The past quarter in Sun Valley’s real estate market was like Salmon River. Many forks doing their own thing yet ending up in the same place. That same place being time moving forward in the make-up that is real estate in the Wood River Valley. South county seems to be leveling off and ticking down in pricing whereas in the north it still finds a way to increase. And then there is Hailey thriving and contradicting it all. Possibly being located in the middle of the county’s real estate market sets it up for such. Either way, this whole thing keeps on trucking by continuing to be active.
At the conclusion of the second quarter of 2024, I pegged condos as a seller’s market. At the conclusion of 2024’s fourth quarter I’d peg is as a buyer’s. Here’s why: average sale price in the fourth quarter was down 24% with Warm Springs being the only exception as it grew 66% in average sale price. None the less the same number of units sold in the fourth quarter 2024 as they did in 2023 which is a testament to their demand. The big theme driving this sector is inventory. The amount of inventory in Elkhorn and Ketchum kept this market thriving as much as it could the three months we’re discussing and their number of units listed directly correlates with the rest of their outcomes. Total sold volume in the valley did suffer as a result of the average price dropping.
Inventory’s correlation to sales volume kind of contradicts itself in the fourth quarter for single family homes. The numbers indicate to me that the fewer the number of units the higher the average price and thus the higher recorded sales volumes. Namely North of Ketchum, Ketchum, and Elkhorn. This speaks to the type of inventory, which has been mostly new builds. The areas that seem to have had the most of inventory had the greatest number of sales yet had lower average sale prices. Namely, the outskirts of the valley such as Bellevue and South County. It’s almost like the exact definition of supply and demand. But we know better. Pricing for the common man has gotten out of control and buyer ship has spoken in those places. However, in the North Valley, builders and sellers affirm their values while taking advantage of low inventory. That said, the total volume of sales has come down, and for the fourth quarter, that is a reflection in the lack of inventory in the North Valley as those price points can really prop up the volume.
But let us not forget about Hailey, particularly its north end where there has been room grow. Lots of new inventory has been constructed in that area and compared to the north where values are higher for single family homes it does become a sweet spot of an option. In their case they are gathering new inventory yet their pricing still climbs, call it the Park City effect.
In the residential land department, we actually had a fairly notable decline. Despite 22 going under contract and 21 closing (28 under contract and 25 sold the year before) all figures are down. Except for ole Hailey! They had the most amount of inventory and with three closings had substantia growth in its average sales price. Of course, I don’t think it take a magician to realize that land selling in the fourth and first quarters of any year is kind of like finding money in the pocket of a garment. It’s rare, but it can happen. Plus, land really shined in the second quarter of ’24 so it had its moment!
Two farms and four ranches went under contract in the fourth quarter while two farms and one ranch sold. This was actually a fairly active quarter for this sector of real estate with 54% more inventory than the year before. The selection was riper and thus contributing to the spark in movement. Good to see this area finding some legs in ’24.