The Associated Press | Posted: Wednesday, December 24, 2008 12:00 am
JACKSON - The slow pace of property sales in Jackson is forcing the closure of a large real estate firm.
Chris Johnston, CEO and chairman of Real Estate of Jackson Hole, said he's closing the brokerage he bought two years ago because of a drastic slowdown in property sales.
The company listed 70 agents on its Web page on Monday. Some of them plan to move to other firms in the area and continue to market property.
Real estate agents in the Jackson Hole area completed 29 deals in October and November, down from 73 completed in the same two-month period a year ago.
"We are deeply saddened to have to close our doors," Johnston said. "The company was unable to continue operations in this unprecedented economic environment, including record low transaction volume."
Bob Graham founded the company in 1972 and remains a stockholder. He said he planned to move his real-estate team - Graham 4 - to a new firm.
"We will be back in business," Graham said Monday. "We have made commitments to market and sell property, and none of that will change going forward."
T. Bomber Bryan, an associate broker at Real Estate of Jackson Hole, said he planned to have his license active with another valley firm and transfer all of his listings out of Real Estate of Jackson Hole within two days.
Bryan said the closing is unfortunate. "But it creates lots of opportunities for individual, top-producing brokers to be creative and put together a really strong, cohesive unit."
There was some talk earlier this month about an investor purchasing the firm but no deal was reached.
Johnston, who bought a controlling interest in the firm in the fall of 2006, said he and his wife had put more than $1 million into the business during the past year. He said it had been a privilege for them to work with the staff and brokers at the agency.
Graham said industry colleagues had expressed support during the past week.
"A number of real-estate brokers in town have called and offered to help us without any strings attached, and for that we are very grateful," Graham said. He likened the closure to moving out of a home.
"Walking out the front door is going to be very hard for us," he said. "There is no question about that."
But Graham recalled the mid-1980s, when interest rates hit 19 percent to 21 percent and high state foreclosure rates made mortgage insurers leery of doing business in Wyoming.
"It was a disaster," Graham said. "I've been through this kind of thing before. It doesn't make it easier. "We know eventually it will turn around and build back up."