Teton County, Idaho — Q3 2022
While the summer of 2021 would be a tough act to follow, the Teton Valley real estate market has kept relative pace this year despite increasing inventory, rising mortgage interest rates and a return to normalcy following the global pandemic.
Year-to-date transactions on the quiet side of the Tetons are down 32.9% (611 sales this year compared to 910 closings for the same period in 2021) yet dollar volume has only slipped a modest 13.1% ($459.6M last year vs. $399.6M this year). It’s interesting to note, however, the valley real estate market at the end of summer 2020 (a record at the time with 656 closings for $230.1M) was only 45 more transactions and $169.5M less in dollar volume for the same period this year.
The Teton Valley market ended the summer on a strong note. September was the second biggest month of 2022 with 63 transactions accounting for $52.8M in dollar volume (only March had a higher monthly dollar volume with $59.7M in sales).
Price adjustments and an increase of homes for sale in Teton Valley, Idaho and Alta, Wyoming, led to the uptick in September’s sales activity.
It seems unlikely the year-end 2022 totals will eclipse the record-breaking year of 2021 with 1,154 transactions for more than $629M in dollar volume. At present, however, the year-to-date dollar volume for the first nine months of 2022 ($399.6M) has already eclipsed the valley’s 2020 year-end total of $364.4M (which was a record at the time two years ago).
LAND & RANCHES
Nearly 1,500 parcels of land have sold in Teton Valley within the last 24 months, including 365 transactions thus far in 2022. Like the overall market, transactions have lost steam for the last nine months, yet six out of ten transactions in Alta, Wyoming and Teton Valley, Idaho involve raw land.
Despite the slow down, the average sale price for undeveloped property grew 20.3% by the end of Q3 ($412,455 for this year vs. $342,873 last year). The median sale on the year-to-date (a 2.5-acre parcel in Driggs that sold in January for $210,000) is a 24.3% increase over the median transaction last year (a 1-acre parcel in Driggs that sold in March, 2021 for $169,000).
Would-be land buyers currently have more inventory to choose from, helping to shift the current climate from a “seller’s market” in early 2021 to a “buyer’s market” by the end of Q3. This time last year, 268 vacant parcels of land were being offered for sale. Twelve months later, the active listings on the market are up 15.3% to 309 properties for sale.
CONDOMINIMUMS/TOWNHOMES
In an otherwise downward-trending market in Q3 2022, condos and townhomes in Teton Valley were the lone statistical outlier. Both transactions and complementing dollar volume enjoyed year-over-year increases of 39% and 107.9% respectively, thanks to new construction projects in the Town of Driggs.
Of the 82 transactions thus far in 2022, 46 of the sales occurred in the new neighborhoods of Moraine Square and Valley Centre, and generated $28.9M of the $48.3M on the year to date.
In 2021, the median transaction through Q3 was a 3-bedroom, 2-bath, 1,500 sq.ft. townhome in Driggs that sold for $385,000 (or about $250/sq.ft.) in May. So far this year, the median price grew 36.4% to $525,000, or about $340/sq.ft. (also for a 3-bedroom, 2-bath, 1,500 sq.ft. townhome in Driggs).
SINGLE FAMILY HOMES
Despite a 30.9% drop in sales for the first nine months of 2022, the average home price in Teton Valley increased 14.4% in the last 12 months to $1.24M. Just two years ago, the average home price in the valley was $708,000 (or a 76% increase from 2020).
An increase in inventory and motivated sellers helped home sales keep tempo, despite rising mortgage interest rates. On October 1, 2021, only 47 homes were on the market. One year later, that number has grown 145% to 115 homes for sale.
The median home sale through Q3 2021 was $750,000 (for a 3-bedroom, 2-bath, 2,200 sq.ft. home in Driggs on 2.5 acres). Twelve months later, the midpoint sale escalated to more than $1.05M (for a 5-bedroom, 5-bath, newly-constructed 2,400 sq.ft. home in Driggs on 2.5 acres).
In 2019, only 15 homes sold for more than $1M. By the end of September, 2022, 71 homes of $1M or more had closed (which was on par with 2021’s total of 76 homes in the same price range).