Price
appreciation in our
market continues an
upward march. The past
year’s price
appreciation was 6.6%,
which is nearly equal to
the historic average of
6.8%. While it does
not compare to
the unprecedented
gains that occurred from
2020 – 2022, it still
represents a stable,
healthy
increase.
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Across
the
primary
market
area
in
2023,
the
median
sales
price
for
single-family
homes
and
condominiums
each
increased
around
3%
year-over-year
to
$1.65M
and
$1.136M,
respectively.
Total
sales
volume
for
single-family
homes
was
down
2%
and
condominium
sales
volume
was
down
19%
during
the
same
period. Inventory
levels
climbed
to
healthier,
more
historically
normal
levels
during
2023,
peaking
in
late
summer
at a
total
of
1800
homes
for
sale.
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As
always, the year-end
market
stats showed a
good deal of
variance across
property types and
neighborhoods.
However, the general
trend
appears to be a
return to a more
“normal,” less
volatile market,
with steady price
appreciation and
a continued
trend toward pre-covid levels
of inventory
and transaction
activity.
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Other
Noteworthy
Items
-
Despite unit
sales and sales
volume for the
entire year
being down
compared to
2022,
the 4th
quarter of 2023
stats
showed a
return to the
more “normal”
period of 2013 -
2019. Pending
sales in the
second half of
the year were
strong,
demonstrating
that the market
may be
rebounding as we
head into 2024.
In the seven
months from June
through December
of 2023, PCMLS
members signed
1,260
residential
purchase
contracts, 20%
more than the
previous year
(1,054).
-
Pricing
was variable
across the
broader market,
dependent on
property type
and
neighborhood.
For example,
median prices
for condominiums
in Park City
proper were up
8%, while most
other areas were
either flat or
showed a slight
decrease. Similarly,
median prices
for
single-family
homes in
Snyderville
Basin were up
7%, but seven of
the twelve
neighborhoods in
that market area
experienced
price
declines.
-
Mortgage
rates appear to
have stabilized
and may be
poised for a
drop at some
point later this
year, which
would be likely
to spur an
increase in
market
activity.
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#
SOLD
PROPERTIES
|
Summit
&
Wasatch
Counties
Total
Sold
Single-Family,
Condos, Land
Properties
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Source:
PCBOR for all
property types
across the PCMLS
service areas in
Summit and
Wasatch
Counties.
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Today's
Mortgage Interest
Rates
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"The
30-year
fixed-rate
has
remained
within
a
very
narrow
range
over
the
last
month,
settling
in
at
6.69%
this
week.
Given
this
stabilization
in
rates,
potential
homebuyers
with
affordability
concerns
have
jumped
off
the
fence
back
into
the
market.
Despite
persistent
inventory
challenges,
we
anticipate
a
busier
spring
homebuying
season
than
2023,
with
home
prices
continuing
to
increase
at
a
steady
pace."
FreddieMac.com
|
January
25,
2024
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30-Year
Mortgage Interest
Rates |
1971 -
2023
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Source:
Freddie
Mac,
30-Year Fixed
Rate Mortgage
Average in the
United States
[MORTGAGE30US],
retrieved from
FRED, Federal
Reserve Bank of
St. Louis;
January 28,
2024.
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Interest
rates remain high
compared to the very low
rates that prevailed
from 2009 - 2022.
However, when taking the
longer-term view of
interest rates (above),
the current rates are
not outside of a
historically common
range. That said, the
recent rise in rates did
exert a cooling effect
on the real estate
market nationwide.
With a higher incidence
of all-cash purchases,
sales in many of our
neighborhoods are less
affected by interest
rates, especially in
areas that are popular
with vacation homes
and/or second homes.
Other neighborhoods that
are popular for primary
homes are more affected
by the mortgage market
conditions, as buyers
are more likely to need
financing.
Mortgage rate increases
appear to be paused for
the moment, so hopefully
this stability will
induce some on-the-fence
buyers to move forward
with potential home
purchases. Better yet,
any rate decreases would
be very likely to spur
more activity in both
the national and local
market.
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PARK
CITY LIMITS
| Market
Overview
|
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Average
& Median
Sale
Prices
| Q4
2023
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SINGLE-FAMILY
HOMES
Within
Park
City
limits,
total
unit
sales
were
down 11%
to 102
units.
Sales
volume
declined
10% to
$476M in
the past
12
months. The
median
price of
a
single-family
home
within
Park
City
limits
fell 5%
to
$3.69M.
In the
popular
Old
Town
area,
the
median
price
dipped slightly
to
$3.5M. The
price
decrease
reflects
the
absorption
of the
newly
constructed
Kings
Crown
development
in Old
Town.
CONDOMINIUMS
&
TOWNHOMES
The
number
of
condominium
sales in
Park
City
was down
19%.
However,
the
median
sale
price
rose 8%
to
$1.6M. The
median
sale
price in
Old
Town
was flat
at
$1.2M. Upper
Deer
Valley experienced
the
biggest
gains in
Park
City,
with a
45%
median
increase
to more
than
$3.6M.
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Yearly
Median Sale
Prices
| 2000
-
2023
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Not
all sold data in
Park City Limits
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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SNYDERVILLE
BASIN
| Market
Overview
|
|
Average
& Median
Sale
Prices
| Q4
2023
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SINGLE-FAMILY
HOMES
Snyderville
Basin
residences
followed
the
prevailing
market
with a
modest
gain in
the
overall
median
price up
7% to
$2.3M,
and
sales
volume
down
15%. Canyons
Village,
Sun
Peak,
Kimball,
and
Jeremy
Ranch
all saw
increased
sales
which
helped
make
Snyderville
the only
major
area to
see
growth
in sales
volume,
average
prices,
and
median
prices.
Silver
Creek
South
and
Promontory
had the
largest
median price
gains, 34%
each. The
median price
of a
Promontory
home is now
above
$4M. The
Colony
held on
to the
crown of
the
“most
expensive
area”
with a
median
price
again
topping
$10M.
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CONDOMINIUMS
&
TOWNHOMES
Unit sales in
Snyderville
were down 48% compared
to 2022, with the
absorption of the new
developments at the
Canyons Village. The
median sale price dipped
8% to just under
$1M. Perennial
volume leader
Canyons
Village
suffered a steep decline
in sales, with units and
volume both down over
50%. Canyons
Village
accounts for more than
65% of all sales in
Snyderville, so those
declines brought down
the overall area
performance
significantly.
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Yearly
Median Sale
Prices
| 2000
-
2023
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Not
all sold data in
the Snyderville
area 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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JORDANELLE
| Market
Overview
|
|
Average
& Median
Sale
Prices
| Q4
2023
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SINGLE-FAMILY
HOMES
The
Jordanelle
area
had the
lowest
volume
of sales
(only 76
this
year,
down
from 149
last
year),
probably
because
the
median
price
nearly
doubled
during
that
time.
More and
more
luxury
homes
are
coming
to
market
in
anticipation
of the
opening
of the
new
Mayflower
ski
resort,
pushing
the
median
sale
price
above $3
million.
CONDOMINIUMS
&
TOWNHOMES
The
number
of sales
in
Jordanelle
was up
13% in
2023
compared
to
2022.
Jordanelle
Park
demonstrated
a trend
we
expect
to see
more of
in the
future –
new
resort
activity
stimulating
sales
and
rising
prices.
Condominium
unit
sales
were up
63%,
pushing
sales
volume
to more
than
double
2022’s
excellent
performance.
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Yearly
Median Sale
Prices
| 2000
-
2023
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Not
all sold data in
the Jordanelle
area 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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HEBER
VALLEY
| Market
Overview
|
|
Average
& Median
Sale
Prices
| Q4
2023
|
|
SINGLE-FAMILY
HOMES
Median
prices
in the
popular
Midway
area
were up
3% to
$1.2M,
while
Red
Ledges
homes
were up
7% to
$2.78M.
Timber
Lakes
led
single-family
median
prices
gains in
the
Heber
Valley,
rising
35% to
$910,000,
while
homes in
Heber
City
proper
were
down 9%
to
$735,000.
CONDOMINIUMS
&
TOWNHOMES
Year-over-year
units
sold
increased
in the
Heber
Valley
area by
33%.
Red
Ledges
led the
way with
an
increase
in
median
sales
price of
29%, up
to
$1.73M.
In
Heber
City
proper,
median
prices
were
down 1%
to
$419,900.
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Yearly
Median Sale
Prices
| 2000
-
2023
|
|
Not
all sold data in
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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Inventory
in the total market
area increased
during 2023, peaking
at 1,800 available
properties in late
summer. This total
is getting closer to
pre-COVID inventory
levels, which
averaged 2,100
listings per month
before the pandemic.
In the greater Park
City area, there
were 840 active
listings on January
1, 2024, which
represents a 200%
increase over the
same time the year
before. Much of
this improvement is
due to new product.
At the start
of 2024, more
than half of the
residential
listings in the
greater Park
City area are
new
construction.
Demand for
properties remains
healthy in the
greater market.
However, new
listings continue to
outpace sales, so
inventory is poised
to continue its
recovery into the
coming year. This
increase will be
welcome, as despite
the recent recovery,
current inventory
levels remain 25%
lower that
pre-pandemic (2012 -
2019)
inventory.
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#
ACTIVE LISTINGS BY
YEAR &
AREA
| 2000
-
2023
|
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PRICE
APPRECIATION BY
STATE
|
|
What's
the Health
of Our
Primary
Market?
Purchase-Only
Index (Seasonally
Adjusted)
| Q3 2022
- Q3
2023
|
|
The
year-end numbers for
2023 were mixed, but the
big takeaway is that
real estate in Park City
and the surrounding
areas remains a solid
investment, with
reliably positive
returns over the long
term. The trend right
now is one towards more
stability in our market.
The decrease in our
market volatility
mirrors the nationwide
trend, as business
returns to a more
seasonal pattern and
extremes become less
common.
As we move forward into
2024, we will continue
to keep an eye on the
variables most likely to
exert influence on our
market: inventory,
interest rates, and the
health of the larger
economy. We will keep
you posted as the market
evolves, and please
don’t hesitate to reach
out if you have any
questions about how the
current conditions are
affecting your areas of
interest. In the
meantime, hope that you
are having an
outstanding
winter!
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