MARKET REPORT
TETON VALLEY, ID REAL ESTATE MARKET REPORT MID-YEAR 2015
THE REGION’S LARGEST AND MOST DYNAMIC REAL ESTATE COMPANY INTRODUCTION The first half of 2015 showed a continuation of positive signs for the Teton Valley, Idaho and Alta, Wyoming real estate markets. Residential inventory levels were down, and prices were on the rise in all market segments. Distressed inventory was nearly absorbed and presently comprises a very small segment in the marketplace. While vacant land sales still lag behind residential sales in total number and appreciation, recently the combination of unsuccessful residential buyers and speculative builders has increased demand in the vacant land segment. This was further exacerbated by accelerating prices and lack of inventory in the neighboring Teton County, Wyoming (Jackson Hole) market. Increasing numbers of residential and vacant land sales, coupled with appreciation and a significant uptick in commercial sales, all contribute to strengthening the Teton Valley, Idaho and Alta, Wyoming real estate markets.
RESIDENTIAL There were 98 residential sales in the first half of 2015. That number was slightly lower compared to the last two years (105 sales in the first half of 2013, and 114 sales in the first half of 2014). However, the average sales price was up significantly at mid-year 2015, to $325,000, from $246,000 mid-year 2014. The median sales price mid-year 2015 was $275,000, up 29% from 2014 when median sale price was $213,000. This median sales price is often a more accurate measure of the market’s health. There was a large decline in inventory with 153 homes listed at mid-year 2015, versus 194 in 2014. The dollar volume remained strong with an increase of 10.8%, from $28,828,205 in 2014 to $31,908,600 in 2015.
THE AVERAGE SALES PRICE INCREASED 35% IN THE RESIDENTIAL REAL ESTATE SEGMENT WHEN COMPARED TO MID-YEAR 2014. www.TETONVALLEYIDAHOREALESTATE.com | 208.354.7325 | 65 S Main, Driggs, ID
VACANT LAND The vacant land market continued to lag behind the residential market. However, total number of sales increased significantly year over year, with 86 sales in the first half of 2015, and 58 sales in 2015, producing an increase of 48%. Dollar volume increased substantially, up 34% from $4,413,023 in 2014 to $5,915,499 in 2014. Inventory levels increased, with 537 active listings compared to 459 at the end of Q2 2014. The median and average sale prices have not shown quite as much movement and remain at $46,000 and $69,000 respectively. With residential inventory remaining at low levels, it appears the number of vacant land sales, and vacant land pricing, may continue to grow into 2016.
ALTA, WYOMING The Alta, Wyoming market segment was tracking at roughly the same pace in the first half of 2015 as it was in the first half of 2014, with 6 total sales; 2 residential and 4 vacant land. Those numbers are small, but not unusual for the historically less active Alta market. At mid-year 2015, the average and median sales price were both down to $492,000. When compared to the first half of 2014, the average sales price was $677,000, up 137%, and the median sales price was $750,000, up 163%. There were 36 land listings in Alta at the end of the first half of 2014, and 37 active listings at the end of the first half of 2015. The list prices in Alta also remained very low when compared to the top of the market in 2007; the average list price at mid-year 2015 was $325,000, in 2007 it was $968,000. It is important to keep in mind that data is easily skewed by a single sales event, up or down, with such a small data set in the Alta, Wyoming market.
COMMERCIAL The most notable change in the commercial market was the increase in the number of transactions. At mid-year, commercial sales jumped from 3 in 2014 to 10 in 2015, a 233% increase. The average sales price decreased slightly from $286,000 to $283,000 at mid-year 2015. There were 7 pending transactions mid-year 2015 proving that the commercial sector is continuing to strengthen.
MOVING FORWARD The first half of 2015 demonstrates the Teton Valley, Idaho and Alta, Wyoming real estate markets remain firmly on the path of recovery. This directly corresponds with national real estate market trends. Low interest rates that are likely to remain at, or near, present levels and stock market volatility are widely believed to continue our current trajectory. Dwindling inventory and rising values are bringing an increased attention from home builders and potential Sellers alike, further strengthening the weaker segments of the market. Couple this with the healthy appreciation in our neighboring Jackson Hole market, and it creates an increase of upward pressure on real estate activity across the board. In summary, the Teton Valley, Idaho and Alta, Wyoming real estate markets are showing very promising signs of health and velocity. Continued interest from buyers and sellers is increasing every quarter, and steady growth appears to be promising. Jackson Hole Real Estate Associates exclusively owns and maintains the valley’s oldest and most comprehensive market database. The local knowledge of Jackson Hole Real Estate Associates, the largest and most dynamic real estate company in the region, combined with the largest luxury real estate affiliation, Christie’s International Real Estate, offer the ideal balance of local expertise and global reach. The Christie’s International Real Estate network exceeds $106 billion in annual volume, nearly three times greater than our nearest competitor. * The statistics used in this report are from the Teton Board of Realtors Multiple Listing Service (MLS) * This report does not go into detail on every segment of the market, but is intended to offer an overview of general market conditions. * All statistics are supplied by sources that have been deemed reliable but are not guaranteed.
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