Park City Housing Market Update – October 2021

As I sit here writing this update and looking out the office window, Park City is coated in a brilliantly white blanket of fresh snowfall and it’s signature deep blue skies. If I didn’t know better, I’d say it looks more like mid-December than mid-October, the only difference being that the lifts aren’t spinning and the resort parking lots are mostly empty. Just a few days ago we were experiencing incredible Fall weather with Aspen groves displaying their most vibrant foliage in perhaps decades before the temperature cooled off and Autumn rain showers turned to winter-like snowfall.

Despite the shift in weather, the Park City real estate market is not cooling off. While there are noticeably less people in town, sales activity remains robust while inventory remains historically low. Last week our Park City Summit Sotheby’s offices pended nearly $75,000,000 in sales volume while closing just shy of $100,000,000 in volume in the same span. These are very robust numbers, especially considering that this is traditionally a relatively slower time in the market.

While the phrase “perception is reality” may be an applicable phrase to daily life and making the best out of ones circumstances, we would shy away from utilizing this moniker in relation to the Park City housing market. Different agents, buyers, and sellers will all have different experiences based on the types of property, the price point, and the location that they are trading in. Seeking advice from agents that consistently work in your location, price bracket, and property type is imperative, and combining that “boots on the ground” perspective along with what the market data and statistics are telling us is more important than ever. Factual numbers keep us all grounded in the reality of the marketplace, and help prevent false narratives from being spun and perspectives from being unintentionally skewed. We’ll look at some market data first, then shift to our personal perspective and experience. Think of it like reading the headline news first, followed by the opinion piece.

Park City Real Estate Market Stats

While the monthly supply of all available inventory on the Wasatch Front (greater Salt Lake Valley) has been steadily increasing from February through August, the Wasatch Back including Park City has seen less of a gain. After seeing a slight uptick in April and May with new listings coming to market in the springtime, inventory has continued to drop, with Park City proper registering less than one months supply of inventory. A sellers market is generally regarded as 0-3 months of inventory, so anything below a month is extremely strong for sellers and means there is very limited inventory for buyers. Average days on market also ticked up slightly in the spring, but has been in an overall decline since then.

Park City Homes and Condos Below $1,000,000

• Median sold price decreased 10.7% from August 2021 and decreased by 15.1% from September 2020 to a current price of $541,500. This would be an interesting number to break down by number of bedrooms and single family vs. condo, as my suspicion is these numbers are being skewed by progressively more units selling over the $1,000,000 mark. The overall pricing trend is still on the increase.
• Median number of days on the market for September decreased again to just 7 days, down from 18 DOM in August 2021, and 20 DOM in September 2020. We continue to hear of new inventory in this price bracket receiving offers before buyers have even seen the property which would add to a further decline in days on market.
• Active inventory decreased 33.3% from August 2021, and is down a whopping 83.2% from September 2020. For September 2021 there were only 46 active condos and homes on the market under $1,000,000, of which there is currently only 1 single family home.

Park City Homes and Condos Between $1,000,000 and $3,000,000

• Median sales price ticked down slightly from August 2021 by 1.7%, and is down 5.7% from September 2021 to a current price of $1,565,000
• Median number of days on the market for September 2021 almost doubled from the previous period, up to 17 DOM from only 9 DOM in August 2021, and down by 39.3% from 28 days on market in September 2020
• Inventory is down 27.5% from 91 active listings in August 2021, and is down 61.2% from September 2020 a year ago, finishing September 2021 with 66 homes and condos on the market. There are currently 33 single family homes for sale, only 4 of which are located in the 84060 area code.

Park City Homes and Condos Above $3,000,000

• Median sold price is up 5.0% from August 2021, and is up 6.4% from September 2020 to a current median sold price of $4,750,000. Just for reference, that number in February 2021 was $3,700,000.
• Median number of days on market for February 2021 are 11 which is down 70.3% from 37 days on market in January 2021, and down substantially by 94.8% from 213 days in February 2020
• Active inventory continues to drop across the board, with September 2021 registering 81 actives, down 12.9% from August 2021, and decreased by 52.9% from September 2020 a year ago

Our Observations of the Park City Real Estate Market

The autumn season in Park City always seems to bring with it a slowing in the general pace of town. Less visitors to town, less traffic and out of state plates, and just a more relaxed vibe throughout. With that in mind, there is also generally a slowing in the pace of real estate sales. We have observed that there does seem to be less buyers actively looking to purchase at the moment, though a number of these folks are simply hitting pause until after the holidays.

As inventory has decreased from earlier this summer, fewer options for buyers has lead to listings remaining competitive with multiple offers still relatively common. Good quality homes that are well priced remain in short supply and very competitive. The demand for condos under $1,000,000 remains very robust with a unit near Old Town recently receiving 26 offers, while another nearby had 10 offers. Single family homes within the Park City school district, especially in neighborhoods like Silver Springs, Ranch Place, and Park Meadows also remain highly sought after.

As a buyer, being prequalified or even pre-underwritten with a lender is essential, along with the willingness to be competitive with strong offer terms and timelines in addition to the offer price. It’s okay to be patient and wait to find the right thing, but if a property that is more than 80% of what you’re looking for hits the market, it would be wise to not overthink it.

For sellers the market remains strong, and the lack of competition (pending property type and location) at this time of year may be an incentive to list now as we can never be sure what the future holds. As always, listing with an agent who has a proven success rate and metrics to back it up is imperative. While we have seen more price reductions over the last few months, this is less of an indicator of a softening market, and much more about sellers over pricing their properties and being surprised when it hasn’t sold in a few weeks. Despite the strength of the market, relative value is still a major consideration of most buyers, and it is still possible to overprice your home.

Choose Park City Real Estate Sales for September 2021

• We put 9 properties under contract for our clients for a total of $15,797,200 in pending sales
• 10 sets of clients has their transactions finalized and we closed just over $19,000,000 in sales volume
• 3 of our buyers had their offers accepted despite competing against multiple offers
• 2 transactions went under contract before coming to market, making a total of 23 pre-market sales that we have been a part of so far in 2021
• We have 74 transaction sides and over $113 million in sales volume pending and closed year to date in 2021

Thanks for reading this months market update, and as always, reach out to us if you have questions on how these numbers will affect you and your situation. Whether you are a possible Park Meadows home buyer, potential Deer Valley home seller, or an interested property investor, we can put the stats and our Park City housing market knowledge to work for you no matter what your needs and interests are. Everyone’s situations are different, so knowing how to apply the data is integral to making wise real estate decisions.

-Brendan Trieb, Choose Park City