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Why Are Real Estate Prices Dropping Substantially in Jackson Hole’s Real Estate Market?

What a deal! Beautiful townhome on flat creek. $975,000

What a deal! Beautiful townhome on flat creek. $975,000


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.

New Market Update – Feb. 8, 2008

Market Update – Jackson, Wyoming
February 8, 2008
 
Another snowy day in Jackson! So far the Jackson Hole Mountain Resort has received 64 inches of snow since February 1st.   Total snowfall to date 397 inches! With those numbers the ski report is obviously exceptional. We are anticipating a large crowd for Presidents Day Weekend.
 
So does all this snow equate to exceptional real estate sales? No, but there has been some pretty active sales activity. The reports nationally continue to show a very slow real estate market but Jackson continues to show strength. Since February 1st there have been quite a few of sales and pending sales that are of interest.
 
  • A 3 bedroom/3bath townhome came on the market in the Wilson area for $875,000 on Wednesday and by Thursday evening there had been a least 2 offers of over asking price! 
  • An older home on 2 lots in the Gill Addition priced at $1,640,000 went under contract in less than 1 week.
  • A townhome in the Town of Jackson on Rancher Street which has been on the market for a lengthy period went under contract.
  • A Four Seasons Resort Penthouse listed for $4,800,000 and a Crystal Springs Condo listed for $1,575,000 both went under contract.
  • 3365 Tucker Ranch – An 8,400 square foot log home went under contract with a list price of $8,995,000.
  • Hotel Terra Units in Teton Village sold “publicly” with an average sales price per square foot of $1,400.00.
  • Teton Pines “Cluster Home” closed for $2,250,000.
  • A 16 acre lot in Wilson closed for $2,900,000.
 
That’s pretty good activity for a slowing market. With those stats noted, Christy and I have noticed activity slowing considerably and inventory rising throughout the valley. Inventory in places like The Aspens and Teton Village have grown and many of the units are starting to look stale on the market. There have been lowering prices in The Aspens. 
 
The Town of Jackson has also seen a slow down. Many choices exist if you are in the $600,000 to $1,200,000 range in the Town of Jackson or areas south of Jackson (Rafter J and Cottonwood Park).
 
Statistics:

Residential Active Listings –

$1 -$1,000,000 = 108

$1,000,000 – $5,000,000 = 134

Greater than $5,000,000 = 30

Vacant Land Active Listings-

$1 – $1,000,000 = 18

$1,000,000 – $5,000,000 = 102

Greater than $5,000,000 = 15

 
26 Total Residential, Townhomes Pending Transactions Valley wide
12 Total Vacant Land Transactions Valley wide
Total Closings since the beginning of the year = 24