The ordinance would allow a homeowner to redevelop his/her individual lot into no more than 3 units, of which the rear (800 sqft max) unit could be sold off. This only pertains to buildings that are either new, built after 1994, and meet today’s building codes, setbacks, height restrictions, etc. Applicable lots must have alley access. This ordinance would have a mandatory public review in 2 years to look at how well the tool worked towards allowing small, market home ownership within today’s neighborhood character while providing no negative impacts.

This tool mostly affects the area near the parking garage, the Brew Pub, Snow King, and Center for the Arts where 90% of the properties are rentals with little investment and upkeep taking place. We need to reinvigorate this area with home ownership, new residential spaces (not larger), sidewalks, garages and storage which will encourage more home ownership, renewal, redevelopment, and investment. Incorporating this change allows young people and first time homebuyers a number of options: single family, one bedrooms and studios on the open market in downtown Jackson. Of 12 new residential building permits in the Town since January 1, 2011, 10 are deed-restricted affordable housing, 2 are free market, of which one is mine.

How many people do you show downtown Jackson who say “this is it?” or “this is all I can afford?” or “I really want to live downtown, but it isn’t nice enough”. You can do something about it. Town needs owners who care and maintain their properties for Town to truly be Heart, not absentee landlords.

Three of the five Town Councilors voted against it on Monday, at the THIRD and FINAL reading to pass the ordinance. I find it ironic that the Town Council will assign priority for infrastructure on Redmond, affordable housing for the Grove and Hall Street, but no priority for renewal of our downtown AR district for smaller, efficient, free market housing. This Town Council has said in their posted Strategic Objectives that they will support housing for lower and middle class families. Yet, this ordinance which would have provided options to these very Jackson families with no public subsidy and no additional density, was voted down in a surprise reversal at third reading.

If you feel strongly about this contact Melissa Turley, Bob Lenz, Mark Obringer, Mark Barron, and Greg Miles towncouncil@townofjackson.com and voice your opinion. Come to the meeting at 6:00PM August 1, 2011 at the Clock Tower Building on Pearl and voice your opinion.

As there are fewer construction companies, sub-contractors serving the market, lower prices for raw materials, labor, internet pricing for appliances and build.com, cost for construction is the best it has been in 10 years.

Call us to learn for about Jackson Hole real estate and development.

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.

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.

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.

1. Buy what you love. Don’t buy what you like.

2. Plan on keeping the property for 10 years. Don’t think you might sell next year.

3. Buy what you need. If you need 2,000 sqft, don’t buy 4,000 sqft.

4. Buy what you can afford both in time and money.

5. Buy A+. Make sure the property has some kind of amenity, whether stream, close to downtown, roofdeck, etc.

6. Buy on fundamentals.

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.