Happy New Years to you and yours. After getting off to a quick start the winter has so far been rather mild across the Rockies. While Jackson has some of the best conditions in the country, with the record snowfall of 2017 still fresh on everyone’s mind the even a snowpack 17% above average is going to seem mild. Currently skiing up high excellent, and the lower mountain is improving quickly. But with the bulk of the winter yet to come, we would expect Jackson Hole to revert to the mean and produce a excellent winter for skiing and riding.
2017 was another robust year for real estate sales. Last year’s trend of low inventory and high buyer demand was heightened by external forces in 2017 that made the combination of Wyoming’s desirable tax and wealth climate and Jackson Hole’s combination of casual western lifestyle and impressive cultural menu more appealing than ever to a wider set of buyers.
Total Dollar Volume was Up 7% from the previous year but down 8% from 2015 (please keep in mind 2015 was the strongest year since 2007).
The number of transactions were down 8% from 2016 and down 8% from 2015.
With fewer transactions and higher dollar volume the Average Sales Price was up 17% from 2016 at $1,575,000.
The Number of Listings is at historical lows.
We think the low inventory is the most important statistic that describes the current market, especially as it relates to previous years. The last time we had inventory this low was in 2007, a comparison we hesitate to make for all the implications that just ran through your mind. However, that market was driven by irrational speculation with rapid sales of similar property types producing significant price appreciation.
Today’s low inventory is more holistic, driven largely by seller’s unwillingness to part with their properties especially because of the unique market dynamics (low tax, high quality of life) that Jackson Hole real estate ownership offers. In 2007 savvy sellers where happy to cash in on the rapid price escalation. Today, even faced with an ability to command similar pricing, sellers are reticent to give up their foothold for they understand the long-term benefit, both financially and mentally, Jackson offers. In addition, while the market is comparably strong to past years, today’s buyers are requiring their purchase to be underwritten by comparable sales, with properties that are overpriced stalling.
Of note, we believe the above has created opportunity in vacant land. The immediacy buyers are bringing to their need to purchase makes the length of a building process unappealing. Similarly, new homes are being purpose built for owners, they are not coming to market. When new, or a remodeled like new home, is listed for sale the buyer response is both quick and aggressive. If you are willing to consider a remodel or a new build for the purpose of selling, conditions are highly favorable. If you’d like some example of either current listings and/or recent sales that we believe reflect this opportunity, please let us know.
Buyers, a market moving with this velocity requires you to be kept up to the minute. Please contact me and make sure we are up to date on your needs. While 3rd party websites like Zillow claim to real time information the fact of the matter is by the time these websites populate with new listing they are already days old. Additionally, in a niche market like Jackson Hole a significant amount of inventory trades either off market or in advance of it being publicly listed. Allow us to leverage 43 years of real estate relationships to make sure you have first chance at new properties that fit your needs.
This message is also true for Sellers, the market is highly nuanced and the type of buyers coming to market have shifted. The messaging, imaging and presentation of your property is material in getting properties sold on the best possible terms. Experience and in-depth market knowledge is paramount, please call us and we can expand upon what we can do specifically for you.
Please do not hesitate to call or email us with any questions you may have.
We look forward to seeing you next time you visit the Tetons.
Bill & Barbara
Bill Van Gelder & Barbara Allen
Jackson Hole Sotheby’s International Realty