2014 Quarter 3 Market Report

2014 Quarter 3 Market Report


Overall Market: The Jackson Hole real estate market finished the 3rd quarter of the year with rousing statistics. At 2014 mid-year, the market had yet to see much growth from the previous year. However, the end of the summer brought impressive gains from the previous quarter with total dollar volume remaining level compared to the same period last year with an approximate 12% drop in the number of sales. This is a shift from previous quarters in 2014 where the total dollar volume struggled to keep pace with the robust activity in 2013. The market has been able to maintain a level dollar volume of sales despite a double digit drop in the total number of transactions, it is a clear indicator that market values are increasing. When looking at the market as a whole – the average and median sale prices increased about 14% – 15%.  In fact, the average and median sale prices increased in every segment of the market.  Market share continues to be taken away from the under $500,000 segment (down 5%) while the over $2M segment increased nearly 5%, respectively.  Overall inventory continues to decrease each quarter. When compared to the third quarter of 2013, inventory is down 13%.  See more detail below on each segment of the Jackson Hole real estate market.

Single Family Segment: The single family segment made incredible gains in price appreciation compared to the 3rd quarter of 2013. The median sale price of a single family home in Jackson Hole reached $1,100,000, a $300,000 increase from this time last year. The major difference being the shift from sales in the under $500,000 category (down 73%) to the sale of homes over $1M (up 15%). Finding a single family home under $500,000 can be challenging – there have been 9 this year compared to 33 this time last year. This growth is undeterred by the considerable drop in the number of transactions, which are down 22% over last year. As is typical of the single family segment, the majority of the transactions took place in the Town of Jackson and South of Jackson, albeit in much smaller quantities this year. The greatest increase in sales took place south of Wilson with a 138% increase in transactions. The single family home inventory remains low; particularly, homes under $1M with inventory down 23%.

Condominium & Townhome Segment: Condominiums and townhomes in Jackson Hole have been on the upswing. With a more affordable price tag than single family homes, condominiums and townhomes have been very popular and transactions have remained level when compared to last year. This stability contributed to a total dollar volume increase of 5%, making this the only major segment of the market with an increase in total dollar volume. Condominiums and townhomes were among the first properties to experience appreciation and sale price gains during the market recovery. This trend has continued this year with both average and median sale prices increasing approximately 7% – 8%. The median sale price of a condominium/townhome in Jackson Hole has risen to approximately $452,000.  About half of the condominium/townhome sales this year were under $500,000. At this time last year, nearly 60% of the sales were under $500,000. The lack of inventory was especially prominent in this segment of the market with active listings at the end of the 3rd quarter down 27% from last year.

Vacant Land Segment: The vacant land segment of the market has made continued improvement. While the number of sales were down about 20% from 3rd quarter of 2013, the average sale price was up 20%. This was spurred by a 55% increase in the number of sales between $2M and $5M, and a 34% decrease in the number of sales under $500,000.  Possibly a more accurate measure of the vacant land market is the median sale price which increased 2% over last year.  Historically, the Town of Jackson and the area South of Jackson compete for the most land sales of any other area. However, the Town of Jackson had a huge drop (down 78%) in land sales compared to this time last year, and the area South of Jackson proved to be a hotspot with 24 total land sales. This accounted for about 31% of all land sales this year, far more than any other area. The vacant land segment as a whole has continually improved each quarter since market recovery. Land sales have been marred by the huge amount of inventory in the past, however, this trend continues to improve, with an approximate 10% drop in the number of parcels currently listed for sale. Vacant land will become more popular with buyers as existing home inventory diminishes, as well as affordability.

Luxury: Jackson Hole, Wyoming is synonymous with luxury and is an international marketplace for luxury real estate. The demand for high quality, exclusive properties has outperformed this time period last year by approximately 18% when looking at the number of transactions. The total dollar volume of those transactions accounted for over $160M in sales, an approximate 11% increase over last year. Record Sale (through Q3): $24,500,000 (listing price). Average Sale Price Above #3M: $5,706,708. Number of Sales Above $3M: 26.

 

Jackson Hole Real Estate Associates exclusively owns and maintains the valley’s oldest and most comprehensive market report and database. The Jackson Hole Real Estate Associates’ Market Report, unlike others in the valley, is derived from the JHREA proprietary, forty year old database (not just mls data) as well as decades of history and success making this the most trusted and accurate real estate report in the region.  No other real estate company or agent has the resources available to offer this depth of expertise or insight regarding current or previous market conditions. The unmatched resources and knowledge of Jackson Hole Real Estate Associates, the largest and most dynamic real estate company in the region, combined with the largest luxury real estate affiliation, Christie’s International Real Estate, offer the ideal balance of local expertise and global reach.  

* The statistics used in this report are from the Teton Multiple Listing Service (MLS) and JHREA’s internal database.

* This report does not go into detail on every segment of the market, but is intended to offer an overview of general market conditions.

*All statistics are supplied by sources that have been deemed reliable but are not guaranteed.

Buyers and Sellers – Why IDX?

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In a nutshell, Internet Data Exchange, most commonly referred to as IDX, is how MLS listings end up on a website.

Real Estate Brokers have the option to participate or to elect not to have there listings distributed to other web sites. Brokers that choose to have their listing’s excluded from IDX data feeds greatly reduce the exposure that listing have on the internet.

In today’s internet world, it is estimated that 90% of prospective buyer’s start their search for properties through the internet. The vast majority of those buyers will use Real Estate web sites that use IDX data feeds from the local MLS database. If you as a Seller list with a Real Estate Company that excludes their listings from IDX feeds you are seriously limiting the exposure of your property to prospective Buyers.

The Teton Board of Realtor’s services the greater Jackson, Wyoming area including Star Valley Wyoming and Teton Valley, Idaho.  Within this area there are numerous web sites that individual Realtor’s have created. While most of those web sites use IDX data feeds to display MLS listing, there are a few Real Estate Companies that choose not to participate (to the detriment of Seller’s). If you are considering  selling  your and you are researching which Real Estate Agent to represent you make sure that the Real Estate Company the agent is associated with use IDX data feeds to display the MLS listings.

We at Jackson Hole Real Estate Associates embrace IDX and all the agent’s use this as means of displaying listing data.

REMEMBER    –   MORE EXPOSURE WITH IDX.

Jackson Hole Ranked #1 Overall Resort by SKI Magazine

Ranked #1 in Overall Satisfaction, Character, Variety and Challenge

The votes are in and SKI Magazine readers have spoken. Jackson Hole Mountain Resort (JHMR) is ranked #1 Overall Resort in North America for 2014, as well as in four individual categories: Overall Satisfaction, Character, Variety and Challenge.

These results affirm the resort’s goal to continually improve the guest experience year over year. Over the last decade the resort ownership has invested in facilities, lifts and terrain upgrades to round out the resort experience especially when it comes to intermediate skiing. Now, Jackson Hole’s legendary big mountain trail network is complemented by improved intermediate terrain, all with famous cowboy powder

Market Most Robust Since Recovery Began

Jackson Hole Market Report
Third Quarter 2013

Overall Market
Real estate in Jackson Hole marks continued improvements in all segments of the market. The 3rd quarter of this year may just be the strongest market Jackson Hole has seen since the recovery from the housing crisis began in late 2011. When compared to 3rd quarter of last year, the overall number of sales was up about 40% this quarter. We anticipate the 4th quarter to continue improving based on the number of properties currently under contract. During August, 32 properties went under contract and an astounding 56 properties went under contract in September. With increased sales and decreasing inventory, the law of supply and demand will affect pricing in some segments of the market. As of the end of the 3rd quarter, the number of active listings was down about 17% when compared to last year. The continual decrease in inventory and a steady demand could mean prices will be on the rise, albeit a steady, healthy rise. This is already evidenced by the higher listing prices seen on properties which have previously been taken off the market and are now returning for sale at higher prices.

Single Family Market
The single family segment of the market had a great 3rd quarter with the total number of sales up about 46% over the same time period last year. Nearly every area of the valley experienced an increase in number of sales. As is typical, the bulk of the single family sales occurred in the Town of Jackson and South of Jackson areas with 51 and 49 sales, respectively. You can expect the single family segment of the market to have many more sales before the end of the year evidenced by the 37 homes currently under contract. Appreciation is not quantitatively evident yet, however, the demand for single family homes remains strong throughout the valley among locals and second home buyers. Conversely, the amount of homes available for sale is down over 20% meaning higher sale prices are likely in the future. The mid-level of the Jackson market saw reduced momentum through the summer season with only 20% of the active inventory selling between $2-$6 million and another 5% under contract. Also of note this quarter is the sale of two homes both originally listed for over $30 million which represent record sale prices for single family residences in the Teton region.

Condominium/Townhome Market
Perhaps the most rapidly recovering segment of the market, condominiums and townhomes are transitioning from the most depressed segment of the market to the most improved. Compared to the same time period last year, the number of condo and townhome sales rose about 40%. Even more rousing is the nearly 50% increase in dollar volume. The previously depressed segment gave way to tremendous values brought buyers rushing to take advantage of rock bottom prices. As the market has returned to a place of stability, buyers have been competing in bidding wars. Consequently, the percent of list price paid by buyers has increased about 3% meaning, on average, a buyer will pay about 96% of the asking price. In fact, a quality condo or townhome with a good location will often sell over list price due to the amount of competing offers. As with all other segments of the market, inventory is down significantly over last year with an approximately 30% decrease in the number of active listings available.

Vacant Land Market  

Since the start of the recovery of Jackson Hole’s real estate market the vacant land segment has shown the slowest improvement compared to other segments. There are many factors that can account for this, but primarily this has been attributed to the oversupply of existing home inventory and the relative lack of distress among land sellers. Nonetheless, each quarter has demonstrated an improvement over the last with the number of land sales sturdy with a nearly 30% increase over the same time period last year. You can expect the vacant land market to finish the year with even more improvement evidenced by the 19 properties currently under contract. As the existing home market tightens and prices begin to rise, more consumers will be drawn to the vacant land segment where they can build a custom home to suit as well as the renewal of speculative building.



In Summary

Throughout the course of 2013, we have continued to see healthy, sustainable improvement throughout the Jackson real estate market. While we anticipate that reduced supply and healthy demand will continue to spur appreciation throughout the market, there remain a steady number of sellers that are motivated to sell their property in 2013. As the market continues its shift more in favor of the seller, we believe that this year will mark the last of the true “opportunity” times for buyers who have waited through the downturn to engage in the Jackson real estate market. Fueled by Wyoming’s unmatched tax benefits, and the overall lifestyle benefits of the Teton Region, we continue our bright outlook for Jackson’s real estate market, both for short-term speculators and long-term investors.

This report outlines some of the general trends in 2013, however, we are more than happy to provide more detailed information geared toward specific areas and price segments in Jackson Hole and the surrounding areas that we service.  Please contact any of our real estate professionals.

*The statistics used in this report are from the Teton Multiple Listing Service (MLS), unless specifically referenced otherwise. 
* This report does not go into detail on every segment of the market, but is intended to offer an overview of general market conditions, changes in number of transactions and average sales prices. 
*All statistics are supplied by sources that have been deemed reliable but are not guaranteed.
*Average sale price is the total combined dollar volume divided by the number of sales.
*The term “Market Value” means; the value of a property in terms of what it can be sold for on the open market; current value.
© Copyright 2013 by Jackson Hole Real Estate Associates. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without explicitly written permission from Jackson Hole Real Estate Associates.

JHMR Ranked #1 Ski Area in the United States by Forbes Magazine, Three Years in a Row

Forbes Magazine uses the criteria of “Awesomeness” and Jackson Hole has come out on top three years in a row (2011, 2012 and 2013). Forbes ranking of Jackson Hole Mountain Resort highlights new lift improvements, great snow and our growing status as a culinary destination. And of course, Forbes calls Jackson Hole the “best skiing mountain in North America.”