Park City Real Estate Trends

Park City’s Real Estate Inventory Problem

By Todd Anderson
Dec 07, 2017

Like many other communities in the country, Park City, Utah is experiencing a lack of available homes for sale.

How can that be when a search of the active properties on Wasatch Back MLS (Summit and Wasatch Counties) brings nearly 1900 results?

  • Just over 700 of those listings are for Vacant Land (Acreage and Building lots)
  • Another 140+ of these listings are for Fractional Ownerships or Commercial properties
  • So, there are 1042 active listings of Homes and Condominiums on the WBMLS
  • 109 of these are outside Summit or Wasatch Counties (mostly in the greater Salt Lake area)
  • Further Subtraction of the homes in the Heber Valley, Kamas Valley and Coalville area removes another 240+ homes from the initial search results
The final tally leaves 691 Homes and Condominiums in the Greater Park City Area for sale (this includes Park City Proper, the Snyderville Basin, and the Jordanelle Reservoir area). The split between Homes and Condominiums is almost even (348 vs 343).

Park City Housing InventoryYear to date sales for homes and Condominiums in the Greater Park City area is 1335 (574 Houses and 761 Condos). This data gives a 6.7 month supply for Homes and a 5 month supply for Condos. These numbers sound very reasonable for most metro markets in the US and might even be considered a Buyer’s market by some standards. A deeper dive shows the real issues in the Park City Market.

Of the active homes for sale, 223 have an asking price of $2 million or more; this is a 17 month supply at the sales rate so far this year. At the other end of the spectrum, there are only 32 Homes listed for less than $1 million; at current sales rates would sell these homes in a mere 1.5 months. Homes between $1 and $2 show a 5 month supply at the current absorption rate.

  • Of the current active listings in Old Town, the median asking price is over $2.1 million
  • Only 6 Homes on the market in Old Town have a price under $1 million; none of these were built after 1920 and half of these are under 1000 square feet.
  • Sales prices for new construction homes in Old Town are averaging approximately $1000/sq ft.
  • The Pinebrook and Jeremy Ranch areas in the Snyderville Basin have 2.5 months worth of inventory at current absorption rates.
  • There were 62 sales this year in these areas under $1 million; there are currently 6 homes for sale in Jeremy Ranch and Pinebrook with an asking price below $1 million.
Condominium sales and active listings show similar discrepancies between inventories at higher and lower prices.
  • There are 31 active condo listings priced above $1 million, a little over 1 year’s worth of inventory at the current absorption rate (note the 5 month condo supply mentioned above).
  • The Racquet Club Condominiums in Park Meadows have seen 4 sales this year all representing the highest prices ever recorded for the area.
  • There were 46 condo sales in Pinebrook this year, there are currently ZERO on the market.
The lack of inventory in certain price points can lead Sellers to believe that they can get any price they choose, but that just really isn’t the case. The current low mortgage rates mean that many Buyers are still getting a mortgage, and in that case the property will need to appraise. Appraisals are a back-ward looking price determination based on recent sales, this keeps prices from jumping too fast or Sellers getting a high price just because they have the only one on the market. Inventory that is on the market a long time is usually over-priced; Buyers won’t pay too much over the last comparable sale unless there is truly something special.

Park City’s low inventory levels can make both Buying and Selling harder (for different reasons), but either way you’ll find that the knowledge and guidance of a local real estate professional is a must. Contact the YouInParkCity.com Group (435)962-9472 at KW Park City Keller Williams to help you through.

Park City Real Estate Competition by Price Point

By Todd Anderson
Sep 29, 2015

Whether you are a Buyer or a Seller in the Park City Real Estate market, the price point that you are buying or selling in can have dramatic impacts on how easy or hard the process is.

The Park City Real Estate Market has seen its strongest 12 month period for sales since 2006. Inventories are low and prices in many areas are above their historic peaks.  With that said it does not mean that there are no deals to be found or that the property you list for sale will be gone in a matter of days. There are many factors that make up the ultimate value of a home or condominium in Park City and of course location is the most important; the age, shape, layout, views and design also contribute to the value. Once all of the of the value factors of a home are considered, the ultimate price has an impact on what competitive part of the market you are buying or selling in.

Queen Esther at Deer Valley, Park City, UTah Under Contract in less than a week $549,000

A look at the past year’s sales, current under contracts, and active inventory in the Park City Real Estate Market homes and condominiums provides a lot of insight to the competition levels at different price points.

The Park City MLS recorded 844 condominium sales over the past 12 months and there are 395 currently listed for sale which gives us about 5.5 months of inventory at the past 12 months sales rate. This absorption rate though is dramatically different depending on the price range you are searching. For condominiums under $500K, that supply drops to months and increases to 20 months for condominiums listed for sale at over $1 million.

On the Market amid heavy competition $8 million - Courtesy KW Keller Williams Park City On the Market amid heavy competition $8 million - Courtesy KW Keller Williams Park City

Single family homes in the Park City real estate market show similarities: the current 388 homes listed for sale would be gone in 8.4 months at the past 12 month’s sales rate, but when broken down into price points a different storyline appears. The inventory of homes priced under $1M would last only 3.7 months at the current absorption rate while homes priced over $2M have an inventory that would last nearly 2 years (23.2 months) at the sales rate of the past 12 months.

Lower priced homes and condominiums are more competitive on the Buying side while higher priced homes and condos have more competition when it comes to Selling. To truly understand the implications of this we need to delve further into specifics of a Buyer or Sellers’ individual property types, subdivision, state of repair and of course location.

For a professional assessment and action plan for your Park City Real Estate needs contact a realty professional with the YouInParkCity.com Group of KW Park City Keller Williams Real Estate.

Deal Reached to Acquire Acreage Near the Rail Trail

By Todd Anderson
Sep 25, 2015

wood-landscape-nature-forestRecently, City Hall entered into an agreement that will acquire land just off the Rail Trail in the Prospector area. This is part of a conservation deal that keeps the possibility of using a small area of the acreage for a housing project open.

The transaction, which was unanimously authorized by the City Council, involves just a bit more than 14 acres of land on the south side of the Rail Trail. The land also climbs a hillside on the south side. The deal cost $500,000 and was entered into with Ted Sommer, the landowner. City Hall indicates that the transfer will be funded using two sources. One source is City Hal’s housing fund, while the other is generated from a portion of sales taxes that are set aside for uses such as conservation acquisitions.

Staffers at City Hall indicate that there is a possibility that a small portion of the land may be used for a municipal housing project. However, the decision has not been finalized and it is not known the type of project or how many units it would involve. One report that was submitted to officials also indicated a park might also be built on part of the land.

The Citizens Open Space Advisory Committee recommended the acquisition, saying, “The parcel holds significant open space value, as it is one of the remaining large parcels within city limits.” The recommendation continued, “…has significant hillside acreage visibility through much of town.”

The conservation efforts by City Hall date back more than two decades and are considered one of the government’s most highly praised programs. Officials have set aside large tracts of land from development. These areas include areas such as the S.R. 225 entryway and Round Valley. As you can see, it is not uncommon for large parcels of land inside the city limits to be acquired by City Hall.

At YouInParkCity.com and KW Park City Keller Williams Real Estate, we understand the intricacies and ins and outs of land acquisitions. If you are interested in purchase or selling any type of real estate in our area, please contact us. Our knowledgeable, experienced, and friendly staff can help you maneuver through a successful real estate transaction, no matter the size, as we specialize in all types of Park City real estate.

Park City Real Estate Numbers Surging in 2015

By Todd Anderson
Sep 11, 2015

This year has seen a huge Park City Real Estate Trendsincrease in the Park City Real Estate Market. We are seeing numbers similar to those we experience prior to the 2008 recession numbers.

According to statistics from the Park City Board of Realtors, for the first two quarters of 2015, home sales are up 9 percent over the same period in 2014. This represents the highest numbers for the first of half of any year since the recession. Additionally, during the same time period, total dollar volume is up by 11 percent.

We have been experiencing an improvement in the real estate market over the past two years; however, the growth was slow become there were not many homes on the market. Rising prices during the first quarter of the year helped open up the market.

Record lows were seen in terms of inventory and that drove up prices. Many who were thinking of selling waited for prices to rebound and then made the decision to sell, which resulted on more homes appearing on the market during the second quarter of this year.

Throughout the country, the real estate market is becoming stronger, which reflects the boost in the Park City market. Additionally, Utah’s economy is one of the strongest in the country, which has brought many of people to the Park City area.

According to figures from the Board of Realtors, sales have been strong in areas such as Park Meadows, Old Town, and Prospector. Neighborhoods in the Snyderville Basin are also experience strong numbers, with the median sales price of a single-family home in the basin coming in at $850,000 — up 18 percent.

One message being seen by area realtors is that Vail Resorts will be bringing people to Park City. Vail Resorts presence in Park City will be bringing both visitors and new residents to the area.

If you are interested in buying or selling real estate in the Park City and surrounding areas, feel free to contact us at YouInParkCity.com. Our professionals will be able to help you either buy or sell property in this fast-growing and every-changing marketplace.

How could the new RESPA rule affect our Clients?

By Todd Anderson
Aug 28, 2015

Home sales in Park City, UT

By Rob Harris and Todd Anderson

I originally wrote this back in May anticipating implementation August 1, 2015. When the start date was delayed I shelved this thinking this would be addressed by the state or our forms committees. I haven’t seen any resolution to what I think puts our buyers at risk.

As we know the new RESPA rule will require, for contracts written starting October 3, 2015, that the “closing disclosure” be in the hands of the consumer no less than 3 days prior to closing.  As is often the case with new regulations, the implementation of them can have unforeseen and possibly negative results.

In May I attended a class on the new regulation and asked the presenter how an agent should deal with it when the contractual settlement and closing deadlines are delayed as a result of this regulation. The response was that the agent should just ask for extensions. As we all know extensions are not always granted. If the extension is not granted and the settlement and or closing do not occur according by the contract deadline could the seller view this as a breach of contract? Could the seller decide decide to keep the earnest money and accept an offer (better) from another buyer?

I am not an attorney and I don’t know but I am certainly concerned. I have been trained that if something is not part of the contract it doesn’t have standing in court.

Should there be an addendum to the REPC that defines how delays in settlement and or closing as a result of complying with Dodd Frank TRID regulations will be dealt with?. I am sure our brokers and the State will come up with a form that addresses this but until they do should our clients have attorneys draft an addendum to cover this?

An example might be:

  1. The buyer and the seller agree that any delays in the Settlement and Closing Deadlines that are a result of complying with the RESPA regulations implemented as of October 3, 2015 will be accepted by both parties. The settlement and closing deadlines will be extended to allow for compliance with the regulation.
Some agents are of the opinion that the chances of there being a delay and the seller opting to cancel the contract are small. I agree but I am unwilling to roll the dice with my client’s money. I have no interest in asking a seller for an extension with earnest money at risk. On the flip side I wouldn’t want this to be something my seller has to think about at the last minute. We should address this when we are writing and negotiating contracts. October 3rd will be here soon. Please talk to your Brokers if you are an agent and your agent if you are buying or selling a home.

 

Park City Named Friendliest City!

By Todd Anderson
Aug 28, 2015

Park City, UTWas it a surprise when we found out that Park City was recently named in a Conde Nast readers’ poll as the Friendliest City in America? Actually no, it wasn’t! All of us at KW Park City Keller Williams Real Estate and YouInParkCity.com know the myriad reasons we were awarded such a standing.

Park City was actually highlighted in a slide show on CNTTraveler.com — a site that reaches nearly 2.6 million travel enthusiasts — titled “The 2015 Friendliest and UnFriendliest Cities in the U.S”.

There are so many reasons for Conde Nast to say Park City is a “great place that brings city life to outdoor enthusiasts, film geeks and families”. We also like to point out that Park City is a well-known travel destination renown for hip culture, a rich history and of course, its exciting party atmosphere.

Readers participating in the survey were asked to rate different cities as to whether or not the felt welcome. Other cities that joined Park City in the friendliest category included:

  • Burlington, Vermont
  • New Orleans, Louisiana
  • Jackson, Wyoming
  • Asheville, North Carolina
  • Santa Fe, New Mexico
  • Austin, Texas
  • Nashville, Tennessee
  • Charleston, South Carolina
  • Savannah, Georgia
Visitors and locals alike love the warmth and atmosphere of the city, whether they are enjoy the great banter from bartenders at establishments such as The Spur, The No Name, or O’Shucks. They can also enjoy high-end service at places such as St. Regis and the Montage — there’s something for everyone.

We can’t forget to point out that our area ski resorts have also ranked high on the ratings for their customer service and satisfaction from both visitors and residents. There really is no better place to ski that Park City.

Not to mention the great summers we have with all sorts of great activities such as hiking, biking, and fishing. And of course, you’ll be finding yourself among some of the friendliest people around during the many outdoor concerts happening all summer long.

KW Park City Keller Williams Real Estate and YouInParkCity.com are proud to be a part of what is now known as the “Friendliest City in the U.S.”. We invite you to stop by and check out some great real estate that can put you in the heart of this area so you can experience all the wonderful aspects of our great city.

New Way to Sell Real Estate: The Auction Block

By Todd Anderson
Aug 21, 2015

auction saleThere’s a new business model for selling real estate in the Park City area that is becoming increasingly popular. As you may know, the usual way to sell property is to hire a real estate agent, who then puts the property on the market and stages it. Then you wait for an acceptable offer, which with any luck, will let the seller walk away with a substantial check.

However, now a new approach has hit the Park City real estate market. It has become an enticing proposal for homeowners to put a property up for auction — especially if they have the desire to sell the home quickly.

Instead of waiting for lengthy periods of time to sell high-end property, homeowners are now auctioning their real estate when they are willing to risk getting a lower price in exchange for a faster sale.

Essentially, homeowners will pay an auction firm an upfront fee to market their homes across the country, as well as internationally. This will result in a large number of potential buyers by the auction date.

In reality, one thing that real estate agents may not do as effectively as an auction house, is to bring a sense of urgency to the sale.

Additionally, the process can be so successful that an actual action doesn’t happen. Agents in this area have seen properties that have been ready for auction go to a buyer who just didn’t want to lose the home, so a price that is just to good to pass up is offered. And for sellers, this is a great outcome.

There are, however, some risks that may come with the auction process. For instance, with an “absolute” auction, which is an instance where the top dollar that the bidders are willing to offer becomes the final price. There is no turning back for sellers once the auction has started.

The entire process can be intense. Sellers have no guarantee that the price they want for their property will be met, so it is definitely not a process for the faint of heart.

It is however, a good option for those who are willing to take a more aggressive approach to getting their properties sold — especially those within the higher end markets.

If you are interested in selling properties through an auction process, or even through a traditional method, the YouInParkCity.com Group at KW Park City Keller Williams Real Estate can give you a distinct advantage. Contact us today to discuss all your options!

Park City Real Estate Under Construction

By Todd Anderson
Jun 24, 2014

Summer 2014 sees a construction boom in Park City, UT.

 

Winter in Park City Utah is a tough time to build, that isn’t to say that there are not a lot of construction projects going on during the winter, they are just more prevalent during the summer months.

 

From the turn off highway 80 traveling into Park City the new construction can be seen. The Newpark Terrace townhomes above the parking garage at Newpark Town Center are taking shape; sixty percent of the sixty. The additional retail space at Redstone is done and the retail center is busier than ever. New exterior siding is being installed at the Fox Point at Redstone condominiums (this clears a long running lawsuit between the original builder and the HOA). Another small residential development is also working its way through the planning process.Newpark Terrace

 

Work continues at Canyons Resort with the golf course which is scheduled for play in summer 2015 as well as projects near the base of the Waldorf gondola.

 

Construction around town is evidenced mostly through home construction on some of the few remaining in-fill lots and the ever present road improvement projects.The Parkite

 

The Old Town area is the site of multiple projects both commercial and residential. Commercial spaces with residential units on top are part of two lower Main St remodels. 820 Park Avenue is ten residential condominiums with great ski and town access all of which had reservations before the project was introduced to the public. Near the top of Main St in the old in the old Main St Mall will be The Parkite with fifteen contemporary luxury residences.

 

The Upper Deer Valley area has the Stein Eriksen Residences moving forward at full speed. This ski-in/ski-out development between the Silver Dollar and Last Chance ski runs was very well received over the winter and has many reservations already in place.

 

Heading east out of Park City (affectionately known as the back door to town) the Park City Film Studios are well under way with their large project which includes Film Studios capable of film and television production, sound studios, Film School, Event Center and Studio Village.

 

Just south of the Film Studio is the Park City Heights Development. The development covers nearly 250 acres and will contain 239 residences when complete. The builder Ivory Homes is one of Utah’s largest builders has a proven track record an ability to complete developments in a timely manner.

 

Park City Heights Construction

 

Further east on hwy 248, the developments at Park’s Edge and Black Rock Ridge are selling condominiums as fast as they can build them.

 

The Promontory Club area has over 50 homes in some state of construction (most all of these are custom homes and not spec builds).

 

To further explore purchasing new construction homes or condominiums in Park City or to discuss how the addition of these developments may affect your current home or condominium’s value, contact a local Park City real estate professional. Email us or call (888)968-4672.

Park City Real Estate Sales 2014: Q1

By Todd Anderson
Apr 09, 2014

Park City Real Estate Stats Real Estate Sales in Park City, UT by quarter

The first quarter of the year is historically the slowest for sales in the Park City real estate market. This often puzzles people as it also represents one of the busiest times in terms of people in town. Maybe our guests in Park City are too busy skiing, dining and enjoying all that Park City has to offer to spend their time hunting for properties; maybe it is the time delay between writing an offer and closing a sale; maybe once the decision to buy here has been made, buyers want to do more research and see all of the options while they are easy to see (not while renters are in town). In any case, January through March is the slowest time for Park City real estate sales.

 

The first quarter of 2014 saw a nearly 20% jump in condominium sales for the greater Park City area versus 2013 and it was the best first quarter since 2007. Almost all of the increase came in condominium sales with the Old Town area leading the way. Old Town saw a 40% increase in the number of condominium sales versus the first quarter of last year. The median sales price of condominiums in the greater Park City area also increased from $430,000 to $445,000.

 

Single Family home sales for the quarter were flat for the quarter versus quarter comparison, but the median price did rise by $10,000 to $875,000.

 

Inventory levels rose during the quarter, but there is still a lack of supply of properties below the median sales price. Fewer than 70 homes are available for less than the median sales price from the first quarter which translates to just over 4 month’s supply at the current absorption rate. Similarly, condominium inventory below the median sales price for the quarter represent only a 6 month supply at the current sales pace.

 

The lack of inventory has not translated to large price increases and it is those homes that show well and present a strong value that are selling quickly.

 

Some neighborhoods are experiencing price increases while others have stabilized. For assistance in Buying or Selling in Park City, UT contact the YouInParkCIty.com Group for in depth analysis and expert advice focused on the property type and area of town that matters to you (888)968-4672.

Deer Valley Real Estate Sales Half-Way 2014

By Todd Anderson
Feb 25, 2014

Half-way 2014? Yes, we are now just over half way through the ski season for 2013-2014. And it is time to look at how real estate sales are shaping up in Deer Valley and Park City, UT.

 

So far for the 2013-2014 ski season the greater Deer Valley area Lower Deer Valley, Upper Deer Valley, Deer Crest and Empire Pass) has seen 23 sales. The sales include 1 building lot, 17 condominiums and 5 single family homes. These numbers are way down when compared to the 41 sales for the same period last ski season (8 lots, 25 condos and 8 homes). In terms of snowfall and ski season visitors, the season has been very similar to last year. So what has changed?

Ski condo

 

Inventory: Inventory levels have changed in multiple ways. The amount of inventory on the market to choose from has diminished. There are currently 64 homes, 158 condominiums and 33 building lots available in the greater Deer Valley area. Many of the homes and condominiums for sale are in need of updating. The quick reservations that were put in on the Stein Eriksen Residences show that the market is ready for new contemporary finishes (although some of these reservations are likely speculative purchase reservations).

 

Pricing: Prices are rising quickly on the more affordable condominiums in the area (possibly beyond what the market will bear) and nearly 70% of the available condominiums in the Deer Valley area have asking prices over $1M.

 

Pending Sales: There are currently more pending Deer Valley real estate sales than there were sales in the past two months. If these sales all close, the number of sold units in Deer Valley will be much closer to that of the 2012-2013 ski season.

 

When I spoke with a few other area realtors about the Deer Valley real estate sales stats for the ski season so far, a few offered that the impact of Vail running Canyons Resort may be having an adverse impact on Deer Valley sales. The sales stats show the Canyons area to be flat compared to last year, so there has been little to no impact yet from Vail Resorts taking over operations at Canyons.

 

When taking everything into account, homes and condos in Deer Valley are selling. The options that are well priced and updated move quickly and while prices are increasing due to lack of inventory, the jump may not be as rapid as some Sellers would like. For more information and assistance in Buying or Selling a Deer Valley or Park City property contact a local real estate professional at YouInParkCity.com (888)968-4672.

 

Park City Utah’s Hottest Real Estate Neighborhood

By Todd Anderson
Jul 31, 2013

Park City Real Estate prices have been trending up for the past year or two now (we here at YouInParkCity.com called the market bottom around February of 2012). Some areas are seeing prices rise much faster than others.

 

Summer generally sees an increase in sales of the low to middle price point single family homes in Park City and this year has been no exception. Areas with easy access to Salt Lake City as well as local Park City amenities are in the greatest demand.

 

A few of the areas that we generally see heat up during the summer include Silver Springs, Park Meadows, Trailside Park, and Jeremy Ranch, Pinebrook and Prospector. The first half of the year shows Trailside pricing up by 23%, Park Meadows up by 25%, and Pinebrook up by 15%. The variables of the home sizes and age make the relatively small number of homes sold a year ago have the ability to skew the numbers, so while prices are definitely up, home values have not increased by these amounts.

 

home prices in Park City, Utah are on the riseThe Snyder’s Mill area of Silver Springs though may actually have seen this type of increase. While the Park City Board of Realtor statistics show only a 7% rise in prices for the Silver Springs area, sales in Snyder’s Mill represent one of the hottest neighborhoods in Park City. This year has 4 of the top ten highest sold prices that have ever been paid for a home in the Snyder’s Mill subdivision of Park City. Three of the homes have sold recently are the 2nd, 3rd and 4th highest per square foot values that have ever been paid in the Snyder’s Mill area. Current pricing and sales are eclipsing the peak pricing from 2007. When the subdivision was originally built in the early 1990’s, homes sold for as little as $90/sq ft. Tastefully remodeled homes in Snyder’s Mill are now selling for over $300 per square foot.

 

The combination of a well-kept neighborhood in a central location with easy access to Park City (historic as well as the new area at Kimball Junction) and pricing in the sweet spot of the Park City real estate market ($500K-$800K) make Snyder’s Mill one of the hottest real estate neighborhoods in Park City, UT.

 

For information on buying or selling in Snyder’s Mill or any Park City area neighborhood contact a real estate professional with YouInParkCity.com (888)968-4672.

Park City Real Estate Sales 2013

By Todd Anderson
Jul 06, 2013

Real estate sales in Park City, UT so far in 2013 continue to show strength.

 

Sales when compared with the first half of 2012 were up by 13% in unit volume. Single Family home sales in Park City remained relatively flat, but the median sales price was up by nearly 10%. Condominium sales saw a 10% rise in unit volume along with a 10% rise in the median price of Park City condominiums sold for the six month period. Vacant lot sales saw the largest increase with an increase in sales of over 30%.

 

When compared to the last half of 2012, the Park City real estate sales data is actually down slightly in condominium sales and single family home sales, but up in building lots. However, median sales prices are up by approximately 10% in all categories.

 

park city real estate inventory supply

 

The increase in pricing correlates well with the low inventory levels. The same is true for the increase in building lot sales as potential buyers that cannot find properties that suit their wants and needs turn to building instead. Single family home inventory in the greater Park City area is now at a level of less than 10 months’ supply. But the supply for homes under $1M is less than 6 months at the current sales pace. The situation is similar for condominiums in Park City: current supply is just less than 6 months at the present absorption rate when considering options listed for less than $500,000.

 

The lack of inventory and the current demand especially in the non-luxury price points (less than $500,000 for condominiums and less than $1 million for homes) represent a big change during the past year. Sellers are welcoming the change while buyers have been caught off-guard.

 

Every neighborhood in Park City is different and may have its own unique pricing influences. Contact us for an in depth conversation about the Park City property type and neighborhood that interests you (888)968-4672 or info@YouInParkCity.com.

A Sellers Market in Park City(?)

By Todd Anderson
Jul 29, 2012

Are we entering a Seller’s Market in Park City, UT?

 

The Salt Lake Tribune reported that the median sales price for single family homes in Salt Lake County rose last quarter for the first time in 5 years. Will Park City real estate see similar statistics soon?

 

National statistics are beginning to show strength and there are many reports indicating prices on the rise (similar to the reports from Salt Lake City). Park City and other resort communities tend to lag the national indicators as people must feel comfortable with their primary home before purchasing secondary homes and condominiums.

 

Sales statistics so far for the year have been flat with the previous year in terms of volume and again this last period showed a slight decline in the median sales price for single family homes in Park City. The decline was not even across all areas and some areas experienced an increase in median sales prices. Inventory levels are having an impact on sales in most areas and especially in the lower price points in all neighborhoods. Park City Median Home Sales Price

 

Recent Park City area home sales statistics report that inventory levels are at a five year low. This lack of inventory shows very prominently in the lower price levels in all neighborhoods and also can be seen in the lack of REO product. For example, single family homes in Park City under $500K that aren’t considered cabin properties actively for sale numbers under 50 while over 100 such homes have sold in the past 12 months. A look at the Promontory area shows 14 home sales (non-“cabins”) in the past 12 months under $1.5M and only 9 active non-cabin listings offered at under $1.5M. Park City Home Sales and Inventory

 

The lack of inventory is causing multiple offer situations in many situations as well as frustration on buyer’s sides trying to purchase a deal.

 

Lower inventory levels and lower prices will not last long as the demand will begin to force prices up.

 

As mentioned above, sales statistics and inventory levels vary between Park City neighborhoods and price ranges. Contact YouInParkCity.com for specifics about the price point and neighborhood matters most to you (888)968-4672.

Park City Housing Bottom (?)

By Todd Anderson
May 01, 2012

The Park City, UT housing market is often thought of as being different than the rest of the country due to its luxury resort nature, but many of the indicators housing experts are pointing to in the rest of the country are mirrored closely here in Park City. A Wall Street Journal article today titled ‘Housing Ends Slide but Faces a Long Bottom’ notes gains being made in the construction of new homes in the US Market. Locally in Park City, construction of new homes has yet to rebound, but the combination of lower building lot prices and construction costs has many Buyers weighing new-builds versus purchasing previously owned homes. This trend is even more prevalent in the outlying areas of Park City such as Midway, Heber and Kamas where new home offerings can be found for less than $100 per square foot.

 

Shadow inventory, tenuous job growth and the likelihood of mortgage rates rising in the future are cited as possible stumbling blocks to the recovery, but the overall tone of the article is positive and while it doesn’t suggest a rebound in pricing, it does see the market at or near the bottom.

 

An article also from the Wall Street Journal Friday April 27 entitled ‘Stunned Home Buyers Find the Bidding Wars Are Back’ notes that the current lack of supply in the housing market has people offering prices above list for homes in some parts of the country. The article notes that at the height of the housing crisis in 2008 inventory was at an 11.1 month’s supply and that number currently is 6.3 nationally. That represents a 40+% reduction; Park City real saw a peak of nearly 3600 listed properties and now has just 2100 listed across the MLS also a 40% reduction in inventory. Multiple offers and prices being bid up are common with bank REO properties and it is also seen in any aggressively priced property. The prices are not coming near peak levels, and Park City buyers are well in tune with what is a good deal; buyers are aggressively pursuing these deals.

 

While the Park City real estate market has seen a drop in inventory, the drop in inventory and changes in price have not been equal across all areas of town or all price points. For a report specific to the Park City neighborhood or home value that interests you most contact a realty professional with YouInPakCity.com at (888)968-4672.

Park City Real Estate Winter Wrap

By Todd Anderson
Apr 25, 2012

A look at Park City home and condominium sales in the first quarter plus some interesting resort news.

 

If we had to pick out what stood out most about the first quarter of 2012 in Park City, the weather might be the first thing to talk about. Winter just never seemed to take hold this season; snowfall totals for the year were less than half of last year.

 

The lack of snowfall seems to have affected the locals much more than the tourists. Most locals will tell you that they hardly skied or snowboarded at all this past year and yet Park City Mountain Resort reported that ticket sales for the season were down by just 4%. Similarly the lodging occupancy totals for the year so far are off by only 3%. This is a tribute to area snowmakers and groomers who did an amazing job at area resorts.

 

Park City area real estate sales for the first quarter of the year were relatively flat compared with the first quarter home sales of 2011. Single family home sales in the greater Park City area registered 81 (down from 100 in the 2011 period) with the median price falling to $692K. Condominium sales saw a slight boost with 131 sales and a median price of $402K up from 121 and $381K for the same period last year. Building lots saw a sharp decline but prices were way up as the number of distressed sales have fallen. Distressed inventory (bank REO and Short Sales) made up less than 20% of the sales and are currently under 9% of the active real estate inventory in Park City.

 

As we move into the summer season (which has come about quickly with the low snowpack from the winter and current 70 degree weather), real estate in Park City is experiencing a decline in available inventory and deals are getting tougher to find.

 

For in depth information on buying or selling in a particular segment of the Park City real estate market contact a realty professional with the YouInParkCity.com group at (888)968-4672 or email info@YouInParkCity.com.

Park City Home Buyers: Are You Worried the Market is Still Trending Down?

By Todd Anderson
Nov 10, 2011

Here is a new program designed to insure the value of the home you are buying. Equity Lock Solutions is offering a product called Home Price Protection. Home Price Protcetion

 

Generally the plan works like this: The buyer or seller of a home or condominium in Park City can purchase a plan of up to $2 million for a one time fee of 1.8-3.0% of the plan amount (costs vary slightly but Keller Williams agents have access to the lowest rates). The plan is tied to a local House Price Index published by the Federal Housing Finance Agency (FHFA). The index for the Park City area is tied to the Salt Lake City metropolitan statistical area. If the index drops from the time of purchase to the time of sale, the plan pays the percentage difference in the fall to the owner at the time of the sale.

 

If you as a buyer purchased this price protection and bought a $1 million Park City home and five years from now when you go to sell the home the House Price Index has gone down 10%, the Home Price Protection Plan will pay you $100,000 when you sell the house. The plan is a hedge against the housing market going down, not the individual home, so choosing the correct home is still important.

 

For more in-depth information about this program as well as the current HPI for your area, go to: http://equityocksolutions.com/faq/ .

 

The NAR (National Association of Realtors) has picked Home Price Protection as their product of the year.

 

This may give a buyer the peace of mind they are searching for as they wonder if they are truly buying at the bottom of the market.

 

For more information about Home Price Protection or any Park City or Deer Valley, UT real estate questions contact a realty professional with the YouInParkCity.com Group of Keller Williams Park City Real Estate at (888)968-4672 or email us at info@YouInParkCity.com.

Did You Miss the Bottom?

By Todd Anderson
Jul 31, 2011

Park City Real Estate Market Turning Upward

 

The bottom of a market be it stock prices, commodities or real estate in Park City, Utah can really only be seen in hindsight. We can never be sure of the bottom until we look at it in retrospect and study the sales data. While we cannot yet call the bottom of Park City real estate prices, we can see definitive signs of the bottom.


 

Real estate sales in the second quarter of 2011 show a strong increase in the number of transactions. The 451 closed real estate sales in Park City for the second represent a 20% increase from the first quarter of 2011 and the best quarter since the fourth quarter of 2007.


 

The recent increase in sales in the area has been accompanied by a decrease in the number of newly listed properties in the Park City real estate market. So while demand is increasing, the supply is falling which should in time lead to an increase in pricing.


 

Park City Supply and Demand


 

While it may be too early to call the bottom of the market in terms of pricing, we may be seeing signs that some of the best deals are gone. It is kind of like that big sale at the store and we are in its last days. There are still good values to be found in the Park City real estate market, but there is far less to choose from. A good example of this may be the Promontory area of Park City: so far this year there have been 15 homes sold for under $1.5M that were not part of the "cabin" communities and only 10 remain in this price range. It doesn't mean that there are no more deals to be had in the area, only that the remaining opportunities have been picked over.


 

There are other areas within Park City that show real estate values possibly finding their bottom as well as localized areas which have indicators pointing toward further price reductions. For information on specific buying and selling opportunities in Park City real estate contact a realty professional with YouInParkCity.com.


Silver Baron Lodge Park City, Utah - Trustee Sale

By Todd Anderson
Apr 15, 2011

 Silver Baron Lodge Park City, Utah - Trustee Sale April 15, 2011             The courthouse steps auction of 16 developer owned units of the Silver Baron Lodge in Deer Valley, Utah took place yesterday at the Third Judicial District Court in Summit County, Utah.

Silver Baron Lodge Trustee Sale - Park City, Utah

             

            While the sale did produce many onlookers, it did not have many registered buyers. Buyers were required to submit certified funds of $25,000 to the trustee before the sale and the purchase price was due at the end of the day Friday. These requirements likely kept many potential bidders away from the sale.             In the end, two units were purchased by bidders offering more than the initial offer from the bank. The four bedroom five bath penthouse model with expansive private rooftop deck was purchased by an investment group. The Silver Baron penthouse model was listed for sale in 2008 for $2.15M. The other Silver Baron condominium that sold to interests outside the bank was the two bedroom model located directly below the penthouse; it had an original asking price of $1.25M.

            The fourteen Silver Baron condominiums which are now bank owned will likely be available in the very near future. A look at the area comparables while adjusting for differences in the subdivisions would indicate that anything under $400 per square foot represents a great value at the Silver Baron Lodge (the least expensive active listing is currently $425/sq ft and the most recent comparable sale sold at $451 per square foot).

            For more information about the Trustee Sale of the Silver Baron Lodge developer owned units and information regarding purchasing condominiums at the Silver Baron Lodge or any other Park City, UT area property contact a real estate professional with the YouInParkCity.com Group of Keller Williams Park City at (888)968-4672.

Park City Real Estate Luxury Sales 2011

By Todd Anderson
Mar 27, 2011

            Luxury real estate sales in Park City, UT for the year so far show a slight decrease when compared to the pace of 2010.             2010 saw luxury home sales in Park City, UT buoyed by the St Regis Hotel at Deer Crest and Silver Strike Lodge at Empire Pass.  2011 is seeing strong sales from the new Montage at Empire Pass as well as continuing sales of the Flagstaff condominiums in Empire Pass.

Bald Eagle at Deer Valley

            The 33 sales so far this year of homes or condominiums with asking prices over $2M include 6 Flagstaff condominiums and 5 Montage residences. With over 70 residences at the Montage still to be sold, the Montage will likely impact luxury sales in Park City for the foreseeable future.  Also of note in recent sales are the sales of 3 homes (plus 2 pending contracts) in the Colony area of Canyons Resort.             The average sale price for homes listed at over $2M remains fairly steady at nearly $3M. Relatively small sample sizes in this market combined with the occasional sale in the $10M range have impacts on this data.             The luxury residence category overall is may be beginning to show more pricing pressure. Currently the Park City MLS shows over 170 homes and 70 condominiums in the luxury category over $2M. Current sales show a discount rate of over 15% from asking price and the influence of undisclosed sales prices across the Park City MLS means that this discount rate could be considerably higher.             The luxury home market in Park City and Deer Valley is a tough category to consider as a whole because there are many factors which makes each of the homes and condominiums in the luxury category unique. For a more complete analysis and in-depth information about individual properties contact a realty professional with YouInParkCity.com (888)968-4672.

Deer Valley ranked #6 in Best Places for Second Homes

By Todd Anderson
Mar 12, 2011

            The March 5th, 2010 edition of Barron's PENTA ranked Deer Valley, UT as #6 among the top 15 places to own a second home. PENTA is a standalone quarterly pullout section of Barron's which focuses on individuals with $5M or more to invest.             In considering the rankings Barron's focused "In seeking out and ranking these havens, we looked for beauty, comfort, convenience, a range of lifestyles and -- always the paramount criterion at Barron's -- value. We wanted prices that had clearly hit bottom and were either rising or ready to rise."  The article also notes that "home prices in moneyed enclaves climbed more than 10% last year".             The accolades are great; Deer Valley deserves to be named one of the best places in the country to own a second (or first) home. Deer Valley without a doubt ranks among the top spots in the world for the criteria of beauty, comfort, convenience and range of lifestyle opportunities. The Barron's article notes that the proximity of Park City to Salt Lake International Airport gives the area an advantage over other rocky mountain ski destinations. Reasons why Deer Valley and Park City, UT in general are worthy of these accolades are too numerous to list.             The Barron's PENTA article goes on to name and include a photo of a home in Tuhaye as the place to be in Deer Valley. The article notes that sales in 2009 in Tuhaye were 0 while the median price for 2010 was $1.3M (there were 9 single family home sales shown across the Park City MLS for the area in 2010).  Worth noting within this is the fact that nearly all of the sales were bank REO or distressed sales (something that wasn't mentioned in the article). These sales may represent the new market values for the area and very well may mark the bottom of the market in which case the value proposition for Tuhaye is very strong. Tuhaye has great views of Deer Valley though it is not necessarily part of what locals and Park City real estate professionals recognize as Deer Valley.             This is not the first time that Park City and Deer Valley have been recognized as one of the world's best places to own a vacation home; the fact that this trend continues points to the fact that what makes this are desirable has not changed.             Call the YouInParkCity.com Group of Keller Williams Park City Real Estate to discuss the current opportunities for home ownership in one of the best places to own a (first or) second home Deer Valley, Utah (888)968-4672.

 
 
Existing user sign in: 
Forgot Password?