Park City Real Estate Market Update – Spring 2020

It’s official, springtime is in the air in Park City. The snow is melting, birds are chirping, bees are buzzing, and real estate is selling. Or is it? Questions and opinions about the Park City real estate market seem to be uttered nearly as frequently as the latest news on the pandemic, the two of which are admittedly intertwined. Uncertainty has been the word of the day for roughly two months now, and everyone has a different take on what they think will happen next. But as any experienced forecaster of economics or weather knows , nobody can be certain.

What we can be certain about are verified statistics and hard numbers that give an honest, unbiased look at how well the Park City real estate market, and the surrounding Utah real estate market, is performing. Now more than ever, people crave tangible information. Sure, we all have our opinions of what may occur in the next 6-12 months, myself included, but speculation is an exercise in futility, and business decisions – like buying or selling property – are best made when using current numbers, not just gut feelings.

The goal of this market update is to paint a picture of how the Park City real estate market has reacted to the Coronavirus pandemic. In addition to throwing around a bunch of numbers, I’m going to do my best to translate what some of these metrics may mean to you, the consumer. Us realtors have a tendency to get all caught up in the minutiae of these metrics, and if we’re not explaining how these numbers can be useful to our clients – the buyers and sellers that drive the Park City real estate market – then we are doing a disservice. 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 needs and wants, as every client and every transaction is unique.

Park City Real Estate

Park City Single Family Homes

Overall for the month of April, the numbers for single family home sales in the Park City area do not paint a doom and gloom picture that many may have been expecting. The median sales price is actually up 21% compared to March, and up 11% as compared to April 2019. Prices remaining on the rise is great news for sellers. Homes are selling at an average of 94.3% of the asking price, down slightly by 2.7% in March, and down 1.6% from last April. This is a reminder that while sellers should price their homes realistically to sell, that they may also want to leave a little room in the list price for negotiations.

The number of homes sold in April is down substantially, nearly 49% as compared April 2019, but only down 4% compared to this March, a relatively minor correction despite the pandemic. Also, a substantial portion of the reduced number of sales can be attributed to less homes being on the market. The number of homes available for sale is down 23.5% year-over-year for April, and down 12.7% as compared to March. 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.

While the average days on market is up substantially from April 2019, the time on market has actually decreased from March 2020 to April by 19.3%. A decrease in days on market, combined with increasing sales prices, and a decrease in inventory, all bodes well for those interested in selling their Park City home.

Single family home sales for April 2020 in the Park City area as
compared to March 2020 and April 2019; courtesy PCBOR

Single Family Homes Below $1,000,000

  • Median sold price decreased 2.5% from March and 9.1% from
    April 2019 to a current price of $795,000
  • Average number of days on the market for April are 29, the same as March, and down from 30 days on market in April 2019
  • Inventory decreased 8.7% from March, and is down 41.7% from 2019

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

  • Median sold price increased 16.7% from March and is up 8.9% from
    April 2019 to a current price of $1,750,000
  • Average number of days on the market for April are 118, up from 82 days on market in March, and 65 days on market in April 2019
  • Inventory is down 20% from March, and is down 35.9% from April 2019, likely contributing to the increased median sold price

Single Family Homes Above $2,500,000

  • Median sold price decreased 2% from March and is down 29.2% from
    April 2019 to a current price of $3,000,000
  • Average number of days on market for April are 255, down from 446 days on market in March, and up from 54 days in April 2019
  • Inventory is down 8.8% from March, and has decreased 11.9% from April 2019

Park City Condos and Townhomes

Shifting gears to another substantial segment of the Park City real estate market, the numbers for condo and townhome sales also do not signify a massive drop off or correction in the market. The median sales price has increased 3.7% compared to March, and is up 7.3% as compared to April 2019. The annual and monthly increase in prices bodes well for owners, investors, and those looking to sell. Condos and townhomes are selling at an average of 95.3% of the asking price, down 2.5% from March, and down 1.5% from last April, but overall remaining fairly stable.

The number of condos sold in April is down 25% compared to March, and down 47.8% compared to April 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 30.8% year over year for April, and down 11.6% as compared to March. The decreases in inventory means a greater demand for the condos available for sale and less properties to compete against for sellers. More on this later in the blog, where I share some personal experiences on the market as of late.

The average days on market has dropped 14.5% from March, and is nearly even compared to April 2019, down just 1.8%. A decrease in days on market, combined with increasing sales prices, and a decreased inventory, are all generally positive trends for those interested in selling their Park City condo or townhome.

Condos and Townhomes Below $750,000

  • Median sold price increased 8% from March and went up 4.1% from
    April 2019 to a current price of $475,000
  • Average number of days on the market for April are 97, down from 103 days in March, and up from 70 days on market in April 2019
  • Inventory decreased 8.6% from March, and is down 20.1% from 2019

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

  • Median sold price increased a very impressive 61.8% from March and is up 59.1% from April 2019 to a current price of $1,375,000
    April 2019 to a current price of $475,000
  • Average number of days on the market for April are 187, up from 129 days in March, and down from 266 days on market in April 2019
  • Inventory decreased 7.1% from March, and is down 42.8% from 2019

Condos and Townhomes Above $1,500,000

  • Median sold price is down 9.4% from March and is up 1.5% from
    April 2019 to a current price of $2,132,500
  • Average number of days on the market for April are 192, down substantially from 306 days in March, and down from 285 days on market in April 2019
  • Inventory decreased 18.6% from March, and is down 33.5% from 2019

Heber Valley Real Estate Overview

Single family home sales in the Heber Valley area show a decrease in the median sales price compared to March 2020 and April 2019. The inventory has increased this month, although it is down compared to this time last year. New listings and the number of days on market are on the rise as of late, however the percent of asking price received on homes that have sold, is up slightly to 99% of asking. The influx of available inventory is helping to drive down the median sold price and increase the days on market. That said, 45 days on market still very much represents a sellers market.

Salt Lake City Real Estate Overview

The Salt Lake City real estate market has been, and continues to be, HOT. For single family homes in Salt Lake County, we have seen a decrease in inventory of 30% from April 2019 to April 2020, and a decrease of 11% from March to April of this year. The decrease in inventory combined with a still very strong demand for housing in Salt Lake has led to the median days on market decreasing from 16 days in April 2019 and 13 days in March 2020, to only 8 days on market in April 2020.

A sellers market is generally defined as any time frame between 0 and 90 days on market, so 8 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 101%. On average, homes are selling for above their asking price, up from 98% in April 2019, and 100% of asking price in March 2020.

My Observations

There has been a lot of talk recently in real estate circles about bargain hunting, and buyers seeking out 15-25% discounts on properties for sale. 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.

As of late, I have seen a particular interest in 2-4 bedroom condos and townhomes under $750,000 that live similar to a single family home. A recently listed Hidden Creek townhome of mine had 10 showings in the first 36 hours on market, is under contract above asking price in multiple offers, and received 2 backup offers. Another recently listed Hidden Creek unit had 6 showings in its first day on market. If anything, the out of area demand for this type of property may have increased during the pandemic, as buyers in large cities and on the coasts are looking to have a place to get away to in times of uncertainty.

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.

Christine

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