While the adage “slow and steady wins the race,” might give little comfort to area homeowners following four years of steady decline, there is encouraging news from the Park City Board of REALTORS®. In the 2012 Market Report (Q3), we’re seeing signs that the local real estate market is finally starting to rebound.
For the third quarter of 2012 (July – September), the community is seeing its highest number of pended and closed sales since 2007, with 617 single-family homes sold in the first nine months of 2012, versus just 585 sold by the same time last year. That equates to a 5 percent increase – a modest improvement, but one that shows the market is headed in the right direction.
Park City proper has witnessed a 3 percent increase in single family home prices, however, the median sale price for homes in the Snyderville Basin has dropped 13 percent. But prices within some of the Basin’s individual neighborhoods have risen, with Summit Park up by 25 percent and the Kimball Junction area up by 19 percent. Condo prices have increased overall by 2 percent, though Park City condo prices have dropped slightly, while condo prices in Snyderville Basin are up 13 percent.
Another positive indicator of a recovering market is the fact that the community is seeing the lowest foreclosure rate since January of 2007. In 2011, distressed properties comprised more than 27 percent of closed sales, while just 14 percent of sales for the third quarter of 2012 are distressed properties, and they make up only 6 percent of all currently listed properties.
Local realtors are also buzzing about scarcity of product, which means the number of active listings is low, creating a more balanced marketplace than the overwhelmingly buyer-biased market of the past four years. Combined with all of this positive data is the fact that interest rates at a 48-year low, making it an ideal time to purchase a home or investment property, as prices are just beginning climb and there are few better investments than real estate given the current economy.