The Park City real estate scene is getting back on track after the wild ups and downs of COVID-19. Things are settling down, with inventory levels improving from the super low points during the pandemic, though they're still not quite back to normal, hanging around 25% lower than before COVID. But, it's enough inventory to keep things moving along somewhat smoothly, giving folks looking to buy or sell a bit more stability.
When it comes to actual sales, there's been a little dip in transactions for single-family homes and condos compared to last year. Vacant land sales took a bigger hit, dropping by 32%, but that's mostly because there's not as much land up for grabs, not because people aren't interested. Prices are inching up, especially for vacant land, showing that people are still keen on investing. These changes in sales tell us that the market's adjusting to what buyers want and what's happening in the economy.
Sales Activity Overview | Single-Family, Condos, and Land Properties
In terms of sales activity, there have been slight decreases in transactions for single-family homes and condominiums, down 1% and 6% respectively. Vacant land sales have taken a more significant hit, dropping by 32%, primarily due to inventory constraints rather than a lack of demand. Despite this, interest in vacant land remains high, indicated by substantial median price increases.
Across all property types in the primary market area, prices have seen moderate growth, with median price increases of 9% for single-family homes, 4% for condominiums, and a whopping 29% for vacant land, reflecting the overall upward trend in prices. Looking at the broader picture, prices have shown an appreciation of 6.8% annually since 2001.
However, there's considerable variance across different areas and neighborhoods within the market, which is not unusual given its segmented nature. This underscores the importance for buyers and sellers to seek guidance from experienced local real estate professionals to navigate these nuances effectively.
Read on to see how your area(s) of interest performed, and please reach out if you would like any additional stats or info!
Mortgage Rates and Local Sales
Our market is well known for a high percentage of all-cash transactions, however, we are not immune from the effects of high interest rates. The current dynamics for our market area are showing an inverse correlation between interest rates and transactions.
The current interest rate levels may be with us for the foreseeable future, so perhaps mortgage-seeking buyers will accept the higher rates, and we will see the number of transactions move upward. In the meantime, the percentage of all-cash sales for the 1st Quarter spiked to 67%, up from the usual rate of around 50%.
Neighborhood Highlights
Park City Limits | Market Overview
Within Park City's boundaries, the sales of single-family homes saw a notable uptick, marking a 16% increase in total unit sales, with the sales volume showing a robust surge of 23% over the year. Despite this, the median price took a slight dip of 6%, resting at $3.67 million. Notably, Promontory emerged as a standout performer in this area, boasting a substantial price surge of 35% year-over-year, indicating strong buyer interest.
Snyderville Basin | Market Overview
In the Snyderville Basin region, sales volume for single-family homes witnessed a healthy uptick of 21%, accompanied by a median sales price rise of 13% to $2.3 million. Once again, Promontory remained a hive of activity, demonstrating significant increases across various metrics, suggesting sustained demand and market vitality.
Jordanelle | Market Overview
Despite a decline in the number of single-family homes sold in the Jordanelle area, there was a remarkable median price increase of 91%, soaring to $3.29 million. Meanwhile, condominium sales experienced a positive trajectory, with a noteworthy 30% increase in sales and an 11% gain in median sale price, reflecting the area's resilience and attractiveness to buyers.
Heber Valley | Market Overview
In Heber Valley, Midway observed a 15% surge in single-family home sales coupled with a 6% rise in median sale price, indicating steady demand and market activity. Red Ledges stood out with a significant increase in units sold, contributing to a notable volume increase of 38%, showcasing the area's appeal to prospective buyers.
Inventory
While inventory levels remain below historic averages, hovering around 1,200 listings for single-family homes and condominiums in major areas, they are deemed adequate for ensuring a healthy market function. Additionally, price appreciation remains a prominent trend across the state, indicating the market's resilience and long-term viability.
Your Next Step
Whether you're considering buying, selling, or simply keeping an eye on the market, staying informed is paramount. These insights aim to provide clarity to aid in making informed decisions.
For specific neighborhood data or further inquiries, it's advisable to consult with real estate professionals who can offer tailored guidance suited to your needs. Contact us at 435 640 0217 or visit www.parkcityhomesales.com to check what's available in the area!