Year End 2021 Market Report

2021 continued to be a sellers market.  Here is the review of 2021 by the numbers.  According to the Montana Regional Multiple Listing System there were 18 condos sold in 2020 and 13 sold in 2021, down 21% year over year.  The reason you'll see is that most developers are going with townhouses vs. condos because of financing.  Financing condos, where you do not own the ground but only to the interior walls, is more difficult.  We see many of these selling for cash to avoid the financing difficulties.  The condo market in Ravalli County went from $3.5 million in sales and remained very close to that in 2021 but the average price went from $194,056 in 2020 to $266,931 for an increase of 37% and list to sale ratio went from 98% to 101%.

Compared to condos, townhouses sold at a rate of 25 in 2020 vs. 33 in 2021.  the volume went from $6.6 million to over $10 million and the average townhouse went from $264,610 to $306,610 in 2021 which is a 15% increase and they sold at 100% of ask.  Most were new construction.

For residential sales, they went from 861 units to 801 units which represents a lack of inventory year over year.  The total residential sales were $424.5 million vs. $525.8 million.  This is almost double the entire market for the Bitterroot in 2006.  That is significant.  That 23% increase from 2020 is extraodinary.  The average home went from $403,063 in 2020 to $656,426, up 37%!  The list to sale price was 100% vs 98% in 2020.  This was a super competitive market.  The units were down but $150 million more in total sales.

For land sales, we saw 394 units sold in 2020 and 317 in 2021 for a decrease in units by 19%.  The volume however went from $66.8 million to $75.2 million in 2021 for a 12% increase and the average sale price for a residential land parcel was $169,580 in 2020 to $237,236 in 2021 for a whooping 39% and the land parcels sold 98% of the list price up from 94% in 2020.  There are now one acre parcels selling in the $130,000 range and there is a new subdivision in Florence that parcels are selling right at $180,000 for half acre lots.

Here is a visual look at the data in a graph.  It may be a little hard to see but you can see that we have major inventory shortage but it is getting better where the listings are going down, the prices are solidly going up, the absorption rate at the end of 2021 was pretty close to where it was in March.  In the meantime, the Sold to List Ratio has gone from 102% of list to less than 98%.  This tracks with my prediction in September that we could see a smidge of softening in the market.  You'll note the listing prices for sold has been almost flat but list prices continue to rise because I believe folks are trying to extract the most money they can but the buyers are now pushing back.



These graphics sometimes don't work for me the way I put them in the newsletter.  If you would like specific market information, please give us a call.  We do the research, gather the best information and help you with a strategy to secure the property that makes sense for you or help you sell the real estate you need or want to sell.  If you have ANY real estate needs, it makes sense to get with a family who have been doing business in the Bitterroot since 1966.

We appreciate you all very much and look forward to helping you in 2022.  Be healthy and safe and we'll catch up with you next month.