The Jackson Hole Real Estate Market Is Up 61%
The Jackson real estate market continues to capture the imagination and the hearts of the buying public and to intrigue investors worldwide. We are frequently asked questions such as: How is the market performing? Which segments of the market are performing above expectations, and what are the primary drivers?
We are pleased to report encouraging results as we look back on 2012 in review and we anticipate continued momentum and strength into 2013. As you review our summary of the last year of performance for Jackson Hole real estate, we invite you to contact us for more information and specifics regarding real estate in the Teton Region.
Stabilization and Recovery have been the overriding themes of the Jackson Hole real estate market in 2012. Statistically, 2012 points to a healthy and robust market with sales up and inventory down in every market segment. The most dramatic improvement is the overall sales volume which is up 61% when compared to 2011. The overall number of sales is up nearly 25% and the average sale price is up about 26%. Inventory, which has remained relatively high throughout the market’s recovery, is down approximately 23% in contrast to 2011. This is the largest decrease we’ve seen since the peak of listings in 2009. Also an excellent sign of strength in the Jackson Hole marketplace is the continual drop in distressed inventory and sales. Only 18% of the sales in 2012 were considered distressed and less than 3% of the current inventory is considered distressed. The commercial market performance is reflective of the overall market showing strength on both the sales and leasing sides. Investors are purchasing properties offering attractive returns.
Single Family Market:
The single family sector of the market mirrored the overall market with healthy improvements in each measurement. Sold volume in 2012 for the single family segment improved significantly over last year with an over 40% increase. The number of homes sold increased by about 22% with over 200 sales. The area which reaped the most improvement over last year is Teton Village with a 300% increase in number of sales. The Town of Jackson area sustained its lead with the most sales, comprising nearly 30% of the total single family sales in 2012. Although statistics show an increase in average sale price, we see pricing neighborhood by neighborhood stabilizing with a slight increase. The increase in average price speaks to the higher end of the market re-energizing. Overall inventory in the single family segment has decreased by 25% over last year, and, most notable, is the decrease in inventory in the Town of Jackson, down 68%. We anticipate continuing to see robust demand in the single family home market with adequate bank funding availability. If there is a challenge in these markets heading into 2013, it will be a lack of quality inventory.
The condominium/townhouse segment also did well in 2012 with townhomes in particular strongly improving. The number of townhome sales increased 38% over last year and condominium sales improved just slightly with a 2% gain. The Town of Jackson also led in this segment, with over 50% of the condo and townhome sales occurring in town. This is a 32% increase over 2011 which was also a strong year for condominiums and townhomes. The only segment with a noted decrease in sales was condominiums in Teton Village. This is likely attributed to the disappearance of distressed inventory. In fact, condominium inventory in Teton Village as well as the condo market as a whole is down approximately 45%. In the upcoming months we anticipate that Teton Village will represent some of the only “shadow” inventory when the formerly foreclosed Terra II units are repackaged and return to the market.
Vacant Land Market:
The vacant land segment of the market had a dramatic improvement over 2011. The number of sales increased an incredible 126% and sales dollar volume increased 166%. As homes dipped below replacement cost throughout the economic downturn, land sales languished more than any other segment. The sharp increase in sales in 2012 is an excellent indication that buyers are no longer finding inventory at prices less than replacement cost which indicates that the market is well into its recovery. The majority of the vacant land sales occurred in the south of Jackson area and north of Jackson near the Jackson Hole Golf & Tennis Resort. However, the biggest improvement was in the east Gros Ventre Butte area with a 500% increase in sales. The vacant land segment of the market was the hardest hit and will be the slowest to recover; while all other segments of the market saw large decreases in inventory, the land segment’s inventory has decreased a modest 7%.
As we look to the year ahead we believe that the Jackson real estate market will continue to foster growth and appreciation. As inventory returns to a place of scarcity and buyers and investors look to shelter income against inflation and tax, Jackson offers the perfect balance of lifestyle and economic benefits. It seems that purchases in our remarkable destination will continue to be driven by a unique dynamic; for those that truly appreciate Jackson, location, lifestyle, and sentiment are equally important as value, and in some cases, even more so.