Jackson Hole Real Estate Market Report – Year End 2013

Overall Market:

The Jackson Hole real estate market blossomed in 2013 with continued growth and improvement in all market segments when compared to 2012. The number of transactions in 2013 is a strong indicator that the market is actively developing evidenced by the 25% increase in number of transactions over last year. While this increase is most definitely positive, total dollar volume of these transactions increased by a moderate 2%. This can mainly be attributed to the predominance of sales under $600,000 which accounted for roughly 34% of this year’s sales. While sales are happening and the market is strong, it is important to recognize that sale prices are not rising at the rapid pace seen in the height of the market in 2007-2008. Instead, buyers are being much more cautious, patient, and are more educated regarding comparable sales. Nonetheless, this slow growth in sales prices is healthy and will lead to a more stable market in the future.  While some segments of the market have already begun to see signs of appreciation, the tightening of the available inventory, down 18% overall, should spell tougher competition for buyers and define conditions which could possibly lead to appreciating values.

Single Family Segment:

The single family segment of the market has largely mirrored the overall market with strong gains in the number of transactions, up 20%, and a healthy gain in the total dollar volume, up 4%. This segment of the market is becoming more competitive among buyers who are seeking the best values among a very limited selection of homes. The number of homes for sale is down about 27% from last year. With about 161 homes for sale as of the end of 2013, the absorption rate is about 7 months of available inventory. Several areas of the valley saw a very robust year. Most notable is the area furthest south of Jackson with a 62% increase in number of sales and a 42% increase in average sale price. Coming into the New Year, Area 9 which includes several suburban developments such as Rafter J, Melody Ranch, and South Park Ranches, is strong with 14 properties under contract.  Many of these “under contracts” can be attributed to the new King Eider development in Rafter J which offers brand new homes in an affordable price range.

Condo/Townhome Segment:

The condominium and townhome market soared in 2013 and is by far the most improved segment of the market since the recovery began. 2013 brought a 25% increase in the number of sales when compared to last year. Also encouraging is the 12% increase in total dollar volume. As the market indicates, we definitively saw appreciation in the condo/townhome market. While the average sale price remained about level compared to last year, there were certain areas of the valley that experience remarkable increases. The Town of Jackson area, where most of this product exists, saw some incredible gains with the average sale price increasing about 47%. This segment of the market is expected to become more aggressive as the inventory shrinks and prices rise. As of the end of 2013, the number of condos and townhomes available for sale was down 25% from last year. With only 86 units available today, this equates to less than 6 months of inventory available.  We anticipate 2014 will be another strong year for this market segment as this is the best place for 1^st time home buyers and 2^nd home buyers to get their foot into the market at an affordable price. Still, product under $300,000 is extremely limited with only 9 options from which to choose.  The New Year is already off to a solid start with condos and townhomes making up about 25% of the properties currently under contract.

Vacant Land Segment:

2012 marked incredible increases in land sales as the land segment of the market began to recover from the dismal sales of 2011. 2013 brought even more improvement with a 65% increase in the number of sales and a nearly 15% increase in dollar volume when compared to 2012. The increase in sales was shared among several areas of the valley, but the largest increase was in the Hoback area where a large bulk sale of lots within the Snake River Sporting Club was purchased by a developer. While some areas of the valley will be stronger than others, the land segment in general is gaining momentum and prices are holding stable as the market continues to absorb the oversupply of inventory left over from the downturn.  Nonetheless, the land segment’s active inventory has decreased about 11% over last year. Steady sales will likely remain the story for the recovery of the land segment into the New Year with 9 sites currently under contract.

In Summary:

The housing recovery hit high gear in 2013 with bigger than expected price gains and solid home sales. 2014 will likely be equally as exciting.  Many housing pundits are calling for home sales to do slightly better in 2014 than they did in 2013 and we agree.  We will continue to see strength and increasing prices in the New Year as supply struggles to keep up with demand.  With continued demand and finite inventory, we expect there to be increased building and development to satisfy the demand of prospective buyers.  Matched only by the lifestyle benefits of Jackson residency are the financial and economic benefits offered by this incredible destination.  Jackson offers a remarkable value proposition with the Wyoming tax benefits — no state income tax, no estate tax, low property taxes – matched by the best air service in the rocky mountain west and the Jackson Hole Mountain Resort ranking as #1 ski resort in North America by readers of Ski Magazine and Forbes Magazine.  With this combination of recognition and recovering real estate values, seldom has the opportunity been better to own a piece of this remarkable destination resort.

This report outlines some of the general trends found in 2013, 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:

chadbudge@jhrea.com  (307) 413-1364

diannebudge@jhrea.com  (307) 413-1362

rebekkahkelley@jhrea.com (307) 413-5294

 

*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, 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.