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For further information, contact the Park City Board of REALTORS®

Park City Board of REALTORS® Serving Summit & Wasatch Counties

Mark Jacobson                                                          Rene Wood

President, Park City Board of REALTORS®              President-Elect, Park City Board of REALTORS®

markjparkcityre@gmail.com                                          Sold@ReneWood.com

(435) 659-1123                                                                    (435) 503-1181

 

October 31, 2021 – The remarkable rise in homes sold and sale prices that we experienced in the latter half of 2020 continued unabated through the third quarter of 2021. Sale prices showed strong appreciation with increases in both average (Up 26%) and median (Up 17%) prices as well as dollar volume (Up 80%) across the primary market of Summit and Wasatch Counties as reported by the Park City Board of REALTORS® Multiple Listing Service. Fears that the market might be overheated and that the boom could foretell another housing market balloon just before a crash to rival 2008 were quelled by consistent financial indicators pointing to a sustained bull market in housing.

A year ago, the third quarter began with the stay-at-home restrictions starting to be relaxed, the market reacted strongly with buyers coming out in droves. Open houses were resumed, and in-person showings once again became possible. Sales activity rebounded and the quarter finished with record breaking totals. The sales spurt continued for the next twelve months until June 2021 with each month’s sales numbers exceeding those of the previous year.

The pent-up demand for homes was finally satisfied by mid-summer and beginning in July weekly sales tallies fell short of the same week in 2020. But the volume of contracts and sales prices in the previous twelve months was enough to guarantee that, even with a slight slowdown in the pace of purchases, when 2021 ends the market will again set a new record for number of homes sold, total sales volume, and average/median price appreciation.

Price appreciation continues to be driven by a dearth of available inventory. Pending contracts continue to far outstrip new listings coming to market. PCMLS active inventories peaked in May 2020 at just over 2,000 listings and has been on a downhill slide ever since. At the end of September 2021 there were only 394 residential properties for sale across the entire marketplace, an 80% decline from the year earlier.

Some neighborhoods always fare better than others and the results for third quarter were no exception. Not one of the major market areas had any negative sales results to report when comparing the 12-month rolling averages with the same period the year before. Within Park City limits, sales were up 30% and sale prices jumped 22 to 28%. In the Snyderville Basin, sales climbed 23% with average and median prices spiking 44% and 34% respectively.

New listings and listing inventory, however, were a totally different story with both dropping to historic lows. Comparing the 12-months ending September 30, 2021, to the same period in 2020:

• New residential listings for the third quarter of this year were 884, down 33% from the 1,243 in 2020.
• With less inventory to sell, Pending sales were also down. PCMLS members signed 1,078 purchase contracts in Q3-2021, nearly one-third fewer than the 1,506 in Q3-2020. Those few homes coming to market, were snatched up almost immediately maintaining the dramatic drop in inventory.
• With Pendings running higher than New Listings, available inventory started to shrink even more dramatically. 384 properties were active at the end of Q3, compared to 459 at the end of Q2. The active inventory is barely more than 20% of our pre-Covid low water mark (1,715) in December 2017.

How did the local market fare? Here is our take on the total year-long results reported on a rolling year-over-year basis for the period ending September 30, 2021.

Single Family Homes

• Within Park City Limits, total unit sales were up 30% over 2020 to 297 units while sales volume climbed 58% from $622 million last year to almost $1 billion this year.
• The median price of a single-family home across the city rose 28% to $2.93 million.
• In the popular Old Town area units sold jumped 67% (67 to 112) and sales volume nearly doubled (to $267 million) as the median price topped $2.2 million.
• The Thaynes Canyon neighborhood bumped Aerie for the grand prize for greatest increase in median price, nearly doubling over the year earlier to $4.1 million.
• Snyderville residents saw a spike in sales volume (up 23%) while the median price tracked equally well, up 34% to $1.9 million.
• Promontory led the Snyderville neighborhoods in sales units (145, up 42%) and dollar volume ($487M, up 91%) while Canyons Village saw the biggest price increase with the median in that neighborhood passing $11.7M, up 89% year over year.
• The hotspots south and east of the metro area around the Jordanelle reservoir continued to be popular. Deer Mountain nearly doubled its sales volume on a 55% increase in median sale price of $1.8 million. Prices were particularly robust in the Tuhaye/Hideout area, where the median rose 36% to $2.6 million.
• Heber Valley saw a slight dip in sales units, but 39% higher sales volume propelled by a median price that jumped 39% to $835,000.

Despite fluctuations in the regional markets, Single Family sales activity on a region wide basis was markedly up compared to the year prior with unit sales up 16% and median prices up 50%.

Single Family Summary End of Q3 2021	Qty Sold	% Chg	Sales Volume	% Chg	Average Price	% Chg	Median Price	% Chg
Park City	297	30%	979,948,290	58%	3,379,132	22%	2,935,000	28%
Snyderville Basin	534	23%	1,448,562,096	77%	2,722,861	44%	1,898,475	34%
Jordanelle	102	26%	257,068,482	55%	2,520,279	23%	2,525,000	15%
Heber Valley	385	-4%	463,855,012	39%	1,204,818	44%	835,000	39%
Kamas Valley	147	18%	178,105,790	49%	1,211,604	27%	905,000	57%
Wanship/Hoytsville	66	8%	48,826,527	49%	739,795	38%	600,000	20%
Total Primary Market Area (Summit & Wasatch Counties)*	1,537	16%	3,382,697,848	63%	2,213,807	40%	1,546,000	50%

*Totals may not foot due to Primary Market totals that include only Summit and Wasatch counties.

Condominiums

• The Condo market in Old Town Park City continued to be solid with sales up (45%) in units on a MODEST gain in median price of 7% to $729,000.
• Empire Pass was the standout neighborhood performer with sales nearly tripling driving the median price over $3.0 million, up 34%.
• Lower Deer Valley sales were very strong. Units sold more than doubled and sales volume more than tripled as the median price jumped 28% to $1.4 million.
• In the Snyderville area, outside of perennial volume leader Canyons Village, Pinebrook lead in unit sales (96, up 118%) while Sun Peak/Bear Hollow and Kimball tied for the sales volume lead at $50 million.
• In Wasatch County, Jordanelle Park, Tuhaye, Hideout, and South Jordanelle all saw gains of 100% or more in sales volume with Jordanelle Park leading the price gain parade, up 97% to $660,000.

 

Condominium Summary End of Q3-2021	Qty Sold	% Chg	Sales Volume	% Chg	Average Price	% Chg	Median Price	% Chg
Park City	570	65%	953,226,075	121%	1,681,174	34%	1,250,000	46%
Snyderville Basin	648	57%	524,144,643	38%	808,865	-12%	617,500	-11%
Jordanelle	292	59%	238,129,319	103%	815,511	28%	776,938	21%
Heber Valley	65	-17%	31,700,320	3%	487,697	23%	374,000	19%
Kamas Valley	6	-14%	3,034,000	-13%	505,666	1%	500,000	0%
Total Primary Market Area (Summit & Wasatch Counties)*	1,582	54%	1,750,634,358	82%	1,108,698	18%	757,750	11%

*Totals may not foot due to Primary Market totals that include only Summit and Wasatch counties.

Vacant Land

• Land sales exploded in third quarter as buyers who could not find an existing home to their liking elected instead to build their own. The summer spike in lumber prices abated somewhat but still many buyers had to defer the groundbreaking until later because of the backlog of pending orders at most new home builders.
• Sales units and dollar volume were both up triple digit percentages in almost many primary service areas including Snyderville Basin and Jordanelle.
• Overall land sales in Summit and Wasatch counties were up 76%. The price increase expected when supply decreases and demand remain steady pushed the median sales price for land region wide was up 71% to $490,000.
• Snyderville Basin and Jordanelle areas both saw sales units doubling the previous year. Jordanelle led the way with 466 lots sold on a median price rise to $450,000 (up 57%).
• Jordanelle, Park City metro, Snyderville, and Heber Valley all saw a substantial increase in sales volume and units sold for 2021.
• Only 49 lots sold within the Park City Limits and the city was saw the least price appreciation as average and median sale prices rose 6% and 20% respectively.

 

Land Sales Summary End of Q3-2021	Qty Sold	% Chg	Sales Volume	% Chg	Average Price	% Chg	Median Price	% Chg
Park City	49	53%	83,396,375	68%	1,701,966	6%	1,444,375	20%
Snyderville Basin	327	106%	403,329,000	225%	1,233,422	58%	750,000	43%
Jordanelle	466	121%	276,684,550	232%	593,743	50%	450,000	57%
Heber Valley	279	66%	134,852,860	126%	483,343	36%	300,000	30%
Kamas Valley	105	14%	81,740,300	113%	778,479	87%	365,000	45%
Wanship/Hoytsville	77	-1%	12,994,742	34%	168,762	36%	95,000	-21%
Total Primary Market Area Summit & Wasatch Counties)*	1,309	76%	996,431,827	170%	761,216	53%	490,000	71%

*Totals may not foot due to Primary Market totals that include only Summit and Wasatch counties.

Opinion and Observation

What do Park City agents see coming in the next three to six months? Here are a few observations about the important market results that point the way coming from those with their fingers on the pulse of the market.

ON SINGLE FAMILY HOMES

• Some of the areas that saw only modest price increases this past year were those that were most highly sold last summer after the initial Covid shutdown was over and demand spiked. The run-up last year set the benchmark that is harder to match this year.
• Park Meadows replaced Prospector as the most stable neighborhood in the Park City metro area with prices remaining relatively stable compared to the other highly appreciating neighborhoods.
• Within the Park City Limits, the volume of sales rose more than 50% and it now costs almost $3 million (median sale price) to buy a house in town in Park City.
• In the near north neighborhoods that make up Snyderville Basin, Pinebrook and Jeremy Ranch continue to be two of the more popular areas with 48 and 77 sales respectively (exceeded by only Promontory in total number of sales).
• It was a banner year for golf course communities. And that helped areas near golf courses because when buyers found there was nothing to buy on the course, they looked next door.
• Deer Mountain, once thought of as a more affordable area around the Jordanelle, now has nearly as many homes selling for over $2 million as sold for less than $2 million. That’s a new, upward trend.
• Sellers are getting more aggressive with the market continuing to expand. When we see offers that fall out followed immediately by a list price increase, we know we’re in a hot market.
• New construction in the Park City area has now risen to $1500 to $2500 per square foot. A new market high.

In a superb example of how dramatically this market is changing, Rick Klein, local lender and long-time and frequent contributor to our agents’ understanding of market statistics called the third quarter performance, “Nothing short of stunning in its scope.” As an example of the magnitude of the change, Rick compared market times for Single Family homes sold in second quarter to those in the third quarter, broken down by price range.

At the end of second quarter this year (2021), the median price of a single-family home in Park City was just over $2.7 million and the average market time was 1.5 months. Homes priced below the median sold on average in 0.8 months (that’s 24 days) while those above the median sold in 2.2 months.

At the end of third quarter the median had risen to @2.9 million. Homes priced below the median sold on average in 0.4 months (that’s 12 days) while those above the median sold in 2. months.

As of 9/2021

Single Family	<$2,935,000	<$2,935,000
1.21 months	0.40 months	2.03 months

 

These differences in market time based on price confirm that a Realtor’s help in setting a realistic list price is absolutely crucial for achieving a quick sale.

ON CONDOS:

• One used to say you could still get a condo in Old Town at a reasonably low price. Now the median price for a condo in Old Town is $730,000 and in Prospector it’s over $250,000 for the first time. Overall, within the Park City Limits, the median price for a condo is now $1.25 million, up 46% year over year.
• In the Canyons, Lift and Apex were in play for 2020, now we have Yotel in play in 2021 with smaller units and lower prices. This is skewing the average and median prices downward significantly but may not be representative of the entire area.

ON VACANT LAND:

• Land sales nearly tripled over the previous year in the primary market of Summit and Wasatch Counties. 1,309 lots sold, a jump of 76% and with a Median sale price climb of 71% to $490,000. Total sales fell just shy of $1 Billion is aggregate compared to $368 million for the year prior.

Area winners in our tracked statistics

(Minimum 10 or more sales)	Single Family Homes	Condominiums	Vacant Land
Quantity sold:	Promontory – 145	Canyons Village – 365	Tuhaye/Hideout – 308
Volume sold:	Promontory - $487M	Canyons Village - $321M	Promontory - $181M
Average sale price:	Canyons Village - $10.6M	Empire Pass - $3.25M	Canyons Village - $2.82M
Median sale price:	Canyons Village - $11.7M	Empire Pass - $3.04M	Canyons Village - $2.6M

Market Overview Year Ending 9/30/21	Comparison Report - 12 Month Rolling Year over Year
Park City MLS Primary Service Areas - Summit & Wasatch Counties (Only)

SINGLE FAMILY SUMMARY	Qty Sold	% Chg	Volume	% Chg	Average	% Chg	Median	% Chg
12 Months ending 9/30/20	1,327		2,081,191,265		1,577,855		1,033,800
12 Months ending 9/30/21	1,537		3,382,697,848		2,213,807		1,546,000
Increase	210	16%	1,301,506,583	63%	635,952	40%	512,200	50%

CONDOMINIUM SUMMARY	Qty Sold		% Chg		Volume	% Chg		Average	% Chg	Median			% Chg
12 Months ending 9/30/20	1,028			960,571,871				937,143			681,365
12 Months ending 9/30/21	1,582			1,750,634,358				1,108,698			757,750
Increase	554	54%		790,062,487			82%	171,555	18%		76,385	11%

LAND SUMMARY	Qty Sold	% Chg	Volume	% Chg	Average	% Chg	Median	% Chg
12 Months ending 9/30/20	744		368,878,495		496,472		286,100
12 Months ending 9/30/21	1,309		996,431,827		761,216		490,000
Increase	565	76%	627,553,332	170%	264,744	53%	203,900		71%

Real estate in the Wasatch back consists of highly segmented markets with nuances that vary significantly from one neighborhood to another and one house to another. Comparisons are hard to read on paper due to the unique features of individual properties, such as amenities, condition, style, location, age, view, and inventory. Buyers and Sellers are advised to contact a local Park City Board of REALTORS^® Professional for the most accurate, detailed, and current information.