Over the past 2 years, we have seen a substantial decrease in prices in the Park City area. It has now hit bottom, as seen in other areas of the country, and the market here has strong activity. The following is an article from the Park City Board of Realtors in regards to sales stats and info on prices, seen in the Park Record newspaper. When sales are 107% in comparison to first quarter, 2009, (yes, we all know 2009 was quite weak), it shows people are buying second homes as well as moving here full time. Of course, the more demand, the less supply and prices will gradually increase in the coming months.
What a great town we live in! The PC ski resorts are now closed (Snowbird is open with 33 inches of new snow) and the "mud season" is here, although several inches of snow fell here last night. With the coming summer season of outside concerts, 4th of July parade, International Jazz Festival and Art Festival, hiking and biking, we are waiting to enjoy the summer Park City lifestyle. Plan on coming to PC to see how the summer is as great as the ski season.
Buyers No Longer Waiting ... Home Sales Continue at Increased Rates
Park City Board of Realtors, First Quarter Statistics, 4/2010
Park City, Utah – April 26, 2010 – Overall real estate sales dollar volume for first quarter 2010 was $303 million, up 107% from first quarter 2009 figures of $147 million, according to the Park City Board of REALTORS®. The number of sales for the first quarter was 325, an increase of 95% from 167 sales in the first quarter of 2009. Sales increased across the board for almost all property types.
"It is good news for area homeowners and homebuyers that the bleak market conditions that we experienced a year ago have now ended" said Mark Seltenrich, President of the Board of REALTORS®. "The primary reason that sales have increased is because many sellers have reduced their prices to the new market conditions, although better general economic conditions and increased consumer confidence have also helped" Seltenrich said. Prices today are on average about 20-30% lower than they were at their peak, which was in late 2007 and early 2008.
"We hit the bottom of our market in terms of the number of sales in February of 2009", Seltenrich said, "and have now had three consecutive quarters of increased sales". "It now appears that we may also be bottoming out in terms of the price declines that we have seen over the past two years" Seltenrich said. „Prices have not yet started to rise, but appear to have stopped falling. Buyer activity is steady, and properties that are priced correctly have a good chance of selling. In addition, low interest rates along with the lower prices are making real estate more affordable than ever" he added.
Sales of Single-Family Homes
Sales of single family homes increased 73% for the first quarter of 2010 compared to the first quarter of 2009. Distribution of sales has shifted slightly from year-end figures for 2009. In 2009 sales of single family homes as a percentage of volume was 56% while condo sales held 39%. For the first quarter 2010, single family home sales were 44% of the market, with condo sales assuming a 51% share. "These numbers are expected to flip-flop by years‟ end with single family home sales regaining their position as the strongest part of the market" Seltenrich said.
Median Price of Single-Family Homes
The median price of single-family homes sold within the Park City limits for the year ending March 31, 2010 was $1,352,500, down 27% from the year ending March 31, 2009, which was the peak of the market. For median sold price information, comparisons are for the one year period of April 1, 2009 through March 31, 2010 compared to April 1, 2008 through March 31, 2009.
Median sales price for a single family home in Snyderville Basin for the year ending March 31, 2010 is $651,750, which is down 6% from the previous year figure of $692,500.
Heber Valley median home price was $305,000 for the year ending March 31, 2010, down 10.5% from $341,000 for the previous year.
Kamas Valley also saw a decrease for the same time frame with a median home price of $275,000 down 26% from the prior year.
Sales of Condominiums
Condominium sales for the first quarter of 2010 increased 118% over the first quarter of 2009.
Median Price of Condominiums
Prices of condos in the Park City limits were up 20% for the year ending March 31, 2010. The median price for a condo inside Park City limits was $925,000. However, Seltenrich was quick to report that prices are not going up but rather this increase was caused by a large number of high end condo sales in the Deer Valley area, causing the median price to rise. In fact, many of these high end sales were at prices 30-40% below where they were priced a year ago.
Median price for a condo in the Snyderville Basin for the year ending March 31, 2010 is $329,450, down 15% from $388,000 for the same period in 2009.
Looking Ahead
Inventory levels have stabilized since fourth quarter 2009, remaining below 3,000 units for the year compared to 3,500 on the market a year ago. However, inventory will remain at about this level for some time due to a sizeable "shadow inventory" of properties that have not yet come on the market. This "shadow inventory" of homes includes delinquent loans and real-estate owned (REO) property that has not yet reached the market. REO properties are foreclosed homes taken back by the bank for liquidation. In addition, in more broad terms this "shadow inventory" also includes non-distressed properties whose owners are waiting for improved market conditions before they will sell.
Seltenrich adds that for sellers, "pricing is still the most important aspect of getting their property sold". Correctly priced properties have a good probability of selling, while properties priced just a little high for the market will most likely sit. As for buyers, Seltenrich warns them "not to wait too long, as many of the best priced properties have already sold and at some point these great prices will be gone". In addition, interest rates are beginning to rise, making any purchase with a loan more expensive.
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