JACKSON HOLE REAL ESTATE REPORT
Our complete 1st & 3rd quarter reports are not posted on this website, but instead are only available by email. To receive the rest of this first quarter report, and sign up for all four quarterly reports via email.
When compared to Q1 2022, the number of overall sales dropped 31% to 67 in Q1 2023. The last time the valley had fewer than 100 sales in Q1 was back in 2010, coming out of the Great Recession. Back then though, the average sale price for a single-family home was $2.24 million versus $4.96 million today. The drop in number of sales is across the board with single-family home sales down 19%, condo sales down 32%, and vacant residential land sales down 59%.
In contrast, average Q1 sale prices broke records across the board with single-family home sales averaging $4.96 million, condos/townhomes sales averaging $2.5 million, and vacant residential land sales averaging $2.63 million.
So, what’s going on? Once again “SUPPLY & DEMAND” are driving our market. Unlike during the building boom of the mid-2000s, we are seeing the deficit of homes, condos and vacant land for sale playing a big role in the current price spikes. For example, home inventory is the second lowest in 40 years, with condo and vacant land inventory at their third lowest in over 40 years.
Will the “DEMAND” continue?
Increasing prices and the ability to qualify for a loan will play a big part. Since COVID appeared on the scene, average sale prices jumped, and inventory dropped exponentially. The increase in prices affected the locals’ ability to trade up, as well as the ability to qualify for a higher loan amount. Combined with the doubling of interest rates in the last 12 months, most locals can no longer afford a single-family home, much less buy a vacant lot and build. It’s worth noting that since the Great Recession, an average of 50% of all transactions have been made in cash with Q1 2023 showing 68% of transactions made in cash.
New home construction hasn’t kept up with demand either as builders have taken years to recover from the Great Recession and then COVID. Today they continue to face shortages of skilled labor, rising material costs from supply chain issues, and a shortage of employee housing, further hindering builders as they increase production. At the same time, locals are holding onto their houses longer as trading up becomes harder to accomplish. Prior to the Great Recession, an estimated 45% of home sales were locally driven.
Our complete 1st & 3rd quarter reports are not posted on this website, but instead are only available by email. To receive the rest of this first quarter report, and sign up for all four quarterly reports via email.
© Copyright 1995 – 2022 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.
Post Office Box 2431
70 King Street
Jackson, WY 83001
(855) 722-2023 Fax
Associate Broker
307.690.4004
david@jacksonholereport.com
Associate Broker
307.690.0621
devon@jacksonholereport.com
Associate Broker
307.699.5921
luke@jacksonholereport.com
Sales Associate
307.690.1614
josie@jacksonholereport.com
