Jackson Hole Real Estate October 2012 Market Summary

Jackson Hole Real estate closings reported in the Multiple Listing Service (MLS) in the July-September period were the strongest we have seen since 2006. Unit sales were up 33% and volume was up a whopping 77.6%! The strong quarterly results provided a significant boost to Teton County year to date results. In fact, January through September 2012 closings were up 17% in units and volume was up a very strong 31.5%.

In looking at the quarterly numbers more closely, it is significant to note that closings were higher in all categories—single family, condos, land and commercial and in all areas of the Valley except south of town which experienced a slight decrease. This south of town phenomenon could be explained by the reduced number of listings in total and in the price range (under $1.5 million) most prevalent in that area. Overall, the number of listings is down 15% and in the under $1.5 million, there are 16% fewer properties available for sale.

On a year to date basis, the results are generally consistent with quarterly results detailed above with the exception of total condo dollar volume being down very slightly from 2011.

93% Improvement in Jackson Hole Real Estate Market

Another reflection of the strength of the quarter is the fact that the average monthly dollar volume closed in the July-September period is 93% greater than the average of the first six months of the year. Each of the three months showed increasing volume, all above any month Jan-June and in fact, September dollar volume was the highest we have seen in MLS since November 2007.

On both a quarterly and year to date look, Average Sales Prices are increasing indicating both strength in the market and the elimination of distressed properties from the inventory.

Although Days on Market (DOM) have increased slightly in the quarter, that seems to be more a reflection of the number of properties in the inventory. Ironically, the one area where DOM has gone down is South of Town in spite of its lower volume compared to 2011. This likely also reflects the reduction in number of listings and the number of older listings outnumbering new listings coming on the market.

The continued improvement of the Jackson Hole real estate market is further demonstrated in the heightened activity in the commercial segment. We have seen a number of significant transactions outside of MLS including the recent sale of both Snow King Resort and the Snake River Lodge & Spa indicating investors are viewing Jackson Hole as a market with opportunity.

Although we are not in the business of predicting the future, it is very encouraging to see the level of activity and positive trends. We are cautiously optimistic that improvement will continue.