Real estate market continues at torrid pace

June 16 – The Columbia Falls housing market continues to move rapidly.

The average price in 2020 from January 1 to June 1 was $ 269,000, Kim Wortman, a real estate agent and certified accountant at Remax Mountain View in Columbia Falls, said last week.

The median price this year over the same period is now $ 369,000, she said.

That is an increase of about 37% and the prices continue to rise.

Houses outside of the city limits with acreage are much higher – a recent listing of a 4,000-square-foot home on about five acres cost just under $ 1 million.

“Market conditions are insane right now,” said Erick Robbins, a broker at Remax Mountain View.

Robbins said it was a perfect storm of pent-up demand, people wanting to move here, low inventory levels and low interest rates that are driving the market to new heights.

A reasonably priced home will see multiple offers and often sell above the asking price, noted Robbins.

While this may be great for the seller, it’s not that great for the buyers, especially first-time buyers, noted Robbins.

These are the buyers he’s spent most of his 19 year career in real estate with. But today there are bidding wars for houses and lots of money deals.

The beginners suffer.

“You’re being squeezed,” he said. “You will be outbid.”

In the past, home buyers were supported by government-sponsored programs.

“We just don’t see them anymore,” he said.

Robbins said the bulk of sellers are leaving the area or selling investment properties, especially Canadians who are currently unable to cross the line due to coronavirus restrictions.

The current market is worrying, noted Robbins, as it becomes difficult for a family to afford a home, even a modest one, that is a “fixed upper”.

Assuming 5% less, with taxes and insurance, $ 369,000 at 3% interest will be about $ 1,900 per month.

To afford this, with enough money saved up for a down payment, a family would need to have an annual household income of about $ 76,000, assuming they have no other large debts such as student loans, credit cards, or other debts based on an affordability calculator on Mortgageloan.com/.

Homes can be difficult to find in Columbia Falls. Robbins said that in a solid market, inventory is typically around 6 months on the market. Now the inventory has been on the market for a little over a month.