MEAD GRUVER Associated Press writer | Posted: Tuesday, April 29, 2008 12:00 am
CHEYENNE - At a glance, one of the West's hottest real estate markets appears to have finally swallowed a chill pill: The number and total value of homes sold in Jackson Hole in the first quarter fell sharply compared to the same period last year.
But a real estate appraiser says the valley's home market remains strong. He points out that the median home price is up 7 percent over the past year and has been holding steady at $1.1 million since the end of last year.
Home prices nationwide were down 2.4 percent in February compared to a year ago, the Office of Federal Housing Enterprise Oversight reported last week.
"Understanding the current real estate environment, it's easy to argue that our local market is still insulated," David Viehman, owner of Jackson Hole Real Estate and Appraisal, LLC, wrote Thursday in his quarterly real estate newsletter, The Hole Report.
Viehman said the total dollar value of homes sold was down 48 percent, from $99 million to $52 million, and the number of sales fell 52 percent, from 62 to 30.
Prices have kept going up, though, and the most expensive home in Jackson Hole listed for a cool $34.9 million.
Viehman expects prices to remain high. One reason is a lot of people think Jackson Hole is both a nice place to visit and someplace they'd like to live.
"A lot of folks, they're looking for a second home, but they're saying, 'Where are my grandkids going to visit?"' Viehman told The Associated Press. "What a great place to come visit, in Jackson Hole."
Viehman also said locals are holding onto their homes and resisting the temptation to sell before they retire.
"Quite frankly, most of them look at it as retirement. It's as good a place as any - certainly better than the stock market's been the last 10 years. They can live in it, they can work out of it, and they're seeing their value go up every year," he said.
"At some point - we see it every year - people just cash in and they move away and they've got a million, two million bucks for their retirement."
Another reason prices could remain high, according to Viehman, is a proposed seven-month moratorium on new housing developments. The purpose would be to provide time for Teton County and town of Jackson to finish a joint plan for managing development.
"It's a question of managing growth, protecting our natural resources, providing housing for our work force, maintaining the character of our community," County Commission Chairman Andy Schwartz said Thursday.
Affordable housing is among the many issues the comprehensive plan is expected to address. But Viehman said the short-term effect would be to limit housing supply and increase prices.
"It's good for real estate values. It's very bad for affordable housing," Viehman said.
He said that even after a moratorium ended, new subdivisions wouldn't be built for months or even years while builders got their developments approved.
The county commission was scheduled to vote on the moratorium Thursday but tabled the measure until May 6 to give officials and the public some more time to review it.