Local housing recovery continues

New home construction in Whitefish is on the rise and real estate sales have picked up in pace. Both trends signal further recovery to the local housing market.

Ten permits for new single-family homes were filed at the city’s building and planning department last month. Through September, 45 permits for new single-family or multi-family homes have been recorded this year.

That compares to 33 new building permits in the same time frame last year. In 2010 the city recorded just 21 single-family home permits all year, and in 2009 only 14 residential units were tallied. These numbers compare with years like 2005 when the city saw 292 permits.

Planning director Dave Taylor says more affordable property is likely playing a major part in the uptick of new construction.

Taylor cited Canadians and Texans as helping drive the market.

“Whitefish is desirable,” he said. “It’s keeping the economy going as far as building trades.”

Nine permits were issued for new homes in Whitefish estimated to cost more than $700,000, with the most expensive being a $1.9 million home on Huckleberry Lane.

New building permits tend to fall off in the winter following a final push in the fall for folks trying to get their concrete foundation poured, he said.

Taylor noted there hasn’t been a lot of activity with new subdivisions, but that could change down the road.

“We are seeing some people looking with regards to multi-family type units — Monterra type stuff,” he said.

On the real estate sales side, the most recent numbers from the Northwest Montana Association of Realtors show a very healthy third quarter. The number of land sales in Whitefish doubled compared to last year’s third quarter with 34 lots sold.

The third quarter report compares sold properties from July 1 through Sept. 30.

Residential sales were up, too. The third quarter saw 83 sales compared to 58 in 2011. The median price for those sales is up to $270,000 compared to $249,750 last year.

Valley wide, both residential and land sales are up.

“These are the best numbers we’ve seen in years,” said David Fetveit, a broker at the Trails West office in Lakeside.

Fetveit says low prices and dropping interest rates are helping drive the market, as well as buyer confidence.

“There was a lot of money on the sideline with people waiting for prices to drop, but I think they’re as low as they’re going to get,” he said.

Fetveit expects home prices will stay flat or even rise slightly.

He noted that high-end property in the $1 million to $3 million range is beginning to move at a more steady pace.

The three sales of waterfront properties on Whitefish Lake this year equal 2011 numbers.

The overall improving sales numbers in Whitefish are in step with national trends. The U.S. Department of Commerce reports that home sales nationally are up 27.1 percent in the past year.

Fetveit expects the local recovery will continue, but he says it’s difficult to predict at what pace.

“I think most people are surprised to see the market come back as well as it has,” he said.