Short Sales in Real Estate in and around Jackson Hole

When these two words "Short Sales" come up most people think about department stores selling off merchandise after or before a holiday. In our new Jackson Hole Real Estate market with volatile home financing it takes on a totally new meaning. In the new marketplace, homeowners find a nice piece of land surrounded by everything they have always dreamed about. Many of our buyers want to be located in a nice new future Resort Community which will have Golf, Swimming, Fitness, and hiking trails all around throughout the mountains around the location.

With nice choices and possibilities of having a new home in a golf community, a buyer then goes to their local banker and applies for a construction loan wrapped around the lot purchase on a short term basis. Due to their good credit the buyers may easily qualify for a loan of one million dollars to build a home on a lot. The buyers have sought advice and have been told by several different people who could be considered “experts” in the Real Estate Field that if they ever decided to they could put their home on the market and have several offers probably before the last Construction draw was taken down and make a handsome profit!!

A year later the home owners are completely focused on picking out the granite countertops, paint colors and carpets for their new dream home and list the property with a profit in it. The construction loan expires and the bank now wants to put permanent financing on the home.

However, during the building process, the new marketplace has fallen dramatically and the new appraisal shows the home is worth less than what they have into it. We in the Real Estate Industry call this “being upside down” on a property whereby more is owed on the property than the appraisal comes in for. This is what leads to the short sell whereby the bank and owner work through the reality of the situation or the bank forecloses the property.

If you have comments or questions about short sales we certainly welcome them…….we look forward to hearing from you

If you would like to see some of our Jackson Hole Featured Real Estate Listings, please feel free to visit our site and contact us.

Changes Are Afoot in Teton Village

Teton Village, Jackson Hole’s premier ski resort, is undergoing one of the largest and most exciting transformations in its 40+ year history. Teton Village’s two iconic landmarks, the Aerial Tram and the Clock Tower, will be replaced this year with a larger, faster tram and an impressive new Clock Tower and Tram dock. In addition, Teton Village is also the home of a brand new, eco-friendly, luxury hotel that opened February 2008 and is also the site of Jackson Hole’s second five star hotel set for completion in 2010.

Since Jackson Hole Mountain Resort’s beginning in 1967, no two landmarks have become more renowned than the Aerial Tram and the Clock Tower. The tram, affectionately known as the “little red box,” has given JHMR a leg up on competing ski resorts because of its unique ability to take 45 skiers at a time to the top of Rendezvous Mountain – a vertical rise of 4,139 feet - in just a matter of minutes. From Rendezvous, a myriad of trails and groomed runs can be accessed as well as phenomenal backcountry skiing. Decommissioned in the spring 2006, the “little red box” has made way for a faster, larger tram that can hold 100 skiers and make the journey to the top of Rendezvous Mountain in only 9 minutes! New developments and updates on the tram can be viewed by clicking on this link : http://www.tram-formation.com/

A familiar fixture in the Village skyline is also strangely missing. The old Clock Tower was disassembled in the fall of 2007 and JHMR has commissioned local architect John Carney to design a new, contemporary clock tower and tram loading dock that will have glass walls on three sides and an open side facing the mountain to make boarding much easier than before. The clock tower and tram loading dock are expected to be up and fully functional for the 2008-2009 winter season.

Teton Village is also home to a new eco-friendly, luxury hotel. The Hotel Terra, which opened February 2008, is located adjacent to the Teton Mountain Lodge and features seventy two rooms and suites, a spa, and a fabulous new restaurant called Osteria, which offers gourmet pizzas, pastas, and a wide selection of Italian wines. Hotel Terra has placed a strong emphasis on using new technology to conserve water and energy and to use recycled and reclaimed materials whenever possible. Almost everything, from the roof shingles to the springs in your mattress are made from eco-friendly materials with low impact to the environment. You can click here to book a reservation and find out more information Hotel Terra also features two and three bedroom luxury condos that range in size from approximately 1000 sq ft to 1500 sq feet. These units are offered as resale only and are currently priced between $1,495,000 – 2,764,000.

In other exciting news, Teton Village will be home to its second five star, five diamond hotel in 2010. The renowned Little Nell Hotel in Aspen, Colorado has chosen Jackson Hole as the site of its second location. The hotel will be managed and operated by the Terra Resort Group (Teton Mountain Lodge, Hotel Terra) and will have 45 luxury condos that can be arranged into 120 hotel rooms. This design is indicative of a new trend in the hotel industry, particularly in resort towns, that uses the capital of residence sales to offset the high cost of the hotels real estate and development.

We will continue to keep you updated on the progress in Teton Village. If you have any questions or comments, please feel free to send them to andrew@jacksonholerr.com

The Direction of Real Estate in Jackson Hole :: Part 2

Now that the numbers are in from the first two thirds of the fourth quarter we can project the direction Real Estate is heading in Jackson Hole due to credit tightening on a national basis. We will compare October and November 2006 to the same time in 2007. The first area we will examine is Teton Village, one of the premier ski areas in North America. The average sales price in the village for condominiums jumped a hefty 83% from Oct and Nov 2006 to the same period in 2007. This we conclude is due to steep demand for the properties since many are ski in ski out, others are only moments from lifts. Investors like them due to their short term rental histories. Some properties in the village sell between nine hundred and one thousand dollars a square foot. Not exactly middle America. Now let us look at the dollars closed for Oct and Nov 2007 to same months in 2006. In 2006 there was $13,515,500 closed for the two months. In 2007 the amount is $7,097,500 a decline of 47%. When considering the hefty jump in prices, one concludes the housing problems in the rest of the country are affecting this resort community. Teton Village is the busiest area for the valley in winter and very popular in the summer due to its proximity to Teton National Park and Jackson Hole Mountain Resort.

Let’s take a look at the entire Jackson area for Oct and Nov of 2006 and 2007 as reported by the Board of Realtors. We will examine new listings which came on the market and compare them to listings which closed for the same periods. In Oct and Nov 2006 there were 665 listings that came on the market. During that same period 551 deals closed. For 2007 new listings on the market were 823. Deals that closed were 294. The percentage drop for closed deals during the two periods was another 47%. Interestingly enough out of 294, 176 closed in October compared with only 118 for November. This is the lowest amount of deals which closed in any one month since before December 2005 when the data was compiled. If this trend continues which indicators suggest, December will fall to the lowest level again in years. 22% more houses were listed this year for Oct and Nov than 2006, compared to 47% less closing on homes. People are finding they need more cash to put down now to make other deals work because their credit does not go as far. Problem being less people are able to purchase for the same reason. When I last reported back in October we here in Jackson were not sure if this credit tightening was a blip or a continual reflection on the radar screen. That being said we will then check this out after our final numbers are in for the quarter. We can predict that for some, this reflection will be a cloud over many people’s heads. Once we flip the coin though, trend continuing, it could by mid 2008 turn into a buyers market that no one has ever seen! Once again we will be reviewing and analyzing the numbers as they come in. Look for our next contribution in about a month. If you have comments please send them to mark@jacksonholerr.com

Jackson Hole Real Estate :: Saddle Butte: Have Your Cake and Eat it

Because our Jackson Hole Real Estate agency works with a multitude of buyers across the United States looking to purchase property in the Jackson Hole area, it is typical to hear a pattern of similar requests. First and foremost, our clients want property with spectacular, jaw dropping views. Second, they want real estate property that is unique and carries an element of exclusivity. Third, they love wildlife and want it in and around the property. Lastly, and this is usually the kicker, they want to be in close proximity to town and all of its shopping, dining and urban accouterments. In short, they want it all and at a reasonable price to boot!

Enter Saddle Butte. As the highest [elevated] deeded property in Teton County, owners here can see as far as the Yellowstone Plateau. In the immediate vicinity, the Teton Range and Grand Teton are viewed to the west and Sleeping Indian, the Gros Ventre Range and Elk Refuge to the east. Several lots even peek directly down into the town of Jackson Hole and the local ski hill.

If exclusive property is what you crave, Saddle Butte is it. This spectacular butte has been developed for a sparse 34 lots (ranging from approximately 3-24 acres), which give owners ample elbow room and unfiltered views of the Jackson Hole landscape. The infrastructure is already in place to build your dream home: paved roads, rock retaining walls, guard rails, a community water system, and access to utilities.

Despite the elevation of Saddle Butte, spotting wildlife in and around the area is a daily occurrence. Saddle Butte is home to a wide range of bird species, including grouse and falcons. Deer and elk are common place; mountain goats and sheep can also be spotted occasionally on nearby hillsides. The Elk Refuge to the north east is visible from many of the lots. During late autumn to early spring, thousands of elk can be seen feeding on the distant valley floor.

Saddle Butte is also located only 7-10 minutes (above) Jackson Hole’s town square, 20 minutes to the airport, and 25 minutes from Jackson Hole Mountain Resort, which has arguably the best skiing in the Rocky Mountains!

Our Real Estate team’s knowledge and expertise in buying, selling and developing Saddle Butte property is second to none. As expert real estate buyer’s agents and consultants, we not only direct you through the initial due diligence and purchasing phases but also after the sale – advising you on a variety of dependable, local contacts that specialize in building, engineering, architecture, legal representation, and lenders.

Our team is committed to making your Jackson Hole dream come true. Whether it is Saddle Butte, Teton Village or one of Jackson Hole’s surrounding areas, we will work to earn your trust and confidence and exceed your expectations.

The Direction of Real Estate in Jackson Hole:

By now unless you live in Tibet with Monks everyone has heard of the “Mortgage Crises” taking place in our country, the effects of which should not be down played. Real people are grappling with some serious problems out there. If you are trying to sell your home in New Jersey, you are finding that isn’t so easy. If the average person cannot sell in New Jersey, they cannot purchase in or around the Jackson Hole area. Leaving this point for a moment lets look at what is happening in real estate market of Jackson Hole. We can basically break this into two markets. The first market would be properties up to $1,999,000. The second market would comprise those properties at $2,000,000 forward.

Looking at the first market we see there has been an approximate drop in third quarter sales of 20%. There were 195 sales reported for 3rd quarter 2006 compared with 156 sales reported through September 26th of this quarter. This quarter historically has been strong due to the fact it is summer and 2.5 million visitors come through the valley. The ripple effect of tightening credit seems to have passed through our valley. How this will effect 4th quarter sales is yet to be seen, but will prove interesting none the less.

In reviewing the higher end market we see just the opposite occurring. Through September 26th of this quarter we have 17 sales reported compared to14 in 3rd quarter 2006. We are looking at a 20% increase. This market in Jackson Hole rarely uses lending institutions for their transactions. Now if we compute overall sales from say September ‘05 through September ‘06 which were at 787 sales for the period against the same period from September ’06 through September ‘07 we see a 13% increase. Sales for this period were 898. The average Days on Market did increase from 164 days for the period ending September ‘06 to 198 days for the period ending September ’07. Roughly another 20% increase. It appears from the numbers reviewed it is indeed taking longer to sell the homes in New Jersey or wherever USA, but the amount of people selling those homes to come here has increased again.

In analyzing the trend we could come to the conclusion that the “Mortgage Crises”, did show up on our radar screen. Is it going to show up as a forgettable blip or will it reflect back at us for a considerable time to come? I believe our answers lie somewhere in the uncharted waters of the 4th Quarter. We will be reviewing and analyzing the numbers as they come in during October. Look for our next contribution in about a month. If you have comments please send them to mark@jacksonholerr.com

Jackson Hole Real Estate Investment Advice

Investment Advice for Jackson Hole Real Estate Market

Sometimes there is a false impression that speculation of properties in Jackson Hole are low risk opportunities because of our present high appreciation rates in this hot Real Estate market. Each investment opportunity is usually at high prices in Teton County and market conditions are sometimes variable. At present, many investments display a great track record of seeing good increases, especially in under-developed property in Jackson Hole. Each particular investment opportunity can cause high risk exposure if the market conditions change or the investors opinion and vision of a property is not correct.

A Jackson Hole appraisal will give investors another opinion of value. Sometimes appraisals in Teton County come back at the selling price, but a good appraiser will provide the best appraisal possible whether high or low.

The Banks are usually very favorable about acquisition projects and will loan to strong investors with a track record in this resort marketplace.

An investor needs to give the bank a clear vision of what the property could look like at full build out..

True investor talent is in seeing and creating features of a property that other people can not see at first glance. A savvy investor can create a vision through technology and visual presentations of how a property should look and feel. The difference between a visionary and a dreamer is the will to make the vision come to fruition.

Investors that can create and remodel properties with awesome curb appeal and practical living areas inside can do very well. The male buyer knows he will buy a home and property through curb appeal and the woman buys according to the functionality of the kitchen first, master second and other lay-outs.

An investor needs to choose a fun entry into this exclusive resort marketplace and be able to prove his or her skill. This type of speculation is not for the faint and weary of heart and usually requires great vision and hard work. The reward can many times produce 30, 60 and one hundred percent ROI in great situations.

Regards,
Ron Miller

Jackson Hole Real Estate Sales- Is the Real Estate market on the top of the curve?

Jackson Hole Real Estate Sales- Is the Real Estate market on the top of the curve?

As we show property to our new buyers this summer, this question is always at the top of the list for the buyers and sellers in Jackson Hole. Nobody wants to get caught at the spike of a Real Estate trend and in hind sight regret a purchase he or she has made in this exclusive marketplace. Likewise a seller wants to sell at the peak if at all possible. It has been my observation that over the 23 years in the Real Estate that there have been at least two times in the past that prices actually dipped. One period was in the 1987-88 period when there was a stock market drop.

This sent the economy in Jackson Hole in a tail spin for a year or two and then the prices began to increase again. Those property owners in Teton County that were able to hold through that period were fine but many needed to sell and created a slight down turn. The next dip or _correction" in Jackson Hole was right after the 9-11 periods when the markets as a whole were in a downward trend. We watched many sellers panic and try to dump many Jackson Hole rental homes and condominiums on the market. Those that bought during that period and placed their properties in our Jackson Hole Property Management system were rewarded handsomely in most cases.

The high or top of the peak in the Real Estate curve is usually preceded by a major economic bubble and a glut of properties dumped on the market. This is the beginning of all buyers markets and one we carefully watch as the Jackson Hole economy seems a bit out of proportion.

At the present time, things seem fairly stable in the market. As of June 27th 2006 there are 10 houses that have recently been placed under contract between 2-9 million and 12 properties under two million are currently pending. Proper pricing when selling Real Estate in Jackson Hole and understanding trends are of utmost importance to sellers. A buyer wants to also know if things are properly priced as well. We recommend an appraisal to sellers wanting to list and this becomes a powerful selling tool for our Jackson Hole Real Estate agents.