The Star Valley real estate market continued to cool off in the first half of 2023, with more indications of returning to a “normal market” in Star Valley. Transactions decreased by 56% compared to the same period in the previous year, and dollar volume dropped by 63%.
In the first half of 2023, the cooldown of the real estate market became more evident as we saw inventory increase and the average sales price decreased by 16%. Buyers started seeing more choices, with inventory up 15% at mid-year compared to the previous year. The Star Valley real estate market experienced unprecedented growth in 2020 and 2021, fueled by record low interest rates, the pandemic, and people’s desire for a better quality of life, but the market began to shift in 2022 as people returned to the office, interest rates increased, and the economy slowed. In 2022 transactions and dollar volume decreased; however, persistent low inventory, down 41% and continued demand for the Star Valley lifestyle helped maintain prices with a 33% increase in average home price in 2022. Overall, the market’s slowdown in 2023 indicates a return to a more balanced real estate environment compared to the booming conditions seen in 2020 and 2021.