Single-Family Vacant Land Activity on the Rise

While the rest of the Jackson Hole real estate market has recovered from the Great Recession, single-family vacant land sales have been slow to recover.  Values in this segment of the market were least affected during the recession, due to little speculation in the last 15 years. Why such a slow recovery?  We can blame a significant lack of available General Contractors, because Jackson Hole lost more than 50% of them during the Great Recession.

The bulk of today’s construction projects in Jackson Hole consist of new luxury homes and townhouses (more than two years on the job), single-family home remodeling, and commercial buildings.  Spec home construction is on the rise, but mainly within resort areas like Shooting Star, 3 Creek Ranch, and the Snake River Sporting Club.  These construction projects are being built on developer lots, thus having little impact on available single-family lot inventory.  NOTE: Of the 37 specs homes and townhouses currently for sale only one is listed for below $1 million, with the average asking price at $4.4 million.

However, activity is on the rise, with 75% more single-family vacant lot sales in the first six months of 2017.  The bulk of these 49 sales (69%) sold for under $1 million, with the majority purchased for single-family home speculation.  While this is certainly a step in the right direction, the average and median sale prices ($1,134,539 and $750,000 respectively) in 2017 will make the finished product financially out of reach for local buyers.  NOTE: In 2007, at the height of our market, 104 lots had already sold and closed by July 1.

Data-Driven Report for the first six months of 2017

The Jackson Hole Report is the most accurate and trusted real estate market report in Teton County, WY.  We derive our statistics from a privately-maintained database that tracks every single sale, not just the ones reported through MLS.

If you would like an assessment of the current value of your Jackson Hole property, please contact us for a free comparative market analysis by calling 307-690-4004 or emailing david@jacksonholereport.com.

The Overall Market

When compared to the first six months of 2016, the overall market has increased in 2017 due to a spike in single-family lot sales.  The number of sales is up 5% and the dollar volume is up 4%.   Overall sales inched up due to the increase in single-family lot sales, up 75% when compared to Q2 2016.  Despite increased sales, prices didn’t budge very much.  The average sale price did not change, and the median sale price dropped 13%.  In terms of price point, the most activity was seen under $1 million, a segment accountable for 58% of overall transactions.  Geographically, the Town of Jackson experienced the most activity, accounting for 42% of all sales in the valley and 25% of the total dollar volume ($108 million).

The Luxury market—properties priced at $3 million and above—experienced far fewer sales (down 19%).  Single-family homes claimed 45% of luxury sales, with 72% on the Westbank.  Despite the overall drop, the number of luxury properties under contract for more than $5 million increased by 50%.  NOTE: There are 71 properties on the market in the $5 million-plus price range, up 4% from Q2 2016.  The most expensive listing is north of Jackson, a home priced at $28 million spanning 40 acres with an 11,500 sq. ft. home.  The property offers ¾ mile of trout-filled spring creeks with private golf under the shadow of the Tetons.  To learn more about the Jackson Hole luxury market, please visit JacksonHoleLuxuryReport.com

The overall number of properties under contract dropped 18%, and yet, the average list price increased by 7%.  While all segments experienced a decrease in properties under contract, the single-family home segment slowed the most (down 26%).  Single-family homes and condo/townhomes make up 81% of the properties under contract. 38% of the properties under contract are listed below $1 million.

Overall inventory of active listings dropped by 10% with the dollar volume following suit (down 4%) when compared to Q2 2016.  This equates to the lowest overall available inventory since the market peak in 2007 and the second lowest in more than 25 years.  The segment with the least amount of available inventory is condo/townhomes, where inventory remains at its lowest level since 2007.  Homes for sale under $750,000 continue to be scarce, with only five currently available, a scarcity made all the more problematic when compared to the end of 2014 when 158 homes sold for under $750,000.  Based on 2017 mid-year absorption rates in this segment, there is less than two months of available inventory.

Jackson Hole Luxury Report

Market dynamics have changed drastically during the 22 years we have published the Jackson Hole Report.  During our tenure tracking real estate, we marveled at the growth of the high-end market, and came to realize this elite segment warranted special attention.  For this reason, we created the Jackson Hole Luxury Report in 2013, a limited-edition newsletter focused exclusively on high-end properties, which we define as $3 million and above.

The purpose of this limited-edition report is to provide high-end buyers and sellers with a clear understanding of the local luxury landscape. Building on the analysis of the Jackson Hole Report, we delved deeper into the dynamics of the market above $3 million. Since 2013, each semi-annual edition has brought great response and feedback from our readers.  Some seek our knowledge of their property value for estate planning, or when considering to sell.  Others need more information about the overall luxury market.  Many existing and future property owners also request more information about real estate related services such as Caretaking, Asset Management and Villa Rental opportunities.

The singular nature of luxury listings in Jackson Hole requires that each sale be examined in great detail and truly special properties must be considered incomparable. When pricing this type of property, you need a luxury data specialist to ensure success.  As a courtesy to new clients, we provide a free confidential market analysis of their distinctive property, and continue to update the current value of the property for estate planning and/or trust updates.

While the Luxury Report focuses on luxury homes, condos and single-family vacant parcels, our mailing list considers a wider lens inclusive of select commercial properties, large tracts of land, and ranches in Jackson Hole.  Currently there are 1,590 properties worth $3+ million in Jackson Hole, and on our mailing list.

If you are not currently receiving the Luxury Report, or if you would like to know what your luxury property is worth in today’s market, please contact David Viehman at (307) 690-4004 or david@jacksonholereport.com. To sign up for the digital version of the Luxury Report, visit JacksonHoleLuxuryReport.com.

The Clear Creek Group

The Clear Creek Group Real Estate Services, a division of The Clear Creek Group, LLC, is a full-service, Jackson Hole real estate agency conveniently located in Downtown Jackson. Catering to your specific real estate needs, our agents are seasoned, possess an intimate knowledge of the luxury market, and are poised to skillfully handle your next transaction.  Whether you are looking to purchase a family vacation home, relocate permanently, or trade up to a new Jackson property, we would be honored to represent you throughout the process and beyond.  

Should your property require services extending beyond the initial purchase, our parent company, The Clear Creek Group, offers a full suite of options, including Caretaking, Asset Management, and Villa Rental opportunities. If a repair is needed, our highly-qualified staff, in collaboration with the most trusted tradesmen in Jackson Hole, will work together in finding an expedient resolution. Our Asset Management group offers projections and recommendations (and executes on your direction) in the preservation of your home’s long-term integrity. Additionally, if you are interested in generating significant revenue during your time away, we offer Villa Rental Services. Catering to only the most discerning clients, and operating at your approval, we get to know your guests and act as their hosts, all in an attempt to keep a watchful eye over your property. When you return, you’ll find your home immaculate, with linens laundered, fires laid, and everything as you like it. 

Our decades-deep knowledge of the valley combined with The Clear Creek Group makes us your Local Real Estate Experts.

Whether you are pricing your property to sell in this competitive market or weighing the right time to buy, rest assured that when you are our client, you have the upper hand through access to current market statistics and our impeccable level of service and personal attention.  For a free comparative market analysis, please contact us by calling (307) 690-4004 or emailing david@jacksonholereport.com.

The JACKSON HOLE REPORT is published semi-annually, with additional email updates for the first and third quarters.  While other Realtors attempt to report on our market with MLS statistics only (MLS historically tracks 65-70% of the market), we track every single transaction in Teton County.  This data-driven report is the oldest, most accurate and trusted real estate news source in Teton County, Wyoming.  We are your “True North” of valley real estate reporting.  If you would like to sign up for quarterly email updates, or need more detailed information about our local real estate market, please call (307) 690-4004 or email david@jacksonholereport.com.

We hope this report has given you a snapshot of market trends.  As always, we would be glad to discuss them further with you.  Please contact us if you plan to list your property in 2017, would like a more detailed analysis of specific areas or back issues of the Jackson Hole Report, or if you are scouting for a professional Realtor to represent you in your next real estate transaction.  We look forward to working with you.

Sincerely,
David E. Viehman, Associate Broker
Devon Viehman, Associate Broker
“Wyoming Realtor of the Year 2013”
Luke Smith, Sales Associate
The Jackson Hole Report
The Clear Creek Group
Direct: 307-690-4004
Toll-free: 855-690-4004
Fax: 855-722-2023
http://www.JacksonHoleReport.com
david@jacksonholereport.com

*While other local Real Estate Brokers attempt to report on the local real estate market, we are the only ones to track every single transaction.  Therefore, if you want the most accurate information to help guide you through your next real estate transaction, please call Devon and David today. “We are the Experts”.
*All statistics are supplied by sources that have been deemed reliable but are not guaranteed.
*All statistics quoted in this newsletter are based on sales in 2017 compared to sales in 2016.
*Median sale price is the cost of a property that has an equal number of sales above and below it on the price scale.
*Average sale price is the total combined dollar volume divided by the number of sales.
*In this report, “overall” refers to all sales in Teton County combined (homes, lots, condos, commercial, ranch), minus Alta.
*The term “Market Value” means the value of property in terms of what it can be sold for on the open market; current value.

© Copyright 1995 – 2017 by David E. Viehman and Devon Viehman.  All rights reserved.  No part of this publication may be reproduced or transmitted in any form or by any means without explicitly written permission from David E. Viehman.