While the overall number of sales is down 32%, inventory levels across the board are on the rise. Overall inventory is up 34% with single-family home inventory up 13%, townhome/condo inventory up 44%, and residential vacant lot inventory up 76%. Normally, rising inventory puts pressure on Sellers to lower their prices, but not in 2023. The average and median sale prices for homes, townhome/condos, and residential vacant lots are all up and all breaking records for the end of Q2. While 22% of the current listings on the market have reduced their list prices since inception, Buyers are still willing to pay more than last year due to the lack of inventory.
It’s important to point out that the 154 overall sales to date is the third lowest number of sales in 30 years. Besides the lack of inventory, this dramatic decrease also comes from issues not necessarily locally driven. Home mortgage interest rates nearly doubled since COVID, and inflation is still high. Locally, the lack of affordable homes and condo/townhomes under $1 million has cut the number of Buyers by more than 80%. For example, just two years ago, the first six months of 2021 registered 112 sales under $1 million. By contrast, in 2023, we had a total of 18 sales under $1 million in the first six months. Step back to 2013, and there were 220 sales under $1 million in the first six months. NOTE: With interest rates doubling, 71% of all sales in 2023 have been cash. Interest rates have also put a damper on remodeling projects as Buyers are using their extra cash to purchase.
Available inventory at the end of June 2020 registered 323 overall listings, and today, we only have 224. NOTE: Just three months ago, at the end of Q1 2023, there were only 132 active listings overall. That’s a 70% increase in just three months. While the increase in listings is expected this time of year, it’s still only 60% of the normal available inventory for the end of June. Regardless, it’s good news for Buyers when inventory is on the rise.
Looking ahead, we continue to see a softening of demand with inflation, rising interest rates, and lack of inventory in the lower price ranges. However, we are starting to see more active Buyers in the valley. Inventory is increasing and prices have started to moderate into a slower growth curve. While inventory levels are still at historic lows, without more Buyers in the market, some Sellers will have to lower their expectations if they want to close in 2023.
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DATA-DRIVEN REPORT FOR THE FIRST SIX MONTHS OF 2023
The Jackson Hole Report is the oldest, most accurate, and comprehensive real estate market report in Teton County, Wyoming. We derive our statistics from a privately maintained database that tracks every single sale, not just the transactions reported through MLS. NOTE: Only 62% of sale prices valley-wide in 2023 were reported to MLS.
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