Dana Harris - Jackson Hole Real Estate

There was press that came out several weeks ago in an article titled "Real Estate in the Doldrums". In the article an experienced local realtor was quoted as saying you had to have a perfect credit score and a huge down payment to get a loan. We've spoken to several of the local banks and they offer a different insight. Many of these local banks have been involved in this real estate market for years and they understand its underlying value. In addition they are saying they have money to loan and are willing to work with any customer we bring them to assist in the purchase of a property. With lower prices and ready access to money there may never be a better time to buy that property you've been dreaming of in Jackson Hole. I think each persons situation is different and whether you will qualify or not does really depend on how you look financially to the bank.

Here is an article from the Jackson News and Guide from December 10, 2008, page 9A that addresses this very subject.

Plummeting interest rates, falling home prices and local mortgage options may mean that now is a good time to invest in Jackson Hole property, local financial-industry leaders say. Industry professionals across the valley said that as mortgage rates have dropped – in some cases to 5.5 percent, which hasn't been seen in years – home prices are being reduced by as much as 20 percent. Local lenders such as Bank of Jackson Hole and First Interstate Bank have more latitude to creatively structure loans than some national institutions. Valley lenders say it's misguided to think that someone needs 20 percent down and a credit score of 700 to purchase property these days. Someone can get a loan with a down payment of 3 percent to 10 percent and a credit score of 620, they say. "We can keep loans in house that don't fit Fannie Mae or Freddie Mac guidelines," said T.R. Pierce, Bank of Jackson Hole senior vice president of residential loans. Local banks also are still strong despite the national economic downturn, he said. "We have all of our investments locally," he said. "We haven't had the massive depressions that some other communities have had. We are taking deposits and still have money we can lend." This creates a unique opportunity for good borrowers looking for a deal, some say. "If you have been waiting for a sign the market has bottomed out then don't wait too much longer," wrote David Viehman, owner of Jackson Hole Real Estate & Appraisal, in a recent market update e-mail. "Sellers want to sell, banks want to lend and there is still plenty of inventory to choose from." Richard Uhl, vice president and real estate loan manager of First Interstate Bank, said his company has been doing about two to three loans a week. But since news broke that interest rates may fall to 4.5 percent, the company has been fielding five to 10 phone calls a week. "We're seeing prices that we haven't seen in a long time," Uhl said. "For a good borrower, a qualified borrower, we can get them a loan." Here's how you could buy a home in today's market Sales price $600,000 Down payment $60,000 Interest rate 5.5 percent,fixed for 30 years Total monthly payment $3,702.07 Income to qualify $130,000 The above numbers were provided by T.R. Pierce, of Bank of Jackson Hole. Currently, the cheapest home in the valley costs about $600,000. The loan scenario assumes that borrowers have a good credit history and monthly obligations of no more than $1,000. The above monthly payments cover principle, interest, taxes, hazard insurance and private mortgage insurance.

The Teton Club is Jackson Hole's premier fractional ownership club located at The Jackson Hole Mountain Resort. The club is located adjacent to the new tram in the best ski in/ski out location on the mountain. Many people confuse fractional ownership with time shares however they are completely different. In a time share you own the right to use a property however with a fractional ownership you actually own a piece of real estate. It is the most practical form of ownership because you only own what you plan to use. This hassle free ownership allows you to focus on your vacation and your family not maintaining a property or worrying about renting it out. I tell people its home ownership with all the amenities of a resort. You have a 24 hour concierge at your service with bell men and valets for your car just like a top resort. If you have children or grand children the Kids Ranch at the mountain resort is just across the driveway and offers summer and winter activities for kids 5 to 18. You'll create family memories to last a lifetime at this beautiful property and perhaps new friends in other members who share similar interests. Give me a call or email me for an information packet and for a list of available weeks in this incredible property. I would also be happy to email you additional photo's of the property.

This course is not scheduled to open until the summer of 2009. We were lucky enough to get a tour with the General Manager and one of the realtors involved in project sales earlier in the season. Today we had a chance to tour the impressive Club House project which should open next summer along with the golf course.

In a word this course is amazing. The design is such that it "looks hard but can play easy", according to Mark Aulerich, General Manager. If played from the tips this course is something like 7,700 yards. The really nice thing about this course design is that you don't feel like your playing amongst houses like some golf course developments. The real estate components were all clustered near the main clubhouse or to the south and west of the course. Its a very open design and once on the course you actually feel like your not close to any development. The views, of course, are stunning, with the Tetons in the background and Jackson Hole Mountain Resort adjacent to the course.

Tom Fazio is one of the top 5 course designers of all time and he has really worked his magic on this beautiful course. There is a massive 35 acres lake on the course and on 13 of 18 holes, water comes in to play. The practice facility is one of the most unique I've seen with bunkers scatterd in the distance that make you feel like your hitting a shot in one of the fairways. There will also be a high-tech training facility for those dedicated to perfecting the art of the swing. The Club House boasts a massive 40,000 square feet and will include dining facilities, men's and women's locker rooms, a spa and a 2,400 square foot atheletic club. The adjacent activity barn will have fun stuff for the whole family to enjoy including a home theatre room and seperate facilities for parties and catering events.

The real estate options availble include The Cabins, near the clubhouse facility and Estate Lots. Of the 18 Cabins available in phase 1, 16 have already sold. The Estate lots are also off to a good start with 35 of the 100 already sold. The prices are in the $4 million plus range for the cabins and the estate lots start at around $2.5 million. If you would like information on the available real estate on the market give me a call.

Woke up this morning to snow fall, maybe we'll get some much needed coverage although the weather report is only calling for 1-3 inches. Generally the higher elevations seem to gather a little more. The mountain resort currently only has a couple of runs open but they are making snow where they can as the temperature has been perfect for that. The tram is still set to open on the 20th of this month after the big opening party the night before. Here is a picture I snapped off my front porch of the winter sunrise the other morning.

I get a lot of questions from customers and clients regarding the state of Jackson's markets. The most common question is regarding whether Jackson has seen the same type of market decline as other areas. Let's be clear about one thing, Jackson (or Jackson Hole) does not exist in a bubble, unaffected by outside influences, as many have said for years. While it is true that Jackson has a unique market when compared to other Rocky Mountain towns, and the rest of the country for that matter, it has experienced declines over the last year which are unprecedented in its history. People also ask me when I think the market will recover and start providing the great investment returns it has in the past. To that I say I wish I had a crystal ball and could tell you. You see unlike past downturns (the early 80's, early 90's, the tech crash in early 2000 and 911) this is a very different situation. It has had such a wide impact, not only in the United States, but abroad as well. The global ramifications of the credit crisis are only now starting to come to the surface and as those intensify so to will the impact on our economy and more specifically real estate markets. Now enough with the doom and gloom because for all the bad that could happen there is plenty of good happening. I, for one, believe the current incoming administration has done a good job of preparing itself to hit the ground running by being intimately involved with what our current policy and decisions should be to begin the process of righting the economy. I can't remember an exiting administration and the president-elect working together, at least apparently, so closely to try and put a solid plan together. The President-Elect has also made some pretty impressive cabinet appointments but it remains to be seen whether they will be the right ones for this dynamic situation. If you want to keep track of progress here are what I believe top 5 issues that will need to be addressed in order for us to start to see improvement in our markets:

1. Congress needs to use some of the rescue funds to help homeowners stay in their homes (especially with increasing unemployment).
2. Banks will need to start lending particularly when it comes to business investment.
3. Congress needs to provide incentives (tax cuts/credits) to stimulate business growth and put people back to work.
4. The rest of the world will have to follow suit by decreasing interest rates and stimulating their economies with incentives.
5. The stock markets will have to stabilize at a minimum but with the above changes may begin to show slight growth.

Any one of these will help but are not enough by themselves. We did see other countries drop rates again this week (England, Sweden) and there is talk our Fed will drop rates in the U.S. again. The credit markets will need to become more liquid and help businesses begin to grow again and as they grow unemployment will begin to subside. This is a consumer driven economy and until the consumer feels confident we can't possibly hope that we'll see any major improvement.