Updated Market Report for 2018/ August 20th
By Ronald Miller/ Broker Jackson Hole Real Estate Company, LLC
This market watch may look a little different from some of the other market updates you have looked at with the fancy graphs and statistics. Our team is doing a careful analysis to be sure buyers and sellers alike truly understand the market and where we are in the cycle. When I say cycle I am referring to the trend of buyers and sellers markets and possible transitions in the market that affect all parties.As with the rest of the country we have low inventories but that is changing rapidly as Realtors are seeking more and more listings and getting outstanding offers to back up the frenzy in markets below 1 million and also between 1-2 million.
This last week we learned that the overall US market is trending towards a buyers market again in the real world outside of Jackson Hole. With interest rates trending upward it tightens the borrowing power of the consumer seeking a mortgage in our expensive market. This will creep up on the Jackson Hole Market as our prices are very high with a sellers market in its final stages.
I was golfing with a senior loan officer this week that says the loan to value amounts on these basic stick built older homes close to town are getting out of control and hard to justify with prices between 1- 2 million. These truly are average quality homes being sold in the 1.2- 1.5 range that would only fetch 3-500,000 max in most US markets. I argued with my friend that the banks are still selling these high LTV loans off to the government for a fee so why the concern. He laughed but said this is going to have to adjust soon and I agreed.
So here is the true story-
Of 274 sales in our local Jackson Hole Market of area 1-10 this year there were 200 sales under 2 million. These are the probable loans being financed for the most part. There were 22 sales from 2-3 million. Maybe a small portion of these require financing.
The market above 4 million is where things get really fuzzy. Pricing your home above this range needs careful consideration. There have been only 9 sales between 4-5 million and mostly on the West Bank and more particularly in Teton Village in the Granite Ridge areas and Shooting Star Golf Resort. There have been 11 sales between 6 and 10 million and only 3 at 10 million or higher. The market has no shortage of inventory in the upper ranges and makes up most of the current listings. I always urge my sellers to price right in these higher end markets and be the NEXT sale as buyers are so much fewer in this range.
Market Snapshot (Live Results)