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OVERALL MARKET Distressed Sales Dictate the Market |
Welcome to the 14th issue of the Star Valley Report. Published semi-annually, this data-driven report is the most accurate and trusted real estate news source in Lincoln County, Wyoming. First, we would like to thank all our loyal readers, customers and clients for their continued trust in this report. Our ability to track every single real estate transaction, and then turn the data into historical knowledge, has made us the most sought after real estate experts in Star Valley.
Little has changed in the past 12 months here in Star Valley to indicate that we are past the challenges that the local and national real estate market faces. While we do see slight increases in sales in certain segments of the market, we continue to see pricing fall in areas. The reality is that the distressed market is still playing a major role in the pricing of property. Almost daily, we continue to see homes and land hit the market at prices well below original developer pricing and they continue to sell rather quickly. Homes and lots that have been foreclosed on and then are re-listed by the bank are selling for rock bottom prices that we never thought we would see again in this valley. These aggressively priced properties often receive multiple offers and close quickly, due in part to a large number of cash buyers.
Over the past two years we have continually written about the “distressed” market and we have done so for several reasons. The major reason is the fact that the lower list/sale price of these homes, with few exceptions, has set the market for the fair market sellers throughout the valley. The unfortunate reality is fair market sellers have to compete with these distressed properties, and therefore it directly affects the value of their home. This year’s number of distressed sales continues to rise (34% of all sales compared to 27% in 2010). Not included in that number are sellers who purchased during the height of the market and are now trying to sell these properties at a loss. When looking at all of the active listings, only a fraction (6%) of these properties are distressed.
HOW STRONG IS THE STAR VALLEY MARKET? The same holds true for 2011 as it was in 2010: For the buyer, now is a great time to be shopping. With inventory levels remaining steady, and motivated sellers in every segment of the market, opportunities are abundant. For those looking to take advantage of the distressed area of the market we have seen sales in vacant land for less than original developer pricing and in certain home sales, less than replacement costs.
For sellers, now is the time to ask the question “do I really need to sell”? If the answer is yes, then competitive pricing is going to be the key to getting your property shown and possibly sold. If you don’t need to sell right now, then the best bet is to wait until we see signs of prices stabilizing. One of the downfalls of having to wait this time out is the fact that it may be years before we see the market begin to climb in price again.
OVERALL MARKET IN STAR VALLEY: The overall market here in the valley continues to slowly bounce back when looking at both the number of transactions and number of properties under contract at the close of 2011. The number of sales was up 15% and the average sale price was up 2% ($204,520 vs. $200,377 in 2010), whereas the median sale price fell 15% ($149,000 vs. $175,000 in 2010). On the positive side, property here in the valley is continuing to sell and hopefully pricing has hit bottom. Again, the biggest contributor to the decline in the median sale price has been the aggressive pricing of distressed properties, and buyer’s making “value” buys throughout the valley.
CURRENT OVERALL AVAILABLE INVENTORY: At the close of 2011, our current inventory was down slightly (2%) when compared to the end of 2010 (682 listings, down from 695). When looking at our current inventory of 682 listings, and comparing it to what is currently under contract, Star Valley has a 25-month supply of real estate available for purchase. At our current pace of sales, with no new listings coming onto the market, it would take roughly 2 years to sell the inventory on hand. This is another indicator that we are in a buyer’s market and will remain there for the near future.
REAL ESTATE CURRENTLY UNDER CONTRACT: At the close of 2011, there were 27 properties under contract (up 56% from 2010) with an average list price of $269,135 (up 12% from 2010) and a median list price of $159,000 (down 18%). Of the real estate currently under contract, 38% (10 properties) are distressed properties.
HOW STRONG IS THE STAR VALLEY MARKET? For the buyer, now is a great time to be shopping. With inventory levels remaining steady, and motivated sellers in every segment of the market, opportunities are abundant. For those looking to take advantage of the distressed properties we have seen sales in vacant land for less than original developers pricing and in certain home sales, less than replacement costs.
For sellers, now is the time to ask the question “do I really need to sell”? If the answer is yes, then competitive pricing is going to be the key to getting your property shown and possibly sold. If you do not need to sell right now, then your best bet is to wait until we see signs of prices stabilizing. One of the downfalls of having to wait this time out is the fact that it may be years before we see the market begin to climb in price again.
OVERALL MARKET IN STAR VALLEY: The overall market in Star Valley remains soft. While the number of sales rose this past year in the valley, both the average and median sale prices fell once again. The average price fell 14%median price fell 10% ($195,000 in 2009 down to $175,000 in 2010). Again, the biggest contributor to this decline in sale prices has been the aggressive pricing of distressed properties and buyers making “value” buys throughout the valley. ($232,671 in 2009 down to $200,377 in 2010) and the
Current overall available inventory: At the close of 2010, our current inventory was up 4% when compared to the end of 2009 (695 listings, up from 668). When looking at our current inventory of 695 listings, and comparing it to what is currently under contract, Star Valley has a 43-month supply of real estate available for purchase. At our current pace of sales, and no new listings coming onto the market, it would take roughly 3.5 years to sell the inventory on hand. This is another indicator that we are in a buyer’s market and will remain there for some time.
Real Estate currently under contract: At the close of 2010, there were 16 properties under contract (up 23% from 2009) with an average list price of $239,344 (down 59% from 2009) and a median price of $199,000 (down 3%). Of the real estate currently under contract, 44% are distressed properties.
This report was written and edited by Carlton and Cathy Loewer of Jackson Hole Real Estate Associates, Alpine Office. For more information on the overall market in Star Valley, or for a free comparable market analysis, please call the experts in the market at our Alpine office (877-654-7575).
JACKSON Hole Real Estate Associates LLC has served the Star Valley area for over thirty-two years. With the daily tracking of every single real estate transaction in Star Valley, the simple fact is “We Know the Market Better Than anyone”. If you are looking for a Realtor or Appraiser, whether you are buying or selling, you owe it to yourself to talk to us before you make what could be the most important decision of your life. At JHREA our clients’ and customers’ best interests are paramount! Your “locally owned and operated” Real Estate Company located at 181 US Hwy. 89 in Alpine, WY across from Tootsie’s Pizza. You can also visit our virtual office at www.jhrea.com or email us for more information at info@jhreassociates.com
It is very clear that buyers and sellers demand to stay informed of market conditions. We offer several services that will keep your finger on the pulse of our local real estate market, from daily email updates, weekly distressed properties list, a free market analysis of your property, to quarterly price updates on your Star Valley property. Please contact us to learn more about the programs and services we can provide. Be sure and also check out our new website www.starvalleyrealestate.com for the latest listings and news about our local market.
Christie’s International Real Estate is the only real estate network wholly owned by a fine art auction house. The network is uniquely positioned to follow the footprint of its parent company, Christie’s, into the growing markets of the Middle East, Russia, and China, as well as established economies across the world, most notably North and South America and Europe. The new name further underscores that the values that distinguish Christie’s—commitment, expertise, integrity, discretion, and five-star customer service—are likewise embedded in the company’s luxury residential property specialists.
Christie’s International Real Estate represents some of the most prestigious trophy properties in the world, which include estates, resort properties, second and third homes, and super-prime new-build developments. Properties have included Lord Andrew Lloyd Webber’s Trump Tower Residence in New York City; Lyons Demesne, the historic Irish landmark fully restored by Dr. Tony Ryan; Ingmar Bergman’s island retreat in Sweden; and the Astor Beechwood Mansion in Newport, Rhode Island. Among the most valuable properties currently in the Christie’s International Real Estate portfolio are Palais Montmorency on Avenue Foch in Paris, France, valued in excess of US$100 million, and Cornwall Terrace, the historic Grade I–listed Regency terrace in The Regent’s Park, London, which was recently voted the most significant luxury property development in the United Kingdom.
News from the Christie’s Network
Jackson Hole Real Estate Associates named Global Affiliate of the Year: “This year, Small is Mighty.”
With those words, I announced Jackson Hole Real Estate Associates as the Christie’s International Real Estate Affiliate of the Year for 2011 in London last month. Your trusted property advisors in Jackson, your friends, and your neighbors were duly recognized worldwide for excellence in marketing and client service.
Affiliate of the Year is the highest honor bestowed to brokerages in the Christie’s International Real Estate global network. Deserving semi-finalists this year hailed from Jupiter Island and Boca Raton, Florida; Lugano and Ticino, Switzerland; Stockholm, Sweden; Montreal, Canada; Atlanta, Georgia; and Washington, D.C.
Among the contenders for the award was the esteemed firm of Hilton & Hyland in Beverly Hills, California, which achieved the network’s top sale of Candy Spelling’s estate to Formula One heiress Petra Ecclestone for $85 million this summer. Jeffrey Hyland was among the first to congratulate the Partners and Brokers of Jackson Hole Real Estate Associates on their company’s success.
Jackson Hole Real Estate Associates would be honored to support you in the purchase of your next important property or the careful sale of your distinguished home. I am confident that the company and its brokers will provide you with the expert, trusted advice and customer service together with the worldwide marketing excellence of luxury residential property, which distinguishes Christie’s International Real Estate.
Neil P. Palmer, MRICS
Chief Executive Officer
Clayton Andrews Appointed to Head Central Region. We are delighted to welcome Clayton Andrews as Senior Vice President and General Manager of the Central Region. Clayton assumes responsibility for our existing Affiliate and Bespoke relationships in the Central Region, and aims to significantly expand this important business to the benefit of our global network. Clayton brings to his position more than two decades of luxury residential real estate experience. From 1991-2003, he served as a partner and member of the board of directors for Jackson Hole Realty in Wyoming. He sold his company to Sotheby's in 2003, becoming Executive Vice President and Chief Operating Officer for the Mountain Region, overseeing more than 400 brokers and growing his area into a market leader.
Jackson Hole Real Estate Associates is the regions largest locally owned and operated real estate brokerage. As the exclusive affiliate of Christie’s International Real Estate, Jackson Hole Real Estate Associates provides access to a worldwide audience with more than 1000 real estate offices in 42 countries and transactions resulting in over $125 billion annually. The reputation of Jackson Hole Real Estate Associates for exemplary client service and market knowledge combined with the power of Christie’s International Real Estate, the largest network of independent real estate firms, offers a synergy between local strength and global networking. By cultivating this unique balance of worldwide scope with a personal touch, through Christie’s International Real Estate, Jackson Hole Real Estate Associates has become a global authority on the effective marketing of fine properties. Finely tuned marketing services, and a commitment to the business philosophy established by Christie’s in 1766, define a brand based on trust, integrity, discretion, and excellence.
The Star Valley Report is published semi-annually and posted on the world-wide web. While others attempt to report on our market with MLS statistics only (MLS historically tracks 65-70% of the market) we track every single transaction in northern Lincoln County. This data-driven report is the most accurate and trusted real estate news source in Lincoln County, Wyoming. If you would like to sign up for these semi-annual email updates, or need more detailed information about our market, feel free to either call or email us at one of the numbers below. You can also find “The Star Valley Report” online at www.starvalleyreport.com
Whether you are pricing your property to sell in this competitive market, or deciding when the right time to buy is; rest assured that when you are our client, you will have current market statistics, an impeccable level of service and personal attention that will give you the upper hand. For a free no-obligation comparative market analysis please email info@jhreassociates.com
We hope this report has given you a snapshot of market trends and, as always, we would be glad to discuss them further with you. If you plan to list your property this fall, would like a more detailed analysis of specific areas, back issues of The Star Valley Report, or a professional Realtor to represent you in your next real estate transaction, please call or email one of the numbers below or write to P.O. Box 3225, Alpine 83128.
Sincerely,
Jackson Hole Real Estate Associates LLC.
Alpine Branch
email: info@jhreassociates.com
www.starvalleyreport.com
www.starvalleyrealestate.com
locally - 307.654.7575
toll-free - 877.654.7575
*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 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 word “Overall” in this newsletter refers to all sales in northern Lincoln County combined (homes, lots, condos, commercial and ranch).
*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.
*While other local Real Estate Brokerages attempt to report on the local Star Valley real estate market, Jackson Hole Real Estate Associates LLC is the only company to track every single transaction. Therefore, if you want the most accurate information to help guide you through your next real estate transaction, call us today. “We are the Experts”.
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