Park City Real Estate Market Shows Signs of Improvement
Park City, Utah – December 2012– The year-end 2012 statistical report released by the Park City Board of REALTORS®indicates an increase in the number of sales and total dollar volume, with inventory the lowest it has been in over six years. It also shows a slight gain in median prices compared to 2011. The total volume of real estate sold for the entire market area (Summit and Wasatch Counties) reached $1,240,542,783 in 2012 — a 15% increase over 2011.
The number of sales continued to climb in 2012 with a nine percent increase over 2011 in all property types combined, reaching 1,817 total transactions. This is up 61% over the low point in 2009. The number of sales now surpasses the early 2000’s and is approaching the number of sales necessary to be termed a more balanced market. Sales for the year were very strong after the first quarter of 2012. Each of the last three quarters averaged over 150 sales more than the first quarter. Quarter Four is up 28% compared to the fourth quarter of 2011.
With only 1,879 active listings on the market for 2012 compared to 2,146 in 2011, the inventory level has decreased by 12%. The greater Park City market has consistently seen double digit yearly decreases in the number of properties for sale since the high point of listings on the market in 2009. Based on an average of the past three months’ sales, this inventory represents about a 10 month supply — excluding the lots, it is at an eight month supply for houses and condominiums. This is the lowest housing supply since the Park City Board of REALTORS® began systematically tracking the monthly active/pended listings in January of 2007.
The median price, for all property types combined (single family houses, condos, vacant lots and fractional interest properties), has rebounded nicely in 2012 reaching $395,000, which is a 13% increase over last year, though this number is still below the median prices of 2010 and 2009. Median single family home prices continued to rise in most areas and had a five percent increase overall reaching $548,107. The median price for condos also increased seven percent to a median price of $343,000 for the entire market area. Vacant lots had the best performance in 2012 with a 22% increase over 2011 reaching $213,750.
Within the Park City Limits area, median single family home prices show an eight percent increase over last year reaching $1,077,500. Condos are down three percent to $522,500 and vacant land is down two percent at $475,000. In contrast, within the Snyderville Basin and Jordanelle areas, the median price for a single family home is down five percent to $649,000, while condos are up 14% to $308,543, and vacant lots are up 51% to $249,500 over 2011. Significantly, even with an increase in the median lot price, the number of sales in 2012 was the same as in 2011, showing that though lots have gone up in price, the number of sales has not decreased.
Distressed Sales and Foreclosure Report
The number of distressed properties on the market has continued to drop through 2012 and the number of Notices of Default has decreased compared to previous years. Interestingly, the prices of distressed properties that come on the market are listed very close to market price or sometimes even above market. For the fourth quarter in Summit County, distressed sales accounted for only 13% of total sales which is down 31% from the fourth quarter in 2011, according to data compiled by Rick Klein of Wells Fargo Private Mortgage.
Year End Wrap Up
The Park City Real Estate market continues to strengthen with positive signs in the number of sales, dollar volume, pricing and inventory. The combination of all of these factors points to a continued active market through 2013. In 2012 the number of sales averaged about 35 per week finishing the year with 1,817 total sales. Mark Seltenrich, Statistician for the Park City Board of REALTORS® says, “If this rate continues through 2013, we would be looking at sales numbers approaching 2000, which would be a healthy pace for buyers and sellers.”
Prices have continued to stabilize, with most areas and property types seeing slight price increases. There were a few areas to buck that trend — most notably: condo prices in Old Town, down two percent; and home prices in Pinebrook, down 13%. Seltenrich notes, “This could be due to buyers snapping up the lower priced properties due to a fear that once those units are gone, they will be replaced with higher priced properties.”
Prices in our market have generally been falling for four straight years, with many parts of our market 40-50% below where prices were at the peak. However the downward pressure on prices now seems to be over. Seltenrich cautions that “Price increases need to be justified by a proper evaluation of the property’s attributes, and just like the market of the past several years, a property needs to be properly priced in order to sell. An overpriced property will continue to sit on the market.” With inventory levels in decline, there aren’t as many choices as in the past.
There continues to be strong buyer interest and activity, and the number of sales and prices will probably increase in 2013. With specific neighborhoods responding differently to the current market, it continues to be very important to consult with your local Realtor to understand what the market is doing in your area. President of the Park City Board of REALTORS®, Jeff Spencer, adds that 2013 is off to a strong start, “Realtors are busy and writing offers. We’re looking forward to 2013 being an excellent year for real estate in Park City.”