Park City Real Estate Market Update (2019)

Posted by Derrik Carlson on Tuesday, August 6th, 2019 at 2:22pm

Stats for July 2019 vs. July 2018 & YTD | Park City Homes & Condos

Source Park City Multiple Listing Service 8/3/2019

Summary Statistics 19-Jul 18-Jul % Chg
Absorption Rate 9.34 8.46 10.4
Average List Price $2,317,552 $2,247,324 3.12
Median List Price $1,680,000 $1,640,000 2.44
Average Sale Price $1,434,065 $1,488,378 -3.65
Median Sale Price $1,095,000 $969,500 12.94
Average CDOM 124 135 -8.15
Median CDOM 38 32 18.75

Above is a Park City real estate statistics graph of July 2019 vs 2018. 

What does the July 2019 vs July 2018 report tell us? 

In the bold text, I will tell you what the numbers above state and in a normal font I will provide my analysis. 

  • How quickly a Park City property typically takes to sell (absorption rate) has been increasing but our average & median list price is down.  What absorption rate is telling us is that sellers are still bullish on the Park City real estate market but buyers are pulling back. You'll notice on the graph below that the absorption rate for July was lower than the year to date.
  • The average sales price is down but the median price is up.  While buyers are pulling back it means more of the high-end buyers, $2,000,000 and up, are pulling back but the bottom end of the market is still strong and I believe still gaining ground. 
  • The average combined days on market is down 8.15% while the Median is up 18.75%.  The average days on market is usually stretched out from luxury listings that take longer to sell than an entry point property.  Being that the median has increased by only six days it isn't concerning to me. 
  • What all this really means is that Park City is a small market that is very complex and there are over 25 different micro-markets in this town.  If you're interested in buying or selling in a specific area of town please call me so we can review current data together. 
  2019 YTD 2018 YTD % Chg
Absorption Rate 9.14 7.77 17.63
Average List Price $1,924,633 $1,992,898 -3.43
Median List Price $1,299,000 $1,375,000 -5.53
Average Sale Price $1,416,333 $1,475,041 -3.98
Median Sale Price $975,000 $1,000,000 -2.5
Average CDOM 155 136 13.97
Median CDOM 55 43 27.91

Above is a Park City real estate statistics graph of year to date comparisons. 

What does the Year to Date report tell us? 

  • The absorption has increased to 9.14 months.  In order to get a good idea on how quickly a property would sell, you would really want a more in-depth report by price range and location. 
  • Average list price, median list price, average sales price, and median sales price are all down a small percentage this year.  This isn't a surprise to me as it was such a snowy winter that I had several clients go skiing rather than look at real estate. Now that it's mid-summer they are coming back to look at Park City homes and condos that are listed for sale.
  • The average and median combined days on the market have increased.  What does this mean for you? Is that many of the sellers are willing to negotiate more than they were a year or two ago.     

My take on the updated Park City real estate statistics is that they are generally telling the truth.  What I think this means for you is that you'll have the option to buy a better property and take a little extra time in making a decision if you're buying a $2,000,000+ property - but if a property is in good condition and priced well it still sells quickly.  The statistics are challenging because we've had so many newly built condos built the past few years and they close around if they close around the same time our overall stats can be skewed.  We have some older homes and condos that need to be updated and they are in a way holding back our statistics.  I believe we are heading into a flat market for a few years, which can be the best market for a smart Realtor because everyone can get what they really want - a seller gets their property sold and the buyer is able to negotiate on the price.  A flat market allows buyers and sellers to make a "fair" trade and it doesn't feel like someone's always getting the short end of the stick.  While cash is still king, in Park City 50% of our transactions all cash and even in 2010 to 2013 a buyer would get a one to two percent discount for paying cash - Park City is where no one really has to buy a property nor do many have to sell... but we all want to be here!  

 

A quick snapshot of the 2019 First Quarter Market Statistics for the Park City area.

 

Real Estate Update 1st Quarter 2019 for homes in Park City | Jordanelle | Heber Valley | Kamas Valley

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Market Update for Condos in Park City | Jordanelle | Heber Valley

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Market Update for Land Sale in the Park City area

Real estate sales in the Park City area started off slow in 2019. While I can't be certain but I believe that having 150% of snowpack this year contributed to longer skier days, buyers wanting to play rather than view properties, and sellers simply didn't want to move after 450" of snow. The charts above cover sold homes, condos, and land in the entire Park City area but when you see the quantity sold going down by a large percentage that could mean the difference of one to two properties selling. You'll notice a 171% increase in Upper Deer Valley home sales but there were only 8 homes that sold. With how much snow we had, and still have in some area, I'm not surprised by the fall in land sales and I expect to see a rebound throughout the second quarter of 2019.  There are also fewer good building parcels in the greater Park City area. Personally, I had half a dozen home buyers choosing to hit the slopes rather than preview properties so losing one in ten sales in Park City isn't a surprise. 

If you would like to discuss a specific area of Park City and what the market is doing please feel free to reach out to me. 

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