The future is looking brighter for some prospective homebuyers in the Flathead Valley with increased inventory of less expensive homes helping nudge prices down. 

While the average median sale price for a single-family home increased slightly, putting a magnifying glass on the market reveals a more complete story. Lakeside real estate agent David Fetveit called mid-2025 an inflection point for the Flathead County housing market. 

The year-over-year change in housing prices didn’t show any disparity, but the last six months revealed a split in price trends. Houses worth under $1 million saw prices decrease by 4% in the second half of the year, while houses over $1 million increased by 10%, according to Fetveit. 

The split seemed to have formed between primary residences and luxury second homes. Increased supply of less expensive homes, paired with slowly dropping interest rates, has helped push prices down, Fetveit said.   

“It’s the first time I can say prices are coming down since Covid,” he said.   

The annual median sales price for residential single-family houses in the county increased slightly from $680,000 in 2024 to $687,000 in 2025, according to data from the Northwest Montana Association of Realtors. The median sales price in 2020 was $412,000.  

“The high prices in Flathead County for the last five years are a combination of no supply and the interest rate spike in 2023. So, it’s kind of a double whammy,” Fetveit said.   

The 30-year fixed-rate mortgage rate stood at a national average of 6.21% on Jan. 5. The 52-week high for a 30-year fixed mortgage was at 7.17% and the low was 6.12%, according to Forbes.  

High labor, materials, land costs and unyielding interest rates are still contributing to a frozen housing market, though.  

“It’s more of the ice is beginning to break,” Fetveit said. “It’s not really flowing yet.”  

Months of supply have increased over the past few years. In 2023, the county averaged 4.1 months of supply, then 2024 saw 5.3 and in 2025, the county had six months of supply, according to Fetveit.  

The Northwest Montana Association of Realtors considers six months of supply a good sign for the real estate market. 

Kalispell’s median home sales price rose from $535,000 in 2024 to $560,000 in 2025, according to the Northwest Montana Association of Realtors. Columbia Falls saw a median sales price increase from $577,500 in 2024 to $600,000 in 2025. 

Whitefish’s median sale price was $975,000 in 2024 and increased to $996,000 in 2025.    

WHILE THE number of single-family and townhome construction permits issued by Kalispell each year has remained relatively stagnant, the volume of multi-family permits issued remains fairly high, according to Assistant Development Services Director PJ Sorensen.  

The city issued permits for about 400 multi-family housing units last year, compared to 128 in 2024 and 500 in 2023. Construction typically takes years to complete after a permit is issued.  

One large development that came to fruition in 2025 was the Parkline Towers apartments overlooking U.S. 2 on Kalispell’s east end, which brought 224 new apartments to the city. Developers of the Bloomstone subdivision are also continuing to build multi-family units south of Glacier High School and north of Four Mile Drive.  

The average rent for an apartment in Kalispell is $1,538, presenting a $406 year-over-year increase, according to Zillow.  

Between 2021 and 2025, Kalispell City Council approved about 7,500 new residential units, roughly 2,000 of which have been constructed as of the spring, according to a May growth update from the city planning department. 

As of 2025, Kalispell has approximately 15,847 housing units. About 60% are single-family, 30% are multi-family and 10% are mobile or manufactured homes, according to the growth update.  

Looking to the future, Sorensen sees Kalispell’s growth cooling slightly compared to the past few years, yet still staying at historically high levels.   

COLUMBIA FALLS has struggled to find the space to build workforce housing, said City Manager Eric Hanks.  

“A lot of young professionals are living in Kalispell or elsewhere and commuting into Columbia Falls because of a lack of apartments and affordable housing,” he said.  

As of 2024, there were only two vacant multi-family lots, according to a city housing study. 

The past year saw stagnant growth, but Hanks said a number of development proposals are being submitted to the city. 

One developer is proposing around 420 units, another plans to build 175 single-family homes and a third is looking to build 40 apartments, according to Hanks.   

“It’s about 1,500 to 1,800 people worth of development,” said Hanks, who is worried whether the current wastewater system will be able to handle the new units.  

WHITEFISH HAD a pretty good year in housing construction, according to Whitefish Planning and Building Director David Taylor.  

During 2025, 57 single-family units came online, including 12 accessory apartments. The year prior saw 44 single-family units built and 53 in 2023, according to Taylor.  

Whitefish issued permits for 296 multifamily units, compared to zero multi-family development in 2024 and only 10 built in 2023, Taylor said.  

The Peregrine Subdivision, owned by Ruis Holdings, will bring 40 residential units to the city, a portion of which will be deed restricted. The project is located at the south end of Baker Avenue near Commerce Street.  

The developer has another project on the rise between Texas Avenue and Colorado Avenue, which will be comprised of 146 units, about 40 of which will be deed restricted.  

Taylor described a lull in development since 2021, but construction is starting to pick up again.  

Reporter Jack Underhill can be reached at 758-4407 and [email protected].   

    A builder works on a home along Farm to Market Road on Wednesday, Dec. 3. (Casey Kreider/Daily Inter Lake)
 Casey Kreider