Nov. 11, 2022
Winter has arrived here in Park City and the Wasatch Back, with a recent series of robust winter storms blanketing our mountains with snow. A healthy 'atmospheric river' is forecast for mid-November, and the snow appears set to keep coming. We hope we are on track for an epic La Nina winter!
Much like the changing weather, a shift is underway in our real estate market. After two years of pandemic-induced hyperactivity, the market returned to a more balanced state. Listing inventory is rising, and prices are starting to level off in many sectors. Consequently, buyers are taking this opportunity to be more thoughtful in their purchase decisions, dramatically decreasing the instant offers that were prevalent during the past few years.
It's worth keeping an eye on how large-scale economic forces will affect the local real estate market as it continues to recover. In the meantime, I hope you enjoy the following information on our third-quarter market statistics. If you have any follow-up questions, please reach out!
12 Month Rolling: Oct 2021 - Sept 2022 | Oct 2020 - Sept 2021
Inventory on the Rise
Inventory has increased significantly but is still 25% below pre-pandemic levels. As listing inventory rises and mortgage interest rates climb, prices are leveling off. Buyers have begun hesitating to make instant offers, and sellers are responding by lowering their asking prices at a much higher rate than before, bringing the market into balance.
Current Mortgage Rates
The statistics below were drawn on a rolling year-over-year basis for September 30, 2022, unless otherwise noted.
Despite fluctuations in the regional markets, single-family sales activity along the Wasatch Back was markedly down compared to the prior year, with sales volume off 25% and median prices up 3% year over year.
It's important not to utilize the broader market trends to paint the picture for every local neighborhood. The market is highly segmented, and each neighborhood in Park City has unique values and pricing trends. See below for some noteworthy stats for single-family areas during the 3rd Quarter of 2022.
- Within Park City Limits, total transactions were down 54% to 133 units, yet sales volume declined just 37% to $613 million year to date. The median price of a single-family home rose 33% to $3.9 million.
- In the popular Old Town area, transaction numbers were down 71% (110 to 32), as the median price set a new record above $3.6 million (+63%).
- The Prospector neighborhood led all others for the greatest increase in median price at 54% year-over-year to $2.6 million.
- In the Snyderville Basin, sales volume is down 33%, yet there was a modest gain in the median price, up 5% to $2.0 million. All but two Snyderville neighborhoods (Kimball Junction and Silver Creek South) saw declines in the number of transactions, with Jeremy Ranch dropping the most, down 60% to 31 units. Silver Creek South had the biggest gain, with 22 homes sold, up 69%.
- Jeremy Ranch and Old Ranch Road areas saw the most significant price increases, with the median prices rising 53% and 44%, respectively. The median sale price in Old Ranch Road rose to $6.9 million, making it the second highest in the region behind Canyons Village, where the median price came in at $9.6 million.
- The Heber and Kamas valleys showed substantial median price increases of 25% and 31%, respectively.
Condominium sales prices were strong across the entire market area, while total sales volume declined due to a lack of inventory. Median price increases were greater than in the single-family market, with every major area across the region reporting increases of 20% or more.
- The condominium market in Park City saw a 40% decrease in transactions while median sale prices increased by 20% to the current $1.5 million.
- Price gains were nearly uniform across all neighborhoods, with only Upper Deer Valley declining (4%). Old Town and Prospector led the gainers, up 68% and 62%, respectively.
- In Wasatch County, Jordanelle Park doubled its sales volume over the prior year on a substantial gain in median price, up 48% to $976,000.
After explosive growth in 2021, land sales declined across the region, with every major area showing drops in units sold. Total sales volume dropped in all areas except Jordanelle, where sales volume was up 48%, and prices were up 61% from the year prior.
Jordanelle showed the most activity, selling 431 lots this past year with a median sale price of $726,000, up from $450,000 the prior year.
Overall, land sales in Summit and Wasatch counties were down 35%. However, price increases pushed the median sales price for lots region-wide up 42% to $695,000.
All the major areas of the market saw a drop in transaction volume. Snyderville, Heber Valley, and Wanship/Hoytsville saw the greatest drops, with volume dropping by half from the previous year's total.
Only 35 lots were sold within the Park City Limits, but the lack of available lots coupled with high demand pushed the median sale price for the few that sold to $2.1 million, up 45% from the previous year.
Time on Market Relative to Price
The current Absorption Rate for residences in greater Park City is 4.2 months. Six months ago, it was just 1.5 months. The average from 2013 to 2019 was 7.2 months over the seven years, so we are still selling homes much faster than in recent history. Still, the timeframe is more than twice what it was six months ago.