Below is an article about the Kalispell Real Estate Market. I cannot help but remember not to many months ago when Tom Burk spoke on the Flathead Beacon Real Estate Blog about the Flathead Valley being Recession Proof. When I accused him of having a Self Interest / a personal motive for the comments, his wife called me up and let me have it. I should have taped that call and put it on YouTube, you would have got a kick out of Tom's wife defending him.
The thing is Tom Burk of Coldwell Banker in Kalispell Montana was wrong. There were signs everywhere of a falling market. At the time bankruptcy was on the rise, construction was slowing down, and the housing market was obviously hurting. Yet he, as a Managing Broker, as someone that the Kalispell Real Estate market looked to for advice, for comfort, persay to make sure everything would be ok, he misled the Real Estate Community of Kalispell Montana to make sure that listings kept coming in and that buyers were not afraid.
I am not trying to "pick on" or "call out" Tom Burk or Coldwell Banker in Kalispell Montana, I am saying that the signs have been Boldly Obvious for quite some time. And the Flathead Valley governing bodies was pushed by Realtors, and Big Business - Developers to Keep on Building though it was obvious that foreclosure were close behind. The Truth is what the Real Estate consumer deserves to hear. "Recession Proof" as Tom Burk said last year, I don't think so.
The Real Estate Consumers Listen to so called Experts like Tom Burk. The Kalispell Real Estate Consumer listens when a Managing Broker of a Top Real Estate Company that manages Real Estate Offices in Most Every Northwest Montana town tells them that it is a good time to buy, that Kalispell is Recession proof, I mean surely He Knows right ? And he must have read and analyzed the data before his comment adviced the Kalispell Real Estate market that they were Recession Proof somehow. Tom Burk is not just some guy, he is not just a Realtor, he manages many - many offices and he affects many - many lives. He SHOULD have been "in the Know" and SHOULD not be able to predict a market, or reassure anyone. The National News spoke of real estate recessions. The headlines were getting worse and worse and he has the nerve to say it is all ok.. BUY Buy Buy....
But just as most real estate cases, the Realtors are made of Teflon and the your Grief, your Financial Ruin, the loss of your home, sleepless nights well that never sticks to the Realtor.
Below is a recent article on How Bad the Kalispell Real Estate Market really is. Keep in Mind Folks, the appraisers Do Not have All the SOLD data, and their data (their opinion) is only as good as the local MLS data, which has no measures in place for quality control.
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Home sales plunge in Kalispell area
By Gazette News Services
KALISPELL - Housing prices and home sales are plummeting in northwest Montana. Real estate appraiser Jim Kelley says it's a very tough time to be selling a home in the picturesque region, and the bust is affecting the well-to-do along with people of average means.Kelley says if you're selling a home for more than $2 million, "you'd better get in line."He says the market remains fairly strong for reasonably priced homes near downtown Kalispell. This From the Billings Gazette.
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Flathead high-end real estate market comes crashing down
By MICHAEL JAMISON of the Missoulian
KALISPELL - Housing prices, and the rate of housing sales, are crashing in northwest Montana, where even the millionaires are facing foreclosure.“This is a very, very difficult time to be selling a home,” said real estate appraiser Jim Kelley. “And if you're looking to sell a property that's priced at more than $2 million, well, you'd better get in line.”Nationally, about 11 months of unsold housing inventory is sitting on the market.
That's right in line with the inventory of cheaper Flathead Valley houses - those priced under $200,000. But for properties priced in the $200,000 to $300,000 range, the inventory now is 13 months deep.And the unsold backlog of homes valued between $500,000 and$1 million is a staggering 49 months - “that's four years worth of inventory,” Kelley said, “and that's unheard of.”“Demand,” Kelley said, “is drying up,” which is a big problem for an economy driven by housing sales and construction.But how dry it gets depends upon what you're selling.“There isn't one single real estate market,” Kelley said.
That's right in line with the inventory of cheaper Flathead Valley houses - those priced under $200,000. But for properties priced in the $200,000 to $300,000 range, the inventory now is 13 months deep.And the unsold backlog of homes valued between $500,000 and$1 million is a staggering 49 months - “that's four years worth of inventory,” Kelley said, “and that's unheard of.”“Demand,” Kelley said, “is drying up,” which is a big problem for an economy driven by housing sales and construction.But how dry it gets depends upon what you're selling.“There isn't one single real estate market,” Kelley said.
“There are several.”The strongest of the markets remains the affordable house near downtown. But as you venture beyond the city limits and into vacation home country, the market becomes mighty parched.The higher the price, the longer the list. The inventory of unsold homes priced between $1 million and$2 million is a full seven years deep, and for properties valued at more than $2 million “you're looking at 157 months of inventory,” Kelley said. “Thirteen years of inventory.
Everybody's feeling this crisis, but those high-end properties are going to see some very severe discounts before they can be sold.”Of course, with all that supply and a diminishing demand, prices have been plummeting.“Obviously,” Kelley said. “this last year was historic.”By which he means Flathead property values actually declined in 2008, for the first time in his 30-year professional history.
Last year, he said, Flathead County lost a stunning $1.3 billion in property value, and there's more to come.The thing is, home values are only re-evaluated at the time of sale, and with nothing selling it's hard to know exactly how far prices have fallen. A better measure of housing markets is a combination of sales volume and pricing, because when prices go down people don't sell.
Crashing Down was The Only Place for it to Go.
With No Quality Control over MLS Data, With the Way Appraisals Work, with NO ONE caring about Mortgage Fraud ( I can Prove IT), and with Big Lenders allowing 10% on top of home values (appraisals) when they knew that the homes were not really worth that much - leading to higher and higher appraisals, higher and higher home equity loans and THUD .. one day Reality in Realty Set In.
If you Think I am Just Blathering, Email me
at Crystal@CrystalCox.com and I will give you some
sources for you to Learn the Truth About the Real Estate Industry.
at Crystal@CrystalCox.com and I will give you some
sources for you to Learn the Truth About the Real Estate Industry.
******
One More Note to This Post.
Below is the Comment that Tom Burk
of Coldwell Banker in Kalispell Montana Made
in January of 2008 .
of Coldwell Banker in Kalispell Montana Made
in January of 2008 .
Montana’s Economy Will Remain Stable
By Coldwell Banker Wachholz and Company
"Predictions continue to mount that the United States is headed for economic recession. Dr. David Seiders, chief economist with the National Association of Homebuilders predicts that the likelihood of economic recession in 2008 exceeds 40%. This forecast contradicts Seiders’ earlier predictions that a recession was unlikely and further underlines the dangers of a deteriorating national economy.
By Coldwell Banker Wachholz and Company
"Predictions continue to mount that the United States is headed for economic recession. Dr. David Seiders, chief economist with the National Association of Homebuilders predicts that the likelihood of economic recession in 2008 exceeds 40%. This forecast contradicts Seiders’ earlier predictions that a recession was unlikely and further underlines the dangers of a deteriorating national economy.
As unfortunate as this sounds, there exists a substantial school of thought that Montana will be able to avoid the effects of a national recession. At a recent convention in Kalispell, Dr. Paul E. Polzin, from the University of Montana, stated that world economic factors tend to affect the Montana economy more than what happens nationally.
Commodities such as copper, wheat, oil and gas are in high demand and Montana is beautifully positioned to take advantage of this demand. South Asian and East Asian economies are growing at unprecedented rates. This will continue to drive demand and Montana will be one of the beneficiaries.
For these reasons, Dr. Polzin believes Montana has a very bright economic future.
We in Montana are more than just hewers of wood and drawers of water however. Although we are blessed with natural resource riches, our state has become a sought after destination.
The country has awakened to the fact that Montana is a wonderful place to raise a family and to build a life at any age. Where better to build that dream home or operate a business than Montana?
It is a statement of fact that our company continues to receive a growing number of requests for information packages from people searching for that Montana dream - a chance to live and work in Montana. All of these factors reinforce our belief that now is a great time to buy here, to invest here to live here. We can be secure in the knowledge that Montana is and always will be America’s Last Best Place.
To Contact Tom regarding real estate or any other topic please email him at: tom.burk@coldwellbanker.com"
Well There ya go folks. Even though a Year ago, all the signs were there and news of a recession was heading across the Nation. Tom Burk was encouraging you to buy. Now you are losing your homes, now your homes are NOT worth what they were a year ago. But So What, At least Tom Burk and Coldwell Banker Kalispell kept those sales up for awhile, and they made plenty of money doing it. Great Time To BUY !!! It was NOT a great Time to BUY. Just as now is NOT a good time to sell in Kalispell Montana. Loans will get easier and easier as the months go by, mortgage brokers will be back at it. And money will flow, but right now their are NOT enough COMPS in the Magic MLS data base for you to come out ahead selling.. Wait a Bit folks.. Or call Tom Burk and See what Real Estate Wisdom He has.
kalispell real estate
Note To Post: if you go to the Beacon Blog Link above you will see what folks are saying, My comment from a year ago, right after Tom Wrote this was removed by the Flathead Beacon. I am a Real Estate Broker Owner, my Comment Should have been left. But it was not.
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My Comment was Removed, I Called Tom Burk on this a Year Ago. And the Flathead Beacon Removed My Comment. Now People are losing their homes. People are losing their home. People Respected Tom Burk because of his position of authority at Coldwell Banker and He was VERY wrong. When I accused him on the Flathead Beacon Blog of saying what he did to stay in business, his wife called me at home and chewed me out... and the Beacon chose his side.
