Single-family vacant land sales have reversed course with 23 sales in Q1 2017 (up 64%). Meanwhile, average and median sale prices were down 37% and 15% respectively when compared to Q1 2016. The decrease in average and median sale prices can be directly attributed to the increase in the number of vacant land sales under $1 million (up 157%). NOTE: In 2005 and 2006 there were two times the number of sales in the first quarter, and yet the same number of available listings at the end of the first quarter. The hot spot for vacant land sales was the Westbank, where 48% of the sales occurred.
Who is buying vacant land today? While 61% of these buyers have local addresses, the majority are still second homeowners and retiring baby boomers. Most have either exhausted their search of existing home inventory and decided to build their dream home, or purchased an adjoining lot for privacy and/or view protection. Of course, this continues to be great news for our local construction industry. NOTE: To date in 2017, 61% of all residential vacant land purchases were also cash.
Single-family vacant lots under contract are showing signs of continued improvement with 14 properties currently under contract (up 75%). Of these, 21% are listed for under $500,000 and 7 are listed for under $1 million.
Available inventory of lots for sale are down 6% from Q1 2016, yet the average and median list prices are unchanged. This indicates that listing prices for single-family residential vacant land have stabilized. NOTE: Even though supply will continue to outpace demand, expect to see some appreciation in this segment in 2017. Based on year-end 2016 results, there are currently 19 months of available single-family vacant land inventory.
This information was derived from the Hole Report, the full report can be found here: http://jacksonholerealestatereport.com/2017-first-quarter-report/