2014 saw a solidly improving real estate market in Park City, thanks to increased buyer interest and Vail Resorts acquisition of Park City Mountain Resort. The Lange Group also had an great 2014. Our agents represented buyers and sellers 35 times for about $80MM in total sales volume. We helped our clients find anything from a Montage Residence to acreage in Kamas Valley and everything in between. Check out our thoughts below as we wrap up 2014 and start a new year.
2014 Market Recap. Our marketplace remains highly segmented. 2014 illustrated the complexity of our local market place. Given the variety of product and price points in our real estate community, it is not surprising that certain areas such as Old Town and Heber Valley saw intense activity and growth, while other areas like Park Meadows saw erratic price variation. As ever, the assistance of an informed professional remains critical.
Median sale price increased. While vacant land and certain neighborhoods saw stunning price increases, most areas saw a gradual and measured increase of median price. Inventory remains low. We witnessed limited inventory, particularly in Q2 and Q3 but predict that given the excellent climate for selling, we will see a return of more options in 2015.
The development market has returned. BHHS Utah represents more developments than any other Park City brokerage and can say with authority: the development market is healthy and heating up. From large acreage ranch properties to contemporary luxury builds in Deer Valley, Summit and Wasatch counties are entering a period of intense growth. Investment opportunities abound.
Consumers found their confidence. Consumer confidence returned to pre-recession levels, which had a hugely positive and stabilizing effect on the domestic real estate market.
The market as a whole has normalized. Distressed sales and failed developments are a thing of the past. In 2014, the market returned to pre-2008 levels.
LOOKING FORWARD: THE MARKET IN 2015.
Inventory will return. Inventory remained relatively low in 2014 (there was a slight increase from 2013), but it seems likely that sellers will capitalize on the current climate, which will increase inventory gradually over the course of 2015.
Vail’s purchase will have a positive effect on Park City’s market. Vail’s creation of the largest ski resort in America is sure to have a positive impact on our market place. We have already seen price increases in and around Canyons Resort and Old Town.
Foreign buyers and visitors will increase. While foreign buyers have historically accounted for less than 1% of local buyers, Vail’s arrival and its roster of foreign Epic Pass holders along with Salt Lake’s ever growing economy will result in an increase in international visitors and potential foreign buyers. As a global brokerage, we are equipped to meet the needs of and reach a global client base.
More development. Summit and Wasatch counties will continue to garner interest from developers, meaning new and different product for buyers to select from.
What do you expect the real estate environment to look like in 2015. If you are considering buying or selling, we’d be happy to help.