Flathead Lake Waterfront Sales Rebounding

Flathead Lake Waterfront Sales Rebounding

Flathead Lake waterfront properties have arguably been the hardest hit in the current recession. Significant media attention was given to the fact that no waterfront residences sold for the first 6 months of 2009, followed up by the hype of a multi-million dollar waterfront auction. Once prices adjusted accordingly, the second half of 2009 finished with a respectable 20 waterfront sales compared to 23 in 2008, and total sales volume down only 26% from the previous year.

Assuming 2009 was the low point of this cycle, the second-half rebound has continued into the first part of this year. Pricing pressure continues to keep Flathead Lake properties affordable, and sales continue to pick up. Extrapolating the current sales rate (through May, 2010) to the end of 2010 results in an annual increase of 80% in transactions and 63% more in total sales over 2009. Even if this rate does not continue, the fact remains that 15 properties have changed hands for a total of nearly $13M in sales volume in the first 5 months of this year, compared to the big goose egg in the first half of 2009!

Waterfront inventory has steadily been on the rise since the first of the year as sellers ramp up for the summer selling season, and sellers have been encouraged by sales activity. List prices have been flat to falling over the same period for residential waterfront, and land prices have been holding steady with very little activity.

I expect the current prices to hold steady for the rest of this year if the existing economic environment persists. If interest rates make a sharp rise, we could see prices drop a bit further. Given there will always be a limited supply of waterfront land on Flathead Lake, and a persistent demand for the unique enjoyment of waterfront living, the trending data gives us an idea of where the bottom of the lake market really is.

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