January 29, 2019 – At the end of the 4th quarter of 2019, the overall year-over-year housing statistics for Summit and Wasatch Counties continued to show strong appreciation, with increases in both average and median sale prices, as well as dollar volume as reported by the Park City Board of REALTORS® Multiple Listing Service.
The greater Park City market in general continues to show great stability in single family home sales. The number of homes sold increased 4%, with the median sale price rising 12% year over year. During the same period in 2018, the median sale price gained 7%, indicating a sustained period of steady, consistent growth.
The strongest single-family price gains appeared in the fast growing Jordanelle area to the southeast of the Park City metro area, south of State Rd 32, and in the Tuhaye/Hideout area on the east side of the Jordanelle Reservoir. Jordanelle overall posted a 40% median price increase over the same period in 2018.
Condominium sales exploded in fourth quarter increasing 24% in units sold (966 vs 777 sold in 2018) with a solid median price gain of 7%. Vacant land sales did not fare as well with sales down 25% due to a shrinking inventory of available lots. Median prices for vacant lots were steady gaining just 2% over last year.
A CLOSER LOOK – Single Family Homes
Among the five major areas measured by the Park City MLS, homes within the Park City limits fared well with a 15% rise in units sold, while prices dipped slightly, putting the median sale price to just under $2.M.
- In Old Town, the number of sales was steady while the median sales price increased 17% to $1.83M.
- Park Meadows had the largest increase in sales activity with a 71% jump over last year on an average price increase of 4% to just over $2.25M.
- Snyderville Basin residents saw sales volume nearly equal to 2018 with the median price gaining 8% to $1.7 million.
- Pinebrook saw the biggest increase in median price of 30% to $1.16 million.
- In outlying areas, Deer Mountain, Tuhaye/Hideout and South Jordanelle saw double digit increases in median price and sales volume.
The Jordanelle area continued its dominance in the two-county area when measured by median price appreciation, jumping fully 40% in median price to just shy of $2.2M on unit sales that were up over 20% from last year.
Heber Valley again had over 300 home sales in the last 12 months as demand remained strong for this growing community, with good schools and near proximity to the Park City ski resorts. Heber Valley posted a 4% gain in median price to $528K. By neighborhood, Heber City had the highest number of sales at 129 and saw a 16% median price increase to $450,000.
The number of home sales in the Snyderville Basin tracked closely to last year’s number and posted a respectable 5% median price increase, reaching $1.28M.
- The Pinebrook neighborhood led the price appreciation parade with 30% growth in their median price, topping the $1 million mark.
- In Jeremy Ranch, there were slightly more sales than the year before with a small increase in median sale price to just over $1M.
- Promontory saw the greatest number of home sales in the Basin with a total of 79 and a median price of nearly $2.25M, up a healthy 8% over the same period in 2018.
Single family home sales tend to peak in May and October as vacationing homebuyers visit the area and start making more inquiries about second home purchases. The inventory of homes available starts to shrink from midsummer until early spring the following year. At the end of 2019, there were just over 2,000 homes for sale, down from a peak of 2,347 in June. We expect history to repeat itself and hold inventory steady through April, when the spring selling season will again launch with vigor.
A CLOSER LOOK – Condominium Sales
If you’re looking for the hot action in home sales, look no further than the condo market. For the Summit and Wasatch Counties combined market area, the number of sold condominium was up 24% to 966 units compared to the previous 12 months. Median pricing was up as well to $644,000, 7% above the year earlier.
- The historically active condo market in Old Town continued its trend with a 33% increase in number of sales on median prices up 3% to $589,000.
- Park Meadows saw a healthy 52% increase in the number of units sold but the demand was for lower priced stock, reflected in a median price drop of 30% from 2018.
- Similar price drops were evident across most of the Park City neighborhoods, with only Old Town, Lower Deer Valley and Deer Crest showing median price gains. Sales activity in Old Town topped 2018 by 33%, growing to a near record 132 units, just shy of the 141 units sold in 2017.
In the Snyderville Basin, there were nearly 400 condos sold, more than the 352 within the City Limits, and the median price continued its upward trend growing 20% to $649,500.
- By neighborhood, Canyons Village had the highest number of closed sales at 217, more than triple second place finish of Kimball Junction. However, unlike Kimball Junction where prices remained relatively flat, the median price in Canyons Village jumped an eye-popping 61% to $975,000. The increase was driven by a demand for newer units. The average age of units sold in 2018 was 17 years, while in 2019 it was less than 10.
- Outside of the core neighborhoods, as we saw in single-family sales, the nexus of activity was in the Tuhaye/Hideout area, which saw sales more than double and median prices rise 10% to almost $900,000.
A CLOSER LOOK – Vacant Land
Vacant land sales fell in all reporting areas as inventory shrinks and new offerings are fewer and fewer. With inventory down, competition for the remaining lots increased, driving up prices in every area except Jordanelle.
- Within the City Limits, the number of sold lots was down by one-third, while median prices increased 6% to $1.1M.
- There were five times as many vacant land sales in the Snyderville Basin (98) as within the City Limits (190), but still 31% fewer than last year and steady appreciation in the median price.
- At the neighborhood level, Tuhaye/Hideout (63 lots) beat out last quarter’s leader, Promontory (54 lots), and fast-growing Red Ledges (55 lots), for the highest number of vacant land sales on a median price of $279,000, up 12%.
- Area-wide, Heber Valley and Jordanelle had significantly more land sale transactions than other areas, showing evidence that buyers were forced further from the metro center in order to find reasonably priced lots.
Overall, the fourth quarter numbers continue to reinforce the stability and pricing consistency within the greater Park City area. Pricing growth continues at or slightly above the national average. Inventory constraints and the impact of new, higher priced construction support a well-balanced and nearly straight-line appreciation in home values.
Growth in areas outside of the core resort communities is a continuing trend. Realtors believe we are seeing two major trends in our market. Long-time Park City residents with significant equity in their homes are cashing out and moving to Heber or Jordanelle, where they can buy a larger home, on a larger lot, with less automobile traffic and often have cash left over and no mortgage. Also, younger families with kids are finding Park City too expensive. With the much-improved schools in Wasatch County that are newer, more competitive with larger campuses, we are seeing more families with school-age children gravitate south as well. Overall, Park City continues to be a great long-term investment, whether as a primary residence, seasonal getaway home, or as an investment rental. We expect that steady increase in value to continue.
Homes listed at or below the median price historically sell much more quickly. For example, Rick Klein, a private mortgage banker who tracks home prices for Wells Fargo Home Mortgage, points out, “Single family homes in Park City proper on average take eight months to sell. Those priced under the median will sell on average in 3.5 months, while those above the median take over 12 months to sell.” Homeowners are well advised to seek guidance from their local Realtor in order to price their homes competitively to shorten marketing time.
Real estate in the Wasatch back consists of highly segmented markets with nuances that vary significantly from one neighborhood to another and one house to another. Comparisons are hard to read on paper due to the unique features of individual properties such as amenities, condition, style, location, age, and inventory. Buyers and Sellers are advised to contact a local Park City Board of REALTORS® Professional for the most accurate, detailed, and current information.