MARKET DYNAMICS SHIFT
Total volume continues to rise, however the number of transactions dropped in most sectors.
I know many of you prefer puppy newsletters over stats, so here is my executive summary of our Q3 stats for those who prefer a snapshot to the details below. The Third Quarter 2018 statistics revealed changes in our market, with the overall market becoming more balanced than in recent years. Inventory levels rose off the historic lows of recent years, yet median prices generally rose across the board. At the end of the Third Quarter, the number of available single-family homes in the Greater Park City Area decreased by 1%, vacant land availability decreased 4.7% and yet condominium inventory rose 22%. Clearly, there are some conflicting signals, so we are going to have to see what Q4 brings to see if this is a pause, or the start of a correction after six years of strong growth.
12 Month Rolling: August 2017 – September 2018 ($ has been rounded to nearest 500 or 1,000)
RELATIVE TO MEDIAN PRICING
When bringing your property to market, it is important to balance your pricing and timeline objectives. The charts below analyze the time on market against the median price within category type, and clearly demonstrate that those properties priced at or below the median are absorbed at a significantly higher pace.
Areas 1-9 Include: Old Town, Thaynes Canyon, Lower Deer Valley Resort, Deer Crest, Upper Deer Valley Resort, Empire Pass, Aerie, Prospector, and Park Meadows. Areas 10-27 Include: The Canyons, Sun Peak/Bear Hollow, Silver Springs, Old Ranch Road, Kimball, Pinebrook, Summit Park, Jeremy Ranch, Glenwild/Silver Creek, Trailside Park, Promontory, Quinn’s Junction, Deer Mountain, Tuhaye/Hideout, Jordanelle and South Jordanelle.
INVENTORY REMAINS LOW IN MOST SECTORS
PARK CITY LIMITS
The number of single-family home sales within Park City Limits (also referred to as Greater Park City) was relatively flat (off less than 2%) and the median price of $1.95 M remained the same as 12 months ago. By neighborhood, Old Town had the highest number of sales – up 10%, while there were 30% fewer sales in Park Meadows.
The median sales price climbed to $1.2 M – up 22% in the Snyderville Basin, and although there was a slight decrease in the number of sold homes, the Basin saw more than twice the number of sales than within the City Limits. In Silver Creek sales were up 53% and up 43% in median sales price – reaching $1.2 M. By neighborhood, Promontory had the highest number of sales, with 63 sold homes in the last 12 months. Activity in the Tuhaye / Hideoutarea had a sizable increase in the number of sales with a 28% median price increase – reaching $1.06 M.
Sales in the Heber Valley continued at a strong pace, with nearly one sale a day, and a 27% median price increase to $525,000. There were nearly twice as many homes sold in Red Ledges compared to last year, with a median sales price of $1.17 M. Midway continued to thrive with 107 closed sales and a 14% median price increase over last year reaching $573,000.
New growth continues to move eastward and southward to areas that still have developable land. The dramatic rise in construction costs is fueling the median sales price increases seen in the outlying areas, but active listings are still well below in-town Park City prices. The introduction of new developments will enhance this trend for the foreseeable future. As areas develop, much of what up until recently were considered “outlying areas” are now beginning to feel like another extension of town.
In the Kamas Valley, the number of sales decreased 8%, though the median price climbed 21% reaching $440,000. The number of sales in the Wanship, Hoytsville, Coalville, Echo, & Henefer areas dropped, while the median price increased 20% to $427,000.
PARK CITY LIMITS
Year over year, the number of condo sales within Park City Limits was down 5% but up 8% in median price to $820,000.
The Snyderville Basin reported essentially the same number of sales as last year with 291 units sold and saw a median price increase to $525,000.
The difference between these two larger areas may be attributed to the completion of new developments versus the reserved or pending status of to-be-built product. Expect to see continued large fluctuations as new developments are completed. Canyons Village and Deer Mountain both have the potential for enough new construction to influence future statistics in our market area.
The number of closed sales dropped 25% in the Jordanelle, possibly due to lack of inventory, as new construction developments have been completed and sold, leading to fewer units available; the median price increased 18%.
Park City Limits saw 13 more lot sales than last year and a 25% median price increase to just over $1M. By neighborhood, Promontory had the highest number of land sales within the Basin with 82 transactions, and the median price continued its upward climb reaching $450,000. Canyons Village saw increased sales activity and a 28% median price increase to $2.37 M.
Historically, July and August are the months where our market normally sees the highest level of inventory for homes and condominiums along the Wasatch Back. The current trend of sales volume is changing and we are seeing a continued upward tick of inventory which has not been seen for some time. This trend may signal a coming market shift in some sectors, although in some of the most desirable neighborhoods, it’s likely we’ll see a continued shortfall of for-sale properties and the median prices will likely remain strong.
The complexity of individual neighborhoods and micro-markets in the Greater Park City Area are significant. Please reach out for the most accurate, detailed, and current information.