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| | | | Welcome to the ninth issue of The Star Valley Report. Published semi-annually, this data-driven report is the most accurate & trusted real estate news source that keeps all of Star Valley well informed on our ever-changing market.
With a recession in effect and an unstable economy, the rapid rates of appreciation and the number of real estate sales in the valley are finally feeling the effects from America’s distressed housing market. Every category of the market (homes, lots, farm & ranch) has seen a downward turn, including number of sales, average price, and median price. The statistics listed below are staggering as the market change has occurred so rapidly and drastically from previous years. The cause for the downturn in our market can be any number of reasons and everyone has an opinion, but the one factor that cannot be argued is the numbers, which speaks volumes.
The number of total sales valley wide has fallen to levels that we haven’t seen since 2003-2004. With sales down 58% valley wide, it begins to make us wonder “when are we going to hit bottom?” While we have still seen active listed prices continuing to hold, this summer will be pivotal to sellers as to whether they decide to reduce their prices and move the property, or hold fast and ride these tough times out. At some point, we should see investors feel that the market has bottomed out and begin to buy “distressed” properties throughout the valley.
The key realization that most sellers will have to have is that their property is not worth as much as it was 2-3 years ago. Demand is down and inventory is high, so the decision to sell will rely on how motivated the seller is and whether a price adjustment is feasible. Up to date, we have yet to see any drastic price reductions, which will more than likely become more prevalent if the numbers of sales do not increase before the summer of 2009.
When comparing the end of 2007 to the end of 2008, there were 500 fewer transactions in 2008 (down 140%). The average price fell 18% from $278,981 to $236,806 and the median price was only down 2% to $210,000. The decrease in average price can be attributed to more sales that fall into the lower end of the scale, meaning more affordable properties throughout the valley are the one’s that are selling.
The housing segment of our market, which has been the strongest part of the market the past couple of years, has seen an 82% decrease in the number of sales valley wide.
The number of overall active listings (974) on the market, as of January 1st, increased 5%. We did see a decrease in the average list price (down 13% to $389,055) and an increase in the median list price (up 7% to $237,500). The dollar volume of available properties, as of January 1st, was just under $379 million which is a 7% decrease when compared to January of 2007.
There continues to be a need for affordable homes (under $250,000) in the northern part of the valley, specifically for the Jackson Hole commuter.
There were 17 properties under contract (down 94%), as of January 1st, 2009, with an average listing price of $368,012 (down 7%), a median listing price of $226,000 (down 6%), and a total dollar volume of $6,256,200 (down 107%). Looking at these stats and comparing them to what the current inventory on the market, tells us that we have 57 months (4.75 years) of inventory currently for sale.
Southern Star Valley (Smoot to Bedford)– 3,282 deeds.
Northern Star Valley (Bedford to Alpine) – 5,629 deeds.
Star Valley Ranch –2,082 deeds.
This report was written and edited by Carlton Loewer, Owner/Associate Broker. For more information on the overall market in Star Valley or for a free comparable market analysis, please call the Alpine office at 877-654-7575.
We hope this report will give you some sense of market trends and, as always, we are glad to discuss them further with you. This newsletter does not go into detail on every segment of the market, but is intended to offer an overview of general market conditions showing year-to-year changes in the number of transactions and the average sale prices.
JACKSON HOLE REAL ESTATE & APPRAISAL, LLC has served the Star Valley for over twenty-eight years. With the daily tracking of every single real estate transaction in Star Valley, the simple fact is “We Know The Market Better Than Anyone”. If you are looking for a Realtor or Appraiser, whether you are buying or selling, you owe it to yourself to talk to us before you make what could be the most important decision of your life. At JHRE&A our clients’ and customers’ best interests are paramount! Your “locally owned and operated” Real Estate Company located at 181 US Hwy. 89 in Alpine, WY., across from Gunner’s Pizza. You can also visit our virtual office at www.jhre.net or email us for more information at info@jhre.net.
If you would like a more detailed analysis of specific areas or a professional Realtor who really knows the market and its trends, please email or call one of the numbers below or write to P.O. Box 3225 - Alpine, WY 83128.
Sincerely,
Jackson Hole Real Estate & Appraisal, LLC
Alpine Branch
email: info@jhre.net
www.starvalleyreport.com
locally - 307.654.7575
toll-free - 877.654.7575
* Overall means everything either sold or on the market in all of Star Valley, which includes homes, lots, condos, commercial, farm/ranch and multi-family.
* All statistics are supplied by sources that have been deemed reliable but are not guaranteed.
* All statistics quoted in this newsletter are based on sales in 2007 compared to 2008.
* The value of any individual property may, and probably will, vary from the average indicated in these graphs.
* Median sale price is the cost of a property that has an equal number of similar properties above and below it on the price scale.
* Average sale price is the total combined dollar volume divided by the number of sales.
* This report is published and updated twice a year. Because of our fast moving market most of the statistics in this report are obsolete within two weeks. Therefore, you should not rely on this report to determine the value of a property, instead call me for a free market analysis.
© Copyright 2004 - 2009 by Jackson Hole Real Estate & Appraisal, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without explicit written permission from Jackson Hole Real Estate & Appraisal, LLC.
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>RETURN TO END-OF-YEAR REPORT
The real estate market for Star Valley has fallen onto some very uncertain times. The records that we have been setting in sales and prices are no more for the time being. One can point the finger at many things: the economy, the lending crisis, or the upcoming election; but perhaps it has been a culmination of all these events that has placed us in the situation we are now in.
In past newsletters we have stated that as long as Jackson’s market continued to be strong, so too would the Star Valley Market. Well, we are finally seeing a slowdown in the Jackson market (please reference www.jacksonholereport.com, 2008 Mid Year Report), which brings us to our present reality, “the real estate market is really slow in Star Valley”.
I will always believe that real estate will be a good, sound, long-term investment; and even in these uncertain times, this should still hold true. What we are going through right now is just a rough patch in the road. There will definitely be a correction in the pricing of property throughout the valley (one of which the Jackson market is currently going through now), which can lead to opportunity for those looking to purchase in the near future.
The market for Star Valley has “softened” quite a bit over the first half of 2008. With our prices continually on the rise the past couple of years, coupled with the changes made to the lending guidelines, it has made it difficult for the first-time homebuyer and second homebuyer to obtain financing for property here in the valley. We have definitely moved into a “buyer’s market” with the amount of inventory available these days. A side note to this though, is we haven’t seen the drastic price reductions yet. Be looking for that to happen next, which could end up jumpstarting another buying spurt.
The middle of 2008 has brought about a serious change in the real estate market for Star Valley. The overall market for Star Valley continues to falter when looking at the total number of sales for the valley the past two summers. When compared to the mid year 2007, we have seen a 91% decrease in the total number of transactions throughout the valley. One bright note to this is that there was only a 2% decrease in the average price (down from $250,369 to $245,076) and an increase in the median price of 10% to $218,000. We also saw a significant reduction in the amount of properties under contract for this time period, down 62% from a year ago.
The residential segment of the market, which has been the steadiest the last couple of years, has hit a stumbling block of late. We saw 38% fewer home sales throughout the valley, with a 13% decrease in average price (down to $271,390), and a 4% decrease in median price (down to $250,000). There are several factors that have contributed to this decrease, the major of which being the tightening of lending guidelines throughout America.
The number of overall active listings on the market, as of July 1st, increased 53%. We did see a slight decrease in the average list price (down 12% to $406,490) and the median list price (down 3% to $239,000). The dollar volume of available properties, as of July 1st, was just under $405 million, which is a 37% increase when compared to July of 2007.
There continues to be a need for affordable homes (under $250,000) in the northern part of the valley for the people that commute to Jackson on a daily basis.
There were 55 listings under contract (down 62%), as of July 1st, 2008, with an average listing price of $435,089 (up 6%), a median listing price of $235,000 (up 4%), and a total dollar volume of $23,929,900 (down 53%). Looking at these stats, and comparing them to what we currently have on the market, tells us that we have 18 months worth of inventory currently for sale.
Southern Star Valley (Smoot to Bedford) – 3,281 deeds.
Northern Star Valley (Bedford to Alpine) – 5,580 deeds.
Star Valley Ranch – 2,093 deeds.
This report was written and edited by Carlton Loewer, Owner/Associate Broker. For more information on the overall market in Star Valley or for a free comparable market analysis, please call the Alpine office at 877-654-7575.
has served the
Star Valley for over twenty-eight years. With the daily tracking
of every single real estate transaction in Star Valley, the simple
fact is “We Know The Market Better Than Anyone”. If
you are looking for a Realtor or Appraiser, whether you are buying
or selling, you owe it to yourself to talk to us before you make
what could be the most important decision of your life. At JHRE&A
our clients’ and customers’ best interests are paramount!
Your “Locally Owned and Operated” Real Estate Company
located at 181 US Hwy. 89 in Alpine, Wyoming (across from Gunner’s
Pizza). You can also visit our virtual office at www.jhre.net or
email us for more information at info@jhre.net.
If you would like a more detailed analysis of specific areas or
a professional Realtor who really knows the market and its trends,
please email or call one of the numbers below or write to P.O. Box
3225 - Alpine, WY 83128.
Sincerely,
Jackson Hole Real Estate & Appraisal, LLC
Alpine Branch
email: info@jhre.net
www.starvalleyreport.com
307.654.7575
877.654.7575
*While other local Real Estate Brokerages attempt to report on the local real estate market, Jackson Hole Real Estate & Appraisal, LLC is the only company to track every single transaction. Therefore, if you want the most accurate information to help guide you through your next real estate transaction, call us today. “We are the Experts”.
*Overall means everything either sold or on the market in all of
Star Valley, which includes homes, lots, condos, commercial, farm/ranch
and multi-family.
Northern Star Valley, in this report, is Bedford north to the Idaho/Wyoming state line (not including Star Valley Ranch).
Southern Star Valley, in this report, is south of Bedford to Smoot.
*All statistics are supplied by sources that have been deemed reliable
but are not guaranteed.
*All statistics quoted in this newsletter are based on sales in the first six months of 2007 compared to the first six months of 2008.
*The value of any individual property may, and probably will, vary
from the average indicated in these graphs.
*Median sale price is the cost of a property that has an equal number
of similar properties above and below it on the price scale.
*Average sale price is the total combined dollar volume divided by the number of sales.
*This report is published and updated twice a year. Because of our fast moving market most of the statistics in this report are obsolete within two weeks. Therefore, you should not rely on this report to determine the value of a property, instead call me for a free market analysis.
© Copyright 2004 - 2008 by Jackson Hole Real Estate & Appraisal,
LLC. All rights reserved. No part of this publication may be reproduced
or transmitted in any form or by any means without explicit written
permission from Jackson Hole Real Estate & Appraisal, LLC.
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