Teton Valley Market Report | 2014 Midyear

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MARKET REPORT

TETON VALLEY, ID REAL ESTATE MARKET OVERVIEW 2014 MIDYEAR

Christie’s International Real Estate GLOBAL AFFILIATE OF THE YEAR

INTRODUCTION The Teton Valley, Idaho and Alta, Wyoming markets continue to show improvement, with promising signs for the future. Residential inventory levels are lower than they have been in years, creating more demand and increasing property values in Teton Valley. Foreclosure volume is down, resulting in fewer distressed sales, while also contributing to higher sale prices. The land market remains fairly inactive with a significantly low absorption rate, but residential inventory levels may indicate increasing demand for land in the near future. The Alta, Wyoming market, although fairly quiet, did experience higher average and median sale prices. Given the momentum started in June, it is a safe assumption that the second half of 2014 will be fruitful and the 2014 year end report will show impressive sales statistics.

RESIDENTIAL There were 114 residential sales in the first half of 2014. That number was fairly consistent with the last two years (103 sales in the first half of 2012 and 105 sales in the first half of 2013). The average sales price ($246K) is up from 2013 ($244K). More impressive is the increase from the first half of 2013, which showed an average sale price of $205K. The median sale price ($213K), which is often a more accurate measure of growth, was up 37% from 2012 ($156K) and 7% from 2013 ($199K). There was a decline in inventory with 194 homes listed at the end of the first half of 2014. With a total of 215 residential sales in 2013, it would appear the first half of 2014 enjoyed a healthy rate of absorption. These statistics show a steady stabilization in the residential market.

RESORT RESIDENTIAL The most notable change in the resort market has been the increase in average and median sale price. The resort residential average sale price increased from $396K to $489K over the last two years, which is a 23% jump. The median sale price followed the same trend, which was $360K in mid-2012 and $440K at the end of the first half of 2014.


Property Showcase

LAND The land market continues to fall behind the residential market. The absorption rate has increased slightly, with 58 sales in the first half of 2014. In the first half of 2012 there were 35 sales and in the first half of 2013 there were 43 sales. Inventory levels remain similar to the past years (458 at the end of Q2 in 2012, 472 at the end of Q2 in 2013, 459 at the end of Q2 in 2014). The average and median sale prices haven’t changed much and still remain low at $50K-$60K. With residential inventory decreasing, it is safe to assume that Buyers will consider building again, which will result in an increase in land sales in the next 1-2 years.

ALTA, WYOMING

MLS #12-1074 $1,595,000

Alta, Wyoming had 3 residential sales and 2 land sales in the first half of 2014. Those numbers are small, but not unusual for Alta’s market in the past years. Although the number of residential sales aren’t impressive, the average and median sale price was up. At the end of the first half of 2014, the average sale price ($677K) was up 137%, and the median sale price ($750K) was up 163%. There were 136 land listings in Alta at the end of the first half of 2014. The sale price of land in Alta also remained very low when compared to prices in 2006-2007; the average and median sale price in first half of 2014 was $142K.

MLS #13-1705 $785,000

FORECLOSURES One of the greatest market indicators is the annual foreclosure volume. Teton Valley, Idaho had foreclosures totaling $110M in 2010. The dollar volume has diminished every year since. In the first half of 2014, there was approximately $9M in foreclosures and under $2M expected for the rest of 2014. The reduction of distressed listings results in fewer below market sales, which drag down sales prices and property values.

MLS #14-1443 $565,000

MOVING FORWARD All local and national real estate market trends and national economic trends point to a continuation of a strengthening market in the years to come. If sales stay constant and inventory continues to dwindle, Teton Valley’s market trends will start to strongly resemble that of the Jackson Hole market. Building interest seems inevitable, which will ignite the land market and increase transactions and sales prices. Analysts continue to threaten higher interest rates. This could slow the pace Teton Valley is enjoying, but currently, the sun is shining on the residential market and there are positive signs for the future of the overall market.

MLS #13-1683 $475,000

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 Teton 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 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. *Average sale price is the total combined dollar volume divided by the number of sales.

For additional information or a market update in your area, please do not hesitate to contact one of our real estate professionals.

Jackson Hole (Main)

80 W. Broadway | 307.733.6060

Jackson Hole 270 W. Pearl

Jackson Hole

Snow King Resort Hotel

Star Valley (Alpine)

181 Alpine Dr. 307.654.7575

Star Valley (Thayne)

235 S. Main | 307.883.7575

Teton Valley (Driggs)

65 S. Main | 208.354.7325

www.TETONVALLEYIDAHOREALESTATE.com | 208.354.7325 | 65 S Main, Driggs, ID


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