October 22, 2019 – At the end of the 3rd Quarter of 2019, the overall year-over-year housing statistics for Summit and Wasatch Counties continued to show strong appreciation with increases in both average and median sale price as well as dollar volume as reported by the Park City Board of REALTORS® Multiple Listing Service.
The greater Park City market in general continues to show great stability in single family homes. The number of homes sold increased 13% with the median sale price rising 7% year over year. During the same period in 2018, the median sale price gained 3% indicating a sustained period of steady, consistent growth. By comparison, the top US cities for price rises reported by Case-Shiller in October were Phoenix (6.3%), Charlotte (4.5%), Tampa (4.3%) and Atlanta (4%), Nationally prices grew at a relatively flat 2.0%.
As was the case last quarter, the strongest single-family price gains appeared in areas outside of the Park City metro area. Heber City and the Jordanelle areas both posted strong double-digit median price increases over the same period in 2018.
Condominium sales rebounded from a slight second quarter slump increasing 6% on price gains of 9%. Vacant land sales did not fare as well with sales down 21% despite a price decline of 7%.
A CLOSER LOOK – Single Family Homes
Among the five major areas measured by the Park City MLS, homes within the Park City limits fared well with a 13% rise in sales volume, coupled with rise of 7% in median sale price to just under $2.1M.
- In Old Town, the number of sales dropped 4% over last year’s number, while the median sales price increased over 20% to $1.82M.
- Park Meadows had the largest increase in sales activity with a 66% jump over last year on a median price decline of 8%, down to just below $2.0M.
- Upper Deer Valley continued doubled-digit sales increases but on softening prices, down 16% from the year earlier to $4.6M.
The Jordanelle area bumped Kamas Valley out of the top spot for price appreciation in the two-county area jumping fully 36% in median price to just shy of $2.15M on unit sales, which were slightly lower than last year.
Heber Valley again had over 300 home sales in the last 12 months, but pricing remained flat. Despite an 8% drop in units sold, Heber Valley still posted a 1% gain in median price to $528K. By neighborhood, Heber City had the highest number of sales and saw a 11% median price increase to $420,000
The number of home sales in the Snyderville Basin tracked closely to last year’s number but saw a 7% median price increase reaching $1.28M.
- The Sun Peak/Bear Hollow area led the price appreciation parade with 27% growth in their median. At the top end of the market, those areas that averaged over $2mm per sale last year all dropped their median prices by as much as 24%, with the exception of Old Ranch Road which was up 13% to $2.8mm.
- In Jeremy Ranch there were slightly more sales than the year before but and a small increase in median sale price to just over $1M.
- Promontory saw the greatest number of home sales in the Basin with a total of 74 with a median price of just under $2M, down slightly (7%) over the same period in 2018.
Single family home sales tend to peak in May and October as vacationing homebuyers visit the area and start making more inquiries about second home purchases. The inventory of homes available is beginning to shrink as we begin the fourth quarter. That will increase competition among buyers and will push asking prices higher as sellers back away from the market during the last quarter of the year. Expect strong activity in October as buyers negotiate for the final few homes available going into ski season.
CLOSER LOOK – Condominium Sales
For the primary Summit and Wasatch County market areas, the number of sold condominium was up 6% to 867 units compared to the previous 12 months. Median pricing was up as well to $616,000, 9% above the year earlier.
- The historically active condo market in Old Town continued its trend with a 10% increase in sales on median prices up 8% to $570,000.
- Lower Deer Valley saw a healthy 24% increase in the number of sold units while the median price kept pace at 19% higher than last year.
- Activity in the Prospector neighborhood was relatively on par with 2018 with median prices flat in Prospector to $168,250 and in Park Meadows, dropping 1% to $865,000.
In the Snyderville Basin, there were 317 condominium sales, compared to the 328 within the City Limits, and the median price continued its upward trend growing 9% to $577,500.
- By neighborhood, Canyons Village had the highest number of closed sales at 147, more than double second place finish of Kimball Junction. They diverged on pricing trends with Kimball down 9% while the Canyons increased 18% over last year.
- Pinebrook had the third highest number of sold units (56 up 37%) while prices remained steady from the previous period hovering in the mid-$500’s.
- The number of condo sales in the Jordanelle area increased by 16% as did the median price up 23% to almost $640,000.
A CLOSER LOOK – Vacant Land
Vacant land sales fell in all reporting areas except in Heber Valley and Wanship, which continue to attract new home construction, drawing on their proximity to the Park City resort areas yet significantly lower price points for lots and homes. In Heber Valley, land sales over the past 12 months are up to 5%, while median prices rose 11% to just short of $250,000K. Contrast that with lot sales within Park City Limits – down 38% on volume and up 7% in median price, just over four times the Heber Valley median. Pricing across the broader service area remained steady to up slightly.
- Within the City Limits, the number of sold lots was down by one-third, while median prices increased 7% to $1.07M.
- There were five times as many vacant land sales in the Snyderville Basin (100) as within the City Limits (20), but still 34% fewer than last year and no change in median price.
- At the neighborhood level, Promontory had the highest number of vacant land sales (82) on a median price of $527,000, up 17%
- Area-wide, Heber Valley had the most land sale transactions (152) showing evidence that buyers were forced further from the metro center in order to find reasonably priced lots. The median price of $249,000, while up 11% over the year before, was still half the Snyderville median and 25% of the Park City Limits median.
CONCLUSION
Inventory has passed its annual peak level in June, when we had 2,350 units in all types for sale. Current inventory is down over 10% from that crest and continues to drop as it does every year until it recovers in late spring. With shrinking inventory, buyers will continue to be challenged not only to find the type of home they are looking for but at a price that seems reasonable given the growing competition for fewer available properties.
Homes listed at or below the median price historically sell much more quickly. For example, Rick Klein, a private mortgage banker who tracks home prices for Wells Fargo Home Mortgage, points out, “Condos in Park City proper on average take seven months to sell. Those priced under the median will sell on average in 2.5 months, while those above the median take almost 11 months to sell.” Homeowners are well advised to seek guidance from their local Realtor in order to price their homes competitively to shorten marketing time.
As we head into the holiday season, inventory will continue to drop and activity will start to plateau until after the new year.
Real estate in the Wasatch back consists of highly segmented markets with nuances that vary significantly from one neighborhood to another and one house to another. Comparisons are hard to read on paper due to the unique features of individual properties, such as amenities, condition, style, location, age, and inventory. Buyers and Sellers are advised to contact a Local Park City Board of REALTORS® Professional for the most accurate, detailed, and current information.