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September sales: Points, Trends and Patterns

September 20, 2011 By Leave a Comment

Condo sales have been driving the Jackson Hole real estate market in 2011. This slopeside unit at Four Seasons in Jackson Hole, however, is still on the market.

It’s been said that one is a point, two is a trend and three is a pattern.

Point: September real estate sales in Jackson Hole are on pace for 30 units and about $25 million in sales, with 19 reported as of September 19.

Trend: Sales in July and August were similar, with 48 sales for approximately $48 million. Third quarter 2011 is on pace for approximately 80 sales and about $75 million in sales, which will essentially be flat in year-over year unit sales and reflect a significant drop in average sales price. The ASP drop, however, will be due mainly to several large sales in September 2010, which boosted the monthly sales volume to $110 million.

Pattern: Through the first two quarters of 2011, unit sales rose 28 percent to 150 while sales volume rose only slightly to approximately $165 million. In general, first quarter 2011 was very strong, with a 57 percent increase year over year in units and second quarter was lackluster, with only a 7 percent bump.

On my Facebook page for Teton Realty Today and my Twitter feed, the focus is on the latest price reductions, under contracts and closed listings. However, it has also been said that to know where you are going it is important to know where you’ve been. And in Jackson Hole, even the busiest years average less than two sales, or “points,” per day.

I am fortunate to be able to augment my personal research and daily market information with some powerful, deep research provided by my brokerage, Jackson Hole Sotheby’s. Though we are fast approaching the end of the third quarter of 2011, a recently released report on real estate sales in Jackson Hole through July offers additional observations on the underlying market currents.

This graph compares the first six months of 2011 with previous years' sales in Jackson Hole.

Highlights of the 29-page, fact-filled and graph-a-riffic, PowerPoint presentation, which I can provide directly to you upon request at tetonrealtytoday@gmail.com, include:

  • Average sales price declined 9 percent during the first six months of 2011 year over year, and in five of the six months, reflecting a trend toward lower end condos and single-family homes.
  • The area north of Jackson (near the Jackson Hole Airport) reported a 48 percent increase in unit sales and a 53 percent increase in volume year over year during the first six months of 2011, the strongest corner of Teton County.
  • Teton Village showed a 81 percent increase in unit sales but just 6 percent in sales volume. Again, condo sales, particularly low-end condos, have been driving the market with 50 percent of all residential sales during the first two quarters of 2011.
  • Days on market during the first six months of 2011 is up 38 percent on residential properties to 280 (240 for condos, 321 for single-family homes).

Please contact me for a personalized look at the Jackson Hole real estate market.

Filed Under: Hotsheet Highlights, Market statistics Tagged With: , , , , ,

Hotsheet Highlights: 2 big price drops in Jackson, Teton Village

May 24, 2010 By Leave a Comment

This fairway bunker on the 10th hole at Teton Pines is the closest thing to a beachfront property in Jackson Hole! All valley courses are now open, but cold and wet weather have kept tee times to a minimun so far this "spring."

Two significant price reductions over the weekend highlight today’s Teton County Multiple Listing Service Hotsheet.

A 2-bed, 1-bath, 865-square-foot Meadowbrook condo is now a short sale listed at $219,500, down from $359,500 after 410 days on the market. That is $253 per square foot. At this price, the monthly payment on a 30-year mortgage is comparable to what these units rent for.

In Teton Village, a forested 0.73-acre building site in “old” Teton Village is now $1.225 million, down from $2.395 million after 888 days on the market.

Contact me for a detailed analysis of Town of Jackson condo sales over the last five years or a closer look at active and recently sold Jackson Hole building sites.

Filed Under: Hotsheet Highlights Tagged With: , , , ,

White Buffalo Club units hit market ahead of auction

December 15, 2009 By Leave a Comment

Last Wednesday it was announced in the Sotheby’s weekly sales meeting that the brokerage had been chosen to list, and eventually help auction, properties at White Buffalo Club, a high-end hotel condo project on Gill Avenue near Miller Park.

Today, three of the offerings hit the Teton County Multiple Listing Service – a pair of 3-bed, 4-bath, 1,760-square-foot units and a 2-bed, 3-bath, 1,390-square-foot unit. List prices are set at $1.795 million for the 3-bed units and $1.395 million for the 2-bed units, but opening bids for the Jan. 23, 2010, auction will begin at $740,000 and $565,000, respectively.

These units are somewhat unique in the town of Jackson, but compare in many ways to Teton Village properties such as Teton Mountain Lodge and Hotel Terra. A key enticement for these properties is that financing is pre-arranged for qualified buyers, a hurdle that has contributed mightily to the decline of the condo-hotel market.

A formal announcement will be forthcoming and I’ll share more details in this space at that time.

Filed Under: Hotsheet Highlights Tagged With: , , , , ,

Condo loans nearly non-existent; Rates still rock bottom, for now

December 9, 2009 By Leave a Comment

Richard Uhl, real estate loan manager for First Interstate Bank in Jackson, and his associates visited the Sotheby’s office this morning to discuss the current lending climate. About a dozen agents took advantage.

Beyond reiterating what we’ve all known for more than a year – lending guidelines for real estate transactions are very tight these days – Uhl and his team spent most of the half-hour discussion on the eligibility of condo projects for financing. For many, there just simply isn’t any available on the secondary market.

“If it looks, smells, tastes like a condo hotel, we can’t do it,” said Uhl, referring to developments such as Four Seasons, Teton Mountain Lodge and other similar Teton Village properties.

Characteristics that will likely make projects ineligible under Fannie Mae guidelines, include:

  • Projects that include the words “hotel” or “motel”;
  • Projects that restrict the owner’s ability to occupy the unit;
  • Projects that include registration services or offer daily rentals;
  • Mixed-use developments, timeshare or segmented ownership projects, multi-dwelling unit condos, and more.

Commercial lending has also been tightened considerably, particularly to those investors without a prior relationship with a lender or a large portfolio.

But not all the lending news is bad. Rates remain near historic lows and clients with strong FICO scores – “740 is the magic number if you don’t want to pay additional fees,” said Uhl – and favorable debt to income ratios. Borrowers looking to finance single-family homes are finding attractive options, as the sales statistics for Jackson Hole real estate during the second half of 2009 confirm.

But how long will the fixed rate for a 30-year mortgage remain this low? As of today the rate is approximately 4.85 percent.

“I predict we’re going to see them go up beginning of next year,” Uhl said.

Contact me for more information from this meeting, an introduction to a local lender or to discuss financing possibilities for specific properties.

Filed Under: Jackson Hole News, Market statistics Tagged With: , , ,