Market Pulse 4th Quarter 2020

The real estate slump that was predicted back in March failed to materialize. On the contrary, the year-end numbers from the Park City Multiple Listing Service (PCMLS) show that the market improved at an incredible rate. A brief dip was observed in March, April, and May. However, by Memorial Day weekend the buyers were back, and the market didn't just recover; it set records for sales and transaction volume by  the end of the year. Demand for homes in our market area grew exponentially, as many chose to move to the mountains to work from home remotely and even home-school. By the third quarter, pending contracts far outpaced new listings coming to market. This high demand fueled record low inventories in August, and the supply continued to dwindle through the end of the year. With few homes available to meet the surge in buyer interest, the predicted rise in sale prices was inevitable.  

While the year finished as a record setter, the story of real estate activity along the Wasatch Back during 2020's pandemic is really a tale of two halves. Comparing the last six months of 2020 to the first six months:

• TOTAL NEW LISTINGS for the first half of the year were 1,569 compared to 2,037 for the second half.    
• PENDING SALES accelerated at an even greater pace in the latter half of 2020, with 1,267 contracts signed in first half compared to 2,636 in the second half. The latter number is more than double the previous year’s production of 1,248 for the last half of 2019. 
• CLOSED SALES during 2020 were 150% higher in the last six months (2,174) than the first six months (865).
• AVAILABLE INVENTORY started to shrink dramatically with pendings running much higher than new listings. The year finished with just 917 residential and land units available for sale, nearly half of the previous low mark of 1,715 set in December 2017.

• Mortgage rates have held at the lowest they have been in 60 years, some dropping below 3%. This has made borrowing more attractive and has dramatically increased consumers' buying power. 
• Some sellers are still reluctant to officially list their properties due to concerns over strangers touring their property during the pandemic, so an increase in "off market" sales has taken place. Be sure to apprise us of your property requirements, so a thorough exploration of both listed and off-market properties can be completed. 
• The surge in demand due to the attractiveness of our lifestyle has pushed median sale prices higher, particularly in “outlying” areas such as Heber Valley.
• Renters, vacationers, and time-share owners started looking for second or even primary homes in the Wasatch Back, seeking to relocate from urban areas. 

• PRICES ARE STILL RISING: Multiple offers on many listings continue to drive up sales prices. We are setting new all-time high sales prices in some markets, with buyers driving the market. Price increases were most pronounced in the 4th Quarter of 2020. Median price on single family homes in Park City proper are up over 50% year to year in fourth quarter alone.
• WORK & LEARN FROM HOME IMPACTS: Technology advancements, work-from-home opportunities, and increased home schooling are expected to continue driving demand in more of our outlying areas. One example is that demand for vacant land in the Tuhaye/Hideout area has been off the charts, with sales nearly triple year-over-year, and prices rising 34%.