The big real estate news in Q2-2015 is that total sold dollar volume is up 30% over Q2-2014 and up 17% in the first half of 2015 when compared to 2014. This increase is driven by a continued acceleration of home prices, up 18% from Q2-2014, and a significant increase in building site sales, up 47% in the first half of 2015 over the same period in 2014.
Comparing the first half of 2015 to the same period in 2014, the average home price increased 17% to just over $300K. While the average sale price is up dramatically, the number of homes listed for sale was down 8% in the first half, leading to a 15% drop in the number of homes sold. However, the higher average sale price kept the total sold dollar volume of homes up 7% for the first half of the year. One other positive change in the market is the number of days a home is listed for sale before selling. The days-on-market for homes sold in the first half of 2015 dropped 43% to 7.5 months.
The number of homes sold under $300,000 fell 25% in Q2-2015 and year-to-date when compared with 2014. This is partly due to a 37% decline in inventory of homes in this price range. Year-to-date, this segment of the market has represented 62% of all homes sold, though currently only 28% of the homes listed (60) fall into this price range.
The resort market, including homes and land in Teton Springs, Teton Reserve and Huntsman Springs represented 13% of all property sales year-to-date. The median price of the 19 resort homes sold in the first half of 2015 was $490,000. The 8 lots that sold year-to-date had a median sale price of $122,000. The current optimistic median list price of the 40 residential properties for sale is $899,000 and $107,000 for the 58 resort lots on the market.
Building sites experienced a 44% increase in the total number of sales year-to-date (89) when compared with 2014. This sharp uptick in land sales drove total sold dollar volume of land up 47% in the same timeframe. While the inventory of building sites is on the rise, the days on market declined 29%. Showing that the market is keeping up with the increased inventory. With residential inventory low, land sales have seen a definite increase in activity. Discerning buyers, that can’t find the home they’re looking for within the limited inventory, are choosing to buy land and build.
Commercial properties have shown a rebound in 2015 with 10 sales in the first 6 months, a 150% increase over 2014 year-to-date; however, 60% of sales were distressed. The average sold price of $283,500 was down 12% from 2014. While days on market came down 47%, there has also been a 20% increase in commercial properties on the market.
What This Means to You
Low inventory and rising prices have left the housing market in somewhat of a lull. Well-located homes, priced with the current market in mind, are seeing more liquidity than homes trying to lead the market; this is especially true for homes priced under $300,000.
Lot sales continue to gain ground in both interest and sales. There’s a direct correlation between the decline in residential inventory and the increase in recent building site sales. Buyers are clearly willing to build when they can’t find the home they’re looking for and there’s clearly been an uptick in building around the valley.