November 15, 2016
The story of the Park City real estate market continues to be the same—newer or remodeled properties that are in move-in condition are in demand.
At the same time, older, dated homes take longer to sell. And they sell for less. We see this in the both the condominium and single family markets. While trends in Park City real estate continue to vary by neighborhood, the trend is directly reflective of the neighborhood’s age. Newer areas like Promontory have strong sales. Neighborhoods with older homes, like Deer Valley, have fewer sales.
The above chart shows Park City zip codes of 84060 and 84098. Overall, the median sale price is rising at a healthy rate. At the same time, the number of sales is relatively flat over the past 2 years. If you would like to receive a copy of the Park City Board of REALTORS market statistics press release or the full statistics packet, contact me.
Forget all the Boring Stats, Here are Some Interesting Market Trends
Market Trend 1: Single family homes in the heart of Park City with an 84060 zip code are expensive.
- Median sale price in Old Town is up 7% to $1.4 million.
- Median sale price in Prospector is up 17% to $840,000.
- Median sale price in Park Meadows is flat at $1.5 million.
Market Trend 2: Buyers who want to be in the heart of town but are shut out of Park Meadows due to price are buying in the Prospector neighborhood.
The Snyderville Basin (84098) continues to remain active with large increases in number of sales and median sale price. Buyers shut out of 84060 or who want to be closer to Kimball Junction or Highway 80 are snapping up these homes. Affordable neighborhoods like Summit Park and Trailside showed the highest increase in median sale price. Buyers who don’t have $500,000 to spend on a single family home will be unable to purchase a single family home in Park City.
- Median sale price in Summit Park increased 22% to $619,000.
- Median sale price in Trailside rose 13% to $715,000.
- Median sale price in Kimball Junction rose 5% to $525,000.
Market Trend 3: Condominium sales in 84098 outpaced sales in 84060. My hypothesis that buyers are attracted to newer inventory is supported by this sales trend.
- The Canyons neighborhood saw a median sale price increase of 50% to $590,000.
- Pinebrook saw a 19% increase in median sale price to $455,000.
- The Jordanelle area, which is located in Wasatch County and outside of Park City mailbox, saw a median sale price increase of 13% to $475,000. Most of the inventory at the Jordanelle is new. Buyers are attracted to the higher end finishes and proximity to Park City and Highway 40 even if it means they have a Kamas zip code.
How Should Buyers & Sellers Look at the Park City Real Estate Market Today?
So what do the third quarter statistics mean to buyers and sellers in Park City? Homes that have been updated sell faster and for more money. Before undertaking any improvements prior to selling your home, it is imperative that you consult with a REALTOR to ensure you are making the right and most cost-effective improvements. If you are unable or unwilling to update your home, you will need to price your home realistically based on the supply and demand for such homes.
There are great purchase opportunities available for those buyers willing to undertake renovations. As Park City becomes less affordable, buyers are moving to neighboring Wasatch County and Kamas Valley neighborhoods, or purchasing condominiums instead of single family homes. Currently, there is about a 10-month inventory of homes in Park City, creating a buyers’ market (6 months of inventory is considered “balanced”). However, the inventory varies greatly by neighborhood, creating an assortment of micro-markets. For example, Summit Park is a sellers’ market, with less than 3 months of inventory, while Upper Deer Valley is a buyers’ market with over 2 years of inventory.
Please contact me if you have questions about your own neighborhood or an area where you are considering making a purchase.