Why Are Real Estate Prices Dropping Substantially in Jackson Hole’s Real Estate Market?
Christy and I are getting this question from a lot of our seller’s and customers lately. Jackson Hole has a very limited amount of property that can be developed and there has historically been enough demand to raise prices. In today’s market we have seen a total slow down of transactions and willing buyers at current prices. Since the beginning of the year the Jackson Hole real estate market has been seeing substanial price reductions in certain markets (Melody Ranch, Rafter J, The Aspen’s and the Town of Jackson). Most of the price reductions have come in the price ranges of $500,000 to $1,500,000.
In general terms – Prices are dropping due to the anomaly that occured during our recent market boom (2000-2007). Historically, homes have appreciated at a rate of about 5% per year on a national level. Information gathered from the recent REALTOR magazine states: Professor Karl Case of Wellesley College and contributing author of the Case-Schiller Home Prices Indices, a quarterly nominal housing price report, looked at appreciation of median home value over 5 year increments dating back to 1980. The research showed that home values appreciated 26.5% on average for the 20 year period from 1980 thru 2000. In the six years that followed (2000-2006), average appreciation was 89%!
Home prices nationally and in Jackson Hole are now adjusting to the incosistent and insustainable growth that occurred during the recent price run. So – the market is not in decline – it is just moving toward stabilization – which will mean a healthier market in the future.
Just a little tibit of information that we like to share. For more information about prices or if you would like a free listing presentation and value assessment on your property contact Christy and Garth Gillespie – The Jackson Hole Experts – at 877-739-8056 to set up an appointment! We are happy to help and to share our expertise in this market.