The third quarter affirms what we’ve noticed in our real estate market and that is prices are still up and the interest rates are preventing a large portion of the buying population from making any moves. That being said there are some interesting point to notice in the third quarter of this year especially in land thus warranting a need to read on….
In the condo market total active inventory was only eight units behind 2021 with quite a bit newer units for sale. However, sold volume was down 59% as a whole. Average sale price was down 7% as well yet median sale price was still up 24% which is what I believe is what’s hurting sales. Clearly a majority of inventory still asking a higher number making it harder to buy in at the entry level. The good news is everything is selling for less than 100% of asking price which means there is room to negotiate at a lower sale price.
Single family homes are having it a little rougher than
condos. Active inventory in Hailey and Bellevue is down where in the past they’ve
been our bread and butter. Warm Springs and Ketchum are actually boasting a
decent amount of active inventory comparatively speaking. Elkhorn, Hailey, and
Bellevue all report less new inventory. As a whole, sold units are down 39%,
sold volume (the total dollar amount) is down 49%, the average sales price is
down 21% (which I think is a small win for the market) and the median sales
price is down 9% (which is an even bigger win for the common person). In some
areas the aver sales price is up and those are in more unique places far from
the epicenters and I believe are not indicative of any exception to our market.
Lastly, all single family homes are selling on average at 96% of the list price
which again means sellers are willing to negotiate.
In the department of land sales I think this story tells one
that speaks clearly to the state of things at the moment. Total active units
for sale are down 18% and new inventory is down 28%. Hailey being down 29% on
its own is a bit alarming and mid valley also down 17% is really the story line
here. And this speaks to available inventory not sales. Far less to buy in
those areas. Also, Bellevue has been making a lot of noise in this part of the
market for years now and has quieted down to nearly Sun Valley and Ketchum
numbers. The total number of sold units are down 47% whereas total active units
is only down 18%. Here’s where you have to be paying attention, total sold
volume (the total dollar amount) is up 17%, the average sale price is up 123%,
and the median is up 44%. Now, almost entirely has to do with one big Elkhorn
sale and White Clouds in Sun Valley. And the reason that has so much pulling
power is because Sun Valley actually had the most land sales of any area in the
third quarter with ten which is unheard of. Lastly, like condos and single family
homes the average sale is price is 96% of asking which means buyers are
negotiating a lower price point.
In the world of farm and ranch there really isn’t much to
report other than perspective. For starters this area is a harder market when
times get tight. Also, a lot of these sales can occur off market as it’s very niche.
There has been only one ranch sale in our MLS in the third quarter that down by
Picabo. My last point too is there are ranch real estate specialists that are
sometimes employed in our area and they aren’t always in our MLS. So, to use
our MLS for making determinations of that market is misleading as is any other really
because the listing agent could be anywhere. The important piece to that market
is not the specific MLS system used it’s the whether or not that MLS allows
that listing to be on third party sites such as Land.com, Landwatch.com, LandBrokerMLS.com,
etc. because that’s where all of the listing can be seen a whole.