The Colbert Real Estate Report
Monthly Market Update for March 2015
Jackson Hole, WY
Summary – Feb 2015:
- 35 :: Total residential sale transactions (up significantly from Jan’s 22)
- $47,000,000 :: Total residential sales volume reported to MLS (double last month’s $23.6m)
- $1,500,000:: Average sales price of reported sales (up significantly from last month’s $1,124,000)
- 94% :: Ratio of sales price to list price (slight dip from the last few months)
- 243 :: Average days on market prior to selling (back up from last month’s 148)
What it means: After a slow start to 2015 (See Last Month’s Market Report), sales in February picked up the pace. Last month we saw 37 transactions, which was the highest level of transactions in the past 4 months. Sales Volume in Teton County in February reached $47 million in reported sales, also the highest in the last 4 months (see charts below). In February, there was an estimated additional $19 million in unreported sales, including two large land parcels located up north in Bar BC East – a 49 acre parcel listed at $9.5 million and a 35 acre parcel listed at $9 million. Due to several high end sales in February (see “What Sold?” below), the average sales price was pushed up to $1.5 million, the highest average sales price since September 2014 (see chart below). The sales price to list price ratio dipped down to 94%, while days on market increased to 243 days. We are continuing to see well priced properties, in high demand sub-markets, sell very quickly. In February in particular, we saw several lots sell after long exposure time on the market (see “What Sold” below).
What Sold in Feb 2015?
- 29% :: Percentage of single family home sales (nearly half of last month’s 55%)
- 37% :: Percentage of condo/townhome sales (similar to last month’s 36%)
- 34% :: Percentage of Land Sales (up significantly from last month’s 20%)
- 0 :: Number of distressed property sales (No bank or short sales)
- 54% :: Percentage of residential properties selling for over $1 million (vs. 23% last month)
- 46% :: Percentage of residential properties selling for under $1 million (down from a high of 77% last month)
- 23% :: Percentage of residential properties selling for under $500,000 (down again from last month)
What it means: The breakdown of property types was very atypical last month. Single family homes sales only represented 29% of all sales (they usually represent around 50%). Land sales dominated in February, with 12 sales representing a whopping 34% of land sales (lot sales usually account for around 20% of all sales). This is the 2nd time in the last 5 months that land sales have exceeded 1/3 of monthly sales (see chart below). Low levels in single family home and condo/townhome inventory have no doubt pushed people to land – if they can’t find it, then they will buy land and build it! Buyers were purchasing many lots that had sat on the market for quite some time. In particular, of the 12 lots last sold in February, the average days on market was 526 days! There were no bank or short sales again last month and there continue to be no distressed sales on the market, suggesting that the ‘shadow’ inventory has been fully absorbed. The percentage of properties selling for over $1 million jumped up in February (to the highest % in the past year), thanks to several high end sales including two Four Seasons condos (selling for $3.25m and $3.95m), a beautiful home in Dairy Ranches (pictured below), which sold for north of $7 million, a 4.24 acre lot in Indian Springs (selling for $3.5 million), and a home in Granite Ridge selling for just under $4 million. Properties selling for under $500,000 continue to decline (see chart below), as overall prices continue to go up. The least expensive single family home sale in February was for an older home on Aspen Drive (4 bed / 1 bath) which sold for the list price (with multiple offers) of $650,000.
“Sister” Resort Towns across the West show similarities and differences to Jackson Hole
Realtor panel discusses Sun Valley, Park City, Whistler, Tahoe real estate markets
This past week I was able to attend an event hosted by the Western Mountain Resort Alliance (WMRA). The WMRA is a group of Realtors who work in real estate markets located in destination ski resorts around the Mountain West. I always find it interesting to here about our “sister” ski resort real estate markets. We heard from representatives in Park City, Sun Valley, Tahoe and Whistler. I thought I’d share a few interesting stats/trends from each market.
- Average Sales Price (2014): $675,000
- Sales Volume 2014: $1.2 billion
- Most sales in the area occur between May-October. Tahoe sees several more visitors in the summer then in the winter (similar to Jackson). Tahoe is well known for their biking, golf and beach!
- Overall listings are up 7%, while units sold are down 8%. However, despite the general laws of supply and demand, prices are up, with Buyers gravitating towards the $2+ million market, which saw 64% more transactions in 2014 vs 2013.
- Vacant land sales are down as most of the inventory was sold off in 2013. This pushed the prices of the remaining lots up, which pushed buyers into the single family home market.
- Tahoe’s lack of snow pack is a significant issue affecting not only the ski resorts, but also increasing wildfire risk which is causing home insurance rates to sky rocket.
- Average Sales Price (2014): $721,000
- Sales Volume in 2014 ($520 million) was up almost 20% compared to 2013 ($450 million).
- Inventory is significantly low right now. Last year there were 770 sales in Whistler, however currently there are only 430 active listings!
- Single family homes (or as they call them in Whistler – “Chalets”) in the $1-2 million range are the biggest segment in the Whistler real estate market. The majority of condos sell between $200,000-$500,000.
- The majority of real estate purchasers are from Canada, while only 6% of buyers in 2014 were from the United States.
- Whistler’s market’s biggest challenge is low inventory, which is a result of limited available land (similar to Jackson Hole).
- Average Sales Price (2014): $726,000
- Sales Volume 2014: $1.6 trillion (nearly 3 times that of Jackson)
- Since the take over of Park City ski resort by Vail Resorts, the area has seen prices increase, sales occur more quickly and funky/undesirable properties starting to sell.
- Of the 363 homes available for sale in the Park City area, only 10 are priced under $600,000 (similar to Jackson). This has caused Buyers to focus more on condos or vacant land, of which Park City has plenty of supply (see below).
- There are 44 available lots for sale priced under $200,000. Most are located in a new golf course community and offer 1 acre lots (not bad!).
- Park City hasn’t seen as much negative impact from the low snow year, as many visitors come to Park City for things other than skiing (shopping, dining, film festivals, etc.).
- Park City is also seeing an influx of Buyers who are relocated to Salt Lake City for work, but prefer the life style offered by the resort community.
- Average Sales Price (2014): 682,000
- Total Sales Volume in 2014: $355 million
- The Sun Valley real estate market is really a tale of two cities/markets. Ketchum is the home of the Sun Valley resort and Hailey, ID is a neat little town located only 12 minutes from the ski resort (think Victor or Alpine communities but only as far as Hoback!)
- The average sales price in Ketchum is $834,000, while in Hailey people can purchase property, on average, for $275,000.
- In 2012, roughly 50% of Sun Valley’s real estate sales were for distressed properties, today that number is around 6-7% of all sales (compare that to Jackson where we MAY have 1 distressed sale each month).
- The County offices (County Clerk, Building & Planning Dept, etc.) only work 4 day weeks (taking Fridays off). This can make it hard to close transactions on time or receive proper County sign off on new construction. How strange!
New Listing: Remodeled condo in The Aspens
Location, Location, Location.
This south facing end unit backs up to heavily treed open space offering an owner unexpected privacy while still enjoying the amenities and conveniences of The Aspens. Beautifully remodeled with hardwood oak floors, granite counter tops, alder cabinets, new doors and trim and new cove heating throughout, this 1 bed, 1 bath (plus 2 bunk bed) unit is great for owner occupancy or as an investment property. Additional improvements include a new hood/vent system, re-textured walls/ceiling, added insulation around the windows and doors and the removal of the large old fireplace, which creates additional living space.
Enjoying the sun in Playa del Carmen for a friend’s wedding
Katie Colbert, Associate Broker
RE/MAX Obsidian Real Estate, a member of the RE/MAX Global Network
Mobile: 307.699.4137 Office: 307.739.1234
Voted one of Jackson Hole’s Top Real Estate Agents
by JH Weekly Reader’s Poll since 2012