Thursday, June 16, 2011
Wednesday, June 15, 2011
What is the Climate of Real Estate in Jackson Hole, Wyoming?
Nationally, the gap between first-time homebuyers and distressed property supply continues to climb, with the sale of distressed properties accounting for nearly half of the real estate market. Although the price of bank-owned and short-sale listings are at bargain basement levels, many of them are damaged or uninhabitable, making them ineligible for mortgage financing. That situation has left the door open for investors who, in April, accounted for 55% of REO damaged purchases and 23% of total housing market sales. The soft market has made it difficult to flip these properties and the result has been an increase in rental inventory.
Teton County, Wyoming, has a unique real estate climate compared to the country as a whole. The lack of private land for development, less than 3% of its 4,000 square miles, has traditionally kept property values from plummeting in a down market. Despite this fact, the combination of a poor economy, distressed real estate in the country as a whole, and consumer confidence, the average value of properties has inevitably decreased and lender-owned and short-sale listings have begun to make their appearance in our market.
Of the 529 residential properties offered for sale in June 2011 in Teton County, Wyoming, 17 of these are short sale opportunities, and 16 are lender owned. This is barely 4% of the residential real estate listed; yet its presence is not ignored. Properties that have sold in the first five months of 2011 spent on average 16% fewer days on the market; these successful sales in a buyers’ market have been aggressively priced with a realistic seller.
Opportunities exist for buyers in all categories. In the short sale inventory, prices range from $95,000 for a two-bedroom condominium to $2.3 million for a four-bedroom log home on 34 acres. Lender owned properties range from $26,000 for two weeks in a Teton Village fractional condominium to $9 million for a 20-acre horse property on the Snake River with an 8,000-square-foot home, barn, and pond. Non-distressed properties have been regionally affected. South of Wilson, and south of town have seen the greatest depreciation in property values, with sold prices as low as 44% of list. Although the town of Jackson saw the steadiest values, the average sales price of $460,000 was the lowest in Teton County. For more information on real estate opportunities in Jackson Hole, contact me or visit my website, carollinton.com.
Buying a Second Home? Here are some tips for making a wise purchase
I live in the resort town of Jackson Hole, Wyoming, in which a good percentage of its residents are second and third homeowners. Visitors to Jackson are often blown away by the magnitude of its scenery and wildlife, culture and restaurants, which leads them to investigate real estate opportunities here. But is Jackson just another pretty face or a place worth putting down some roots?
When I work with a buyer, I point out the four ingredients necessary to finding the idyllic second home-- location, accessibility, lifestyle, and investment value. The location should be unique and offer something other communities might be lacking. There are lots of ski towns in the USA, but what sets Jackson apart is the lack of developable land—only 3% of its 4,222 sq miles of area can be privately owned. The community is a vibrant one with a strong arts and cultural scene, well funded schools, a private hospital, a regional airport, and a multitude of non-profits. Within its boundaries are a national park, three ski areas, four golf courses, an elk refuge, national forests, rivers, lakes, and more.
Accessibility is another key ingredient. The ability to easily travel to your vacation home will enhance your abilities to use it more often. Jackson’s airport and FBO are serviced by direct flights from Chicago, Dallas/Fort Worth, Denver, Salt Lake City, Atlanta, and Los Angeles. The airport is just seven miles from town.
Lifestyle elements are important and the more, the merrier. Jackson Hole is incomparable in that regard. For a community with a relatively small population, 20,000 people according to the 2009 census, there are a multitude of cultural venues, community events, restaurants, and recreational opportunities. Live music can be enjoyed every night, from the famous Stagecoach Band to the Grand Teton Musical Festival Orchestra, now in its 50th year. Art galleries are abundant and Thursday night gallery walks are a social event. The Center for the Arts hosts world dance, music, and guest speakers throughout the year. Recreationally the sky is the limit with world class skiing, fly fishing, climbing, snowmobiling, kayaking, golfing, and more.
Finally, the investment value should be evaluated. Wyoming is one of the most tax friendly states in the U.S., with low property taxes , no state income tax, and no estate tax to name a few. Weighing the amount of time you will spend at your second home vs. the cost to maintain it might be important things to consider, as well as whether you will want an income producing property or not, and the expected appreciation over time.
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