Rizzotti JH Real Estate Blog

Face it, none of us are getting any younger. You have a client that wants to buy real estate in Jackson, and has been looking for a long time. They have always been concerned about the high prices. Now may be the time. With sellers being more motivated now than last year, opportunities to buy on what may be a dip, or market adjustment in certain segments may provide that opportunity to pull the trigger.

Remember, real estate is a long term hold. Teton County is an amazing place and has rewarded property owners in many ways over the years.

Ken

I have recently noticed some high end properties go under contract in the Jackson and West Bank areas. Additionally, there are still numerous high end construction projects I notice while driving around the higher price segment communities in Jackson, Wilson and Teton Village. These market segments have not in general displayed any noticeable across the board weekness. This is possibly due to the limited supply of these properties, strong demand, high costs to construct, and long time frame from start to finish. This market segment may be bucking the overall trend in this area due to numerous factors, such as Wyoming's lack of income tax, numerous recreational, social and cultural amenities, and unparalleled scenery in Teton County.

In summary, there are certaintly bright spots in a market which is going through some changes in sales volume, and overall higher inventory levels. But real estate is so location dependent, and Jackson Hole is no exception.

Ken

After the high number of transactions and high appreciation rates noted in many market segments in Jackson and the nearby communities outside of Jackson over tha past few years, it is important to note that the current slow down is not unusual or abnormal. Prices cant go up for ever, just like trees dont keep growing straight into the sky.

My observation is the local markets have gotten a dose of what has happened nationally. Lots of speculation over the past few years, has created a over active market. Things have returned to more of a normal market, with many sectors shifting to a buyers market. So if your a buyer, things may appear to have gotten more favorable. If your a seller, you must be more realistic with your pricing!

Ken

Its nearly impossible to time the peak or bottom of a market. Real estate is no different. As prices adjust in this area and many areas of the nation, opportunities will prevail. But they wont last forever.

Remember, real estate is a long term investment. Focus on the best location and properties in your future acquisitions.

Ken

Looking through the MLS, i cant help but notice there are very high inventory levels in some newer subdivisions, in some of the commuter markets. Dont fall into the trap of basing your listing price on "yesterdays" values. Get competitive if you want to sell this summer.

Its simple. Price now is the primary selling factor. Buyers are now in the drivers seat.

Ken

Principle of Progression: Its better to own the smaller size, lower value properties in the best neighborhood. Values of these properties are positively affected by the higher value properties. Conversely, the principle of regression is a larger property in an area of mostly smaller size homes will be adversely affected by its location among lower value properties.

Try to own a property in an area where your smaller or average size improvements will benefit from the higher value properties in this area.

Ken

Headlines indicate deteriorating real estate markets throughout the country. However, there are still markets that are bucking the trend, or at least performing better. Places like Manhattan have certain similarities to Jackson. Manhattan is an island, and Jackson is surrounded by Public Land. These factors limit the supply and also the downside. Demand for real estate in these markets always exist. These are arguably international markets!

No market is ever teflon! But over the long term, the supply/demand issues always prevail.

Ken

The real estate market moves slowly, and it may take 6 months for the obvious to become apparent. With sales volume generally lower in the Jackson area YTD versus 2007 YTD, it is tougher to get a true reading on the market.

There is no ticker tape to check the up to the second real estate prices. Checking the hot sheet daily is key. Look for trends, pay attention to list - sale ratios and days on market! Call some of the FSBO signs and ads in the paper. See how the competition is pricing their product.

Slower moving real estate market requires patience. Its getting tough for the property flipping we have seen in 2005 - 2007. Keep a long term perspective, and you should be successful in this market.

Ken

After spending a relaxing 4th of July weekend in Jackson Hole, it dawned on me that the amenities of Jackson are both the natural and man made. The priceless natural amenities of the Teton Mountains, Snake River, National Park and National Forests are part of the amenity package that residents have easy access to. Also, the amenities of the Town of Jackson, shopping, restaurants, etc. are another significant amenity that comes with property ownership in this area. Rec center, Ski resorts, National Park access, museums. This is a short list of the amenities available as part of the Jackson Hole real estate equation.

Ken

In a appreciating market, pricing your listing above the recent prior sales seemed to work for a lot of sellers. However, the market has changed in the Jackson area and surrounding areas. It is critical to identify the changes, look at the most current 90 day sales, pending sales and listings and price things realistically if you want to sell. Dont be fooled by market conditions which existed last year. Dont miss the boat!

Ken