HOW IS COVID-19 AFFECTING OUR REAL ESTATE MARKET?

As discussed in the Q1 Jackson Hole Report, COVID-19 has affected our local real estate market. While the shutdown, which began in mid-March, and lasted through early May, affected the number of overall sales (down 23%) the dollar volume spent through Q2 2020 actually outpaced 2019 by 6%. Even more amazing is the number of properties currently in negotiation (up 50%) and the dollar volume (up 115%). NOTE: The first six months of 2020 generated $603 million in dollar volume, and there is currently $414 million under contract for a total of $1.017 billion. This means that 2020 could potentially break a record. The highest dollar volume ever generated in a given year was in 2007-$1.567 billion.

After visiting with several Realtors and local Appraisers, it’s clear that many Buyers are being driven out of large cities by both COVID-19 and civil unrest. Most have been contemplating a move for some time and felt that now was the right time.

The rush started around the 1st of June, as 90 of the 123 properties went under contract since then. Compared this to June of 2019, where only 46 properties went under contract. In fact, there was a seven-day period in June when 10% of the existing overall inventory went under contract.

The upper end of the market, $3+ million has seen more activity due to COVID-19 than any other segment. This is true across the board, as Luxury Home sales are up 22%, Luxury Condo sales are up 50% and Luxury vacant lot sales are up 50%.

In contrast, condo/townhomes under $1 million have seen less activity due to COVID-19. In fact, the first six months of 2020 saw 47% less sales and a 46% increase in the number of listings for Q2. This could be due to who is buying in this price point, as many have either lost their job, or are not working full-time. Ironically, both the average sale price and current average listing price are both breaking records. This is a reflection of the record-breaking number of sales in the Luxury market.

DATA-DRIVEN REPORTING FOR THE FIRST SIX MONTHS OF 2020

The Jackson Hole Report is the oldest, most accurate and comprehensive 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 transactions reported through MLS.NOTE: Only 63% of sale prices valley-wide in 2020 were reported to 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 email group@jacksonholereport.com.

When compared to the first six months of 2019, the overall market has slowed with 23% less sales. In contrast, the average and median sale prices are up 40% and 12% respectively. The only segment where the number of sales increased was residential vacant lots, up 5% when compared to Q2 2019. Don’t read too much into the slow down of sales, though, as mentioned above we are on track to break an all-time record for dollar volume.

NOTE: Sales in the Town of Jackson were down 44%, and the dollar volume down 37% when compared to the first six months of 2019.

The Luxury market—properties priced at $3 million and above—registered 61 sales (up 22%). The hottest segment overall is over $5 million where 36 sales closed (up 90%). Single-family homes claimed 59% of luxury sales (36 transactions), with 59% on the Westbank. Luxury listings under contract are also soaring with 38 sales pending (up 111%). NOTE: There are 108 properties on the market in the $3+ million price range, down 14% from Q2 2019. The most expensive listing is north of Jackson, an 8,000 sq. ft. home and 3,600 sq. ft. guesthouse spanning 278 acres priced at $80 million. The property offers more than 1⁄2 mile of Snake River frontage and three spring creeks. To learn more about the Jackson Hole luxury market, please visit JacksonHoleLuxuryReport.com.

The overall number of properties under contract has soared with 123 properties currently in negotiations (up 50%). The dollar volume and average list price are following suit—up 115% and 43% respectively. All segments experienced an increase in the number of properties under contract, with the majority being single-family homes, up 127%. NOTE: The $3+ million segment (Luxury Market) had the highest increase with 111% more properties under contract when compared to the end of June 2019.

Overall inventory of active listings declined 6%, when compared to Q2 2019, marking the second-lowest number of overall active listings in 30 years. While both single-family home and vacant residential lot inventory decreased, down 19% and 10% respectively, the condo/townhome inventory shot up 46%. Homes for sale under $1 million continue to be scarce, with only 9 currently available valley-wide, made all the more problematic when compared to July 1st of 2011 when 104 homes sold for under $1 million. NOTE: Q2 2020 marks an all-time low of available homes for sale under $1 million, with only 9 to choose from.

There are currently 12,023 free-market deeds in Jackson Hole. They break down as follows: Westbank (3,663); Town of Jackson (4,013); North of the Gros Ventre River (1,428); South of Gros Ventre River to County Line (2,919)—all free-market (not deed restricted or timeshare).

There are 1,845 deeds worth at least $3+ million (luxury properties) throughout the valley. Currently, the Westbank is home to almost half (897) of these luxury properties.

Due to the Great Recession, overall inventory peaked in 2010 at 842 available properties.

We have since experienced an annual decline in inventory including this year, where overall inventory is down 6% to 323 listings.

*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 2020 compared to sales in 2019.

*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, WY.

*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 – 2020 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.