The real estate landscape in Park City for 2023 was marked by notable shifts, resembling a hangover from the prosperity we witnessed from 2020-2022. Inventory began declining in 2022 and continued to drop in 2023, leading to historically low sales. However, low inventory bolstered pricing and set record high prices.
A glance at the chart above displays the total amount of properties listed for sale in Park City in 2023; as you can see it is a record low. What I want to point out is that 2022 held the record for the lowest number of new listings, and 2023 was 15% below that figure! Such drastic reduction in properties for sale resulted in one of the lowest closed sales totals since 2008-2010, with only 885 properties selling in Park City.
While inventory was historically low in Q4 it was encouraging to see more buyer demand. If interest rates drop further, sellers holding on to their 3% rate mortgages may be willing to sell, which would unlock more inventory. Interest rates play an important role in the real estate marketplace and with the Federal Reserve signaling cuts there is optimism heading into 2024.
I mentioned that pricing was resilient, which is demonstrated by the chart above. Breaking it down by quarter, each quarter of 2023 set a new high mark. The dip in the chart was Q4 of 2022 when activity really slowed. I think it is important to note that Park City is made up of many “micro” markets and while the general landscape is rather healthy, each neighborhood will have its own dynamics. For those who were waiting for the “bottom” of the market from a pricing perspective, all signs indicate that deflationary forces on pricing have passed.
Pended sales in Q4 increased by 22% from the previous year and in doing so returned to historic trendlines for that time of year. This upswing suggests a positive shift in market sentiment, coupled with increased showing activity and rising mortgage applications.
Despite the challenges, the second half of Q4 of 2023 provides reason for optimism in 2024. While prime properties will continue to be more competitive, an expected increase in inventory would ease competition, fostering a more balanced market. I think that after multiple years of volatility this upcoming year may provide greater stability to Park City’s real estate landscape.
The current market dynamics mean this is a great time to be a buyer or a seller in the Park City real estate market. Sellers compete with fewer properties when inventory is low. Buyers compete with fewer buyers when interest rates are higher.
If you are wondering about the value of your Park City property, please get in touch with us. We are happy to provide you with the latest sales in your micro market.