Teton Valley properties are moving rapidly with a 25% drop in days-on-market when compared to 2015. However, the total number of properties (homes and land) sold year-to-date is exactly the same as at this point last year. The most notable market change is the number of land sales this year. With the cost per square foot of existing homes approaching the cost of new construction, many buyers are choosing to buy a building site and construct a home, rather than buying an existing home. The total number of lots sold this year is up 13% over the same period last year, and the median price of those lots has increased 39.7%.
Homes are continuing to sell at a rapid pace this year. On average, sales are occurring in just over 7-months. This includes the typical 45-days to close once the buyer and seller agree to the terms of sale. Therefore, homes are actually on the market 5.5-months before going under contract for sale. Compared to this time last year, the average days-on-market has dropped 27%. Year to date, the average home sale price has increased 7% and the median home sale price has risen 5% to $300K. While the total number of homes sold this year is down 10% compared to last year, this is largely driven by the limited residential inventory.
Homes with a sale price under $300K represented 50% of all homes sold this year. Residential inventory in this market segment is down 9% from 2015 with only 106 listings in this price-range listed during Q3-2016. On average, homes sales are occurring in just over 5 months in this market segment, down 26% from 2015 year-to-date. The median sales price for homes in this market segment increased 6% year-to-date from 2015 to $235K.
The resort market, including homes and land in Teton Springs, Teton Reserve and Huntsman Springs, has had 39 sales and represented 11% of total property sales in Teton Valley year-to-date. The 23 resort sales in Q3-2016 included 9 homes, 2 condos and 12 lots. The median sale price of resort homes that sold in Q3-2016 was $995K compared to a median of $844K year-to-date. This market segment has shown a lot of strength, with five sales this year of homes with list prices over $1M. Only one home with a list price over $1M has sold this year outside of the resort market.
The total number of lots sold increased 13% when compared to 2015, with 168 lot sales year-to-date. Sold building sites had an average sales price of $84K and a median sale price of $64K year-to-date, up a dramatic 39% over 2015’s year-to-date median sales price ($46K). While the number and price of lot sales is increasing, buyers have a lot of choices when considering a building site. There have been 838 building sites on the market year-to-date, and at the end of Q3-2016, there were 625 lots listed for sale. While the days-on-market for lots has dropped 25% from last year, the more important number to consider is a 2.8-year supply of lots on the market. Location and price are driving factors in the lots buyers choose to purchase.
Commercial sales were slightly down with ten sales year-to-date. The average sales price of commercial properties sold year-to-date fell 19% when compared to 2015, with an average sale price of $214K. All but one of the commercial sales were in Driggs, with one sale in Victor.
What This Means to You
The real estate market in Teton Valley remains very active. The number of homes selling is steady and the average home price has risen between 11% and 14% in each of the full years since the market low of 2012. Although there is one more quarter of data to gather before the final determination, this could be the first year average home prices are up in single digits, rather than double digits, for the past several years. The consistently low inventory of homes over the last two years has pushed buyers to purchase building sites, giving the land market a boost and making it hard to find a contractor to build a custom home.
Take advantage of continued low interest rates and enlist one of our agents to watch the Teton Valley market for the property of your dreams. Contact Sage Realty Group to help you in this search or to get a free Property Value Assessment of your existing property.