Teton Valley experienced another robust year of real estate sales in 2015. On average, home prices increased 16% from the prior year to $327K and the number of building sites sold went up 60% from 2014.
While residential and land sale prices were both up during 2015, total dollar volume of real estate sales fell 5% from the prior year as a result of fewer homes being offered for sale. With fewer homes on the market, the amount of time it took to sell a home dropped 31% from the prior year to an average of eight months (six months for homes priced under $300K).
Since the recession lows of 2012, the average home price in Teton Valley has improved each year; increasing 17% in 2013, 11% in 2014 and 16% in 2015. While 10% fewer homes sold in 2015 than 2014 (231 versus 257) that was in direct correlation with fewer homes being offered for sale.
The number of residential sales under $300K fell a sharp 30% in 2015 when compared to 2014. This is largely due to a 32% decrease in the number of homes listed for sale in this price range. A low inventory of homes in this price range increased the average sale price 17% to $217K and reduced the average days on market 43% when compared to 2014. This will likely remain a competitive and fast moving market until inventory increases. There are currently only 30 homes in this price range listed for sale.
The resort market, including homes and land in Teton Springs, Teton Reserve and Huntsman Springs, had 51 sales in 2015 and represented 11% of total property sales in Teton Valley. Sales in 2015 included 32 homes at a median price of $493K and 19 building sites with a median price of $62K. Only one of these sales was listed as distressed.
Despite historical sale prices, the resort market currently has 39 homes listed with a median list price of $849K and 48 lots with a median list price of $118K.
Building sites experienced a major increase in sales during 2015. Last year, 205 lots sold in Teton Valley, a 60% increase over the number of lots sold in 2014. Distressed sales were down significantly, with only 7% of lots sold in 2015 listed as distressed verses 27% in 2014. The increase in sales brought total sold dollar volume up 83% and the average sale price up 9% ($86K) when compared with 2014. Increased lot sales and the prospect of being able to sell building sites brought 8% more lots onto the market and reduced days on market 21% in 2015.
If residential inventory continues to remain low, land will continue to gain traction in both sales and value. Many discerning buyers are choosing to build homes when they can’t find what they’re looking for in the current housing market. There are currently 410 lots on the market with a median price of $95K.
The commercial market had minimal action in 2015 with only 12 sales, a 14% decrease in properties sold when compared to 2014. Twenty-five percent of commercial sales in 2015 were listed as distressed. The average sales price for those properties sold in 2015 was $263,300.
What this Means for You
Homes are selling quickly and prices have been increasing each quarter since the market low in 2012. With limited residential inventory homes will likely continue to move quickly and at competitive prices. However, as existing home sale prices approach the cost of new construction, the increase in average home sale prices will likely move into single digit increases.
Buyers that are unable to find a worthy residence amongst the limited inventory will continue to purchase land and build new homes. We expect this trend to continue to drive sales of building sites. While there are a number of lots on the market, today’s buyers are not speculators and are willing to spend more for the location and site of their future home.
If you are considering selling your home, the current market holds potential for the perfect combination of both limited days on market and a solid sale price. Please consider calling our office for a free Property Value Assessment and a listing packet detailing our marketing plans for your property.
With steady snow accumulation in the mountains, continued low interest rates and a limited residential inventory, now could be the time to secure your dream in the Tetons before the secret’s out. Enlist one of our agents to watch the market for your next Teton Valley property, before it’s out of reach.