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Jackson Hole Real Estate Market Update – 1st Quarter 2014

1st Quarter 2014 Real Estate Market Report

Overall Market: The first quarter of 2014 made a strong bid to keep pace with the overwhelming improvement of the real estate market seen in the first quarter of 2013. The 1st quarter ended with the number of transactions down by about 3% when compared to the first quarter of 2013, a negligible decrease in the larger picture. The primary factor which contributed to this decrease in transactions is the decline in inventory available to buyers, down nearly 25% compared to the first quarter of 2013. This has been a continuous trend in 2014, and it’s been slowing some of the ready, willing and able buyers from purchasing because of this slight inventory. The total dollar volume of sales also experienced a drop, decreasing about 14% over last year’s first quarter. Nonetheless, the median sales price actually increased about 6%, from $675,000 to $716,000. This can be attributed to the dominance of the $500,000 to $1 million dollar sales which accounted for about 35% of the total sales, more than any other single price segment. With inventory levels at historic lows, you can expect 2014 to bring a unique challenge to both buyers and sellers. Buyers will struggle to find quality properties at supportable prices. At the same time, sellers will struggle with the decision of whether or not to sell in 2014 or choose to wait. Many sellers sense the market is improving, and prices will likely rise as the law of supply and demand holds true, as it has demonstrated in many segments of the market.

Q1 2014 Graph 2
Single Family Segment: The statistical information for the first quarter of 2014’s single family segment displays some interesting facts about the Jackson Hole real estate market and implores further explanation. The number of transactions decreased approximately 30% when compared to the same time period last year. However, the average sales price remained roughly the same, and the median sales price actually increased about 20%, to $980,000. The vast majority (44%) of the single family home sales occurred in the $500,000 to $1 million price range. Most captivating about this segment of the market is what the future holds. At the time of this report, there were 28 homes for sale in the $500,000 to $1 million price range. Those 28 homes only represent 22% of the available inventory. This means nearly half of all potential single family home buyers must compete for a very small piece of the pie. This supply and demand equation has already showed signs of appreciation, and it should continue as long as this shortage of inventory exists. A precise rate of appreciation varies depending on price range and area of the valley. There were only 3 sales under $500,000 this first quarter, and only 1 single family home is currently for sale under $500,000. While the future is bright for sellers with homes valued under $1 million, the market for homes over $1 million is much more competitive, especially in the over $5 million price range. This price range accounted for only 2 sales this first quarter of 2014, while there are 23 homes over $5 million currently for sale.

Condo & Townhome Segment: The condo and townhome segment of the market had an incredible year in 2013, and the first quarter of 2014 was no different. The number of transactions increased about 26% as well as an impressive 35% increase in total dollar volume. The condo and townhome segment of the market has experienced the most appreciation of any segment. Both average and median sale prices increased, nearly 4% and 16% respectively. The most astonishing statistic is the quarter to quarter comparison of the average sale price in the Town of Jackson where the majority of the condo and townhome sales occur. This segment had an over 30% increase in average sale price. About 50% of the condos and townhomes sold in the first quarter of 2013, sold for less than $500,000. In comparison, about 40% of the sales in the first quarter of 2014 were sold for less than $500,000. Active inventory in the condo and townhome segment is also in short supply, down nearly 20% from the first quarter of last year. With only 82 condos and townhomes currently for sale, there is less than a 6 month supply of inventory.

Q1 2014 Graph 1

Vacant Land Segment: In 2013, the vacant land segment of the market showed steady improvement as more and more buyers were unable to find homes to suit their needs in the limited single family home inventory pool, and speculative builders began to purchase land for new projects. The first quarter of 2014 continued this trend of steady growth with a modest increase in the number of transactions, up nearly 5% when compared to the first quarter of 2013. Based on the information available, it is estimated that the total dollar volume decreased slightly, however, due to the large number of sales with undisclosed sales prices, an exact total dollar volume figure is difficult to determine with certainty. Lack of inventory is not yet an issue in the vacant land segment of the market, yet the supply is decreasing, down over 20% compared to the first quarter of 2013. The price range with the least amount of supply is the under $500,000 price range. This lower price range represents just over 15% of the available inventory, yet it contributed to nearly 45% of this first quarter’s sales. All indications point to the vacant land segment continuing on a path of steady improvement.

In Summary: Following a record ski-season and #1 rating for the Jackson Hole Mountain Resort by Ski Magazine and Forbes Magazine, Jackson is experiencing more demand from people from all over the world who are coming to enjoy not only the Jackson lifestyle with countless world-class outdoor and cultural opportunities, but also Wyoming’s tax friendly status. With over 97% of our county protected in national parks, national forests, wildlife refuges and conservation easements, the remaining less than 3% of developable property is highly desirable for residents and second home buyers. With continued constraints on inventory and high levels of demand from buyers, we anticipate continued strong performance in the Jackson real estate market. Considering that Jackson’s lifestyle benefits are matched only by the financial benefits of Wyoming residency and the unparalleled flight access into Jackson Hole, with 12 direct flights, we believe that Jackson offers a “perfect storm” of real estate opportunity, security and access that will continue to appeal to the most discerning buyers.

Christy and Garth Gillespie – The Jackson Hole Real Estate Experts:  We can be reached at 307-413-5243 or by email at garth@jhexperts.com.  The first quarter of 2014 has started off great for us.  We recently move brokerages from Sotheby’s International Realty Jackson Hole to Jackson Hole Real Estate Associates – Christie’s International Real Estate and we could be be happier.  We have been involved 11 transactions so far in 2014.  Call us today to find out why we are successful in this complex market we are seeing in 2014.

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, offers 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.
*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 2014 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.

What’s Going on with Real Estate in Jackson Hole and Nationwide?

kcm test 2

While reading the current news these days it is very easy to get confused when determining what is happening with real estate. One article you read talks about the next real estate bubble and then the next article talks about the worst month of home sales in almost 1 year. Well Christy and I are here to tell you that the real estate market is extremely healthy and we are seeing strong buying signals in just about every market here in Jackson Hole.

Why some of the negative information out there? The data we are using for comparing last years March totals verse 2014 March totals involves a lot of distressed properties that were on the market in 2013 and the strong push of buyers that swooped in to buy them before they were all gone.  Now we are seeing a big push by buyers to purchase by we are encountering a lack of inventory. The sales numbers for house sales in 2014 have been very strong but since there is not the added inventory from the foreclosures or “short sales” the sales totals are lower than in 2013.  But if we segment the sales by price point like the chart above the real story is that home sales are trending upward.

The chart above is from the National Association of Realtors.  Sales for homes over $500,000 (most of the Jackson Hole market) are above to way above 2013 numbers.  This data for for nationwide sales.  Here locally ours sales are tracking at the same rate as 2013 or just slightly lower. Why are we not trending as fast as the national average?  Inventory!  We have not seen a stronger Seller’s market in Jackson Hole since the mid 2000’s.

For a free Listing Presentation by Christy and Garth Gillespie, Jackson Hole Real Estate Associates, please call us at 307-413-5243 or email us at gillespieteam@jhrea.com.

 

3 Reasons to Sell Your Home this Spring in Jackson Hole

This story is from the KCM blog — I believe it is an excellent article for anyone thinking about selling their home this Spring of Summer.

4.8-Visual

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are three of those reasons.

1. Demand is about to skyrocket

Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. We also have a pent-up demand as many buyers pushed off their home search this winter because of extreme weather. Sellers in markets where seasonal weather is never an issue must realize that buyers relocating to their region will increase dramatically this spring as these purchasers finally decide to escape the freezing temperatures of the winters in the north.

These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition – For Now

Housing supply always grows from the spring through the early summer. Also, there has been a growing desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners have seen a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future.

The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.

3. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 4% this year and 8% by the end of 2015. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Freddie Mac projects rates to be 5.1% by this time next year and 5.7% by the fourth quarter of 2015.

Moving up to a new home will be less expensive this spring than later this year or next year.

If you are interested in learning more about the Jackson Hole Real Estate Market please contact Christy and Garth Gillespie, Associates at Jackson Hole Real Estate Associates – Christie’s International Real Estate – Jackson Hole.  We can be reached at 307-413-5243 or email me at garth@jhexperts.com.

Garth and Christy Gillespie – The Jackson Hole Experts move to Christie’s!

Christy and Garth

JHREA Logo

December 5, 2013

 

Jackson Hole Real Estate Associates — Christie’s International Real Estate Proudly Welcomes The Gillespie Real Estate Team

Established professionals and top producers announce alignment with Jackson Hole Real Estate Associates, exclusive affiliate of Christie’s International Real Estate in Wyoming and Idaho 

For Immediate Release — Jackson Hole Real Estate Associates, the exclusive affiliate of Christie’s International Real Estate, announced today that Christy and Garth Gillespie and their team have joined the firm.

 “Jackson Hole Real Estate Associates has positioned our company as the largest and most dynamic real estate firm in the Teton Region.  Christy and Garth offer a track record of 17-years of success in the business and we are proud to have them on board,” said Chad Budge, JHRE Associates Partner.  “Christy and Garth have built a business based on unparalleled integrity and market expertise.  Their affiliation with our organization is a natural fit,” continued Budge.  “The Christie’s affiliation is extended only to those real estate companies with proven records of success in high-value home sales and who exemplify Christie’s traditional value of service.   Christy and Garth epitomize this client-focused approach to real estate and we look forward to great things with them on board,” stated Julie Faupel, JHRE Associates Partner. 

 Both Christy, Garth and their team members are equally enthusiastic about the move. “We are thrilled to align our team with the new market leaders in the valley along with the affiliation to the world’s leading luxury real estate brand; Christie’s International Real Estate.  This partnership offers an incredible opportunity for us to grow our services as professionals and we are looking forward to having an even more competitive edge in our market.   Our successful reputation has been based upon serving our customers and the decision to join Jackson Hole Real Estate Associates is no exception,” said Christy in a recent phone interview.

 

The Gillespie Real Estate Team will maintain offices at Jackson Hole Real Estate Associates flagship downtown location at 80 West Broadway.        

About Jackson Hole Real Estate Associates

 Jackson Hole Real Estate Associates is the exclusive affiliate of Christie’s International Real Estate in Wyoming and Idaho and was recognized as the Global Affiliate of the Year from Christie’s International Real Estate.  The reputation of Jackson Hole Real Estate Associates for exemplary client service and market knowledge combined with the power of Christie’s International Real Estate, the largest network of independent real estate firms, offers a synergy between local strength and global networking.  Christie’s International Real Estate, a wholly owned subsidiary of the renowned auction house Christie’s, is the largest international network of real estate companies specializing in the sale of luxury and notable properties.

About Christie’s International Real Estate

 Christie’s International Real Estate is the largest international network of real estate companies dedicated to the sale and marketing of luxury homes and a subsidiary of Christie’s, the world’s leading art business. Christie’s clients who buy and sell works of art often request real estate services. The Christie’s International Real Estate global network spans more than 42 countries with over 1,000 offices and approximately 35,000 brokers. Committed to the auction house’s two-century-old tradition of exceptional customer service and expertise in high-value marketing, the network achieved total combined sales in excess of $125 billion.

 Admittance to the Christie’s International Real Estate network is offered by invitation only to those real estate companies with proven records of success in high-value home sales and who exemplify Christie’s traditional value of service. Exceptionally skilled local real estate specialists, a client-focused approach, and strategic global marketing to a qualified audience of proven luxury consumers are the hallmarks of Christie’s International Real Estate

 

Jackson Hole Real Estate Associates – Christie’s International Real Estate – Jackson Hole!

Garth and Christy Gillespie move to Christie's International Real Estate Jackson Hole -- Jackson Hole Real Estate Associates

Garth and Christy Gillespie move to Christie’s International Real Estate Jackson Hole — Jackson Hole Real Estate Associates

 

Last week was a very exciting time for Christy and Garth Gillespie as we moved our real estate business to Jackson Hole Real Estate Associates.  Sometimes a little change is good and we feel like moving our business to the largest real estate brokerage in the valley is a great opportunity for us to expand our business.  Local ownership is another exciting development as we know the owners at Jackson Hole Real Estate Associates and know they are committed to providing the best opportunities for all their customers and their employees.  Christy and I have worked closely with many of the agents here at Christie’s Jackson Hole so getting used to our new environment will take no time at all.

 

We have new phone numbers — Garth at 307-732-7611.  Christy at 307-732-7610 and Audrey at 307-7612.  Please call us to say “Hi” or stop by our new office at 80 West Broadway – Directly across the street from the Wort Hotel.

Real Estate Sales Totals Through the 3rd Quarter for Teton County, Wyoming — Market Update

One of our best charts.  Cumulative Sales Totals with sales volume and the number of properties sold.

One of our best charts. Cumulative Sales Totals with sales volume and the number of properties sold.

(Click the chart to enlarge)

Working at Sotheby’s in Jackson Hole has many advantages, one of which is that we receive quarterly reports from our master accountant Leonard Kleiman.  The quarterly reports breakdown the market into many segments and help educate the Gillespie Real Estate Team on the current Real Estate Market in Jackson Hole.  On this post we see the Cumulative Sales Totals through the 3rd quarter and can compare the totals to the past 10 years.  We can see from the chart that 2013 is by far our best year since the recession.

Estimating Where Prices Are Going in Jackson Hole

Great chart explaining where real estate prices are heading and where they were

Great chart explaining where real estate prices are heading and where they were.

 

Prices of real estate in Jackson Hole have gone up through out the valley during the past few quarters.  We have started to see activity slow a little (2nd quarter vs. 3rd quarter) which would also slow the increase in property values.  I believe the chart below illustrates the general idea that appreciation will continue but at a slower rate going forward.  Let me know what you think?

 

Call Christy and Garth Gillespie at 307-413-5243 or email us at garth.gillespie@jhsir.com.  We are real estate agents at Jackson Hole Sotheby’s.

Current Jackson Hole Mortgage Rates

 

BANK OF JACKSON HOLE

Residential Mortgage Rates for November 4, 2013

The following rates are thirty (30) day quotes for fully documented, owner-occupied and/or second home loans for borrowers with a minimum credit score of 720 and a loan-to-value of at least 80 percent.  The conforming loan programs feature a one (1%) percent loan origination fee and the requirement that the borrower escrow for taxes & insurance.

HIGH BALANCE CONFORMING LOANS UP TO $625,500 FEATURE INTEREST

RATES SLIGHTLY HIGHER THAN THE CONFORMING RATES SHOWN BELOW.

 

PROGRAM

CONFORMING

(Loans to $417,000)

JUMBO

(Loans over $625,500)

30 Year Fixed

4.125%

4.625%

15 Year Fixed

3.125%

3.875%

7/1 ARM

3.250%

3.250%

5/1 ARM

2.750%

3.125%

 

PRIME RATE: 3.250%

 

ONE YEAR LIBOR RATE: 0.602%

 

SUPER JUMBO – We have lending sources for loan amounts up to $5,000,000!

PLEASE CALL FOR QUOTES.

Please contact T.R. Pierce for more information:

T. R. PIERCE

307.732.3050

307.413.1946

tpierce@bojh.com

NMLS 461602

 

 

Customer Testimonials for Christy and Garth Gillespie – the Jackson Hole Real Estate Experts

See what our Jackson Hole buyers, sellers and friends are saying about working with us.

http://www.youtube.com/watch?v=sffL3a429CI&feature=youtu.be

To learn more about Christy and Garth Gillespie and the Jackson Hole Experts please call us at 307-413-543 or email us at garth.gillespie@jhsir.com

 

Great Time To Sell Your Home In Jackson Hole, Wyoming

Garth and Christy Sign

Christy and I came across this interesting information about Market Timing and how right now may be a perfect time to list your home for sale.  Christy and Garth Gillespie, Jackson Hole Sotheby’s, have a wonderful Listing Presentation.  Call us today to set up an appointment – 307-413-5243.

Many now realize that it is a great time to buy a home.  It might also be an opportune time to sell your house.  Here are the five reasons we believe now may be a perfect time to put your house on the market.

1. Demand Is High

The most recent Existing Home Sales Reports by the National Association of Realtors (NAR) show a double digit percent increase in sales year-over year; sales have remained above last year’s levels for over 25 months.  There are buyers out there right now and they are serious about purchasing.

2. Supply Is Beginning to Increase

Total housing inventory is again approaching historic norms of a 5 month supply compared with 4.3 months in January.  Many expect inventory to continue to rise as 3.2 million homeowners escaped the shackles of negative equity in the last 12 months and an additional 1.9 million are expected to enter positive equity in the next 12 months.  Selling now while demand is high and before supply increases may garner you your best price.

3. New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block.  As the market is recovering, more and more builders are jumping back in.  These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers.

4. Interest Rates Will Again Rise

Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year.  The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by this time next year.

Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5. It’s Time to Move On with Your Life

Look at the reason you are thinking about selling and decide whether it is worth waiting.  Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked.  You have the power to take back control of your situation by putting the house on the market today.  The time may have come for you and your family to move on and start living the life you desire.  That is what is truly important.

Christy and Garth would be thrilled to meet with you if you are having thoughts of listing your Jackson Hole Property.  Fell free to call or email us!