Mid Year 2014 – Jackson Hole Real Estate Market Report
Overall Market: In the first half of 2014 both the number of sales and the total dollar volume decreased about 15% compared to the first half of 2013. The past two years the real estate market has shown a steady recovery which rebounded relatively quickly. This robust growth is not something which can be maintained in the long run. While this may seem like bad news, really it is a good sign. This slowdown means the market has recovered from the slump of the recession and is returning to more of an equilibrium. Prices have reached a point where there are few to no recession era “deals” left. The type of buyers in the market today has shifted from investors to more end-users and second home buyers. While the average sale price just slightly decreased (-3%), the median sale price actually increased approximately 8%. Similar to the 1st quarter, this can be attributed to the dominance of the $500,000 – $1M price segment, which accounted for roughly 36% of the sales, more than any other single price segment. The springtime push for the summer selling season has lessened the inventory drought, which had, in the past year, contributed to rising prices. The market path for the remainder of 2014 will vary greatly depending on property type and price range. As explained in more detail below, each segment of the market is experiencing its own successes and challenges as the market continues to search for its new normal.
Single Family Segment: The single family segment of the market has decelerated from the vigorous growth seen in 2013. The number of transactions decreased nearly 40%. With such a large decrease in the number of sales, it is no surprise that the total dollar volume is also down, with a decrease of approximately 33% compared to the first half of 2013. Despite this decrease in the number of transactions, prices are clearly on the upswing with the median sales price of a single family home up nearly 25%. Finding a single family home for under $500,000 will soon be a thing of the past. The first half of this year produced only 5 sales in this price segment, while the first half of 2013 produced 20 sales. Over 70% of the single family homes sold so far this year have been between $500,000 and $2 million. By far the most active segment of the single family market is the $500,000 to $1 million price range, accounting for about 40% of the total sales. The majority of the single family home sales took place in the Town of Jackson and south of Jackson areas. Inventory in the single family home segment is still considered low with just over 200 properties for sale, however, the springtime push for the summer season has lessened this concern. The price level of transactions that do take place will most likely continue to rise, albeit slowly. As the market reaches equilibrium and sales velocity slows compared to last year, don’t expect any remarkable appreciation. A slower and healthy growth is anticipated.
Condominium & Townhome Segment: The condominium and townhouse segment of the market is still going strong and has not shown any signs of a slowdown. The number of transactions so far this year is on par with the first half of 2013, however, the total dollar volume increased nearly 10%. This can be attributed to the evident appreciation in this segment of the market. In particular, the median sales price increased over 25% to $487,500 when compared to the first half of 2013. This segment of the market has continued its growth at such a strong rate, in part due to the affordability. This is still the one piece of the Jackson Hole real estate market where a buyer can purchase under the $500,000 mark. Nearly 45% of the sales so far this year have been under $500,000, however, sales in this price range are most definitely diminishing. In fact, compared to the same time period last year, there were about 27% less sales under $500,000. When looking at the sales in the Town of Jackson (which is where the majority of condos and townhomes exist), the average sale price increased nearly 20%. Condos and townhomes continue to be in short supply, with only 85 units currently available and another 24 units under contract. This represents less than a 6 month supply.
Vacant Land Segment: The vacant land segment of the market continues on a slow path to recovery. The number of transactions decreased slightly (-5%) and the median sales price decreased about 12%. The vast majority of the land sales so far this year have taken place south of Jackson, which is made up of smaller and less expensive tracts of land. Specifically, the new King Eider development in the Rafter J subdivision which has, after years of inactivity, finally taken off. The lower price range of these properties is a contributing factor to the decrease in the median sales price. Also, a factor is the lack of sales within the Town of Jackson. There were 17 sales in town during the first half of last year while this year only 4 sales have occurred in town. The large amount of inventory available in the land segment continues to hold this segment back from any significant growth. Nonetheless, speculative builders as well as end-users have begun a plethora of building projects in the valley which has the construction industry incredibly busy. Building permits have already outpaced last year’s totals with 61 permits issued so far this year, according to a Jackson Hole News & Guide article published July 9, 2014. The vacant land segment of the market will continue to improve so long as the other segments do the same.
Luxury Market Spotlight: Jackson Hole, Wyoming is synonymous with luxury and is an international marketplace for luxury real estate. The demand for high quality, exclusive properties the first half of 2014 did not disappoint. The number of luxury transactions remained steady when compared to the first half of 2013. The first half of this year brought 19 residential and land sales over $3 million. The Teton Village area made up the majority of the luxury sales, followed closely by the area just south of Jackson which includes 3 Creek Ranch, a private golf community.
Record Sale (through midyear): $12,500,000
Average Sale Price Above $3M: $4,235,083
Number of Sales Above $3M: 19
Summary: This report, prepared by Jackson Hole Real Estate Associates, presents an overview of trends in the Jackson Hole region real estate market. As the real estate market across the country improves, the Jackson Hole market continues to hold steady. Inventory continues to diminish and scarcity is driving demand and pricing appreciation. With our access to national parks, sparkling rivers, magnificent mountains and miles of hiking and biking trails, Jackson Hole is an outdoor enthusiasts’ dream. The desirability of our area is as strong as ever. Any exploration of the region will show examples of an undeniably high quality of life and an unrivaled community spirit with a flourishing economy and stable real estate market.
This edition of the Jackson Hole Real Estate Market Report outlines some of the general trends found in the 2nd quarter of 2014, however, we are more than happy to provide more detailed information geared toward specific areas and price ranges of Jackson and the surrounding areas. Please feel free to contact us anytime for more information at:
Jackson Hole Real Estate Associates exclusively owns and maintains the valley’s oldest and most comprehensive market database. Our report is derived from our proprietary data base (not just mls data) as well as decades of history and success in the region. No other real estate company or agent can offer this depth of expertise or insight regarding current or previous market conditions. The local knowledge of Jackson Hole Real Estate Associates, the largest and most dynamic real estate company in the Teton 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 Christie’s International Real Estate network exceeds $100 billion in annual volume, nearly three times greater than our nearest competitor.
* 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.
*Average sale price is the total combined dollar volume divided by the number of sales.[/vc_column_text][/vc_column][/vc_row]