Today we showed a client some new commercial/light industrial space south of town. Our listing on Elk Avenue South of Jackson is brand new and was built by Stewart Construction. The building has six different units that each have warehouse space with an apartment above, additionally, four of the units also have an attached office. A few of the spaces are already rented to companies like Brain Farm, Advanced Concrete, and Stewart Construction. There are still intriguing purchase and rental opportunities in this building.

Another project that we have had a lot of interest in lately is our Daisy Bush development in East Jackson. Today there are two lots going under contract. This is an exciting development with contemporary three bedroom, three bath, single family homes that are designed by local award-winning architect Steve Dynia. I believe that Daisy Bush lots are the best value you can find for any lot in town.

Condominiums in the Aspens are dropping in price and getting snapped up by investors and first-time homebuyers at prices not seen in 5 years. A Four Seasons condo listed in the $4.5M range just went under contract and a monster spec home on Fall Creek Road listed at $4.95M is now listed as pending.

A short sale in a NE 40 in Rafter J just closed for $375K, probably a good deal as the prices are almost 50% off their peak.

I have said it before, I think that just as we were in an anomaly: financing for everyone, boom times and 20% annual appreciation, we are now in a time where there is little financing, investors are just willing to get out with a small loss to simplify, and prices for the first time in 30 years have suffered a massive reduction. This next year will be about shoring up balance sheets, creating value and increasing cash flow—inventory will drop, prices will hit a point where the numbers are substantially less than replacement value, banks will begin lending money to qualified buyers, and prices will increase again to return to basic fundamentals.

The Jackson Hole condo and townhome market has received a shot of enthusiasm from buyers in the last week. A Hawk’s View 2 bedroom townhome listed for $399K went under contract, a NE40 in Rafter J listed for $475K was purchased, and a 1 bedroom in the Aspens (sold for $610K in 2007) is listed and just went pending. What has happened?

Bernanke delivered a speech last week in Jackson Hole. He says that the economy is starting to improve. Foreclosures are driving prices down. Banks are making it difficult for buyers to get their first mortgages, ironically when there is an $8000 credit out there, appraisers have no comps—-prices are coming down and many of the buyers who have been sitting on the sidelines are jumping back into the market. Even buyers of affordable units are jumping into the free market.

I will believe it when the job market improves. Many of the efficiencies are by cutting costs. Many of the profits are eked out by layoffs and savings, not job creation. When this changes the market will improve.

When buildings like the one above are filled with employees with job security, that is when the market improves.

Best deals on the market–

Sotheby’s just listed a 2,900 sqft home on 3.8 acres south of Jackson for $800K. That sounds interesting, although historically Hoback Junction is the slowest part of the market.

We are listing a home on Broadway for $575K, 1300 sqft, small lot, but possibility of development in the future comp plan. I don’t think I have seen east jackson in the mid-500s for over 3 years.

Aspens units—a friend just sold her home and is investing in a unit in the low 300s. Not a bad deal as the prices of these units have dropped almost 50 percent. The least I have seen someone pay is $285K as a short sale.

Prices seem to be all over the place but starting to settle down. Our market is returning to healthy fundamentals, cap rates, sustainable rents, and better long-term business plans.

We are finally seeing movement in the condominium and townhome market with prices dropping as much as 30%. Our modern Snow King condo closed today for $347,500 in downtown Jackson. An Aspens one bedroom closed for $350K, another Teton Village condominium is under contract—the listing price was $1.25M—activity we haven’t seen in 9 months. David Viehman’s $650K, 4 bedroom property with views of the Tetons on Snow King is a good value and Margie Barrie’s own property at $775K is 20% below the highs.

We are seeing a thaw in the market–however this will only continue if the wheels of finance continue to turn, appraisers get actual comps (at AR zoned lot just appraised for $525K????), sellers decide to sell and take the loss, and buyers decide to step away from the sidelines. But first we need jobs and confidence and I think we are starting to see both return.