Rizzotti JH Real Estate Blog

Interestingly, the market segments that have had the most activity in the recent boom period have had lack luster activity recently. I am noticing very few condos and townhomes trade in the general Jackson area, while in 2006 & 2007 they were trading and appreciating at unprecedented rates. Now i am observing the commuter markets having the majority of activity, and Sublette County enjoying a fair amount of transactions. While the commuter markets are having the majority of MLS sales, pay attention to their sales prices. With inventory building in all areas, it is not uncommon for properties to trade near replacement cost, and at times below it. Simply, supply in many market segments exceed demand, and Economics 101 prevails!

In Jackson, its hard to pin point a specific trend, as i am seeing sales in all segments, at volumes which resemble volumes of pre-boom times. The agents i routinely speak with say that many sellers have been firm on their prics and trying to hold tight to prices of the peak of the market. The sellers who have some flexibility and understanding of the current market conditions, are the ones who are actually going under contract.

Stay tuned, as i suspect the Fall will bring a change in the market.

Ken

After reading the Jackson Hole News and Guide editorial last week, the obvious was stated regarding the real estate market in Teton Valley Idaho. Lots of inventory! But amazingly enough, prices have not corrected signigicantly, yet, with the exception of some short sales in some of the newer golf course communities.

Pay attention to inventory. It can work for you or work against you.

Ken

Looking at the MLS hot sheet, a large percentage of the activity appears to be in the commuter markets, and Sublette County. Lower prices appear to be fueling these markets. Sales in the Jackson area are ocurring, but at lower volumes than observed in the past 24 months. This is not too surprising, due to the easy financing available prior to the mortgage melt down.

The question i get asked frequently, is when are things going to get better, meaning, higher sales volume. Cheap available financing will likely be a big factor here. Interestingly, i see some markets doing quite well, while some others are adjusting! When i mean quite well, i mean holding up, and exhibiting signs of a stable market.

High inventory levels in any market segment will likely result in the biggest adjsutments. Low inventory levels will have a stabilizing affect.

Ken