The
real
estate
market
in
Park
City
and
the
Wasatch
Back
continues
its
trend
toward more
conventional
market
dynamics.
After
the
volatility
we
experienced
over
the
past
few
years,
the
frenzied
activity
and
meteoric
price
rises
have
been
replaced
with
activity
that
is trending toward historical
norms.
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During
the second quarter
of 2023, the
number of homes sold
was down 33% for
single-family homes
and 43% for
condominiums from
the year
prior. While
sales were
down inventory
showed signs of
recovery.
Residential
listings rose to
1,030, up from 858
last year, inching
closer to the
historic
pre-pandemic average
of approximately
1,100 active
listings for the
same quarter.
Price gains
are leveling
off.
Compared to
the large,
across-the-board
gains that we
experienced during
the last few years,
price changes
during the second
quarter of 2023 were
comparatively small
or slightly down.
However, pricing
varied quite a bit
across property
types and
neighborhoods,
demonstrating the
segmentation of our
market. In
general, buyers are
now more hesitant to
make instant offers
and/or full price
offers. Sellers are
also more inclined
to adjust the
price of their
properties after a
period of low
interest and are
more willing to
accept offers under
the asking
price.
Lastly,
demand seems
to be
slowing
compared to the
red-hot market of
the last couple of
years. Pended sales
this last quarter
were down 30% from
the same period in
2022 but down
only slightly from
2020, indicating a
trend toward more
“normal” sales
rates.
What's
driving these
changes?
The primary
culprits are
persistently high
mortgage interest
rates and the
scarcity of
inventory. Many real
estate agents point
out that a
sizable portion
of homeowners who
are still servicing
their mortgages
secured their loans
at rates
substantially lower
than the current
market rates. This
disparity deters
them from selling,
especially if they
need to finance a
new home.
Moving forward, we
will continue to
keep a close eye on
inventory, mortgage
rates, and overall
macroeconomic
conditions, as those
factors are closely
linked to the health
of our real estate
market here in the
Wasatch Back. In the
meantime, please
read below for more
details and analysis
of our Q2 2023 real
estate
market.
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Source:
PCBOR Q2 2023
Quarterly Market
Summary, 12-month
rolling year over
year for all
property types
across the PCMLS
service areas in
Summit and Wasatch
Counties.
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AVG
SALE
PRICE
DOWN
1%
$4,327,688
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AVG
SALE
PRICE
UP
24%
$2,308,812
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AVG
SALE
PRICE
UP
16%
$2,686,727
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MED
SALE
PRICE
DOWN
8%
$3,388,850
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MED
SALE
PRICE
UP
24%
$1,700,000
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MED
SALE
PRICE
UP
1%
$2,000,000
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AVG
SALE
PRICE
DOWN
3%
$2,872,207
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AVG
SALE
PRICE
UP
2%
$1,198,236
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AVG
SALE
PRICE
DOWN
8%
$1,287,764
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MED
SALE
PRICE
UP
3%
$2,050,000
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MED
SALE
PRICE
DOWN
7%
$910,000
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MED
SALE
PRICE
DOWN
8%
$1,012,500
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AVG
SALE
PRICE
UP
10%
$2,559,161
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AVG
SALE
PRICE
UP
11%
$1,094,004
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AVG
SALE
PRICE
UP
16%
$1,140,954
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MED
SALE
PRICE
UP
13%
$2,312,799
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MED
SALE
PRICE
UP
10%
$1,014,899
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MED
SALE
PRICE
UP
10%
$850,900
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AVG
SALE
PRICE
DOWN
6%
$1,349,171
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AVG
SALE
PRICE
UP
14%
$665,017
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AVG
SALE
PRICE
UP
23%
$814,668
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MED
SALE
PRICE
DOWN
14%
$919,834
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MED
SALE
PRICE
DOWN
8%
$440,000
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MED
SALE
PRICE
DOWN
1%
$465,678
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Not
all sold data in
the Heber Valley
is included in
the Park City
Multiple Listing
Service data;
please call for
more specific
details. All
data,
information, and
interpretation
©2023 Park
City Multiple
Listing Service,
Inc
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Across
all property types,
as of July 1st,
2023, there were 894
total
listings, compared
to 769 on the same
date in 2022,
representing a
modest 16% gain.
When sorted by
property
type, condominium
inventory
is down 4.5%,
single-family
inventory is up
23.1%, and vacant
land inventory is up
35.9%.
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ACTIVE
LISTINGS
| Greater
Park
City
as
of 7/1/2023
| Source:
PCMLS/Compiled by
Rick
Klein
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Since
the start of 2022,
inventory has
improved
dramatically but
has remained
relatively flat for
the past year.
However, this recent
plateau is still
lower than the
previous flat period
that spanned from
1/2013 - 3/2020.
Since this
period from 2013 to
2020 represents
a reasonable
benchmark for
a stable
market, our
inventory still has
room to grow before
we back to "normal"
inventory
levels.
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INVENTORY
&
SALES
| Greater
Park
City
as
of 6/2023
| Source:
PCMLS/Compiled by
Rick
Klein
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"The
combination
of
upbeat
economic
data
and
the
U.S.
government
credit
rating
downgrade
caused
mortgage
rates
to
rise
this
week.
Despite
higher
rates
and
lower
purchase
demand,
home
prices
have
increased
due
to
very
low
unsold
inventory."
-
FreddieMac.com
|
August
3,
2023
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The
statistics below
were drawn on a
rolling
year-over-year basis
for the period
ending June 30,
2023, unless
otherwise
noted.
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For
single-family homes,
all but two of the
major areas that
make up the greater
Park City market
showed drops in
units sold through
the 2nd quarter of
2023 versus 2022.
The exceptions were
in the Jordanelle
area, where interest
is growing in
anticipation of the
Mayflower Mountain
Resort opening for
the 2024-25 ski
season. Sales in the
Tuhaye area more
than doubled over
the previous year,
with average
prices just over $3
million. The other
boom happened in
Silver Creek South,
where the Silver
Creek Village
continued to be a
hive of activity.
Sales nearly
quadrupled, from 12
to 47, on
pricing that climbed
from the high six
figures to about
$1.1
million.
HIGHLIGHTS
| Stats
by
Neighborhood
The
number of
sales across
the primary market
area dropped 33%
year-over-year but
increased 22%
quarter-over-quarter.
The short-term
gain indicates
a trend of
increasing sales
that
should show in
the year-over-year
totals in the coming
quarters. A 2% to 4%
decline in the
median sales price
to $1.5M contributed
to the 35% drop in
total sales volume.
Through Q2-23, the
$1.85B in total
year-over-year sales
volume was down from
the Q2-22
year-over-year total
of
$2.86B.
Within
Park City
limits,
total unit sales were
down 44% to 90 units.
Sales volume declined
45% to $389 million this
year. The median price
of a single-family home
within Park City limits
fell 8% to $3.4 million.
In the popular
Old
Town area,
unit sales were barely
more than half of the
previous year (42 to 24)
as the median price
climbed 20% to $3.77
million.
Snyderville
Basin
residences followed the
prevailing market with
sales volume (down 39%)
on a modest gain in the
overall median price, up
3% to $2.05 million. All
but one Snyderville
neighborhood (Silver
Creek South) saw
declines in units sold,
with Jeremy
Ranch
dropping the most (55%)
to just 17 units.
Silver Creek
South had
the only gain with 47
homes sold, nearly four
times as many as in the
previous year, thanks to
their price point as
well as many new
construction units
happening in
Silver Creek
Village.
One-third of overall
sales volume in the
Basin was in
Promontory
($264 million). Silver
Creek South also had the
biggest price increase
with the median rising
29% to $1.1 million.
Canyons
Village
held on to the top
position with a median
price of over $9
million. Among the
outlying areas, the
Jordanelle
area showed the greatest
median price increase of
13%.
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Condominium
sales volume across
the primary market
area followed a
pattern similar to
single-family homes.
Total sales volume
declined in all
areas by 36%,
primarily due to a
lack of inventory.
Within the Park City
limits, condo sales
volume was down 24%,
but the median sale
price rose 24% to
$1.7 million. In the
Snyderville Basin,
the average sale
price rose by
2% to $1.2
million.
HIGHLIGHTS
| Stats
by
Neighborhood
The
Condo market
in Old
Town paralleled
the single-family
numbers, with unit sales
and volume down, despite
a gain in the median
price of 36%. The median
price of a condominium
sold in Old Town is now
$1.35 million. Price
gains were evident in
all neighborhoods, with
Upper Deer
Valley
leading the gainers with
a 151% median price
increase to more than
$4.5 million.
In the
Snyderville
area, outside of
perennial volume leader
Canyons
Village,
Pinebrook and
Kimball
Junction
led in sales volume
($33M and $34M
respectively). In
Wasatch
County (areas
where 10 or more sales
are
reported), Jordanelle
Park showed
the largest gains in
sales volume over the
prior year (up 48%)
despite a decline in
median price, to
$805,000.
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After
the explosive growth
we saw in 2020 (up
158% in sales
volume) and 2021 (up
73%), land sales
slowed this past
year, with overall
volume dropping 57%
in the primary
market area. Every
major area showed
drops in units sold.
Total sales volume
dropped in all areas
except
Wanship/Hoytsville,
where sales volume
was up 68% on prices
that nearly tripled
from the year prior.
The bulk of these
sales were in the
new Wohali
development near
Coalville, which
featured multi-acre
lots selling for
more than $1 million
each.
HIGHLIGHTS
| Stats
by
Neighborhood
Jordanelle
showed the most
activity, selling 274
lots this past year. The
median sale price was
$700,000, up slightly
from the year before.
Overall, land sales in
Summit and Wasatch
counties were down 48%,
as supply decreased. But
prices remained
unchanged, having
settled at a median of
$650,000. All the major
areas of the market saw
a drop in units sold.
Snyderville
and Heber
Valley were
hit the hardest,
dropping by more than
half from the previous
year’s total. Only 15
lots sold within the
Park City
limits, but
the lack of available
lots, coupled with high
demand, kept the median
sale price at just below
$2
million.
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Absorption
Rate: the
number
of
months
it
would
take
to
sell
the
currently listed
properties
on
the
market
factoring
in
median
list
price.
The
stats
below
compare
Year-Over-Year
Rolling
Averages.
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PARK
CITY
LIMITS
(Areas
1-9)
Includes Old
Town,
Thaynes
Canyon, Lower
Deer Valley
Resort, Deer
Crest, Upper
Deer Valley
Resort,
Empire Pass,
Aerie,
Prospector,
and Park
Meadows.
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AS
OF
JUNE 2023
MEDIAN
HOME
PRICE
$3,388,500
ABSORPTION
RATE
if
home
was
listed
at
median
price
7.2 months
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MEDIAN
HOME
PRICE
$1,700,000
ABSORPTION
RATE
if
home
was
listed
at
median
price
2.7 months
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SNYDERVILLE
BASIN &
JORDANELLE
(Areas
10-28)
Includes The
Canyons, Sun
Peak/Bear
Hollow, Silver
Springs, Old
Ranch Road,
Kimball,
Pinebrook,
Summit Park,
Jeremy Ranch,
Glenwild/Silver
Creek, Trailside
Park,
Promontory, Quinn's
Junction, Deer
Mountain,
Tuhaye/Hideout,
Jordanelle, and
South
Jordanelle.
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AS
OF
JUNE 2023
MEDIAN
HOME
PRICE
$2,129,498
ABSORPTION
RATE
if
home
was listed
at
median
price
7.2 months
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MEDIAN
HOME
PRICE
$963,175
ABSORPTION
RATE
if
home
was
listed
at
median
price
4.2 months
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HEBER
VALLEY
AS
OF JUNE
2023
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MEDIAN
HOME
PRICE
$919,834
ABSORPTION
RATE
if
home
was
listed
at
median
price
9.1 months
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We
are slowly
transitioning from
the pandemic's
frenzy to a period
of more consistent,
measured growth.
It is always
important to keep in
mind that our market
is highly segmented,
and at any given
time, some
neighborhoods and
property types
can experience high
demand while others
remain flat.
Overall, many of our
key metrics are
still near historic
averages despite
being down from the
robust numbers of
the past few years.
For instance, while
our recent sales
might not match
those of 2021
and 2022, they're
holding steady
compared to the
average rates from
2013 to 2019.
To sum it up, Park
City's market might
be adjusting its
pace, but it remains
a solid choice for
long-term
investments. As
always, please
don't hesitate to
reach out with any
questions or for
personalized
insights.
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