Park City Housing Market Update – June 2020

If I didn’t know better, I would say that Park City had skipped ahead a month, and that we’re already in the middle of summer! The sun is shining, temperatures are in the 80’s, and only the most well established snow patches are still clinging to the high alpine landscape. And it’s not only the weather that feels like summertime. The Park City housing market is also experiencing a rebirth.

After a fairly quiet month of selling property during April, May has seen a definite uptick in activity. Many homeowners who were planning to list their properties before COVID-19 hit, are now moving forward and taking action, knowing that we have the necessary resources at our disposal to safely and effectively market and sell their home. We have brought three new listings to market in the last two weeks, one of which went under contract the same day, and there are five more listings in the works. More on that later.

While we were originally only planning to do these in-depth market updates once a quarter or so, the overwhelming demand for the update in last month’s newsletter led us to forego that idea, and push out an update again this month. A lingering sense of uncertainty means everyone wants to stay up to date with exactly what is going on in the marketplace, and understandably so. I will breakdown some tangible housing market numbers for the month of May below, and then offer a few personal thoughts on what I have observed in the Park City housing market as of late.

As always, if you have any specific questions on these statistics, or other segments of the market, please call, text, or email me, and we can talk about your specific criteria. Every clients’ needs and every transaction is unique, and so specificity is key when evaluating your own real estate purchase or sale.

Park City Real Estate

Park City Single Family Homes

Overall for the month of May, the numbers for single family home sales in the Park City area paint a generally positive picture compared to April. While the median sales price dropped 16.6% compared to March, it was up nearly 20% as compared to May 2019. Prices remaining on the rise year over is great news for sellers and homeowners. Homes are selling at an average of 94.1% of the asking price, nearly even compared to April, and down 3.3% from last May. This is a reminder that while sellers should price their homes realistically to sell, they may also want to leave a little room in the list price for negotiations.

The number of homes sold in May is down substantially, nearly 71% as compared April 2019, and down 29.2% compared to this April. A substantial portion of the decrease in sales can be attributed to less homes being on the market. The number of homes available for sale is down 12.2% year-over-year for May, but up 12% from April of this year, a good sign for buyers and that the market is moving in the right direction. Less inventory means a greater demand for the homes that are available for sale (especially the really exceptional properties that are well-priced) and less properties to compete against for sellers.

The days on market are down substantially, decreasing 34.1% from May 2019, and down 54% from April of this year. The large decrease in days on market means that despite a lower than normal amount of homes for sale, buyers are taking action and homes are selling.

Single Family Homes Below $1,000,000

• Median sold price decreased 8.9% from April and 7.9% from
  May 2019 to a current price of $724,250
• Average number of days on the market for May are 31, up slightly from April, and way down from 81 days on market in April 2019
• Inventory increased 12% from April, and is down 34.9% from 2019

Single Family Homes Between $1,000,000 and $2,500,000

• Median sold price decreased 12.1% from April, but is up 10.2% from
  April 2019 to a current price of $1,537,500
• Average number of days on the market for May are 35, down 75% from 141 days on market in April, and 131 days on market in May 2019, a huge swing in favor of a sellers market
• Inventory is up 24.5% from April, and is down 17% from April 2019

Single Family Homes Above $2,500,000

• Median sold price more than doubled, increasing 105.8% from April and is up 104.1% from May 2020 to a current sold price of $6,175,000, though it is likely skewed by a number of high list price closings
• Average number of days on market for May are 251, down from 263 days on market in April, and up from 153 days in May 2019
• Inventory is up 4.9% from April, and has decreased 5% from May 2019

Park City Condos and Townhomes

Shifting gears to another substantial segment of the Park City housing market, the numbers for condo and townhome sales are showing swings relative to the previous month. While the median sales price has decreased 8.9% compared to April, it is up by 35.9% as compared to May 2019. While prices did drop compared to the previous month, the increase year over year is good sign for owners and prospective sellers. Condos and townhomes are selling at an average of 96.9% of the asking price, up 1.7% from April, and up 0.7% from last May, overall remaining fairly stable.

The number of condos sold in April is down 44.4% compared to April, and down 66.7% compared to May 2019. Again, a sizable portion of the reduced number of sales is due to less condos and townhomes being on the market. The number of condos available for sale is down 24.9% year over year, which is an improvement upon last months 30.8% decrease. The available inventory compared to April 2020, is actually up slightly by 1.9%, a positive sign of more owners deciding to list.

The average days on market has increased by 46.8% from April, and is up by 149.9% compared to May 2019. New listings have nearly tripled compared to last month, increasing by 196%, and while they are still down by 18.7% year over year, I would not be surprised to see a continued increase in listings, which should spur more sales, as buyers have more options to choose from.

Condos and Townhomes Below $750,000

• Median sold price increased 16.3% from last month, and went up 37.3% from May 2019 to a current price of $552,500
• Average number of days on the market for May are 86, down from 106 days in April, and up from 49 days on market in May 2019
• Inventory increased 15.4% from April 2020, and is down 6.3% from May 2019

Condos and Townhomes Between $750,000 and $1,500,000

• Median sold price decreased by 35.6% from April, but is still up 1.1% from May 2019 to a current price of $885,000
• Average number of days on the market for May are 409, up from 134 days in April, and up from 86 days on market in May 2019. This data will be interesting to review next month, as this jump seems like a bit of an anomaly, possibly caused by re-listing properties that had already been on the market for a long time
• Inventory decreased 9.4% from April, and is down 41.7% from
  May 2019

Condos and Townhomes Above $1,500,000

• Median sold price is down 10.9% from April and is down 39.7% from
  May 2019 to a current price of $1,900,000
• Average number of days on the market for May are 375, up substantially from 192 days in April 2019, and up from 255 days on market in May 2019
• Inventory decreased 11.9% from last month, and is down 36.4% from May 2019

Heber Valley Real Estate Overview

Single family home sales in the Heber Valley area show an increase in the median sales price compared to April 2020 and May 2019. The inventory has increased slightly this month, although it is still down compared to this time last year. New listings are up substantially, and the number of days on market are on the rise, however the percent of asking price received on homes that have sold, is about even month over month, down slightly to 98% of asking. The influx of available inventory combined with an increased median sold price bodes well for sellers and owner, and I would expect the number of units sold to increase again next month. While an increase in days on market is evident, it is still down slightly compared to this time last year, and remains a sellers market.

Salt Lake City Real Estate Overview

The Salt Lake City real estate market continues to stay hot, and multiple offers and low days on market for in demand areas continues to be the trend. For single family homes in Salt Lake County, we have seen a decrease in closed sales of 28.9% from May 2019 to May 2020, and an increase of 11.9% from April to May of this year, as market activity increases. While the median days on market for May 2020 doubled from last month, and is up 33% from May 2019, the current number of 16 days on market remains a very strong number for sellers, and a sellers market.

A sellers market is generally defined as any time frame between 0 and 90 days on market, so 16 days on market is a very strong number for sellers and indicates a shortage in available homes for sale. Further supporting a strong sellers market, is that the median percentage of the asking price received by sellers is 100%. On average, homes are selling at the full asking price, up from 99% in May 2019, and down one point from 101% of asking price in April 2020.

My Observations

Last month, there had been some talk in real estate circles about bargain hunting, and buyers seeking out 15-25% discounts on properties for sale. That continues to be a false narrative in the current market environment. While some metrics have decreased, overall the market and its sales prices are holding steady, or even increasing in some instances. While demand has decreased for some properties, a decreased inventory has helped many segments of the market to remain steady. As of now, there aren’t any market statistics supporting massive discounts or property fire sales. Multiple offers are being seen in Park City, and regularly in Salt Lake City, where buyers would be wise to write strong, clean offers when purchasing. And don’t forget – get prequalified.

As of late, I have seen a particular interest in single family homes located in popular family neighborhoods, with prices between $1,000,000 and $2,000,000. A recently listed Jeremy Ranch home that I co-listed with fellow Summit Sotheby’s International Realty agent and friend Marc Coulam, had 3 showings before going on the market and went under contract the day we went live, with a backup offer in place. We continue to see an increased interest from out of state buyers, who seem to reevaluating life’s priorities, and want to seriously pursue their dream of living in a mountain town with a little bit slower pace of life.

As always, premium properties that are well presented, well marketed, and priced in line with the market, will sell. This is where our marketing team is a cut above the rest. The ability to present a property in its best light, while broadcasting it to the largest qualified audience possible, will help beat out the competition and get the property sold faster for more money. With in-person property showings on a definite decrease, we include a 3D tour of every property we list, no matter the value. Luxury and exemplary service are an experience, not a price point.

Top-notch service, a powerful network, superior marketing, and in-depth market knowledge are as important as ever when buying or selling property. The sky is not falling, homes are still selling, and Park City is still an incredible place to live, retire, or raise a family. If you are interested in looking at numbers specific to your neighborhood, or are thinking of buying or selling real estate in the near future, please, call, text, or email me, and I will help in any way I can.