Deborah,
Greetings. To answer your first question, "What is the market like in Jackson Hole, WY?"
As per our MLS statistics:
LISTINGS:
New/Active / Sold/...Months of Inventory
Feb/2008 352 3,760 74 50.81
Feb/2007 310 2,534 139 18.23
To answer your second question, "and surrounding areas?"
I would be seriously remiss if I did not advise you to seriously consider the national housing slump when buying in ID at this time. I feel that there is more upside potential in WY. This is not to say that it is impervious to the subprime "slime" Central bankers ushered us into after 9/11 with the availability of so called "ninja loans."
To anwer your third question: "Can I buy a good condition 3/2 SF home within 30 minute drive of Jackson Hole for under 500K?"
No, the drive is more like 45 minutes on a good day.
Think Alpine, WY. The lowest priced one is currently $278K.

The answer is yes, the Teton Valley Idaho side is within 30 mins. and has a number of offerings under 500k, some with around a acre or 3 as well. the Star Valley area can get you a home for under 500k but the further you travel the more proeprty and larger home, 45 to 50 minutes can get 2-5 acers and a nice home.

You might be able to do that in parts of Pinedale.... but it is about twice as far as you requested (South). But it is also very beautiful and seems to be following the Jackson trend to some degree. You can also go into Idaho and get closer to your goal, but 30 minutes might still be pushing it, and personally I don't think it is very attractive. So sell more Real Estate and then you can afford a nice tiny condo in Jackson for $3,000,000!

Brendan Murphy
Broker, CRS, GRI, ePro
Raving Real Estate
Laramie, WY 82070

You are too late for Jackson but you will have some luck in Lincoln County. Alpine, Etna, all of Star Valley. Good schools and lots of mineral revenue. Fastest growth in Wyoming.

How do you like this answer I found?
"You’re Not Just Buying Real Estate In Jackson Hole-
You’re Investing In a Lifestyle and Living a Dream"

My search at http://www.realestatejackson.com/mls.php revealed 65-70 properties.