The total number of properties sold in Teton Valley through the end of September was similar to the same period last year. However, the average sale price increased 10%, driving total sales dollars up 12% when compared to 2018.
Total residential sales through the end of Q3-2019 were very strong, with 214 sales, a 14% increase over the same period in 2018. The median price of homes continues to rise and year-to-date is up 5% when compared to 2018. The increase in median sale price, and total number of sales, resulted in a 16% increase in total dollar volume of home sales year-to-date.
Teton Valley homes priced under $350K are in high demand and made up 37% of total residential sales year-to-date. The total number of homes sold in this category was the same as in 2018. However, there were 28% fewer homes on the market this year.
Resort sales, including homes, condos and building sites in Teton Reserve, Teton Springs and Tributary (formerly Huntsman Springs) had 24 home, 5 condominium and 11 building site sales year-to-date. These sales represented 10% of the total number of properties sold in Teton Valley. The median home price, in the resort market, rose by 6% year-to-date compared to the same time period in 2018. The number of resort building sites sold is not following the trend of the broader market, as the number of building sites sold in the resort market dropped 50% year-to-date and the average price fell 20%.
The building site market has shown a clear division between those properties the market finds of value and those it does not. The total number of sales through the end of Q3-2019 was about the same as through Q3-2018. However, the average sale price was up 16%, driving total dollar volume up 10%. The average days on market for building sites is up 13% when compared to last year. What is reflected in the market is; desirable building sites are selling reasonably quick and at higher prices, but the others are sitting on the market for quite some time.
There have been five commercial sales in Teton Valley since the beginning of 2019, and the average days on market has gone up 58% to just over a year. This increase days on market is an indication that the current inventory of commercial properties is priced higher than the market is willing to pay.
The residential real estate market in Teton Valley is very strong, and with limited inventory, it continues to be a seller’s market. At the end of Q3-2019 the median days on market of homes that have sold was 107-days. This means homes are on the market roughly two months before going under contract. While total dollar volume of home sales is up, this year’s increase is driven, largely, by the increase in the number of homes sold. It appears as though 2019 will be the first year, since 2012, that the average home price will not increase much from the prior year. Consequently, setting the correct list price is becoming more and more important for Seller’s. In the case of home Buyer’s, we are here to help you understand market values and how best to negotiate a purchase.
Building site sales continue to be strong; especially for those the market deems a good value. Buyer’s of building sites have quite a few options and tend to have the upper hand in price negotiations. Seller’s of building sites, on the other hand, are faced with more building sites coming on the market as competition. Apart from what is noted above, this component of the real estate market is hard to generalize. There are quite a few variables that go into determining the market value of building sites and I strongly recommend contacting one of our agents to get a professional opinion of value for building sites. If you are a Seller, and price the property wrong, it will sit on the market for years. If you are a Buyer, you may overpay. We are here to help you understand market values and look forward to your call.