The recent listing of a 2-bed condo in Town of Jackson for $124,900 provides insight into the current entry-level real estate market in Jackson Hole.
Located in Ponderosa Village, a mid-1970s development with more than 60 units, the 644-square-foot property immediately received a half dozen offers. A contract was in place in about a week, presumably for an amount above asking price.
Why the feeding frenzy for such a modest, upper level unit in one of the valley’s densest neighborhoods? Simply, low supply, high demand for affordable home ownership from Jackson’s working class and a consensus that the bottom of the market has clearly come and gone.
The next least-expensive, full-ownership residential unit in all of Jackson Hole, a 500-square-foot studio in Teton Village, is listed for $100,000 more at $225,000. Currently there are only 11 homes listed for below $300,000, a number that spiked to 39 units in December 2011. By April 2012, that number was 28 and it has been falling steadily ever since.
For additional context, the number of units listed below $300,000* in 2008 in Town of Jackson was zero. None. Not a single one. By December 2009, as the Great Recession deepened, there were 26 with the least expensive a 1-bed, 1-bath, 434-square-foot condo on Kelly Avenue listed for $242,000.
By April 2010, the bar lowered to $206,900 for a Ponderosa Village listing, and then kept falling. And falling. The market finally reached bottom in August 2011, when a “Pondo Condo” sold for $98,000, the first Teton County residential sale for less than $100,000 recorded in more than 11 years. (Another bank-owned Pondo Condo sold for $78,500 in March 2012, but is not a strong comparable sale as the unit had significant damage.)
* For a running history of this market, enter “$300,000” in the search function of this site to read several articles going back to 2009, the year this site was launched.
Now, the pendulum has swung back with very few options for working families. Those looking for entry-level housing in Jackson Hole must be ready to move immediately upon news of an appropriate property becoming available. This means establishing a relationship with a lender, if a loan will be needed, to understand exactly how much home a buyer can afford. A lender can also provide a pre-qualification letter, which significantly strengthens an offer and is often required. It also is critical to have a strong understanding of current values and market trends so an appropriate negotiating strategy can be agreed upon quickly.
With values expected to rise slowly, low inventory is likely to continue for several quarters to come. Working with an experienced Realtor with an ear to the ground and a hands-on understanding of this market can be an invaluable resource. I can provide a list of trusted local lenders, in-depth market analysis that is up to the minute and the experience necessary to smoothly negotiate any transaction. I track properties coming to market via the foreclosure process and often become aware of other properties coming to market in the near future.
Additional highlights in the current Jackson Hole real estate market below $500,000 include:
- There are 53 residential listings for less than $500,000, 35 for less than $400,000.
- Eight Teton Village listings, including 3 Teton Mountain Lodge condos and 2 Snake River Lodge and Spa 1-bed units listed at $330,000.
- Only two units listed below $300,000 have garages. One is a Clusters unit in West Jackson, the other a townhouse in Rafter J.
- Two single-family homes are listed below $325,000, both near Hoback Junction. Both are 3-beds, no garage.
- There are 14 single-family homes listed below $500,000, or 30 percent, with 6 in Town of Jackson.
- There are 8 Aspens condos listed below $500,000. This neighborhood near Teton Pines has been very active and deserves its own blog post.
Contact me with your Jackson Hole real estate questions or to receive regular updates on the market in your email.