Do you want to see into the future of Park City real estate? Of course you do! Below are 4 concepts that enjoy universal agreement among real estate experts and gurus. Enjoy!
• There are actually two distinct real estate recoveries. The first is in sales and the second is in price. Nationally and locally in Park City, the first has already occurred. Sales have increased. History shows that a recovery in the number of sales is always followed by an increase in prices. It is important to note that the recovery in prices has not yet occurred. A 1.5-3% annual increase in prices is expected to begin in 2013.
• Yes there are challenges in the world economy. It is precisely those challenges that are creating historically low interest rates. Once the world economy improves, interest rates will go up.
• There is shadow inventory (pending foreclosures) in states requiring judicial foreclosures. These states, including Nevada, Illinois, Florida and New York, have a backlog of foreclosures. In non-judicial foreclosure states, like Utah, the number of foreclosures is actually decreasing. Nationally, the number of foreclosures may remain the same but the location of those foreclosures is changing and will be concentrated in those states with backlogs.
• Bank owned properties in price points and locations where inventory is low will be immediately absorbed (sold) and will not negatively impact the market.