The Park City Board of REALTORS just released their Quarter 1 of 2017 Statistics (get a copy here). The statistics confirmed what I am feeling and know in my gut. Park City is becoming a very expensive place to live.
According to our current Board President, Sara Werbelow:
“Buyers are willing to travel further distances if they can find value, pushing the number of closed sales up outside of the [Park] City limits. Distance from front door to ski chair doesn’t seem to be quite as much a factor for current home buyers. What used to be perceived as “far away” or “out of town” is not so anymore.”
I agree with Sara and I believe the two factors driving people further from the City limits and ski resorts are price and the age of the properties in the City limits. The statistics definitely support the theory of price.
Sales in neighborhoods that saw double-digit median sale price increases and sales velocity in the previous 12 months are slowing down as buyers are moving into areas that are more affordable, even if they are further away from City limits.
Let’s take a look at sales in a few notable neighborhoods. These sales reflect the previous 12 months compared to the 12 months prior (April 2015 – March 2016 compared with April 2016 – March 2017).
Neighborhoods where number of sales are flat or decreasing:
- Old Town single family home sales increased by 2% and median sale price increased by 6% to $1,450,000.
- Prospector single family home sales decreased by 18% but median sale price increased by 14% to $840,000.
- Park Meadows single family home sales decreased by 15% but median price increased by 25% to $1,747,000.
- Silver Springs single family home sales decreased by 26% and median price decreased by 2% to $909,500.
Neighborhoods where number of sales are increasing:
Buyers moved into these neighborhoods when priced out of those noted above.
- Lower Deer Valley single family home sales increased by 189% and median price increased by 18% to $2,131,250.
- Summit Park single family home sales increased by 28% and median price increased by 9% to $600,000.
- Jeremy Ranch single family home sales increased by 18% and median price increased by 6% to $932,500.
And turning to areas even further away from the resort epicenter:
- Heber City single family home sales rose 55% with a median price increase of 1% to $357,700.
- Midway single family home sales rose 27% with a median price increase of 3% to $479,000.
- Kamas single family home sales rose 32% with a median price increase of 10% to $312,000.
It is interesting to note that although the number of sales rose greatly in the Heber and Kamas Valleys, prices remained relatively flat in the Heber Valley. In my opinion this is due to the number of new homes being offered for sale in Heber & Midway. Supply will be plentiful for years to come in both the Heber and Kamas Valleys as farmers and ranchers cash out their acreage.
Putting it all together
Single family home prices are strong and stable in Park City. Demand is spilling into surrounding areas increasing the number of sales and prices further away from the City limits. It seems like the word is definitely out that Park City offers an excellent quality of life and demand is high to live here.
Just to put things in perspective, median sale prices in other ski towns like Jackson, Aspen and Vail make Park City’s prices look like an affordable bargain.