Last month, my company, Summit Sotheby’s International Realty, put together a marvelous market update for 2017. If you’d like a hard copy, I’d be happy to email you one.
The Park City Board of Realtors also released their year end statistics in the form of a press release.
Taken out of context, these numbers will not tell the story of our real estate market. I have been studying the Park City real estate market for 15 years, and this intimate knowledge gives me a deeper understanding of market trends.
My Take on Five 2017 Real Estate Stats
Here are a few of my insights. If you have questions about a specific neighborhood not mentioned here, I invite you to contact me.
One statistic that is consistent in every neighborhood is a decrease in inventory and a decrease in the average days on market. Overall, inventory is down 22% and average days on market is down 7%.
My Take: If you own a home that is not selling in this market, I would suggest strategizing with your real estate agent.
The median single family home sale price rose 4% from 2016 to 2017. This includes our entire MLS market (everything from Summit Park to Deer Valley and the Heber Valley). However, in Park City’s 84060, the median sale price rose 16%. In Park City’s 84098, the increase was only 3%.
My Take: This disparity does not make any sense without a closer look into the numbers. I think I have it figured out. Promontory, which accounts for a large number of single family home sales in 84098, closed an inordinate amount of their developer cabins in 2017. Some of these cabins were sold at 2016 prices during pre-construction. This large number of cabin sales dropped the median sale price at Promontory by 14%, while the average price per square foot increased by 7%. Prices are definitely not going down at Promontory or in 84098. Don’t let these numbers deceive you.
Jeremy Ranch had 66 single family home sales in 2017, an increase of 27% from 2016. Pinebrook had 44 sales, which as flat from 2016. In contrast, Silver Springs only had 29 sales and Prospector only had 13 sales.
My Take: In my opinion, this is a function of inventory. Silver Springs inventory was down 63%. There were hardly any homes for sale in Silver Springs and Prospector, driving buyers into Jeremy Ranch and Pinebrook.
In contrast to the median single family sale prices in Park City’s zip codes, the 2017 median sale price was $410,000 in Heber/Daniels and $529,000 in Midway.
My Take: I predict that as prices continue to rise in the Park City zip codes, buyers will look to the Heber Valley as an affordable alternative.
Deer Valley does not suffer from the same inventory issues as other locations. Over the last 24 months, single family home inventory increased by 18.5% and the number of homes sold during that same period decreased by 36.7%.
My Take: Lower Deer Valley is an area of opportunity for single family home buyers. It is more of a buyer’s market than other parts of town. Many of the homes are dated, providing an opportunity to personalize and update at below replacement cost. Further, the addition of the new “Ikon” ski pass that will be honored at Deer Valley resort, should encourage new visitors to the area.
With the current volatility of the stock market, Park City real estate is an excellent place to park investment funds. Whether you are looking for a small income-producing condo or a second home in a gated luxury community, I can help you find the best property in its class.