The Promontory area of Park City was a relative hotbed of sales for the Park City, UT area for 2010. Homes and Vacant Lot sales totaled 87 across the Park City MLS during 2010. This sales number accounts for over 9% of all the sales in the greater Park City area for the year.
To date there have been about 800 lot sales in Promontory and there are currently about 300 completed luxury homes with another 25 under construction. The Promontory area was hit hard by the economic downturn, but recent indications show that investors and value shoppers are snapping the deals up quickly. The developer is waiting to release new areas and lots when they feel that prices and inventories warrant new product. With the exception of some of the "cabin" properties, the entire inventory we speak of here is resale property.
Promontory developers consider any lot priced under $300K or home priced at less than $300/sq ft to be a "distressed sale". All but one of the 52 lots that sold last year was distressed, and nearly 70% of the 35 homes that sold last year were distressed properties according to this definition.
Current inventory represents an absorption level of slightly more than one year for vacant lots, with most still within the developer's distressed category (there are 64 lots for sale in Promontory and 50 of them are priced under $300K, ten are actually under $100K). Current Single Family Homes for sale in Promontory total 74 including 4 bank REO's and 8 short sales with a total of 19 being offered at less than $300/sq ft. The offerings in the "distressed" category (less than $300/ sq ft) represent less than 10 months worth of inventory at last year's absorption rate. The current absorption rate for Park City real estate as a whole is calculated at over 24 months (note that the absorption rates in our luxury second home resort town never have been close to national averages).
This year to date 8 sales have closed in the Promontory area of Park City and there are 20 pending sales. Current trends show prices within Promontory (and Park City, UT as a whole) on the rise and inventory levels falling. The deals are getting harder to find and Buyers need to react quickly. Current levels of distressed homes in the greater Park City area are down considerably from their peak.
For more Promontory Ranch Club information and assistance finding the Park City home that is a "steal" in your book, contact a realty professional with YouInParkCity.com.
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