In the prior year, a significant transformation was observed in the real estate sector on both a national and local level. The rapid escalation of interest rates coupled with the prevailing economic uncertainty had a dampening effect on buyers’ sentiment, ultimately leading to a slowdown in the real estate market. The beginning of 2023 is witnessing a continuation of this trend, characterized by reduced transactions, price levels maintaining their gains from prior years, and a modest increase in available inventory. Despite these fluctuations, many are finding investment in real estate is a viable option in a turbulent and high-inflation environment.
The overall Jackson Hole real estate market, which includes all property types, experienced a modest decrease in transactions, down 8% compared to the first quarter of 2022. Nonetheless, the average sale price increased nearly 20% to just under $4 million. The drop in transactions led to the total dollar volume falling about 22%. The number of active listings available jumped over 120% compared to levels seen a year ago. This additional inventory is a welcome sign of a more stable market, however still at historically low levels. The number of pending listings dropped significantly, down 42% year over year, signaling that low transaction levels could persist through the year. On the plus side for buyers, properties took about 86% longer to sell, giving buyers an opportunity to be more selective and navigate the transactional process more easily.