Jackson Hole is home to vibrant scenery, a peaceful community, and highly-coveted real estate in the wake of the COVID-19 pandemic. What can we expect to see, then, from the Jackson Hole real estate market in 2022? Let’s take a closer look.
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.
Supply chain concerns and worker shortages
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.
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 COVID-19 pandemic
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.