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Vacation Home Property Sales Surge

Solitude - Jackson Hole, Wyoming

Another great post from our friends at KCM Blog…..

The American desire to own a second home as a vacation home is alive and well!

The National Association of Realtors analysis of U.S. Census Bureau data shows there are approximately 8 million vacation homes in the U.S. Their 2014 Investment and Vacation Home Buyers Survey shows vacation home sales improved substantially in 2013.

NAR Chief Economist Lawrence Yun said favorable conditions are driving second-home sales:

“Growth in the equity markets has greatly benefited high net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” he said. “However, vacation-home sales are still about one-third below the peak activity seen in 2006.”

Here are the key findings from the report:

Raw Numbers

  • Vacation-Home sales rose 29.7 percent to 717,000 from 553,000 in 2012
  • Sales accounted for 13% of all transactions last year, up from 11% in 2012
  • The median price was $168,700, compared with $150,000 in 2012, reflecting a greater number of more expensive recreational property sales in 2013
  • 42% of vacation homes purchased in 2013 were distressed homes (in foreclosure or short sale)

Buyer Profile

  • The typical vacation-home buyer was 43 years old
  • The median household income was $85,600
  • Buyers plan to own their recreational property for a median of 6 years
  • 33% said they were likely to purchase another vacation home within two years
  • 82% of all second-home buyers said it was a good time to buy (compared with 67% of primary residence buyers)

Reasons for Purchasing

Lifestyle factors remain the primary motivation for vacation-home buyers:

  • 87% want to use the property for vacations or as a family retreat
  • 31% plan to use it as a primary residence in the future
  • 28% wanted to diversify their investments or saw a good investment opportunity
  • 23% plan to rent to others

Location

  • 41% of vacation homes purchased last year were in the South
  • 28% in the West
  • 18% in the Northeast
  • 14% in the Midwest

The vacation homebuyer purchased a property that was a median distance of 180 miles from their primary residence (down from 435 in 2012)

  • 46% were within 100 miles
  • 34% were more than 500 miles

Financing

  • 38% of vacation-home buyers paid cash in 2013
  • The median down payment was 30%, up from 27% in 2012

To find out more about the Jackson Hole Vacation Home market call Christy and Garth Gillespie – the Jackson Hole Experts – Jackson Hole Real Estate Associates at 307-413-5243 or email us at garth@jhexperts.com.

Average Home Prices Continue to Drop In Jackson Hole in 2011

Today we will continue to update the 2011 Jackson Hole Real Estate Market with Average Sales Prices.  The Chart below does a comparision on Average Sales Price vs. the Prior Year Average Sales Price.  As you can see, the average prices for property sales in Jackson Hole, Wyoming have been lower in 2011 in 10 (to be clear the “Red bars” are for 2011 and “Blue bars” are for 2010) of the last 11 months.  The exception was December 2011 when we saw a few very large transactions take place.  We have seen a lot of sales (to be outlined in a future blog post) in the “below $850,000 range” which have had an influence on Average Sales Price.

Average Prices Graph

Jackson Hole – Wyoming – Disaster Free?

Maybe not exactly but Wyoming ranked 5th for Distaster Resistant real estate locations from the MSN real estate site:

Here’s the link:  http://realestate.msn.com/slideshow.aspx?cp-documentid=25641997&GT1=35006 

Here’s what they had to say about Wyoming and Jackson Hole:

Wyoming

Want to live tax-free, but don’t want to deal with hurricanes? Welcome to Wyoming, where individual and corporate taxes are as nonexistent as oceans and gulf currents. Residents may wonder how their state can be considered so safe when it was declared a disaster area in July after a serious bout of flooding. Simple: With only eight major disasters declared since FEMA started keeping tabs back in 1953, the least-populous state (roughly 540,000, or fewer than in Tucson, Ariz., alone) takes calamities including floods, tornadoes and winter storms in stride. With all that cash savings and little worry about impending doom, Wyoming newcomers should feel free to splurge on such homes as Sotheby’s $7 million, four-bedroom, seven-acre spread in Jackson Hole with a stone fireplace, infinity-edge outdoor hot tub, heated concrete floors, six-car garage, guest house and a 30-foot window wall with a view of the Tetons.

All I can say is somehow Utah beat us?  I beg to differ!

Jackson Hole Sotheby’s International Realty Leads the Way…

The Teton County, Wyoming real estate market experienced an increase in buyer demand during the first quarter of 2010 and Jackson Hole Sotheby’s continues to lead the way with a 70% market share as reported by Teton County MLS. 

In May 2010, sales volume rose 166% over last year and units sold doubled.  Teton County MLS reported elevn sales over $1 million in May, verse 7 in April and 4 in May.  The interest above $1 million has been encouraging and when you compare this years sales (40) over $1 million verse only (19) last year.

The sales team at Jackson Hole Sotheby’s continues to dominate the market.  Christy and I appreciate working with such a great team because it offers us so much insight.  When you work with the best agents in Jackson you are bound to learn a thing or two.  We also have the opportunity to hear about new listings not yet in the MLS or we are able to “sell” or educate an agent on a property we have listed if we hear they have a buyer looking for something in particular.  It is just a great resourse.  To give you some data to support this representation we just have to look the sales in May.  During the month of May 2010, 73% of the properties that sold in Teton Countywere liste with Jackson Hole Sothebys and our Sotheby’s team sold 55% of all properties that closed in May as reported by Teton County MLS. 

Pretty great numbers for our agents and we are proud to be part of the team.  The Gillespie Team has been contibuting to these numbers during 2010.  We have been involved in 10 transactions for 2010 and in May we sold 5 listings!

To learn more about the Gillespie Real Estate Team or about the advantages of working with Jackson Hole Sothebys International Realty please feel free to call Garth Gillespie at 307-413-5243 or email me at garth.gillespie@jhsir.com.

Top Real Estate Deals in Jackson Hole — Top Picks Updated!

Update – Update – Update

Christy and I just updated our “Top Picks” of the week at www.JacksonHoleExperts.com. Please check them out.

The week in review for Jackson Hole real estate according to the Teton County Board of Realtors Multiple Listing Service is as follows:

There were 10 listings that experienced significant price reductions. Listings of notice include – 2 lots on the “West Bank of the Snake River” located on Wiley Lane which are both about 3 acres in size have been reduced to $675,000! These lots are priced at a very value.

There have been 8 new listings added to the inventory in the Jackson, Wyoming area. Included in the new listings are 3 Love Ridge units at the Snow King Resort. We saw a new listing in Cottonwood Park and also another in Rafter J – unfortunately the pricing does not seem to accurate.

As for action we saw 3 new pending transactions and 1 closing of interest. The closing was a Teton Pines Cluster home listed for $2,395,000. Congrats to the agents involved.

Have a great weekend and if you would like additional information on the Jackson Hole, Wyoming real estate market please contact the JacksonHoleExperts – Christy and Garth Gillespie at 877-739-8056.

United States Senate Approves $8,000 Tax Credit For Home Buyers -Including Jackson Hole Home Buyers

American flagwater ripple and water drop falling in the middleIf you decide to purchase a home, whether it is in Jackson Hole or not, within the next year, you will be entitled to a $8,000 tax credit, thanks to an amendment written by Georgia’s Senator Johnny Isakson. This amendment to the economic stimulus bill will be available to any home buyer within a year of it’s enactment. Homebuyers will be entitled to claim a total tax credit of $8,000 or 10% of the purchase price, which will not be difficult to do in the Teton County, Wyoming real estate market.  In Teton County our average sale is way over $1,000,000. To avoid possible abuse of this credit, it is only allowed for your primary residence and will only have to be re-paid if said house is sold within two years of purchase.

Isakson has a lot of experience in the Real Estate market, as he ran one of the most successful Real Estate Brokerage companies in the Southeast for twenty years. He is convinced that this credit will work because of a similar tax break Congress introduced in the mid-1970’s, when our country was in the midst of a housing crisis similar to the one we are faced with today. The results back then were positive, as home values did eventually stabilize and the market recovered.

It is our belief that adding this tax credit to the already established benefits to home owership will help to kick start the real estate market in Jackson Hole. We are starting to witness a renewed interest in the market as showings have increased tenfold from November. Offers are still scarce but time is of the essence and Buyers are starting to feel more comfortable with the current market in Jackson Hole. For more information on the real estate market in Jackson Hole please feel free to call Christy and Garth Gillespie, associates at Sotheby’s International Realty of Jackson Hole, at 877-739-8056.