Park City Real Estate Market Year in Review - 2023

Congratulations, if you're reading this, you made it. Every year comes with its own sets of challenges and hurdles, many of which aren't seen by those around us. Everyone is fighting their own battles, often silently or in private, and you never know what is going on in someone else's shoes. So, pat yourself on the back, you deserve it. It's 2024 and you're here reading this and looking to tackle the New Year. 

While the end of each year can represent an opportunity to leave tired habits and old trends in the past, it is also a symbolic fresh slate - a chance to begin a anew and choose our path forward, setting a course of intentionality towards creating space for what serves us and feeds our soul. However, in order to plan for and look towards the future, we must be self-aware enough to observe our past and be honest with what we see. While life and business are done in the present and the near future, looking back in moderation allows us perspective to choose a proper course of action to fit our current circumstances. 

In relation to the housing market (and life), we cannot predict the future. The best we can do is understand our history and how we got here, while being honest with ourselves and sticking to the facts of what we see in the mirror, and in the data. While personal nuance and perspective has its place in self evaluation and market interpretation, it's often best to remove the emotion and bias as much as possible, and stick to the numbers that support, or contradict, what we are feeling. The more unbiased the data, the more honest a look we are having at the situation.

Housing Market Factors of 2023

While national housing figures can help create a narrative, they are often times irrelevant to a local market, and only serve as a very broad-brush average. That said, there can be certain factors that influence the national housing market, that are also felt on the local level, like mortgage rates. In terms of the dialogue with buyers and sellers, and what is impacting their purchase and sale decisions over the past year, here are the top three factors that we felt had the largest influence:

Inventory

The availability of, and conversation around, residential inventory has been a confounding one over the last year. At a top line, overall market view, the Park City MLS shows months supply of inventory ranging between 7 to 9 months throughout 2023. This implies a balanced and stable market, which is partially true. However, at a more granular level, one can find data that shows some of the lowest, most constrained supply we've ever seen in select areas and neighborhoods, while seeing over -supply and a stagnant sales pace in other areas. More on this later.

The other factor within the inventory conversation is the quality of product (homes, condos, lots) that is available for purchase. While the numbers show that certain properties are sitting on the market longer and seeing price reductions, it doesn't show how those properties are priced relative to their perceived value in terms of quality of finishes, construction, view corridors, floorplan, and other primary factors for buyers. While not as quantifiable from a data standpoint, that lack of good homes in sought-after neighborhoods has caused many buyers to be patient and wait for the perfect place. The downside with this strategy is when that ideal property finally does come to market, it often results in a number of interested parties who have been waiting, causing multiple offers and the home selling in hours or days.

Mortage Rates

One thing that we know about mortgage rates, is that we don't know. In other words, the economic outlook, the Federal Reserve's stance on inflation and a possible recession, and the rate of the 10-year treasury yield that largely influences mortgage rates, have been anything but predictable. The picture has been improving with 30-year fixed rate mortgages coming down from around 8% at the beginning of October, to the mid to high 6% range today.

Overall, this has had a positive impact on buyer sentiment and affordability. It's possible that more good news for buyers' bottom line is in store with the Fed indicating they are pausing increases to the Federal funds rate and may induce up to three rate cuts in 2024. However, that is by no means a guarantee. While those cuts could positively impact mortgage rates and would likely improve purchasing power from a lending standpoint, there could be an unintended consequence of rates decreasing enough while inventory remains constrained that creates another bull run on housing. This could further push up housing prices and counteract the savings resulting from lower rates, while creating a more competitive and difficult to navigate purchasing environment.

Pricing Trends

Are prices going up and you should buy now, or wait to sell for money? Are prices going down and you should wait to buy and list your property immediately? Everyone wants to have a crystal ball into pricing trends, but nobody has one, even those who are convinced that they do ;) What we can do is look back to evaluate the current trends, so what direction is pricing going and did values increase or decrease in Park City in 2023? The short answer is it depends. Don't worry, I'll dive into the numbers below.

We believe in making thoughtful decisions in purchasing and selling property based on the facts we have today. Trying to time the market has always been a farce, and good investors, in real estate or in the equity markets, have always done well by making prudent decisions based on the here and now, and holding for the long term. With that said, pricing trends can divulge the direction in which certain segments of the market are moving currently, and if there might be more opportunity as a buyer or seller in certain areas.

The Numbers

Okay, without further ado, here are the numbers from 2023 as reported by sales data from the Park City MLS. There is a ton of data available with breakouts of all different property types, towns, and areas, but that is an overwhelming amount of information. We decided to focus on some overall market numbers and some key market segments that have been getting discussed frequently. If you don't see numbers for your area or neighborhood, please give us a call and we'd be happy to breakout the statistics that are specific to your needs and interests.

*It should be noted that whenever possible we prefer to use the median numbers for these stats, as they give a more accurate look at the numbers and averages can sometimes be skewed, especially in smaller sample sizes. 

Park City MLS All Areas (Summit & Wasatch Counties)

Single Family Homes

Median Sales Price: $1,650,000  - Up 3% Year over Year

Sales to List Price Ratio: 96.8% - Down 2% Year over Year

Median Days on Market: 49 DOM - Up from 18 DOM in 2022

Condos & Townhomes

Median Sales Price: $1,136,250  - Up 3% Year over Year

Sales to List Price Ratio: 98% - Down 2.6% Year over Year

Median Days on Market: 26 DOM - Up from 8 DOM in 2022

Vacant Land

Median Sales Price: $832,500  - Up 24% Year over Year

Sales to List Price Ratio: 95.2% - Down 2.2% Year over Year

Median Days on Market: 49 DOM - Up from 4 DOM in 2022

Park City in City Limits (84060 Zip Code)

Single Family Homes

Median Sales Price: $3,687,500  - Down 5.4% Year over Year

Sales to List Price Ratio: 96.5% - Down 1.4% Year over Year

Median Days on Market: 41 DOM - Up from 20 DOM in 2022

Months Supply of Inventory: 13.2 - Up 99.8% in December Year over Year

Condos & Townhomes

Median Sales Price: $1,612,500  - Up 7.5% Year over Year

Sales to List Price Ratio: 96.9% - Down 1.9% Year over Year

Median Days on Market: 25 DOM - Up from 7 DOM in 2022

Months Supply of Inventory: 4.5 - Up 18.4% in December Year over Year

Snyderville Basin (84098 Zip Code excluding Promontory)

Single Family Homes

Median Sales Price: $1,685,591  - Down 6.1% Year over Year

Sales to List Price Ratio: 96% - Down 2.9% Year over Year

Median Days on Market: 46 DOM - Up from 21 DOM in 2022

Months Supply of Inventory: 6.4 - Down 20.2% in December Year over Year

Condos & Townhomes

Median Sales Price: $987,285  - Down 8.2% Year over Year

Sales to List Price Ratio: 97.4% - Down 2.4% Year over Year

Median Days on Market: 36 DOM - Up from 9 DOM in 2022

Months Supply of Inventory: 8.2 - Up 34.8% in December Year over Year

Park Meadows

Single Family Homes

Median Sales Price: $3,150,000  - Down 7% Year over Year

Sales to List Price Ratio: 95.3% - Down 2.5% Year over Year

Median Days on Market: 44 DOM - Up from 12 DOM in 2022

Months Supply of Inventory: 10.9 - Up 82.4% in December Year over Year

Midway

Single Family Homes

Median Sales Price: $1,200,000  - Up 3.4% Year over Year

Sales to List Price Ratio: 97.4% - Up 0.5% Year over Year

Median Days on Market: 72 DOM - Up from 15 DOM in 2022

Months Supply of Inventory: 4 - Down 87.8% in December Year over Year

Canyons Village

Condos & Townhomes

Median Sales Price: $1,374,500  - Down 0.2% Year over Year

Sales to List Price Ratio: 97.1% - Down 3% Year over Year

Median Days on Market: 45 DOM - Up from 7 DOM in 2022

Months Supply of Inventory: 6.3 - Down 47.8% in December Year over Year 

Upper Deer Valley & Empire Pass

Condos & Townhomes

Median Sales Price: $4,500,000  - Up 31.7% Year over Year

Sales to List Price Ratio: 96.6% - Down 1.5% Year over Year

Median Days on Market: 23 DOM - Up from 8 DOM in 2022

Months Supply of Inventory: 5.6 - Up 61.8% in December Year over Year

As always, if you're curious about the market and how it affects your current ownership, or future purchase or sale, reach out to us directly so we can analyze your specific property and sub-market. More than ever, our market is segmented and nuanced, and having an agent with a discerning understanding of how the current market affects your goals is more important than ever.

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