Residential Vacant Land 2011 End of Year Report

When compared to 2010, the number of lots sold was up 8% to 53 transactions. Following suit the average and median sale prices are up 14% and 3% respectively. While this segment of the market has started to rebound, do not expect any appreciation in 2012. Unlike the single-family home segment, where demand will soon outpace supply, at the current sales pace it will take 3+ years to deplete the current vacant land inventory. While only 3% of the current lot inventory is distressed, the lack of readily available financing will also keep buyers at bay. Today, lenders consider vacant land purchases as pure speculation, unless the Buyer plans to build a home within 12 to 36 months from closing. This statement is backed up by the fact that only 30% of all vacant land sales used bank financing in 2011.

The million dollar-plus segment of residential lots has reversed its three year downward trend in 2011. The number of sales was up 27% and the dollar volume was up 43%. NOTE: Currently 50% of the available residential vacant land inventory is listed for over $1 million. If you are a property owner in Jackson Hole, and would like a free comparative market analysis please call 307-734-9941 or email davidviehman@jhrea.com Our in-depth local knowledge combined with the Christie’s International Real Estate global network has made us Your Local Luxury Experts.

Available vacant land listings: Available inventory is down 11% when compared to 2010 with 180 available single-family home sites. The average listing price is down 8% to $2,186,051, and the median listing price is only down 16% to $998,000. Bargains on residential vacant lots can be found in just about every neighborhood in Jackson Hole. Available inventory is broken down as follows: 16 under $300K; 25 between $300K and $500K; 49 between $500K and $1 million; 43 listings between $1 and $2 million; 24 between $2 and $5 million; 16 between $5 and $10 million; and 7 over $10 million.

Least expensive lot listing at year’s end: $193,900 for a 0.22-acre single family lot in the Town of Jackson.

Most expensive lot listing at year’s end: $21.9 million for 72 acres on the Snake River, north of Jackson.

Lots currently under contract – There are currently 6 lots under contract with an average list price of $2,749,000.

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

Residential Vacant Land Sales by Area:

1. Jackson Hole Mountain Resort (Teton Village) – 3 lots sold with a total dollar volume of $4,350,000. There was 1 in Granite Ridge subdivision, and 2 in Jackson Hole Ski Corp. additions.

2. Jackson Hole Racquet Club and Teton Pines – No vacant land sales in Teton Pines or the JH Racquet Club.

3. Westbank, North of Wilson (excluding resort areas) – 3 lots sold with a total dollar volume of $2,630,000. The least expensive sale was a 1.27 acre lot off the Village road for $435,000.

4. Westbank, South of Wilson – 4 lots sold with a total dollar volume of $6,950,000. The least expensive sale was a .65-acre lot for $525,000.

5. Skyline Ranch, N. of Hwy. 22 to Sagebrush Dr./W. of Spring Gulch – 10 lots sold with an average sale price of $3,116,725 and a median sale price of $901,000. Total dollar volume was $31,167,250

6. North of Jackson, S. of Gros Ventre Junction and E. of Spring Gulch – 3 lots with a total dollar volume of $ 3,550,000. The most expensive sale was $1.4 million.

7. North of Gros Ventre Junction/Kelly/Moran – 6 lots sold with an average sale price of $687,500 and a median sale price of $650,000. Total dollar volume was $4,125,000.

8. Town of Jackson – 6 lots sold with an average sale price of $224,400. The most expensive sale was $350,000.

9. South of Jackson to the Snake River Bridge – 16 lots sold with an average sale price of $1,299,681 and a median sale price of $850,000. The most expensive sale was $4.25 million.

10. South of the Snake River Bridge to Co. Line – Only 2 lots sold south of the SR Bridge in 2011. One was a 2.66-acre lot on the Snake River that sold for $750,000 and the other was a bank owned 40 acre listing up Horse Creek for $1,250,000.

*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 lot that has an equal number of sales above and below it on the price scale.

Residential Vacant Land 2011 Mid-Year Report

RESIDENTIAL VACANT LAND: The number of sales in this segment of the market was unchanged when compared to the same period in 2010.  These 23 sales come nowhere close to 2007 when 104 vacant lots had sold by mid-year.  The average and median sale prices continue to reflect a soft vacant land market, down 13% and 11% respectively.  With a total of 23 sales, 18 came in under $1 million.  Currently, 53% of all available single-family lots are listed below $1 million, with 54 listed for under $500K.  NOTE: During this same period in 2008 there was only one residential vacant lot available for under $500k.  The lack of activity in this segment does not necessarily mean big price reductions.  In fact, this segment of the market has been the least affected by distressed sales.  The biggest factor for sluggish sales is the lack of available lending and confidence in the economy.  Contractors are not building on speculation, investors are not speculating in this segment, and the largest number of Buyer’s (baby-boomer retirees) are still not confident in their retirement portfolio.

The upper end of the vacant residential land market (parcels over $1 million) also experienced a decrease in sales, down 37%.  The most expensive residential lot sale so far in 2011 was a 35-acre parcel in the Bar BC Ranch, which was listed for $10,900,000.

Residential vacant Lots under contract is almost non-existent, with only two currently pending.  The lack of pending sales can also be directly linked to the lack of available bank loans and the un-willingness to speculate in the current vacant land market.  The three biggest buyers of vacant residential land (contractors, investors and future retirees) have yet to return to this segment of the market.

Available lot inventory is down 14% as of July 1, 2011.  This decrease in inventory is due mainly to the drop in the number of active listings between $1 million and $2 million, down 43%.  The median asking price for a single-family residential lot dropped 23% to $995,000, and the average asking price is down 20% to $1,914,522.  This decrease in inventory can also be directly linked to the end of the recession, as many lot owners no longer need to sell this asset.

NOTE: The median listing price for a vacant residential lot is $995,000.

The least expensive single-family residential vacant lot, currently on the market in Jackson Hole for $200k, is a .13 acre parcel about 5 miles south of Jackson in Rafter J Ranch.

The most expensive lot for sale, at this time, is $15 million. This will buy you 103-acres of Jackson Hole on the Snake River, with privacy, lots of trees, and big views of the Tetons.

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.