Jackson Hole WY August 2013 Market Update

Gains Widen Over Previous Year For Sales Volume, Substantially Up From 2009 Lows

Observing data compiled through the end of August of 2013, it is noted that the number of residential real estate sales (single-family homes, attached homes and vacant lots) are up from 282 total sales during eight months of last year to 415 sales during the same period of this year (an increase of over 47%). This is an impressive statistic on many levels. Firstly, this growth is sustainably over the gain experienced between 2011 and 2012 (30%), which is indicative of an accelerating recovery. Secondly, this growth is noted to have occurred in the face of declining inventory, which is a mitigating factor to such trends. Finally, the current level of year-to-date sale volume is only a rounded 24% less than the volume noted at this time in 2006 (the last year unaffected by the mortgage crisis of 2007). It could be argued that a mid-twenties disparity in current sales volume numbers from that of 2006 is not a measure that is indicative of a recovery. However, when noting that the 2013 YTD number of sales is 295% above the 2009 low recording of 105 sales, a more positive perspective is gained. Further indication of the ongoing recovery is that the dollar volume of sales is up over 43% from the preceding year. The average price for homesites is up 20%. However, this was due to an anomalistic spike in multi-million dollar lot sales in 2012 that has skewed the aggregated data. This point is further corroborated by the fact examination of individual property sales provides the indication that values, on average, have been increasing at 1% per month since the new year.*

*Value trends vary between market segments and property types.