Here’s the deal, the fourth quarter of 2023 had strong volume because higher priced properties sold. There also seems to be enough pending action to make the outlook of 2024 appear to have a great start. Rates dropping at the end the year certainly helps stimulate this and I believe there’s a lot of confidence in the money markets. A couple of surprises for me in the quarter and please read on to understand what I’m talking about.
The condo market in the fourth quarter had some notable events. Ketchum basically carried the market with its 16 sales totaling over 30 million in volume. As a whole we had 33 total sales and that’s four more than ’22. This had much to do with new and active inventory in Ketchum and Elkhorn. Remember, new inventory has been a theme in 2023. Still, I can safely say that, outside of a single sale in Hailey, everything is selling for below asking which means buyers have some negotiating power off the list prices.
Single family homes had an interesting start to its story in the fourth quarter. Total active listings and new inventory were only down 5 and 6 precent, yet there was a 28 percent uptick in total units sold. I’ve been arguing in 2023 that new inventory has been stoking the fire and that is not what occurred here. Additionally, this created an 83 percent increase in volume and 42 percent in average sale price which means more pricier stuff moved. Ketchum, Sun Valley, and Mid Valley had a lot do with helping this. Ketchum’s single family home market really suffered in ’22 and the first half of ’23 so this was bound to occur. Consequently, their average sale price was 4.1m in the fourth quarter up 52 percent. Sun Valley’s was up 17 percent. Again, big stuff selling.
Land is kinda wonky in the fourth quarter and as a whole was up over the year before. Contributors to it looking healthy include Inventory in Bellevue, sales in Mid Valley, and a single big sale in Ketchum. Surprisingly, total active inventor is up, new listings were up, and just about everything else when you read the bottom line. This is a surprise as just about every other area in the valley suffered. The single Ketchum sale and Mid Valley sales are fluffing up the average price. So, if you focus on those three areas things look good, outside of them it’s meek.
Farm inventory is one unit shy of being even with total inventory from a year ago with no sales to report. 11 units out there to see. In ranches, one big sale outside the valley sold for 5.7 and is the only sale to report. I can say that there is more inventory than a year ago yet nothing new came on the market in the fourth quarter.
