Condo/Townhouse 2011 End of Year Report

When compared to 2010, the number of sales was up 34% and the dollar volume was up 8%. While this segment of the market is starting to rebound, distressed properties will continue to hold values down in the low-end (under $500,000) until these distressed listings are extinguished. The good news is our distressed condo inventory is waning. Last year at this time 79% of the sub-$500K inventory of condos/townhomes was distressed versus only 22% at the end of 2011. While most of the distressed condos can be found in the town of Jackson, some can be found in Teton Village and the JH Racquet Club. Note: 53% of all condo sales activity in 2011 was below $500,000. When you combine this fact with the above-mentioned return of investors to this segment, we expect to see stabilization in this segment by the end of 2012.

Hot Spots in the Valley: The Town of Jackson and Teton Village both experienced big increases in the number of condos sold in 2011, up 70% and 22% respectively. The Town of Jackson also outperformed all other areas, with 61 condo sales in 2011. Some of this increase can be attributed to the convenience of living in town but mostly from value-seeking Buyers looking for rock-bottom prices. NOTE: With condo values down as much as 60%, and long-term rental vacancies staying below 5%, investors’ interest in this segment continues to rise. Depending on the size and location of a rental unit, cash investors can realize a 7% to 8% return on their investment, while at the same time buying at the bottom of the market.

Condo/Townhouses currently under contract are showing signs of an improvement. The number of properties currently under contract is up 10% when compared to the end of 2010. There were 23 condos under contract at year’s end with an average listing price of $338,770 (down 68%). This huge drop in average price reflects where our current Buyers are focusing. The median list price of condos currently under contract is down 30% to $347,000. Note: 52% of the condos under contract are considered distressed.

Current available inventory for sale is down 21% when compared to the same period in 2011. This segment of the market is where half of our distressed inventory resides. Of the 17 distressed condos, 15 are listed for under $400K. NOTE: For the first time in almost two decades, mortgage payments can be less than you would pay to rent. If you can afford a 10% down payment, and have a good credit score, you can buy a condo and start building equity. To learn more about how to get started, contact Devon or David at 307-734-9941. We are first-time homebuyer experts!

Least expensive condo/townhouse listing at year’s end: $102,000 (a 716 sq. ft. 2 bedroom 1 bath condo in west Jackson).

Most expensive condo/townhouse listing at year’s end: $3.95 million (a 3,172 sq. ft. 3 bedroom, 4.5 bath Private Residence slope-side unit in the Four Seasons Resort, Teton Village).

For a more thorough understanding of this segment of our market, please call Devon or David at 888-733-6060 x9941, locally 307-734-9941 or email davidviehman@jhrea.com

Condo/Townhouse Sales By Area:

1). Jackson Hole Mountain Resort (Teton Village) – 46 sold (up 70%) with an average sale price of $998,543 (down 33%) and a median sale price of $762,500 (down 39%). The most expensive sale was $3.1 million (Four Seasons condo, 2,680 sq. ft. with 3 bedrooms and 3.5 baths).

2). Jackson Hole Racquet Club (The Aspens) – 10 sold (down 33%) with an average sale price of $383,450 (up 18%) and a median sale price of $315,000 (up 19%). The most expensive sale was $775,000. A 2,021 sq. ft. condo with 3 bedrooms and 3 baths, built 1983 in the Ponds section of the resort, bordering ranch land to the north.

3). Teton Pines – 7 townhouses sold with an average sale price of $820,714 and a median sale price of $800,000.

4). Town of Jackson – 61 sold (up 22% from 2010) with an average sale price of $820,714 (down 29%) and a median sale price of $320,000 (down 21%). NOTE: 45% of all condo sales in Jackson Hole were in the Town of Jackson.

5). Jackson Hole Golf & Tennis – 2 condos sold with an average sale price of $545,000.

6). Rafter J Ranch – 3 condos sold with an average sale price of $318,167 and a median sale price of $322,500.

7). Spring Creek Resort – 1 sold for a total of $760,000. It was a 1,881 sq. ft. 2 bedroom and 2 bath condo built in 1983.

*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 2010 compared to sales in 2011.

*Median sale price is the cost of a townhome/condo that has an equal number of sales above and below it on the price scale.

Condo / Townhomes 2011 Mid-Year Report

CONDO/TOWNHOME SALES: The number of sales in this segment of the market also experienced a significant increase, up 49%. These 70 sales are a long way from 2007 when 160 condo/townhomes had sold by mid-year. On the flip side, the average and median sale prices were down, 35% and 29% respectively. With a total of 70 sales, 58 came in under $1 million and 40 of those came in under $500k. The fact that more than half the sales were under $500k is a clear indication where the Buyers are focusing their attention in 2011. This segment is still considered a “perfect buyers’ market”. Currently, half (50%) of all available condo/townhomes are listed for below $500k, with 44 under $350k. NOTE: During this same period in 2008 there were no condos/townhomes available for under $350k.

Condo/townhomes under contract are up 9%. The dollar volume for condos under contract is down 36%, the average asking price is down 49%, and the median asking price is down 79% when compared to July 1, 2010. This drastic drop in the average and median asking prices should not be alarming though, as we are just seeing bargain shoppers and investors snapping up the low priced condo inventory in the first six months of 2011. As mentioned above, this is where most of the distressed inventory can be found.

Available condo/townhome inventory also experienced a drop (down 16%) as of July 1, 2011. While the average asking price experienced a small drop, down 7%, the median asking price did not change. The overall dollar volume for available condos/townhomes dropped 22% to $142 million. The decrease in inventory and leveling off of the median asking price is a welcome sign in this segment of the market.

The least expensive condo on the market is $95,000. This buys you a 755 sq. ft. two bedroom and one bath condo, built in 2002 in west Jackson.

The most expensive condo on the market is $3,950,000. This buys you a 3,172 sq. ft. luxury 3-bedroom and 4.5-bath residence in the Four Seasons Hotel & Spa at Teton Village. NOTE: This unit was the most expensive condo on the market in 2010 too, but they have since dropped their price $500,000.

Copyright 1995 – 2011 by David & Devon Viehman-Wheeldon, dba Jackson Hole Real Estate Associates, 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 David or Devon Viehman-Wheeldon.

* This report does not go into detail on every segment of the market, but is intended to offer an overview of general market conditions, changes in number of transactions and average sales prices. The values of individual properties will most likely vary from these graphs.

*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 2010 compared to the first six months of 2011.

*Median sale price is the cost of a property that has an equal number of sales above and below it on the price scale.

*Average sale price is the total combined dollar volume divided by the number of sales.

*The term “Market Value” means; the value of a property in terms of what it can be sold for on the open market; current value.