2012 1st Quarter Statistics

By parkcityboardofrealtors
Apr 27, 2012

PRESS RELEASE

FOR IMMEDIATE RELEASE: April 20, 2012

For further information Contact Park City Board of REALTORS®

Mark Seltenrich  -  Statistician  -  435-901-1561  -  mark@markinparkcity.com

Tami Whisker  -  President  -  435-640-2777  -  twhisker@pru-utah.com

Jeff Spencer  -  President-Elect  -  435-640-4770  -  jeff@resortswest.com

Park City, Utah –The highlight for the first quarter of 2012, as reported by the Park City Board of REALTORS®, is that the median sales price for vacant land and condos, in all areas, has gone up. The median sold price for condos went from $335,000 in the first quarter of 2011 to $401,628 for quarter one in 2012. Vacant land also saw a rise in median sold price from $134,500 in 2011 up to $200,000 in 2012. The overall sales dollar volume for quarter one, however, came in at $235 million, down from the first quarter of 2011 when overall sales topped $254 million. The total number of sales is also lower for the first quarter of 2012, with 338 sold properties, where as last year the number was 374.

Prices Median prices in the first quarter of 2012 have rebounded nicely from lower numbers which dominated much of last year.  This increase in price can be directly attributed to an increase in condo and vacant land prices. The all area median price for single family homes is slightly lower for the first quarter of 2012 at $475,000 compared to $515, 000 in 2011.  By area, first quarter statistics for single family homes are as follows: within the Park City Limits there were 37 sales with a median price of $1,130,000. In the Snyderville Basin Area, there were 41 sales with a median price of $489,900. In the Heber Valley, there were 36 sales with a median home price of $248,450.

A year ago, we continued to see downward pressure on prices which seems to have flattened.  “Prices throughout our market seem to have stabilized, and in certain segments prices have started to increase.  We saw this trend start in 2011 with single family homes, and we are now seeing it in condo and vacant land sales,” says Mark Seltenrich, statistician for the Park City Board of REALTORS®.  He adds, “In certain parts of the market, and in certain areas, some pent up demand is being demonstrated and even among buyers there is little talk of prices continuing to fall.”

Number of Sales The total number of sales in the first quarter is the lowest quarter total since the first quarter of 2010.  This lower number can be directly linked to slow sales in January, which followed a slow December in terms of pended sales.  This slow January appears to be an anomaly as the number of pended sales in February increased, and March saw the highest number of pended sales since mid-year 2007.  This high number of contracts portends well for second quarter numbers.

Sales have occurred in all market segments, with the very high end in upper Deer Valley and in Deer Crest doing well.  On the other end of the scale, low end condos and low priced lots are becoming more and more difficult to find.  Sales of new product has continued, and now the abundance of new developer units in the Empire Pass area has ended with only Montage having any stock of brand new units.  Sales of new product in the Jordanelle area has also been quite active, with sales occurring on units that are nothing more than a drawing on a map.

Distressed Properties Another point of interest is in the category of distressed properties which has become a smaller portion of our market. According to Rick Klein of Wells Fargo Home Mortgage, distressed sales, which include both foreclosures and short-sales, made up about 23% of sold properties in the first quarter of 2012, compared to over 36% in first quarter 2011.  Specifically, 16% of all sales were bank owned and short-sales were just over 7%. However, distressed sales will continue to make up a good share of the market as notices of default have once again had an uptick in the last quarter of 2011 and the first quarter of 2012. Currently, only 7% of listings in Summit County are distressed.

Inventory Another positive outlook for 2012 is that inventory levels have continued to decrease at a steady pace, with about 2100 units on the market now compared to about 2400 units in 2011, about 2775 in 2010 and about 3500 units on the market in 2009. At the end of 2011, prices for condos and vacant land continued to fall, while home prices saw a very slight rise.  It was predicted at the beginning of 2011 that prices would stabilize more than they did. “It was mentioned many times that we were in a strong buyer’s market and that at some point prices would stop falling and start to rebound.  It now looks like that has happened, and even though prices are still excellent, the chances of prices going down overall look very slim,” says Seltenrich.

In Summary In the first quarter of 2012, the number of sales was somewhat lower than a year ago, but prices rebounded nicely.  The increase in the median sale prices in all areas is due to both condo prices and vacant lot prices going up in value.  It appears that the bottom of the market has now passed in all property types. Although singular great deals will still occur, it will be more and more difficult to find those great deals and buyers should be content with finding a property that meets their needs and wants, at a good price, as opposed to that “steal”.  Prices have flattened, inventory levels are down, and with the great interest rates and still a good selection, 2012 looks like it will be an excellent time to invest in Park City.

 

The Park City Board of REALTORS® (PCBR) is a trade association of over 800 members comprised of REALTORS® and Affiliates from the greater Park City real estate industry.  PCBR analyzes and reports on real estate trends for the greater resort community of Park City.

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Economist breaks down housing market for Park City

By parkcityboardofrealtors
Feb 17, 2012

Economic outlook good, weary of political tax efforts
Posted:   02/17/2012 04:48:31 PM MST
 
Click photo to enlarge
Chief Economist of the National Association of REALTORS Lawrence Yun addresses the Park City...
Chief Economist of the National Association of REALTORS Lawrence Yun came with facts and figures in hand to speak to the Park City Board of REALTORS about the national housing market Thursday. His assessment was a positive one: trends show the housing market is headed toward stabilization.

"There are many indicators that things are starting to show much better numbers," Yun said, "both economically and in housing."

Perhaps one of the biggest issues areas like Park City will face in the future have less to do with the economy and more to do with government. As a way to raise tax revenue, lawmakers are considering removing tax breaks for those buying a second home.

"The government is considering removing interest reduction for second-home purchases," Yun said. "That would have a very harmful impact for markets like Park City. If that tax benefit is taken away, then it will make it less desirable to buy second home."

With a market so reliant on those buying second homes, Park City and other resort towns would have a lot to lose if such legislation came into effect. If this type of law is adopted, Yun suspected it would be after the elections at the end of this year.

"We work very hard at the state legislature to watch what kinds of bills come up that could cause problems for Realtors," said Park City Board of REALTORS president Tami Whisker. "We're one million strong nationally, and we can take a stand."

Yun said lobbying efforts are already underway.

"We hope it doesn't happen, but it is something Washington is seriously considering," Yun said. "It's coming up, discussion after discussion."

While politics may leave some concern, the economy itself is looking up.

Nationally, home prices are down by 33 percent from peak prices, with most American homes still undervalued in the sale price, he said. Nationwide, investors are picking up real estate at bargain prices, and in doing so breathing some life back into the market. Simply put, it's a buyer's market, but that's not necessarily bad.

The same has been true for Park City. Home prices are down, the number of sales are up.

"I know these numbers," Whisker said. "We've seen the same trends just much softer than other areas of the country."

Yun speculated that a wave of renters may be looking to buy in the near future too. In the past few years more people have opted to rent, move back home or find an extra roommate, but Yun said that option could only go on so long before rent prices start to dramatically increase.

Faced with renting at higher prices or buying at low prices, Yun suspected people would chose to own. He described the renters market as a spring slowly being compressed, and eventually that spring would pop and flood the real estate market with people looking to buy.

The biggest hurdles the housing market faces is building American confidence and getting banks to back home loans at current interest rate levels, Yun said.

Local Realtors agree.

"There's a glimmer of hope," said Park City Realtor of six years, Patrick Giblin, "but I think keeping access to loans available to consumers and buyers and keeping that consumer confidence up is what we need to focus on now."

 

Click Here to read the story in the Park Record

Tags: Park City Board of Realtors, Park City Real Estate, NAR, Economist, Dr. Yun
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2011 PCBR Final Statistics

By parkcityboardofrealtors
Feb 14, 2012

PRESS RELEASE

FOR IMMEDIATE RELEASE: February 1, 2012

For further information:

Mark Seltenrich Statistician 435-901-1561 mark@markinparkcity.com

Tami Whisker President 435-640-2777 twhisker@pru-utah.com

Jeff Spencer President Elect 435-640-4770 jeff@resortswest.com

 

Park City, Utah – Real estate sales in Park City surpassed the billion dollar mark for the seventh time in 2011. Year-end statistics from the Park City Board of REALTORS® show an overall sales dollar volume of $1,077,426,368, up 6% from $1,013,432,555 for 2010. The number of sales continue to trend upward with 1,662 closed sales for 2011, up 17% from the 1,418 closed sales in 2010 and up 32% from the 1,131 sales in 2009.

Inventory levels have decreased since last year, with about 2,300 properties listed for sale compared to about 2,750 in 2010, a 13% decrease.  Sales activity remains strong, which can be attributed to the reduced home, condominium and vacant land prices and the positive economic conditions in the state of Utah.  For the Park City area, tourism, resort industries and a nationally ranked public school district continue to draw both primary and secondary home buyers.

It was predicted that 2011 would look much like 2010, and that turned out to be true.  Just as in 2010, in 2011 the number of sales was up while prices continued to decline.  The exception to this is that prices in some neighborhoods and some property types seem to have stabilized. Prices have declined in many areas and property types with the following exceptions: home prices overall and particularly in the Snyderville Basin were either flat or saw an increase, while vacant land prices in the Snyderville Basin and in the Heber Valley were either flat or have increased. “The market continues to be active, with the number of sales in all four quarters of 2011 being strong, with the second quarter of 2011 having the most sales that we’ve seen since the fourth quarter of 2007,” says Mark Seltenrich, Statistician and Past President of the Park City Board of REALTORS®.

Prices Median sold prices in 2011 were down 13% for our overall market, although single family homes continue to be the strongest part of our market with a 1% increase.  Condo median prices were down 16% and vacant lot median prices were down 13%.  While the percentages improved in the second and third quarters, they are still well below where they were predicted to be at the beginning of the year.

Number of Sales The number of closed sales in the Park City area in 2011 was up substantially over 2010. Home sales increased by 19%, condo sales were up 10% and vacant land sales were up 23% in 2011 compared to 2010.  Just as had been noted throughout the year, the number of overall sales and home prices in particular are the two bright spots in our market.

Single-Family Homes Home prices may be stabilizing. Although certain neighborhoods are still seeing declining prices, other neighborhoods are experiencing increased prices. This is similar to the national trend where the year end statistics showed three straight months of improved sales and is characterized by the National Association of REALTORS® as a “market in recovery.”

In reviewing the data for individual neighborhoods, some areas are certainly doing better than others.  Median home prices in Old Town are down 14% to about $817,500 while median home prices in Park Meadows are down 7% to an even $1,000,000.  Median home prices are also down 2% to about $609,000 in the Silver Springs area.  However median home prices in the Sun Peak area are up 25% to a median price of $872,500, up 12% in the Old Ranch Road area to a median price of $1,500,000 and up 13% in Pinebrook to a median price of about $642,500.  Conversely, median prices in Jeremy Ranch are down 11% at $624,000.

Condos Median condo prices inside the city limits are down about 28% from a year ago to a median price of $539,500, while median prices in the Snyderville Basin area are down about 15% to a median price of about $260,000.  However, there are some areas where median condo prices have increased, including Empire Pass (up 25%), the Prospector area (up 12%) and Sun Peak (up 4%).

Vacant Land Median lot prices were down about 18% inside the city limits, and were flat in the Snyderville Basin (exactly the same at a median price of $160,000).   However, just as with home and condo prices, certain neighborhoods did post median price gains, including Promontory (up 7%) and Summit Park (up 59%).  The Promontory area had by far the highest number of sales in an individual area, accounting for over half of all lot sales in the Snyderville Basin area.

Foreclosures As in 2010, foreclosures continued to be a significant part of our market in 2011.  As reported previously, the number of Notices of Default (NOD’s) in Summit County peaked in the third quarter of 2009 and has been falling since.  In fact, the number of NOD’s in 2011 was about half of what it was in 2009, and about one-third fewer than in 2010.  The number of Trustee’s Sales (foreclosures) peaked in the fourth quarter of 2009 and has also been generally falling since.  The total number of foreclosures was down in 2011 about 25% from the higher numbers seen in 2009 and 2010.  “The numbers are still historically high, but it is a positive sign that those numbers are decreasing,” says Seltenrich. As for actual sales of distressed properties in our market, about 30% of all sales were distressed, a high number but down from 2010.   Distressed sales still make up about 7% of all properties on the market.

The number of Wasatch County foreclosures is declining but the number of NOD’s remained elevated throughout 2011.  So even though there were fewer foreclosures in Wasatch County in 2011 than 2009 and 2010, the number of foreclosures is likely to increase in 2012 compared to 2011.

Looking Ahead Prices in our market have, in general, been falling for four straight years, with many parts of our market being 40-45% below where those prices were at the peak.  Similarly to how many erroneously thought in the mid-2000’s that prices would keep rising “forever,” it is just as erroneous to assume that prices will keep falling as they have over the past four years.  It appears that prices have now corrected in virtually all parts of our market, and although price increases will probably be slow, future sizable declines seem unlikely.  It continues to be a buyer’s market, but choices are declining as the distressed properties are being purged from the market.

The bottom for home prices has probably already past, and that may be true of lot prices as well.  Condos are probably nearing their low point or will reach that point in 2012.  There continues to be strong buyer interest and activity, and hopefully the number of sales will be similar in 2012 to what they were in 2011.  Properly priced properties will continue to sell, while properties that are priced too high will languish. Seltenrich advises, “With different neighborhoods responding differently to the current market, it continues to be very important to consult with your local REALTOR® to understand what the market is doing in your area.”

The Park City Board of REALTORS® (PCBR) is a trade association of nearly 900 members comprised of REALTORS® and Affiliates from the greater Park City real estate industry.  PCBR analyzes and reports on real estate trends for the greater resort community of Park City.

Tags: Park City, Park City Board of Realtors, 2011 statistics, Housing, Real estate
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Real estate market rebounding

By parkcityboardofrealtors
Feb 14, 2012

Report analyzes ups and down of 2011

Posted:   02/07/2012 05:01:45 PM MST
The Park City Board of REALTORS shut the book on the 2011 real estate market, releasing their annual report on last year's number of sales, sales prices and number of foreclosures. 2011 sales increased by a total of six percent from the year before pulling in a total of $1,077,426,368, making it the seventh year real estate sales exceeded the one billion dollar mark.

Though numbers were not as high as the peak in 2005 of more than $2 billion, realtor confidence is growing in Park City. More are ready to believe Park City real estate has reached its bottom and the market is starting to climb its way out from the low point in 2009, where total sales fell to $867,230,118.

"I think this report is good news," said Park City Board of REALTORS president Tami Whisker. "I feel like we're starting to see signs of stabilization in certain areas, which is amazing."

A Buyer's Market

In any market, the buyer or seller is favored more than the other. Park City was no exception. Prices fell for the fourth straight year, leaving many areas of the market an estimated 40 to 45 percent below what prices were at their peak. But falling prices are not all bad, as prices have drawn more first-time buyers into the area.

"The market in recovery, but it keeps improving," said Mark Seltenrich, the Park City Board of REALTORS statistician. "Of course we would like to see homes sell for more, back to kind of numbers we saw a few years ago, but we have a ways to go. It is still a buyer's market."

Whisker said that as the number of properties available shrinks, the supply and demand model will shift the market back into a seller's market.

"I believe it's a good sign that inventory is shrinking," Whisker said. "Financing can still be a challenge but there is a lot of activity I feel confident going into the rest of the ski season that the sales activity will continue."

Number of Sales Up

The number of sales in the Park City area increased by double digits in 2011. Home sales increased by an estimated 19 percent, condo sales increased by 10 percent, and vacant land sales saw the largest increase at 23 percent more in sales from 2010.

The Economic Development Director for Park City Jonathan Weidenhammer said with more homes sold, the city is able to collect property taxes feed into the community.

"The Park City market demonstrates strength and resilience," Weidenhammer said. "These sales help our resort economy, and the real benefit on the city side is what we can collect for property taxes. Those numbers continue to be strong, making up half of our annual budget."

Prices of Sales Down

Several neighborhoods, including areas such as Old Town and Jeremy Ranch, continue to see home values drop, but properties in areas such as Old Ranch Road, Pinebrook and Sun Peak sold well above 2010 market prices.

"With the prices dropping, a lot of people from around the state who couldn't afford to live here before, are able to live here now," Whisker said. "Maybe someone who lived and worked in Salt Lake City moved to Park City because they could afford to."

Median Old Town home prices were down 14 percent, with the median price at $817,500. In Jeremy Ranch, that number was closer to 11 percent, with the median home selling at $624,000.

On the other side of the scale, Sun Peak home sale prices were up 25 percent, Old Ranch Road home sales were up 12 percent and Pinebrook was up by 13 percent.

Foreclosures Down

According to the report, sales of foreclosed properties continued to make up a significant part of the market in 2011, but since 2009 the number of foreclosures continued to decrease. In 2011, foreclosures fell by roughly a third of the number in 2010, totaling half of the foreclosures from the peak in 2009.

"I think we're going to continue to see foreclosures," Whisker said, "but we like to see that they're falling in number. Once we can get rid of the foreclosures on the market, property values will hopefully return back to normal."

Statewide it's Good News

Statewide optimism is growing as well.

And while home values haven't risen to where they were just before the housing bubble burst, that's not the largest indicator that the market is in recovery.

"We're seeing home sales up for the entire state of Utah," said Utah Association of REALTORS Communications Director Deanna Devey. "That's a reflection of the housing market improving as a whole, a reflection of the job market improving and confidence returning. Our home sales ending in 2011 were highest they've been in three years."

Statewide numbers have improved, Devey said. The state increased home sales by 8.6 percent in 2011, with Summit County just surpassing that number. Wasatch County, portions of which were included in the report, had the second highest increase in home sales in Utah.

"In 2003 Utah sold 31,050 homes," Devey said. "This year we did better than we did in 2003. I track these numbers religiously and they've just been getting better and better every month."

Link to this article in The Park Record

Tags: Statistics, 2011, Park City Board of Realtors, The Park Record, News
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Park City Board of Realtors Q3 Statistics

By parkcityboardofrealtors
Dec 02, 2011

— PRESS RELEASE  —

PARK CITY SALES ACTIVITY REMAINS STRONG

Inventory Levels Decreasing

Park City, Utah – Through the first three quarters of 2011 Park City continues to have one of the more active real estate markets in the state. Sales activity remains strong, which can be attributed to the positive economic conditions that exist in the State of Utah and reduced home, condo and vacant land prices. The strength of the tourism and resort industries, along with the quality of the public school system continues to draw real estate investment from primary and secondary residents. “We are seeing demand increase over the first three quarters of 2011 and inventory levels are down 9% with 2500 units currently on market compared to 2750 in 2010”, according to Mark Seltenrich, Past President of the Park City Board of REALTORS®. The number of sales through the first three quarters of 2011 was 1,261, up 18% from 1,066 in 2010 and up 86% from the same period in 2009. However prices for many property types remain soft. Although prices in the second quarter showed a rebound, the trend did not continue into the third quarter. Overall sold prices were slightly higher than in the first quarter, but for the most part remain well below where they were in 2010.

Sales of Single-Family Homes

The single family home segment continues to be the strongest part of our market, representing 46% of all sales and 59% of the total dollar volume. “The overall number of sales and single family home prices are the two bright spots in our market” according to Seltenrich. The data indicates the single family detached housing market is on the rebound and prices are on the rise in a number of neighborhoods. The average price of homes for the entire Park City market was up 5% over the same time period in 2010, while median prices were up 9% to $548,750 from $502,500 a year ago. Homes are selling at about 5% off the last listed price, very close to the historical norm.

Condos

The downward pressure on condominium prices that we have seen for some time continues through the third quarter of 2011.  Median prices throughout the market area are down 19% from a year ago to $325,000.  Median prices within the city limits have fallen even further with a 39% decline to $539,000, although this large drop can be attributed to fewer high end condo sales in upper Deer Valley. However, sales at the Montage Resort were strong enough to bring the average price of a condo in the Empire Pass area to well over $2 million.  Prices in the Snyderville Basin area are down 16% to a median price of $260,000. Condo prices are down in nearly all areas although we are seeing average condo prices up in a few areas including Empire Pass (now $2,263,000), Prospector ($153,000) and Silver Springs ($338,000).

Vacant Land

The vacant land segment has been the most affected in the economic downturn. Median lot prices are now $165,000, down 23% from $215,000 a year ago. Average lot prices, are down in many areas, although for this year they are higher in the Park Meadows and the Promontory area. This is noteworthy as Promontory has seen a high number of lot foreclosures over the past few years.

Neighborhood Prices

As mentioned above, prices for condos are down in most areas while prices for single family homes are up in many areas.  Average home prices in Old Town are down 39% to about $872,000, while average home prices in Park Meadows are up 10% to about $1,243,000. In the Silver Springs area, a frequently sought out neighborhood for full time residents, home prices are up 4% to about $661,000. Pinebrook also reflects an increase of 9% to an average of about $666,000, while average prices in Jeremy Ranch are slightly down at $682,000.

Foreclosures

As we have seen for quite some time, sales of distressed properties continue to be a major part of our market. Distressed sales in the third quarter made up about 27% of all sales, although this is actually down from about 35% earlier in the year. Distressed sales continue to make up about 7% of all properties on the market; however, there seems to be a downward trend on Notices of Default in Summit County, while they have actually increased in Wasatch County. If the downward trend in Summit County continues, within two to three quarters distressed sales will not have as much impact on the market.

Looking Ahead

When comparing the first three quarters of 2011 to the first three quarters of 2010, the number of sales is well up while in general prices are down. Single family homes remain the strongest part of our market and that segment is an important part of our overall community, usually families with student in our local schools and homeowners who are contributing to our local economy.

Buyer interest and activity continues to be strong, and overall with prices still down it continues to be a buyer’s market. We are seeing some strengthening of prices in certain neighborhoods and now, more than ever, it is important to consult your local REALTOR to understand what the market is doing in your area.

The Park City Board of REALTORS® (PCBR) is a trade association of more than 900 members comprised of REALTORS® and Affiliates from the greater Park City real estate industry.  PCBR analyzes and reports on real estate trends for the greater resort community of Park City.

Tags: Park City, Realtors, Statistics, Q3, 2011
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Q2 Stats - Article from the Park Record

By parkcityboardofrealtors
Jul 29, 2011

Real estate inventory down, demand up

Foreclosures continue to depress prices, recovery quicker in some areas
Posted: 07/26/2011 04:35:28 PM MDT
Click photo to enlarge
Lower prices spurred buying the most seen since the fourth quarter of 2007. Graph by Pat...
Halfway through 2011, signs of growth in the Park City real estate market are clear. The single-family home market is strong; prices for condos and lots, however, are still falling.That's according to the Park City Board of Realtors' 2nd Quarter Report Summary released last week.

The three clearest signs of improvement are changes in single-family home prices and foreclosure rates and a steady decline in inventory.

Single-family homes strong

Single-family home sales are up 24 percent over last year. They accounted for 44 percent of all sales and 55 percent of total dollar volume. The median price for Summit and Wasatch counties is also up one percent, with greater increases in some neighborhoods. On average, houses are also selling at about five percent off the final list price, which is close to the historical norm, the report said.

Foreclosures down

Distressed properties are still driving the average sale price of condominiums and vacant lots down below 2010 levels, but foreclosure sales are now only 27 percent of the total (down from 35 percent one year ago) and the properties only represent seven percent of all those on the market, the report said.

Inventory down

There are now about 2,700 units on the market. That inventory level is below the 3,060 in 2010. Brisk sales, if continued, are predicted to improve that further.

However, when comparing the second quarter of 2011 with that of 2010,

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it is clear the market is still soft.Prices still down

Low prices caused by the distressed properties on the market are still resulting in a high number of transactions. The period examined in the report saw the greatest number of sales since the fourth quarter of 2007.

That's good for buyers, Realtors and people needing to sell. The number of sales overall is up 24 percent over last year. Condominium sales are up eight percent and lot sales are up 55 percent.

Condo sales prices are down from a year ago. They have fallen 32 percent in the Canyons area and 23 percent at Kimball Junction. Condo prices are actually up in certain neighborhoods, but the average sales price is down for the entire area.

Vacant lots selling

Vacant-lot sales were the slowest, weakest part of the market during much of the recession. With prices down, buyers are perceiving bargains, the report said. Promontory alone accounted for 42 percent of all lots sold, the remainder being scattered throughout the area. Promontory prices now are actually on the rise, suggesting prices have "bottomed out" there, the report said.

Reason for optimism

Perhaps the most optimistic data in the report came from comparing the second quarter of 2011 to the first. While not much has changed since 2010, there is significant improvement since the beginning of the year, especially in the average sale price of single-family homes.

Mark Seltenrich, one of the report's authors, said single-family homes have always been the strongest segment in the market. In part, that's because Park City continues to attract people who want to make it their primary residence.

The profile of primary residence shoppers is very similar to vacation home shoppers, said broker Jess Reid.

And affordability is "off-the-charts good," said Prudential head Steve Roney.

Low prices have spurred activity and, as inventory goes down, the area is beginning to experience the results of decreased supply and increased demand, Roney added.

Foreclosures still a factor

Wells Fargo mortgage broker Rick Klein said fewer single-family homes are in distressed sales - 23.5 percent of homes for sale versus over 29 percent of condos for sale. Klein added that there's an old adage that condos "are the first to fall and the last to rise," although he isn't sure why that is.

Seltenrich said Canyons and Kimball Junction condos have likely been so hard hit because they were the last be built before the recession and were bought at the peak of the market. Those condos finished since the start of the economic downturn appear to be faring better, he said.

Klein said over half of the condo sales in lower Deer Valley, Canyons area and Kimball Junction were distressed.

He also predicted it will be another six to nine months before distressed sales stop impacting market prices.

Lending up

Seltenrich, Reid, Roney and Klein all agree bank financing for qualified buyers is getting easier, but about half of all transactions are still paid with cash.

That was common before the recession as well, Roney said.

The best news to come out of all of this, Roney added, is that buyers have recognized the market's bottom has been hit and they're now off the fence. The results of this are beginning to be seen.

"The evidence with lot sales is really, really good; it means recovery. It means people are thinking about building," he said. "You only think of building when you can't find what you want in the inventory, or if you're a speculative home builder and think there's not enough inventory."

Recovery slow, but steady

Seltenrich and Reid don't disagree, but believe a full recovery is months away.

"Consumer confidence is still way below where we were several years back," Seltenrich said. "With real estate, I don't see a quick increase in prices or sales volumes."

"It's soft and going frustratingly slow," Reid said. "The Board's report is certainly a legitimate positive spin but we're in a soft recovery for a couple of years."

Reid said the recovery is "looking good, but not feeling so good." But that is how most Park City businesses are feeling, he added.

The quarterly reports used to include a breakdown of average sale prices for each neighborhood. With so many factors impacting each development, averages would not be helpful, the report said. People are encouraged to contact a local Realtor for an opinion on a particular property or neighborhood.

Click Here to read this article on the Park Record

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Press Release

By parkcityboardofrealtors
Jul 23, 2011

SALES IN SECOND QUARTER 2011 HIGHEST SINCE 2007

Sales Up but Prices Still Down

Park City, Utah – July 22, 2011 – As reported by the Park City Board of REALTORS® Multiple Listing Service (MLS), there have been two straight years of relatively good real estate sales since the low at the peak of the Great Recession. Even better news, however, is that the second quarter of 2011 saw the highest number of sales since the fourth quarter of 2007. Overall inventory levels have also decreased since last year, with about 2700 units currently on market compared to 3060 in 2010. However, prices have yet to recover and remain soft.

The number of sales is looking healthy through the first half of 2011 compared to the first half of 2010. Total sales are up 24% with the increase in the number of sales of single family homes up that same 24% amount. Condo sales are up 8% while lot sales are up significantly at 55%. This noteworthy increase in lot sales bodes well for future new home starts which will contribute to our overall economy.

In reviewing the sales figures to date and the variation between the different areas, it has become even more evident that for homebuyers and homeowners to fully understand the market and the corresponding pricing in an individual neighborhood or market segment that one should consult a local member of the Park City Board of REALTORS®. For example, when comparing the first half of 2011 to the first half of 2010, area wide home prices are basically flat. However, upon a closer look average home prices in Old Town are down 16.5% to about $1,019,000, while average home prices in Park Meadows are up 8.9% to about $1,065,000. In the Silver Springs neighborhood average home prices are up 9.7% to about $668,500, while home prices in Pinebrook are slightly down to an average of about $662,000 and in Jeremy Ranch average prices are slightly up at $730,000. So throughout our area there is a wide variation.

Sales of Single-Family Homes

Activity in the single family home segment of the market is strong, with home sales accounting for 44% of all sales and 55% of the total dollar volume. Overall sales volume is up 24%, while prices are also reflecting an uptick with a 1% median price increase. Also interesting to note is that homes are selling at about 5% off their final list price, very close to the historical norm. The percentage of sales price being tied more closely to list price reflects more realistic market list pricing.

Vacant Land

The vacant land segment has been the most affected in the downturn, but now we are seeing that segment coming back the strongest in terms of number of sales. The strongest activity in lot sales has been in the Promontory area due to buyer’s perception that they are receiving a great value for their money. Our analysis reflects that the market in Promontory may prove to have hit bottom, with average prices on the rise. Promontory lot sales accounted for 42% of all lots sales this period. Although lot prices are down in many areas, they are higher inside city limits year to date 2011 than they were in 2010.

Condos

Condo prices in general are below where they were a year ago. Condo prices in the Canyons area are down 32% from a year ago to an average of $485,000, while prices in the Kimball Junction area are down about 23% to an average of about $175,000. However, average condo prices are up in several areas including Empire Pass (now $2,590,000), the Prospector area ($167,000) and even Park Meadows ($741,000).

Prices

Median prices are down 15% for our overall market, although single family homes continue to be the strongest part of our market with a one percent increase. Condo median prices are down 23% and vacant lot median prices are down 29%. However, when comparing just the second quarter of the year to just the first quarter, home prices are well up (median price of $575,000 vs. $515,000) while condo prices are slightly up (median price of $341,500 vs. $335,000) and lot prices are up as well (median price of $208,000 vs. $134,500). If these trends continue, by the end of the year prices still may be relatively the same as what they were in 2010.

Foreclosures

Sales of distressed properties remain a major part of our market, but have dropped to 27% of all sales, down from 35% of all sales at the end of the first quarter. These properties continue to represent only 7% of all properties on the market.

Looking Ahead

In summary, when comparing the first half of 2011 to the first half of 2010, the number of sales is well up, while in general prices are down. Single family homes remain the strongest part of our market, with homes accounting for about 44% of all sales and about 55% of the entire dollar volume. Home prices for the first half of the year are basically flat compared to 2010, but have increased significantly from where they were at the end of the first quarter 2011. There continues to be strong buyer interest and activity, and overall with prices still down it continues to be a buyer’s market. However we are seeing some strengthening of prices in certain neighborhoods and now more than ever it is important to consult with your local REALTOR® to understand what the market is doing in your area.

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The Park City Board of REALTORS® (PCBR) is a trade association of more than 900 members comprised of REALTORS® and Affiliates from the greater Park City real estate industry. PCBR analyzes and reports on real estate trends for the greater resort community of Park City.

1889 Prospector Avenue Park City, UT 84060 Phone: (435) 200-6900 Fax: (435) 200-6901

Source: Park City Board of REALTORS®

Tags: Park City, Realtor, Statistic, 2q
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Press Release

By admin
Apr 25, 2011

Buyer Interest Remains High

Luxury Hospitality Brands Broaden Buyer’s Market

Park City, Utah – April 22, 2011 – As reported by the Park City Board of REALTORS® Multiple Listing Service, real estate sales in the first quarter of 2011 in the Park City area looks much the same as it did in 2010. As predicted at the beginning of the year, real estate activity in the Park City area continues at about the same pace as what was seen in the latter half of 2009 and throughout 2010, with activity remaining steady and prices remaining low. Well-priced properties continue to see significant buyer competition through multiple offers and foreclosures remain a significant part of the market.

“Current activity levels are helping to reduce overall inventory,” declared Patrick Giblin, President of the Board of Directors for Park City Board of REALTORS. Inventory levels have decreased since last year, with approximately 2,400 properties currently on the market compared to 2,775 for the same time period in 2010 and about 3500 in 2009.

The number of first quarter 2011 sales was up 15% from first quarter 2010, with 374 sales for the period compared to 325 in the first quarter 2010. However, because of the lower prices, sales dollar volume was down at $254,000,000 versus $303,000,000 from the first quarter of the prior year.

Sales of Single-Family Homes

Single family homes continue to be the strongest part of the market and the only segment that reflected an increase in median price. Based on a rolling twelve month average, median prices for the first quarter of 2011 were $515,000 up 3% from the first quarter 2010 at $500,000. These figures reinforce the Park City market as both a destination resort and desirable year-round residential community.

Prices

Median prices appear to have taken a drastic drop in the first quarter of 2011 at $316,500 versus $437,000 for first quarter 2010, but this is seen as a combination of lower prices and what sold in the first quarter rather than a major drop in overall prices.  Although downward pressure on prices continues to occur, the large drop can be attributed to increased sales of low-end condos (mostly distressed sales) in the Kimball Junction and Jordanelle areas, increased sales of lots in all areas and increased sales of fractional product, primarily in the Canyons area. A better indicator of pricing is a review of the median prices based on the previous twelve months of sales.  When looking at this longer period of time, the median price for all properties dropped from $420,000 at the end of the first quarter 2010 to $375,000 at the end of the first quarter 2011.  An even more timely review shows that median prices dropped from $398,000 at the end of the fourth quarter 2010 to that $375,000 figure at the end of the first quarter 2011, about a six percent decline.  Giblin added “even with this drop in prices we are seeing this downward price trend reverse in some areas, particularly in the single family properties.”

Foreclosures

Sales of distressed properties continue to be a significant part of our market, with 35% of all sales in the first quarter being either bank owned properties or short sales.  This is especially noteworthy because although they make up over a third of all sales, these properties represent only 7% of all properties on the market.

Sales of distressed properties are expected to continue as the number of these properties is sizeable, although important to note the number in pre-foreclosure status is down from 2009 and 2010. These distressed properties will continue to put downward pressure on prices and it appears that foreclosures will continue to influence our market through the year.

Looking Ahead

It still appears that the outlook for the remainder of 2011 is similar to what was seen in 2010.  Sales activity is expected to continue at a strong pace, with the number of pending sales in the first quarter 2011 higher than any quarter since the summer of 2007. The high sales volume will continue to reduce inventory of for sale properties which is a pre-cursor to overall market improvements.

Park City is also seeing the benefit of its new luxury brands with Montage, St. Regis and Waldorf Astoria now fully operational and each with a loyal return guest following. These new developments are bringing fresh clientele to Park City that has never been to Utah before. The introduction of Park City into new buyer markets helps expand the prospective buyer base and helps drive demand.  REALTORS are now seeing significant buyer interest from new markets such as Texas and Northern California and internationally from Taiwan.

The Park City Board of REALTORS® (PCBR) is a trade association of more than 900 members comprised of REALTORS® and Affiliates from the greater Park City real estate industry.  PCBR analyzes and reports on real estate trends for the greater resort community of Park City.

Source: Park City Board of REALTORS®

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End of Year Report: Prices Down, Sales Up

By parkcityboardofrealtors
Apr 07, 2011

Quarterly reports from the Park City Board of Realtors tend to emphasize the positive, and the 2010 End-of-Year Report released last week is no different even though people wishing for a quick market recovery will find it sobering.

That's because, said past-president Mark Seltenrich and new president Patrick Giblin, no matter how bad it is, Park City is faring better than the Utah average, which is faring better than the national average.

In other words, no matter how bad the news, it's still good news in comparison.

The Bad News

"The outlook for 2011 is more of the same as what was seen in 2010," Seltenrich wrote in the report summary. "The market will continue to be very price sensitive it will continue to be a buyer's market ."

Median prices for all property types are down three percent from one year ago; mean average sale prices are down over seven percent, the summary said. Median prices for vacant land fell 50 to 60 percent in some areas, and 43 percent overall.

Sales of foreclosures account for more than one-third of all sales.

"Foreclosures will remain a major factor in the Park City market in 2011," the summary said.

In an interview Monday, Seltenrich said the mean average is down so low because high-end homes either aren't selling, or are selling for less. An example of this is the King Road Estates auction last week at which no one bid higher than the value of the note on the home even though that amount was less than half the original asking price.

Giblin said the number of foreclosures in the market has been a "huge wake up call."

"It was hard to predict," he added. "We thought we were an island, a bubble in the sky."

Regarding vacant land prices, Seltenrich said "we must go through some pain to get to where we want to be."

Condominium sales are likely not better because financing continues to be a struggle, he said.

The total number of units sold is up from last year, but except for the past two years, there has not been so few units sold in over a decade even though there is more inventory in Summit and Wasatch counties now.

Lastly, the Heber Valley continues to experience the steepest sale-price declines and may not have bottomed out yet, they said.

Overall, Seltenrich said the area's real estate is, in many ways, still "bumping along the bottom of the market."

"We'll be seeing a little appreciation this year, but it will be small," he said.

Good In Comparison

The board is not trying to hide or spin these facts, the two said, because much of it is good news when compared to the larger picture.

"The board tries to put that positive spin on things, and obviously there are a lot of negatives, but if we keep our noses to the grindstone and work together, the story in 2011 will be about pulling out and looking at the bright light at the end of the tunnel," Giblin said at the end of the interview.

According to the summary, total dollar volume in sales surpassed $1 billion because a large number of units sold for reasonable prices. That has only occurred six other times in history and is a 16-percent improvement over last year. Unit sales were up 20 percent over 2009.

Vacant-land sales were up 60 percent. Condo sales were up 22 percent. Single-family home sales were up over 26 percent and comprised 46 percent of all sales and 54 percent of total dollar volume, the summary said.

Property values in many neighborhoods appear to have bottomed out and are improving. There is reason to be optimistic about 2011, especially for single-family home prices, Seltenrich added.

Foreclosures and short sales continue to depress values, but the fact that they only comprise one-third of the market means sellers have adjusted to the new reality an important step to clear out inventory and to allow appreciation to begin again, Giblin explained.

What happened in the Park City real estate market in 2010 is simplified this way: prices came down and people are buying, they said.

That's good news, Seltenrich and Giblin said, because it speaks to the desirability of Park City real estate.

According to the National Association of Realtors, the number of sales in the West at the end of the year was down 1.5 percent.

According to Utah's Economy, a publication of Commerce Real Estate Solutions by Jim Wood at the University of Utah's Bureau of Economic and Business Research, the recession has so shaken Utah families that there is little appetite for homes.

"The lowest inflation and mortgage rates in 60 years, combined with 15 to 20 percent declines in home prices have done little to stimulate demand for housing," the newsletter said. "The current weakness is due primarily to a loss of demand."

Continued foreclosure rates in Utah which RealtyTrac.com has called some of the highest in the nation are only making it worse, it said. But when the price is right, people are jumping on Park City real estate, Seltenrich and Giblin said.

"Prices are down, but not down that much," Seltenrich said.

Looking at graphs tracking the past 10 years, he would compare current sale price averages with the end of 2006 and early 2007 near the peak. It also appears that the number of foreclosures in Summit County is in decline, the summary said.

Almost 400 more properties would need to sell in 2011 than in 2010 to get out of the units-sold slump, but the record set in 2005 was an anomaly and unsustainable, Seltenrich said.

Historically, Park City real estate appreciates at a five-to-seven-percent annual rate. There was a major dip around the time of the 2002 Winter Olympics; there was a steep increase in the middle of the decade, and then a sharp decline the last two years. But where Park City was in 2010 is really close to where it should be excluding the extreme peaks and troughs, he said.

"We're going in the right direction," he added.

Years from now, Seltenrich predicts, people will not look back on 2010 and 2011 as a dark period, but years of opportunity when they should have taken advantage of low prices and low interest rates.

Source: Park Record

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Local Housing Sales Activity Continues Upward Trend

By admin
Jan 27, 2011

Sales Volume Exceeds Billion Dollar Mark in 2010

Park City Board of Realtors Press Release

Park City, Utah – January 28, 2010 – Real estate sales in the Park City area, as reported by the Park City Board of REALTORS Multiple Listing Service, surpassed the billion dollar mark, putting 2010 as one of only six years where real estate sales reached that benchmark.

Overall sales dollar volume for 2010 was $1,009,582,720, up 16% from $867,430,118 for year-end 2009.  The number of sales continues to trend upward across the board for almost all property types, with 1421 closed sales for 2010 compared to 1131 in 2009 and 1341 in 2008.

Current activity levels are as high now as they have been in the last three years.  The most significant increase in number of units sold is in the vacant land portion of the market, up 60% in 2010 compared to 2009.  However, sales of single family homes also saw significant gains, up 26.4% from 2009 with 652 units sold compared to 516 units sold in 2009.  While single family homes actually saw a modest increase in median price, median prices are still down in most market segments.  “Buyers are recognizing value, which is creating a flurry of activity and increase in number of units sold,” remarked Patrick Giblin, President of the Park City Board of REALTORS.

While the National Association of REALTORS (NAR) is reporting a regional drop of 1.5% in existing home sales for the West, Park City’s real estate market continues to recover far above the pace of the regional and national real estate economy.  Local sales figures continue to reflect buyers demand to own in the Park City market.

Sales of Single-Family Homes Single family homes continue to be the strongest part of the market at 46% of all sales for the year, and 54% of total dollar volume.  These figures reinforce the unique aspect of our market as both a destination resort and desirable year-round residential community.

Median Price Median prices for all property types are down just under three percent compared to one year ago, with average prices down a little more than seven percent.  Prices in individual areas vary and certain neighborhoods have found their bottom.  Buyers are taking advantage of new technology by signing up for automatic price change alerts through their agent and then are prepared to act on that information.  Giblin added “activity is still dependent on pricing your home correctly.” There are indicators that prices may show a marginal increase in the coming year.

Lot Sales The largest surprise of the past year is the major correction in pricing seen with vacant land.  Median prices for all areas dropped 43%, with some areas experiencing 50-60% declines in vacant lot median prices in just the year from 2009 to 2010.  These huge price declines resulted in a large increase in the number of lot sales, with sales increasing 60% for all areas. Again, with such large price declines and a corresponding increase in the number of sales, it could indicate that we are near or at the bottom of the market for lot pricing as well.

Foreclosures Although the number of Notices of Default (NOD’s) dropped in 2010 by 32% in Wasatch County and 20% in Summit County compared to 2009 levels, foreclosures continue to be a significant portion of the market.  Bank-owned and short sale properties account for only about 10% of the total properties for sale, yet they made up 35% of all sales in our market in the second half of 2010.  These properties are priced very well and frequently attract multiple offers.  On a positive note, this means that close to two-thirds of our sales are market rate.

Foreclosures will remain a major factor in the Park City market in 2011, but it is anticipated that those numbers will decrease during the year as we move to a more stable market.

Increase in the Number of Sales The following provides a breakdown by category of the increase in the number of sales through year-end 2010 compared to 2009:

Single Family Homes          + 26% Condominiums  + 22% Land    + 60%

Looking Ahead The outlook for 2011 is more of the same as what was seen in 2010.  According to Mark Seltenrich, 2010 Board President, “The market will continue to be very price sensitive with properly priced properties selling.  It will continue to be a buyer’s market, and excellent deals, while becoming more rare, will still be able to be found.”

Interest rates remaining at record lows coupled with positive economic indicators are helping to drive the activity levels Park City is experiencing.  Pricing, however, seems to be the driving force to getting a buyer to act.  The number of sales could continue to rise in 2011, and the stage could now be set for a slight price increase to occur in 2011.

The Park City Board of REALTORS (PCBR) is a trade association of more than 900 members comprised of REALTORS and Affiliates from the greater Park City real estate industry.  PCBR analyzes and reports on real estate trends for the greater resort community of Park City.

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