Star Valley is located about 30 minutes south of Jackson Hole and has become a thriving and desirable mountain town in which to live. The real estate market experienced incredible growth in the last few years, reaching record levels in both dollar volume and transactions. With low-interest rates, hot demand, and a low supply of housing, the Star Valley real estate market hit unheard-of levels. However, in 2022 and into the first quarter of 2023, the economy slowed, impacting real estate nationally and the Star Valley market was not exempt. Interest rate increases have impacted buyer demand, while at the same time, more sellers are introducing their properties to the market, which could result in the dynamic shifting towards a buyer’s market.
As the market adjusted to the new norm, Star Valley transactions were down nearly 60% in Q1 2023 compared to Q1 2022, and dollar volume decreased by 66%. As a comparison, neighboring Teton County, Wyoming, was down 8% in transactions and 22% in dollar volume in the same timeframe. Star Valley property values remained stable in Q1 of 2023 with the average sales price down only 14% and the median up 24%. Supply has increased steadily with a 35% increase in active listings compared to the same period a year ago.