As we have seen in markets all over the country, home prices have increased during the pandemic. The average Jackson Hole property sold was $4.4 million in the year 2021, representing a 29% increase from the previous year. The median price was $1.84 million, representing a 23% increase. We will most likely not see double-digit price increases in 2022, but due to the continued lack of inventory, prices will remain on the uptick.

Jackson Hole real estate is experiencing a similar trend to other areas in the country with limited inventory and properties selling quickly. There was a 22% increase in transactions YTD from 2020 to 2021. Jackson Hole neighborhoods continue to be a desirable place to live, especially in the current pandemic. This will continue to create an inventory shortage into 2022 with prices reflecting the shortage. Buyers are prepared with cash offers to land the acceptance of sellers.

The Federal Reserve announced that they will keep the interest rate between 0.00% and 0.25%, which will keep mortgage interest rates low at the beginning of 2022. With interest rates, this low, homeownership is a viable option for many people. The lower interest rates will continue to impact the overall real estate market for at least the first quarter of 2022.

Skilled workers are in high demand. Couple this with supply chain problems and you have a recipe for the delayed building of new properties or home remodeling projects. Finding the perfect acreage with Teton views in the Jackson Hole real estate market will be difficult, but doable with the right agent. Building your dream home on the property may take a bit more time. However, the extra time available to you can be used to work with your architect, designer, and contractor to get everything planned to your specification and budget.  

 

If waiting to build your dream home pushes your patience too far, many buyers are choosing an existing home and limiting their required updates to only a few small adjustments before moving in. Once moved into the property, you will have time to select the remodeling projects that are most critical for you and your family. If you’re looking to buy an existing home or build your own dream home, be prepared to make an offer quickly so you can allocate time to address the supply chain problems that may arise.

The supply chain issues in the United States have a direct impact on the current inflation that we are experiencing. The United States inflation rate is at a 30-year high. The cost of goods is higher than we have experienced in decades. Housing and building costs are not immune to the rising inflation rate. The rate for housing increased in the fourth quarter of 2021 from 3.5% to 3.8%. Many experts are also uncertain about the trends in the 3rd and 4th quarters of 2022 and into 2023. 

 

The first half of 2022 is expected to remain mostly unchanged or just slightly increase from the fourth quarter of 2021. As we continue to work out the supply chain issues, inflation will normalize. Until we reach this point, inflation and supply chain problems may cause buyers to purchase existing homes instead of building new homes. This will have a direct impact on existing inventory. Timing the purchase of your new home will be critical as inventory becomes less available. Homes may have many offers before they are even listed on the market. Having a good agent with a pulse on the Jackson Hole real estate market will go a long way in scoring your dream home.

With the number of cases on the rise and other countries dealing with lockdowns, the United States will continue to be impacted by the pandemic—which includes the housing market. A Forbes report written in 2020 states that the housing market may have been forever changed because of the pandemic.

 

The ongoing pandemic is also changing how people live and work. Many companies are allowing employees to work from home. This gives people the flexibility to work from wherever they feel most comfortable and resulted in a mass exodus of people from densely-populated urban areas, where they commuted to the office, to more rural areas like Jackson Hole neighborhoods, where there is more room to spread out and no commute required.

 

Do you want to know more about Jackson Hole real estate so you can buy or sell in 2022? Reach out to trusted local agent Carol Linton for more information.