Median Price Increases – Land Sales Volume Up
While the buzzword in Jackson Hole real estate has been “low inventory”, sales prices, while increasing, are doing so at a moderate rate. Versus 2013, the average sale price across all property types increased 4% while median sales prices showed an increase of 16%. Notably, single-family home median prices rose 33% and vacant land median prices rose by 8%.
Sales volume of vacant land and farm and ranch property is up 22% in 2014 vs. 2013 in Jackson Hole. The area West of the Snake River has seen an even greater renewed interest with vacant land sales transactions up 44% and sales volume up 114% versus the prior year. This trend was reinforced with the recent sales success of the Bar BC Ranch.
Higher-End Single Family Gains South of Town
In the single-family home category, the area South of Town reported a 28% increase in sales volume due to the sale of several homes in excess of $3M. Both of Tom Evans Real Estate listings in this area, the 3 Creek Ranch Cabin and the Dairy Ranch compound, added to this sales success. Sales volume in single family homes under $850K fell 46% reflecting a 47% decline in inventory at this price level. Sales volume in single-family homes priced $3M to $5.M rose slightly at 6%.
Commercial Real Estate Rockets
In Teton County, the sale of commercial units was up 25% with sales volume nearly doubling in 2014 versus 2013.
Tom Evans explains, “Commercial real estate is very active with many buyers looking for “passive income” with a respectable capitalization rate. That particular market is extremely tight and A1 office space is very hard to come by. I would expect to see some new development of commercial properties in the next few years creating inventory in the office sector.”
As an example Tom listed a new commercial complex with residential units in the $16 M. It sold within 90 days.
Over 67 building permits have been issued in Teton County illustrating the renewed confidence in speculative building.
Listing Inventory Numbers
As of January 2015, active Teton County listings dropped 21% since our last report in October 2014. The area of Jackson Hole showing the most dramatic drop in listings is the West Bank, down 27%.
The excess inventory accumulated over the recession years in Jackson Hole is officially gone, indicating that 2015 could be a year for sellers.
Overall in Jackson Hole 2014 vs. 2013, total sales volume dropped 8%, mostly in the 4th quarter as a result of waning inventory. However, Jackson Hole has seen five straight years of real estate growth and the 13-month trend of unit sales continues its positive direction.