Park City, Utah – Through the first three quarters of 2011 Park City continues to have one of the more active real estate markets in the state. Sales activity remains strong, which can be attributed to the positive economic conditions that exist in the State of Utah and reduced home, condo and vacant land prices. The strength of the tourism and resort industries, along with the quality of the public school system continues to draw real estate investment from primary and secondary residents. “We are seeing demand increase over the first three quarters of 2011 and inventory levels are down 9% with 2500 units currently on market compared to 2750 in 2010”, according to Mark Seltenrich, Past President of the Park City Board of REALTORS®. The number of sales through the first three quarters of 2011 was 1,261, up 18% from 1,066 in 2010 and up 86% from the same period in 2009. However prices for many property types remain soft. Although prices in the second quarter showed a rebound, the trend did not continue into the third quarter. Overall sold prices were slightly higher than in the first quarter, but for the most part remain well below where they were in 2010.
Sales of Single-Family Homes
The single family home segment continues to be the strongest part of our market, representing 46% of all sales and 59% of the total dollar volume. “The overall number of sales and single family home prices are the two bright spots in our market” according to Seltenrich. The data indicates the single family detached housing market is on the rebound and prices are on the rise in a number of neighborhoods. The average price of homes for the entire Park City market was up 5% over the same time period in 2010, while median prices were up 9% to $548,750 from $502,500 a year ago. Homes are selling at about 5% off the last listed price, very close to the historical norm.
Condos
The downward pressure on condominium prices that we have seen for some time continues through the third quarter of 2011. Median prices throughout the market area are down 19% from a year ago to $325,000. Median prices within the city limits have fallen even further with a 39% decline to $539,000, although this large drop can be attributed to fewer high end condo sales in upper Deer Valley. However, sales at the Montage Resort were strong enough to bring the average price of a condo in the Empire Pass area to well over $2 million. Prices in the Snyderville Basin area are down 16% to a median price of $260,000. Condo prices are down in nearly all areas although we are seeing average condo prices up in a few areas including Empire Pass (now $2,263,000), Prospector ($153,000) and Silver Springs ($338,000).
Vacant Land
The vacant land segment has been the most affected in the economic downturn. Median lot prices are now $165,000, down 23% from $215,000 a year ago. Average lot prices, are down in many areas, although for this year they are higher in the Park Meadows and the Promontory area. This is noteworthy as Promontory has seen a high number of lot foreclosures over the past few years.
Neighborhood Prices
As mentioned above, prices for condos are down in most areas while prices for single family homes are up in many areas. Average home prices in Old Town are down 39% to about $872,000, while average home prices in Park Meadows are up 10% to about $1,243,000. In the Silver Springs area, a frequently sought out neighborhood for full time residents, home prices are up 4% to about $661,000. Pinebrook also reflects an increase of 9% to an average of about $666,000, while average prices in Jeremy Ranch are slightly down at $682,000.
Foreclosures
As we have seen for quite some time, sales of distressed properties continue to be a major part of our market. Distressed sales in the third quarter made up about 27% of all sales, although this is actually down from about 35% earlier in the year. Distressed sales continue to make up about 7% of all properties on the market; however, there seems to be a downward trend on Notices of Default in Summit County, while they have actually increased in Wasatch County. If the downward trend in Summit County continues, within two to three quarters distressed sales will not have as much impact on the market.
Looking Ahead
When comparing the first three quarters of 2011 to the first three quarters of 2010, the number of sales is well up while in general prices are down. Single family homes remain the strongest part of our market and that segment is an important part of our overall community, usually families with student in our local schools and homeowners who are contributing to our local economy.
Buyer interest and activity continues to be strong, and overall with prices still down it continues to be a buyer’s market. We are seeing some strengthening of prices in certain neighborhoods and now, more than ever, it is important to consult your local REALTOR to understand what the market is doing in your area.
Reported by the Park City Board of Realtors, December 2011.
