In this article, I will review the pie charts above that illustrate Park City home and condo sales for 2018. I will also be providing some insight into what we are seeing in the local real estate market for January and early February 2019. The charts are broken down by Park City single-family homes and condos, by communities and price range. The communities with areas 1-9 include Old Town 01, Thaynes Canyon 02, Lower Deer Valley Resort 03, Deer Crest 04, Upper Deer Valley Resort 05, Empire Pass 06, Aerie 07, Prospector 08, and Park Meadows 09. Areas 10-27 include Canyons Village 10, Sun Peak / Bear Hollow 11, Silver Springs Area 12, Old Ranch Road 13, Kimball 14, Pinebrook 15, Summit Park 16, Jeremy Ranch 17, Glenwild 18, Silver Creek Estates 19, Trailside Park Area 20, Silver Creek South 21, Promontory 22, Quinn's Junction 23, Jordanelle Park 24, Deer Mountain 25, Tuhaye/Hideout 26, and South Jordanelle 27.
Overall review of Park City property sales for 2018:
Park City has a complex real estate market and it's not easy to get a crystal-clear picture from statistics if they are too broad or too narrow. Once you start digging in deep, you'll soon realize that we are in a small town and data points are lacking in order to be able to provide a smooth line graph without gaps. For instance, if you want to start digging into homes that have sold in Park Meadows there is a discrepancy based on the year the home was built, views, location within the subdivision, the number of bedrooms, square footage, and the last time the home was upgraded. In the end, you may only be left with a handful of home sales for statistics or comparables if you're looking to purchase a property - one or two sales could swing the numbers dramatically. What the graphs above do show is the activity in certain price ranges and that the closer you get to the heart of Park City the higher the value of the property.
Reviewing the charts:
Park City Single-Family Home Sales: View our Communities Page to see all the properties for sale in the neighborhoods below.
Areas 1-9 are typically higher in price because it includes prize neighborhoods such as Deer Valley, Old Town, and Park Meadows. The charts above provide a macro view and you'll notice in the first chart that 37% of the homes that sold were $1,500,000 to $3,000,000 and 33% of the homes were less than $1,500,000 to make up 70% of the home sales for 2018. Because of the way the home sales are bracketed by price ($3-4m, $4-6m, and greater than $6m), it's a bit challenging to get a full grasp of the statistics. If you are looking to buy a home in Park City it's important to break down the price band of which you are searching rather than a full market overview. Let's say you have your eyes set on a property that's priced at $3,500,000 - that's when I’d recommend narrowing the search by area and the price band of $3,000,000 to $4,000,000. I'll also be including some information that is not on the chart and required a bit of research from the Park City MLS. The oldest home that was built in areas 1-9 was in Old Town on Norfolk Ave which was built in 1884/1885 and a new foundation with an additional 1,000 sq feet added and sold for $1,750,000 - it was essentially a brand-new home. Out of the 155 home sales, 15 of the homes were built in 2017 or 2018. In the next section, you’ll see that areas 10-27 have had more than four time the number of sales for new construction – this is mainly due to areas 1-9 being very well established and built out.
Areas 10-27 is large geographically and the term that comes to mind for properties is heterogeneous. When looking at the second graph for single-family homes in Park City you need to understand that it includes The Colony at White Pine (typically second homes but all are luxury properties with ski-in-ski-out access to The Canyons), Jeremy Ranch / Pinebrook (which are neighborhoods of mostly full-time residences that are more of a typical scenario) and back along Promontory to Jordanelle (that is made up of large golf homes in Tuhaye or PUD homes in Soaring Hawk). Sixty-percent of the homes in this area sell for less than $1,500,000. The oldest home that was sold in areas 10-27 in 2018 was built in the Summit Park neighborhood in 1959. Out of the 410 home sales, 64 of the homes were built in 2017 or 2018 and 27 of the 64 sales were in Promontory.
Park City Condominium Sales:
Areas 1-9 pie chart is almost quartered with 28% of the condo sales being less than $500,000, 25% are from $500,000 to $1,000,000, 24% are $1,000,000 to $2,000,000 and if you include the range of $2,000,000 and up it accounts for 23% of the condo sales. You can slice this chart many ways, so again it depends on the property you are considering to purchase to get a good understanding of the statistics or pricing. The oldest Park City condo that sold in 2018 was built in 1964 in Treasure Mountain Inn. Out of the 317 condo sales on the Park City MLS 29 of them were built in 2017 or 2018.
Areas 10-27 have a pretty tight gap in the pricing range. The pie chart breaks down several price ranges but only $400,000 to over $700,000. Most of the sales occurred at the bottom end of the market. Many of the condo sales will be around The Canyons Village (to be close to skiing) and the Jordanelle (to be close to Deer Valley at a good value). The oldest condos to sell in 2018 in this area, were built in 1976 at Park West / Hidden Creek. Eight of the eleven Park West / Hidden Creek sales were under $500,000 and ranged from a studio to three bedrooms and three bathrooms. Out of the 419 condos that sold 135 were built in 2017 or 2018 - new construction is king right now.
In closing, the Park City real estate market is strong and very diverse. The macro view can be pretty level depending on how you slice it but as you dig deeper it can become challenging to get a crystal-clear picture because of the small market size which leads to a lack of data. As in every real estate market, pricing depends on location, view, ease of access, year built, year remodeled, supply (low) and demand (high), and many other factors.
Almost done - but lastly, ... What I'm seeing in the Park City area real estate market so far for 2019:
Demand for properties in and around Park City is still very high but the market is leaning towards new construction. In 2015, the ultra-modern look was in vogue and some builders took it too far and clients are telling me that they want more mountain contemporary rather than contemporary. This opens up options to buy a mid-2000's home (consisting of more stone and wood) and do a few minor updates after closing. When speaking with buyers I am frequently hearing that they want to be within five minutes of Old Town or they are considering the outskirts of Park City including Heber, Midway, and Kamas (pronounced Kam-is).
I've shown several clients properties in 2019 and only one party has decided to go under contract. The buyers are choosing new construction and are downsizing from their home in Colorado. The other four clients have plans to return in spring or summer to see properties without all the snow or to hopefully have more inventory to choose from during the traditional selling season. (Wondering when the best time to buy or sell real estate in Park City - view this previous post I wrote on "When is the best time of year to buy a condo in Park City, Utah?").
Inventory has been low for several years and I have a theory I'd like to put out there - let me know what you think in the comment section. Since 2015/2016 we have had a large number of homeowners that purchased their property from 2005 to 2009 and they had been patiently waiting for the market rebound in order to sell. Over the past three years, depending on the area, we have rebounded to pricing that is close to what they paid for the property, some a little higher and some a little lower, but it's close enough for them to sell their Park City property because life changed: it's time to build their new dream home, now there are more kids in the house or fewer kids in the house so they need to resize, etc. My theory is that this the crash of 2008 created an unnatural supply of sellers for homes or condos for this Park City Realtor to sell. We essentially had a three-year run with a pool of sellers that is now essentially dry so there is a possibility of the market becoming even tighter in the upcoming years. People come to Park City for the winters, move here for the summers, and stay a very long time.
Derrik Carlson | Park City Realtor
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