montana’s famed Flathead Lake. You can explore all of those properties HERE.
However, demand still outweighs supply, with inventory significantly lower than in years past. This is impacting the sheer number of transactions we’re seeing close on a daily – or even weekly – basis, while also keeping prices relatively stable, and still higher than they were pre-pandemic.
My expectation on pricing: for the foreseeable future, and for much of our inventory, prices will remain level. I don’t expect huge price drops, however, those special or more ‘rare’ properties will sell quickly and for top dollar, as many of those have not lost value.
Present & Future Enjoyment
Real Estate is not only a safe investment (looking at historical returns: it performs), but you can also USE it. Unlike stocks, real estate markets won’t fall overnight; it’s just not how they respond. And the annual yield of real estate, typically, is more secure than other assets. Additionally, unlike watching your money go up or down on the computer screen, real estate is a tangible asset you can physically use right now. Not only does it provide safety and security, but it offers a lifetime of family memories, all while it invests.
Whether we’re in an “up” or “down” market, real estate provides something physical and tangible you can enjoy and use. So get out that Adirondack chair and beach towels, dust off those old water skis and let us help find you a true investment.
The Frenzy Is Over
Gone are the days when Agents were running around, taking orders and executing contracts in the blink of an eye. During the pandemic-fueled buying frenzy, buyer demand was so significant that Agents were simply taking the orders of their clients (no negotiating, no inspections, no advising). Because of this, new Agents piled into the market, filling orders and filling demand. With this frenzy, many of these new Agents were moving so quickly, that the typical due diligence (and thought and detail that goes with that) went by the wayside in many transactions.
In fact, a local real estate attorney told us he’s never been busier cleaning up “the messes” of Agents who moved too quickly during the pandemic-fueled buying frenzy.
So Where Do We Go From Here?
If you are looking to purchase property or make a change in your real estate portfolio, working with an established agent is paramount. As property sits longer on market than in past years, an experienced real estate agent, who has weathered past storms, will bring value, insight and understanding to the experience. Whether you have experience in real estate purchasing and investing or not, gone are the days of working with an “order taker,” rather, you need an adviser to guide you through the intricate buying and selling process.
If you are a Seller, or considering selling, now is still a great time to sell. Demand remains high, especially for recreational properties in the waterfront, ski, farm & ranch and golf sectors. Additionally, residential and commercial properties priced correctly in the Flathead Valley are moving quickly as well. Make sure you’re working with the right Agent who can correctly value and position your property. Many Agents (and Sellers) aren’t pricing their real estate correctly, relying on emotions – rather than data – and leaving their properties to sit, which results in an uptick in days on market.
If you would like to learn more about how our experienced team of expert Agents works to accurately and expertly price (and market) properties, contact us. We’d love to walk you through our expertise and recommendations on how to bring your property to life.
- We still have a strong, healthy market.
- Real Estate may be the safest place to put your money.
- Behind are the days of order-taking. Work with an experienced Agent who will ensure your success on a real estate transaction.