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.

This entry was posted on Wednesday, February 3rd, 2010 at 12:17 pm and is filed under Jackson Hole Condos, Jackson Hole Realty Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.