The momentum of the third quarter of 2012 carried into the fourth quarter and December real estate activity was exceptionally strong. We had building strength of the business but the uncertainty of tax increases with the looming fiscal cliff and other state (e.g. California) tax hikes had people wanting to complete closings by the end of 2012. The result was strongly increased volume, up 152% versus December 2011. In fact, December volume was the largest volume month since 2004.
Average sales price in December jumped to $2,249,800 from $1,558,200 last year. Total transactions for the month were 75% greater than in 2011.
These strong December results completed an impressive fourth quarter with transactions up 43.7% and volume up a whopping 98% compared to last year. Transactions and volume were up in all areas of the Valley and in all categories—condos, single family homes, vacant land and commercial.
Fourth quarter strength is further shown with average sales prices up 37.8% versus 2011 and median prices of single family homes up 46.3% and condos up 30.1%.
2012 was a year of strong growth in the Jackson Hole real estate market across all fronts. Total year volume was very robust, significantly exceeding volume of the past several years including the 2008-2011 period. Overall 2012 dollar volume was up 52.1% compared to 2011 and transactions were 25% greater.
All areas in Jackson Hole experienced solid volume growth in 2012 as well as in all real estate categories. Transactions were also up in all categories and areas except Teton Village. Although volume sold in Teton Village was up 86.6%, transactions were down modestly which seems to be a reflection of lower inventory and the reduction of distressed properties.
Average sales prices climbed in 2012, up 21.6% to $1,386,600 for the entire Jackson Hole market. Several commercial sales in Teton Village contributed to this substantial increase. However, median sale prices for residential and vacant land were only slightly changed from 2011.
Although days on market is higher by 12.7%, total inventory is down as of the end of 2012. In fact, inventory in the under $850,000 price range declined 20% versus last year and overall, there were far fewer properties available than we have seen since early 2009.