A strong final week of September pushed sales for the month in Teton County to 23 units and a total sales volume of approximately* $44 million.
How do these numbers compare to September 2009? Favorably, and I will hit the highlights momentarily. However, perhaps more portentous for the fourth quarter of 2010 than past sales figures is the volume and type of price changes reported by Teton County Multiple Listing Service last month.
In just 30 days there were approximately 105 price reductions, or about 3.5 per day. If the average reduction were $25,000 that would mean sellers reduced their list prices by about $2.5 million dollars on the approximately 857 active listings in Teton County in September alone.
What does this mean for the market going forward? Most of the price reductions in the past 60 days seem to be higher-priced properties moving closer to the midpoint or bottom of their market segments. During the past two years, price reductions were more likely to be on properties already very competitive in their segment.
This meant that the lowest-priced listings were selling, but the market was too stratified to offer real choice for buyers. Hence, sales struggled as too many sellers stood firm and buyers remained patient. Today’s market segments are more condensed in price, which has resulted in more choice and higher sales in 2010 than 2009. Combined with a strengthening of the low end of the market, which signifies a stabilization of prices, the fourth quarter of 2010 should continue to offer increased opportunities for buyers in all segments.
Highlights from September’s closed sales include:
- Ten sales of properties for less than $451,000 for an average sales price of $338,000.
- Just two sales, however, between $451,000 and $1.25 million.
- Eight sales of properties between $1.25 million and $3.195 million.
- * The highest reported sale was for $7 million on a home in Teton Pines. However, the August sales of two Teton Valley Ranch parcels at auction were also “reported” in September and included in the estimated sales volume figure used in the first paragraph. Contact me to discuss the details of these sales and why it is unclear what the final sales prices are.
- September sales for 2009 included 25 units for $14.74 million, which is three more units than September 201o but significantly less dollar volume.
- October sales for 2009 included 29 units for $37.27 million, marking the return from the dead of the Jackson Hole real estate market. November 2009 recorded 23 sales with 28 in December.
Contact me for an email including all data discussed in this post or a personalized look at a particular market segment.