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Jackson Single-Family Home Market Gains Momentum Through 2003
Attached Homes and Homesites Show Stable-to-Increasing Prices.
Statistics for 2003 year-end indicate that the Jackson Hole real estate market is gaining upward momentum in the market segments of single-family homes and the more moderately priced segments of the attached home and homesite markets. While dollar volume of sales for higher-end condominium and homesites contracted in 2003, this was primarily due to fewer sales occurring, rather than declining property values. In this report, the market segments of single-family homes sales, vacant homesite sales, and condominium / townhouse sales are first analyzed without differentiating between the higher-end resort segment of the market and the more moderately priced market segment. Each of these data sets is then allocated between its higher-end and more moderately priced components for further analysis.
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Single-Family Homes
The single-family home market in 2003 showed an overall increase from 2002 numbers in the categories of number of sales (21.96%), total dollar volume of sales (21.65%) and median sale price (5.45%). While the strength of the more moderately-price segment of the market was the driving force behind 2003's positive numbers, a flurry of fourth quarter high-end sales helped to increase the dollar volume for this segment of the market and announced a re-awakening of interest in Jackson's luxury home market.
The preceding charts reflect the aggregate data from the entire single-family housing market. To gain better insight into the different price points of the market, the above-arrayed data was further segmented into two areas, one of which is comprised of resort-orientated properties (including homes located in Teton Village, Teton Pines, Crescent H, Jackson Hole Golf and Tennis, and John Dodge) and the other area beinSg comprised of more moderately priced properties (including homes located in the subdivisions of Indian Trails, Cottonwood Park, Rafter J, Melody Ranch, Hidden Ranch and the Town of Jackson).
A.) Resort Orientated Single-Family Home Segment Although the average and median sales prices of homes in the resort-orientated segment of the market both exhibited decreases, the number of sales increased over 30% from 82 sales in 2002 to 107 sales in 2003. Furthermore, this segment of the market showed an increase in the dollar volume of properties sold of the same magnitude, with the 2002 sales volume figure of $146,250,500 increasing to a 2003 mark of $189,841,120. The existence of increasing sales volume in the face of decreased average and median prices can either be indicative of a decreasing property value trend or a situation whereby the less expensive homes within a market segment have become more active. Examination of homes in the higher-end market segment that sold during the 2001-2002 period, and then resold in 2003, indicates that the latter scenario is more likely the case, with re-sales showing appreciation out numbering re-sales showing depreciation by a count of 7 to 3. One re-sale showed no change.
B.) Moderately Priced Single-Family Home Segment The more moderately priced segment of the Jackson Hole market increased by all indications during 2003, showing increasing trends in number of sales (15.83%), dollar volume of sales (18.89%), average sale price (2.64%) and median sale price (3.39%). The strength in this market is likely a function of a limited inventory of vacant land in this segment, as well as the beneficial interest rates that were available to home buyers.
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Single-Family Homesite Sales
The market for single-family homesites appears to have continued its overall downward trend in 2003, with the only positive indicator being a modest increase in the number of sales, from 97 sales in 2002 to 104 sales in 2003. However, closer examination of this data reveals that, similar to the high-end housing market, the decrease in median and average homesite sales are more indicative of a strong lower end than they are indicative of a declining upper end. While demand for high-end building sites contracted in 2003, analysis of sales data indicates that this resulted, in most cases, in a standoff between buyers and sellers rather than declining prices.
The preceding charts reflects the aggregate data from the entire single-family homesite market. To gain better insight into the different price points of the market, the above-arrayed data was further allocated into its resort-orientated and more moderately priced components in the same fashion as was done for the single-family home sales.
A.) Resort Orientated Segment With the exception of a slight increase in the number of sales in this market segment, the demand for lots in the higher-end market segment appears to have remained soft, with decreases being noted in dollar volume of sales (-13.2%), average sale price (-20.5%) and median sale price (-11.9%). While a decrease in demand for lots in the higher-market segment occurred in 2003, examination of lots in the higher-end market segment that sold during the 2001-2002 period and then resold in 2003 showed five re-sales indicating appreciation, with one re-sale showing no change.
The result of unmotivated sellers not being willing to lower prices has been an overall decrease in dollar volume of sales and a shift in preference to less expensive lots. This has exerted downward pressure on the average and median prices for the high-end single family homesite market segment. However, despite an overall downward trend, the fourth quarter ended positively, with the sale of a 35-acre homesite for more than $5,000,000.
B.) Moderately Priced Homesite Segment The more moderately priced segment of the Jackson Hole homesite market increased by all indications during 2003, showing increasing trends in number of sales (12.1%), dollar volume of sales (17.3%), average sale price (4.6%) and median sale price (2.54%). The strength in this market likely is a function of a decreasing inventory of available product in this segment as well as the beneficial interest rates that were available to real estate buyers.
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Condominium and Townhouse Market
The market for condominiums and townhomes in Jackson Hole showed a 17.2% increase in the number of sales during 2003 and a total dollar volume of sales that remained similar to the 2002 mark. The introduction of several less expensive developments caused the average and median price indications to both fall by approximately 14%. Allocating the market into its resort and more moderately priced segments reveals that the high-end of the attached home market has dropped in number of sales transacted. Furthermore, the sales that have occurred in this segment have been of less expensive units, causing overall dollar volume, as well average and median prices, to slip. The more moderately priced segment of the market also experienced more low-end sales. However, the increased volume of sales in this segment offset the lower prices obtained for the more modest products, and dollar volume of sales showed a slight increase from 2002 levels. Sales and re-sales of homes in both the resort and more moderately priced market segments indicated that sellers typically obtained a profit when they resold an attached home that they had purchased subsequent to 2000.
The preceding charts reflect the aggregate data from the entire attached housing market. To gain better insight into the different price points of the market, the above-arrayed data was further segmented into its resort orientated and more moderately priced components sales.
A.) Resort Orientated Segment The demand for condominiums and townhouses in the higher-end market segment was down in 2003, as noted by a decrease in the number of sales in this segment (-15.8%) and a contraction of dollar volume of sales (-18.2%). Small reductions were also noted in the average (-2.83%) and median (-0.8%) price levels. While overall demand for townhouses and condominiums in the higher-market segment has softened, it is noted that individual prices have typically at least held their ground. Out of 23 observed re-sales in the resort-orientated attached home market during the 2001 - 2003 period, 17 of the re-sales indicated appreciation, with two re-sales showing a loss and four sales showing no change in value.
B.) Moderately Priced Condominium Townhouse Market The more moderately priced segment of the Jackson Hole attached home market increased dramatically in both the categories of number of sales (52.38%) and dollar volume of sales (46.96%). Average and median sales prices decreased slightly in 2003 in this segment. However, these decreases are attributed to the availability of lower-priced housing developments that capitalized on favorable interest rates. In support of this, analysis of 20 re-sales of townhouses and condominiums from the moderately priced market segment reveals 19 re-sales showing appreciation and one re-sale showing no change during the 2001-2003 period.
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In Summary
Having weathered the aftermath of the dot.com contraction and the terrorist attacks of September 11, 2001, the Jackson real estate market is gaining upward momentum in the single-family and attached home markets. To date, this momentum largely has been fueled by the more moderately priced segments of the market. However, high-end single-family homes showed an increase in dollar volume of sales of nearly 30%, which returned this measure to near 2001 levels. While the dollar volume of high-end attached homes and homesite was less than that of 2002, analysis of individual sales and re-sales indicates that the contractions in aggregate price levels in these market segments were primarily due to fewer high-end sales, rather than declining property values. Furthermore, the fourth quarter ended 2003 on a positive note, with three homes selling at or above the $7,000,000 mark and one homesite selling in excess of $5,000,000.
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Archived Market Reports
 2005
2004
2003
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