A Local’s Look at the Market
A 35-year resident of Jackson Hole, Reynolds Pomeroy knows the market inside and out, quite literally considering his diverse professional experience. A recent addition to TCCG Brokerage Team, his resume includes founder and co-owner of Westbank Anglers, general manager of Crescent H Ranch, general manager of Watchguard Security Systems, Teton County Planning Commissioner, Jackson Hole Land Trust board member and 10-year board member of the Snake River Fund, currently Emeritus. At TCCG, he channels his wide knowledge of the valley into thorough market analysis and superior customer service. Here, he shares his insight on Jackson Hole real estate for prospective buyers’ edification.
What are some criteria unique to Jackson that potential buyers should consider when approaching this market?
Amongst the many criteria that come to mind, there are several that recur and/or are the most common whenever I speak with new clients: first is the significant shortage of private land available either for development or for sale which ultimately impacts supply. Others are undoubtedly Wyoming’s meaningful tax benefits, first amongst those being no state income tax; Teton County’s unique and incomparable quality of life, including everything from the surrounding public lands, their abundant wildlife and preserved natural settings; their varied attributes (mountains, rivers/streams, forests, trails, open spaces) and amazing access availability; and Jackson Hole’s diverse and robust community (schools, arts, music, philanthropic culture, etc.). It’s no surprise the ‘paradise’ descriptor is often used.
What time of year is the best for buyers? Sellers?
An interesting question which, given the rapidly decreasing available inventory, causes me to think “now,” “right away,” even “before it’s too late” (especially on the buyer’s side). Seriously, though, the fall season (late August through end of October) may be best for buyers as some inventory which hasn’t sold can see price reductions (aka repositioning) as sellers come to terms with their exposure vis-à-vis expectations for offers and, well, selling their property. This is not to suggest there’s a wait-and-see strategy to be applied here as, again, shrinking inventory is happening rapidly. Buyers should realize they better make their decision to purchase with the knowledge that waiting usually means another buyer beats them to the punch. For sellers, the late spring through the summer season is demonstrably the peak season/time of year, with the holidays through spring break period being a somewhat distant second timeframe.
What segments of the market are hot right now?
Frankly, with the decreasing inventory, all segments have rising temperatures. One interesting note: activity on vacant residential lots has begun to pick up noticeably as existing improved properties no longer provide the range of style, construction finishes, location, etc. that has allowed discriminating buyers to review numerous properties before they find (maybe even settle for) a property they will purchase, remodel tolerance notwithstanding.
What are potential home buyers asking about in 2015?
Some buyers are still asking about deals which are, for the most part, now few and far between in Jackson Hole, in all segments of the market. Others ask for help justifying Jackson Hole prices when similar properties in other markets can be had for relatively less; in some markets, considerably less. However, any Realtor and most buyers will tell you that other markets are not Jackson Hole – they’re simply incomparable. Sticker shock is a constant here, and has been both before and after the recent recession’s adjustments. Most also ask about the rental performance of homes both within and outside the various lodging overlays, as this performance can and does make a difference with operating costs as well as the ultimate determination to purchase.
What should potential home buyers be asking about in 2015?
Advice on how to make a strong offer that will meet the seller’s increasingly high expectations: cash only, quick closes, few if any contingencies. Take this year’s “cabin-product” activity in the Teton Village area. Shooting Star Resort just south of Teton Village has had remarkable success with this type of product recently, pre-selling their full inventory of every cabin development. Similar products at Jackson Hole Golf and Tennis have had similar interest from buyers, such that inventory is literally non-existent in the first case, and increasingly scarce in the latter. This winter, similar products in the Granite Ridge development at Teton Village have all but disappeared since the first of the year as properties that have been available for up to 1,400 days have gone under contract within the last 60 days, without price reductions. There are almost weekly requests from the real estate community for leads on available, unlisted and potentially available cabin product. One Granite Ridge Lodge home sold for $3.9M after an unsolicited offer before the holidays; recent sales had peaked at the low-to-mid $3M range before the recession. Another Granite Ridge Lodge is reportedly available for a cool $4.9M, a price the seller is not likely to get soon, but interesting nonetheless.
What does the Jackson Hole real estate market look like moving into 2015, in terms of availability, land use restrictions and market trends?
As to availability: More of the same – shrinking inventory with a likely upward creep in pricing and expectations for both developed and undeveloped properties.
Land use restrictions: This is presently a potentially big unknown as both the Town of Jackson and Teton County struggle to move forward on designing, agreeing to, voting on and then implementing revised Land Development Regulations. The result of this uncertainty is increasingly identified as the reason few if any new developments of any size are being proposed, let alone approved. Speculative building has been at a relative standstill for many years. Bank funding, too, is hard to come by, even for long-standing developers with proven track records. There is light at the end of the tunnel, however, as elected leaders in both jurisdictions are committed to breaking recent inertia.
As to market trends, the decreasing inventory is driving all segments upward. As mentioned previously, undeveloped lots are beginning to sell as buyers determine they’d prefer to build-to-suit rather than redevelop or remodel.
How does the local real estate market compare to the national market in 2015?
It doesn’t in any more than the broadest sense. Many will say it’s hotter and for the reasons and trends discussed previously. In many ways, Jackson Hole is its own market subject to its own macro and micro influences and trending in ways that are not always comparable to the rest of the country, let alone other resort markets at this moment in time. With developers still uncertain about the regulatory regime, I do not foresee meaningful jumps in available property (inventory) increasing for several years, a steady-state contrasting with other regional and national markets.
Final thoughts?
This myriad of influences should motivate both buyers and sellers of Jackson Hole real estate to look or list now as the 2015 summer selling season is essentially upon us. The team at TCCG Real Estate is here with up-to-the-minute data and availabilities, and our broad knowledge of the market specifics means we are well positioned to find buyers the best property at the best price, and provide sellers the best advice and market analysis for positioning their properties to sell.
REYNOLDS POMEROY, Sales Associate
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Reynolds is committed to providing the superior customer service and detailed area knowledge that are the well-established hallmarks of The Clear Creek Group. His deeply rooted background in Jackson Hole have provided him with a robust knowledge of the area, its attractions, amenities and real estate.
