Jackson Hole Market Report 2023 Q2

E a c h o f f i c e i s i n d e p e n d e n t l y o w n e d a n d o p e r a t e d . | k w j a c k s o n h o l e . c o m

2 2 0 2 3

J A C K S O N H O L E MARKET REPORT

Q

MEET KEL JACKSON H

As the world's la dominates the land reach.Withamarke ofthousandsofpote beassuredthattheir aroundtheglobe.

Yet,whatmattersmo isin-depthmarketk that only informed provide.OurKeller brokerage in Jackson with seasoned local team.Ouragentsall clients with up-to-d allowsthemtomake

EXPLORE THE JACKSON HOLE MARKET

Welcome to our Q2 2023 Jackson Hole Market Report! Our local team has pulled and analyzedthefollowingdata,providinginsightnotonlyonthepastyearbuthistoricaldata thathelpsidentifylocaltrendsinthemarket Foradeeperinsightintothesenumbers,our localteamhereatKellerWilliamsJacksonHoleisalwaysavailabletodiscuss.

MARKET OVERVIEW

Q2 2023

It has been about a year since the real estate market began shifting locally. A major question on many people’smindsis–Arepricescomingdown?Basedon theyear-over-yearfiguresthereisn’tanyclearevidence ofdepreciation.Infact,theoverallaveragesaleprice continued to increase, up 24% from a year earlier. Despitethisaveragepriceincrease,theoverallmarket continues to experience challenges as many buyers waitonthesidelinesfora“gooddeal”andothershave been sidelined by affordability issues. The overall number of transactions dropped 14% even though buyers have a nice boost of available properties to choosefromwith30%higherinventorycomparedto last year. Properties are staying on the market an average of 193 days which is up 53%. Could a combination of higher inventory, fewer sales, and longermarketingtimesforcepricesdown?

ALTHOUGH TRANSACTIONS ARE DOWN AND INVENTORY IS STARTING TO INCREASE, WE’RE STILL SEEING INCREDIBLE ACTIVITY FROM BUYERS WAITING FOR THE RIGHT OPPORTUNITY. THEY ARE OUT LOOKING AND PAYING ATTENTION TO THE MARKET AND WILL BE READY TO JUMP WHEN THEY FIND A GOOD PROPERTY PRICED APPROPRIATELY. I SEE THIS AS GREAT NEWS.

14% 24% Average Sale Price $4,133,679*

30% Active Listings 228

10% Total Dollar Volume $686,397,385

REBEKKAH KELLEY, ASSOCIATE BROKER

Y E A R O V E R Y E A R Number of Sales 166 All data is for Teton County, Wy areas 1-10 and is sourced through Teton Board of Realtors MLS and internal proprietary data All data is deemed reliable but is not guaranteed Each office is independently owned and operated *Excludes outlying off-market commercial transaction

I N G L E F A M I L Y H O M E S

S

The Single Family segment of the market accounted for nearly half of the transactions so far this year. Despite a 15% drop in the number of transactions,pricingremainsstrongwithsomeevidenceofpricestabilization. The average sale price was up 30% compared to the same period last year, however,itisimportanttonotethatasingleultra-luxuryhomesale,listedat $48 million, is skewing this data point. The median sale price remained relatively flat at $3,237,500. The region south of Jackson, encompassing neighborhoodslikeRafterJandMelodyRanch,hasexperiencedsignificantly higherhomesalescomparedtootherareas.Whileactivelistingshaveseena year-over-year increase of approximately 14%, they are still lingering at historicallylowlevels.Compoundingtheinventoryshortageformanybuyers isthefactthatabout1/3rdoftheavailablelistingsarepricedover$10million. The average time it takes to sell a home rose modestly compared to other segments,up14%.

Number of Sales 78 Avg. Sale Price 5,851,862 Active Listings 97

"TRANSACTION NUMBERS ARE DOWN BECAUSE A LOT OF PEOPLE ARE LOCKED INTO LOW RATE MORTGAGES THE BUYERS TRANSACTING NOW ARE THOSE THAT HAVE TO BUY V WANT TO I DO BELIEVE BUYERS UNDERSTAND THEY ARE INVESTING IN A PIECE OF JACKSON THAT’S HISTORICALLY BEEN STABLE AND A LIFESTYLE THEY LOVE THEY CAN REFINANCE LATER"

KELSEY SPAULDING, ASSOCIATE BROKER

15% 30% 14%

905 E Willow Drive, List Price: $5,695,000

Thecondoandtownhomesegmentofthemarketreceivedaboostfromthe completion of two new deed-restricted "workforce" housing developments. Thesalesfromthesedevelopmentslikelyhelpedstaveoffalargerdecreasein transactions that other segments experienced, with only a 7% decline compared to the previous year. Sale prices for condos and townhomes remainedstrong,withboththeaverageandmediansalepricesexperiencing anincreaseof21%and16%respectively.Itmaybedifficulttosustainthese gainstheremainderofthisyear.Inventoryisrisingamongallpricepoints,up 32%, and the number of listings pending sale is down significantly (-71%). Anotherindicationofasoftermarketinthissegmentisthe164%increasein daysonmarket.

T O W N H O M E S

C O N D O

Number of Sales 53 Avg. Sale Price 2,316,592 Active Listings 50

+

"CONDO AND TOWNHOME SALES HAVE MAINTAINED THEIR DEMAND THROUGHOUT THE FED’S DEFLATIONARY INTEREST RATE POLICIES WITH BOTH THE VOLUME AND AVERAGE PRICES STILL INCREASING, I BELIEVE THAT THERE IS MORE THAN ENOUGH DEMAND TO ABSORB THIS MARKETS INVENTORY"

TYLER DAVIS, OWNER + ASSOCIATE BROKER

7%

3675 W Michael Drive #12 , List Price: $4,200,000

21% 32%

L A N D + R A N C H E S

Thesalesofvacantlandandranchesmirroredtheoverallmarkettrend.The number of transactions in this segment declined by approximately 22% comparedtothepreviousyear.Theaveragesalepricereceivedaboostfroma few high-value, large acreage parcels that were sold this year, resulting in a 12%increase.However,themediansalepriceexperiencedasignificantdrop ofnearly30%to$1,522,500,mainlyduetothemajorityofsalesoccurring below the $1 million threshold. Inventory for vacant land witnessed a substantialyear-over-yearincreaseof70%,butattheendofthequarter,only fourparcelswerepending.Landhascontinuedtotakelongertosellwiththe average number of days on the market up 42%. This serves as additional evidence that the land market may stagnate if lending and building costs continuetorise.

Number of Sales 19 Avg. Sale Price 3,751,429 Active Listings 68

"LAND IS A FINITE COMMODITY IN JACKSON HOLE. VACANT LAND CAN BE A VALUABLE INVESTMENT FOR LONG-TERM INVESTORS AND REQUIRES A NUMBER OF CONSIDERATIONS WITH BUILDING COSTS AT AN ALL-TIME HIGH COMBINED WITH SHORTAGES IN THE LABOR MARKET, A BUYER MUST NAVIGATE A SOMETIMES LENGTHY, RIGOROUS PROCESS" IAN OSLER, ASSOCIATE BROKER Bar B Bar River Road, List Price: $24,000,000 22%

12% 70%

Theluxurysegmentofthemarket,definedaspropertiessellingoverthe$5 million threshold, has been on fire for the past fewyears. While the wider market is experiencing large decreases in transactions, the luxury segment hardly noticed, falling a meager 4%. The average sale price of luxury propertiesincreasedsubstantially,up41%duetoseveralultra-luxuryproperty sales with large acreage. The median sale price remained relatively level at $6,195,000. Is the luxury segment immune to the fluctuations reflected in othersegments?Therearesomeindicationsthattheluxurymarketmaybe undergoingashift.Luxurylistingsareincreasingtoasubstantialnumber.At mid-yeartherewere70luxurylistingswhichreflectsa37%increaseoverayear ago. At the same time, there were 50%fewer pending listings and they are takingnearly40%longertosell.Thesesignssuggestthattheluxurymarketis potentiallyexperiencingsomeconstraintsandaslowdowninactivity.

L U X U R Y L I S T I N G S

Number of Sales 34 Avg. Sale Price 11,623,774 Active Listings 70

"DEMAND IS STILL SQUARELY THERE, SO PRICE IS ALMOST ALWAYS THE #1 HURDLE. THE MARKET WILL DETERMINE THE PRICE, SO IN SIMPLE ECONOMIC TERMS, IF THE WILLINGNESS IS THERE, THE PRICE WILL ADJUST TO MEET MARKET DEMAND (SOMETIMES MORE THAN ONCE DEPENDING ON THE STARTING POINT), ULTIMATELY ESTABLISHING ACCEPTABLE VALUE TO BOTH BUYERS AND SELLERS."