A Message From Keller Williams Jackson Hole, Written by Rebekkah Kelley of Budge Kelley Realty Group:
JACKSON, Wyo. — The real estate market has been making headlines lately, with many claiming it has hit a standstill. The numbers are staggering—based on year-end 2023 and YTD 2024 data, sales volume has plummeted to post-financial crisis levels of 2009-2010. However, unlike 2009-2010, inventory remains extremely tight in most market segments which is sustaining the prices we have been seeing over the last few years. This makes it easy to assume that buyers and sellers are stuck in a holding pattern. But is the market truly stagnant—or is the opportunity hiding in plain sight?
Deals Are Still Happening
Despite perceptions, buyers and sellers are actively navigating and succeeding in today’s market. Recent sales illustrate that, even in challenging conditions, deals are still being closed. For example, properties in highly desirable locations continue to attract buyers and well-priced listings are still going under contract, particularly homes with unique features or in like-new condition. Sellers willing to meet the market’s demands or offer concessions are making sales, while buyers are leveraging negotiation opportunities to get the terms they desire.
Opportunities for Buyers & Sellers
For Buyers:
- Leverage Negotiation Power: With demand softening slightly in some segments, buyers may find themselves in a stronger position to negotiate price reductions, repairs, or interest rate buy-downs. Evidence suggests property values have dropped between 2% – 12% over the past 2 years in some (not all) segments.
- Keep Attuned to Interest Rates: Interest rates fluctuate every day, sometimes dramatically. Make sure you’re ready to make a move when a dip occurs (that means getting pre-approved financing and being active in the market!). A small rate reduction can make a major difference to your monthly payment.
- Target Undervalued Properties: Fixer-uppers could offer a chance to build equity. Most buyers don’t want a project, so there are many examples of properties where sweat-equity could pay off. Look for properties with a little bit of maintenance required or needing a remodel.
For Sellers:
- Focus on Pricing Strategically: In a market where buyers are more selective, competitively priced homes stand out and sell faster. Properties sold within 90 days of going to market sell within 5% of the listing price. This price difference becomes increasingly larger the longer a property is on the market. Buyers need to see the value of a property to feel good about making a purchase.
- Add Value to Your Property: If your property needs some work —think curb appeal, upgraded finishes, or modernized systems—get it done! Most buyers today do not want projects to deal with after buying, so take care of any deferred maintenance before selling. Upgrades to flooring, kitchens and bathrooms typically add value and take away a pain-point for a new owner. Pro tip—wood shake roofs are out. Modernize your roof with fire-safe synthetic or metal products to reduce insurance costs and headaches.
- Be Willing to Get Creative: Covering closing costs or offering interest rate buy-downs can make your listing more attractive in a challenging market. But sellers should consider other incentives like owner-financing at a below-market rate, including furnishings or snow removal equipment, or a credit for that new roof you’ve been meaning to get around to replacing. Use your real estate advisor to find out what is important to a buyer and where an out-of-the-box solution may help bridge a gap.
Conclusion
As the market shifts, opportunities and challenges will arise within each segment—down to different price points. What might have worked for a single-family home sale six months ago may not be the case today. While a “stagnant” market may seem intimidating, there’s still plenty of opportunity as long as you have the right guidance.
Keller Williams Jackson Hole is a globally connected, locally owned brokerage with a skilled team of experienced local brokers—where finding the right guidance is never an issue. Get connected with an agent today and find your opportunity here in Jackson.
