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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

 

February 1, 2021 - At the end of 2020, the expected housing slump for Summit and Wasatch Counties as a result influence and impact of the COVID-19 on the industry failed to materialize. On the contrary, the numbers show strong appreciation with increases in both average and median sale price as well as dollar volume as reported by the Park City Board of REALTORS® Multiple Listing Service. Fears that the market might be facing a slow, sustained recovery period were short lived. While the market dipped quickly in April, by mid-June, the market had recovered fully and by year’s end 2020 had set records across the board for sales totals and median prices.

As the fourth quarter of 2020 ended, the effect of loosening restrictions brought about by the COVID-19 virus pandemic was showing significant effect on the real estate markets in Summit and Wasatch counties. The area had weathered the near complete shutdown of businesses and recreational activities. In person open houses had returned and buyers, sellers, and agents were all acclimating to the new normal: lots of masks and hand sanitizer.

The pent-up demand that the isolation mandates created started to be release with full force and vigor. As buyers returned, competition for the limited number of available homes increased, and pending contracts far outstripped new listings coming to market. PCMLS recorded record low inventories in August and the numbers continued downward through the end of the year. With fewer homes available and more buyers wanting them, the predicted rise in sale prices was inevitable.

Not surprisingly, from October 1 through the year end, the numbers were nothing short of spectacular. The story of real estate activity in the Wasatch Back 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 last half.
• Pending sales accelerated at an even greater pace with 1,267 contracts signed in H1-20 compared to 2,636 in H2-20. The latter number is more than double the previous year’s production of 1,248 for the last half of 2019.
• Closed sales likewise were 150% higher in the last six months (2,174) than the first half of the (865).
• With Pendings running much higher than New Listings, available inventory started to shrink dramatically. 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.

So how did the local market fare through the end of our first pandemic-riddled year? Here is our take on the total year-long results reported on a rolling year-over-year basis for the period ending December 31, 2020.

Single Family Homes

• Within Park City Limits, total unit sales were up 64% over 2019 to 301 units while sales volume was up even more, $889 million, a 83% increase year-over-year.
• The median price of a single-family home across the city rose 26% to $2.5 million.
• In the ever-popular Old Town area sales volume and units sold both doubled as the median price rose 11% over 2019 to $2.03 million.
• The Park Meadows neighborhood took the blue ribbon for greatest increase in median price, rising 36% over the year earlier to $2.6 million.
• Snyderville residents saw a spike in sales volume (up 84%) while the median price tracked equally well, up 23% to $1.57 million.
• The hotspots were south and east of the metro area. Jordanelle saw vigorous activity (sales units up 71%) that pushed the sales volume to nearly double 2019’s total to $242 million, up from $123 million the year earlier.
• Heber Valley saw a 28% rise in sales units but 70% higher sales volume propelled by a median price that jumped 36% to $715,000.
• Other neighborhoods that saw units sold or sales volume double this year were Deer Mountain, South Jordanelle, Thanes Canyon, Aerie, Old Ranch Road, Glenwild, Silver Creek Estates, Promontory, Tuhaye/Hideout, Red Ledges, and Heber East.

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 40% and median prices up 33%.

Single Family Summary EOY 2020	Qty Sold	% Chg	Sales Volume	% Chg	Average Price	% Chg	Median Price	% Chg
Park City	301	64%	889,071,500	83%	2,953,726	11%	2,500,000	26%
Snyderville Basin	525	42%	1,186,397,406	84%	2,259,805	29%	1,575,000	23%
Jordanelle	108	71%	242,191,369	97%	2,242,513	15%	2,457,500	12%
Heber Valley	420	28%	386,699,943	70%	920,714	33%	715,000	36%
Kamas Valley	137	22%	148,631,331	37%	1,084,900	12%	600,000	13%
Wanship/Hoytsville	71	25%	43,212,097	36%	608,621	9%	500,000	3%
Total Primary Market Area	1,562	40%	2,896,203,646	78%	1,854,164	27%	1,265,000	33%

 

Condominiums

• The Condo market in Old Town Park City continued to be solid with sales up slightly (15%) in units on a comparable gain in median price of 16% to $685,000.
• Empire Pass was the standout neighborhood performer with sales more than doubling while the median price rose 10% down to a very respectable $2.6 million.
• Prospector fewer unit sales, but a greater sales volume as the median price popped 27% to just over $215,000.
• In the Snyderville area, Canyons Village saw its sales volume drop despite 22% more unit sales the result of the debut of a number moderately priced small condos that brought the median sale price down to $659,000.
• In Wasatch County, Jordanelle Park, Deer Mountain, Tuhaye, Hideout, and Red Ledges all saw gains of 50% or more in units sold with Red Ledges leading the price gain parade, up 34% to $883,000.
• Perennial leader Deer Mountain was bested by Canyons Resort in the race for neighborhood with the most sales with double the unit volume driven by a significant drop in median prices.

 

Condominium Summary EOY 2020	Qty Sold	% Chg	Sales Volume	% Chg	Average Price	% Chg	Median Price	% Chg
Park City	430	22%	596,376,489	56%	1,386,922	28%	958,750	23%
Snyderville Basin	511	30%	387,731,266	7%	758,770	-18%	585,000	-10%
Jordanelle	227	57%	152,332,538	63%	671,068	4%	675,000	5%
Heber Valley	72	1%	31,230,814	28%	433,761	26%	332,750	20%
Kamas Valley	10	11%	5,067,587	32%	506,759	19%	500,000	14%
Total Primary Market Area	1,250	29%	1,172,738,694	35%	938,191	5%	675,000	5%

 

Vacant Land

• Land sales exploded in fourth quarter as buyers who could not find an existing home to their liking elected instead to build their own.
• Overall land sales in Summit and Wasatch counties were up over 100%. However, the price increase expected when supply decreases and demand remain steady did not appear. The median sales price for land region wide was up 8% to $325,000.
• Four of the six major regions saw sales units doubling the previous year. Snyderville Basin led the way with 246 lots sold on a median price rise to $602,000 (up 14%).
• Jordanelle, Park City metro and Kamas Valley all saw a substantial increase in sales for 2020 with Jordanelle’s 313 units leading the group.
• Only 43 lots sold within the Park City Limits but the median price rose nicely by 10% to almost $1.2 million.

 

Land Sales Summary EOY 2020	Qty Sold	% Chg	Sales Volume	% Chg	Average Price	% Chg	Median Price	% Chg
Park City	43	126%	64,995,000	155%	1,511,512	13%	1,200,000	9%
Snyderville Basin	246	151%	220,804,250	213%	897,578	25%	602,500	14%
Jordanelle	313	132%	138,710,975	143%	443,166	5%	329,000	12%
Heber Valley	210	59%	77,915,306	89%	371,025	18%	232,500	-7%
Kamas Valley	104	121%	54,727,149	170%	526,223	22%	260,000	4%
Wanship/Hoytsville	79	52%	9,502,010	54%	120,279	2%	110,000	23%
Total Primary Market Area	995	106%	566,654,690	157%	569,502	25%	325,000	8%

 

The recovery we see in the housing sector is mirrored by other economic activity nationwide. Unemployment peaked at nearly 15% nationally in April and has declined steadily to finish the year at 6.5%. The rate in Utah was barely more than half that, 3.6%.

Locally, the tourism industry was hardest hit with local businesses, particularly restaurants, that rely on summer vacationers struggling to stay afloat. With the arrival of ski season, we are starting to see a return of winter vacationers. Slopes are busy and restaurants have changed their table structure to accommodate social distancing. Some have installed “igloos” to isolate diners outdoors. We won’t see the February rush because Sundance has gone totally virtual. But all in all, the local market is faring much better than many places elsewhere in the country.

What is pushing the market?

• Mortgage lenders kept rates the lowest they have been in 60 years, some dropping below 3%. This has made borrowing more attractive for not just first-time home buyers but everyone.
• Low inventory attributed to Sellers being slow to return to the market out of concerns about strangers touring their homes without sanitation awareness has created more competition among buyers for prime properties.
• This has pushed median sale prices higher, particularly in “outlying” areas such as Heber Valley, with single family homes appreciating 33% and condominiums 5% higher across the primary service area of Summit & Wasatch Counties.

The urban exodus away from compact city centers into more suburban, even rural, areas continued as many find working from home removes the restriction to have home close to work. Renters, vacationers, and time-share owners started looking for second or even primary homes in the spacious Wasatch Back, seeking to distance themselves from the urban chaos the pandemic had precipitated. They are happy to find not only ski and red rock recreational treasures but also room to social distance from others should lockdowns return.

Other considerations

Before the celebration gets out of hand it is important to note that the pandemic has not subsided. Utah saw a decline as we headed into Thanksgiving, only to rebound because of many family visits. A similar pattern emerged around Christmas with a three-month low just before the holiday and a spike immediately afterward. It remains to be seen what effect the emphasis on vaccinations will have. Will we see an escalating incidence of infections despite the start of a nationwide inoculation program and a new administration in Washington leading the charge?

What do Park City agents see coming in the next three to six months? Here are a few observations and predictions from those with their fingers on the pulse of the market.

• Multiple offers on many listings are driving prices higher. We are setting new all-time high sales prices in some markets, even when the individual properties are not that special or different. Buyers are driving the market.
• The report below compares the full year 2020 to 2019. But comparing just fourth quarter to fourth quarter, the price increases are more pronounced. Median price on single family homes in Park City proper are up over 50% year to year in fourth quarter alone.
• Condo sales in Canyons Village bucked the price-rise trend with the sale of a number of units in the new Yotel Condominiums development at significantly lower prices than historical norms for that area.
• Just how strong was 4^th quarter? In many neighborhoods the sales in fourth quarter equated to almost half of total sales in that area for all of 2020. In Park City proper it was 44%. In Lower Deer Valley it was 50%. Likewise, in Snyderville Basin where the Kimball, Glenwild and Promontory areas all saw nearly 50% of total sales happening in fourth quarter. We don’t see that slowing down any time soon.

Technology advances and work-from-home opportunities expected to continue driving demand in areas further away from Park City proper. Sales of vacant lots in the Tuhaye/Hideout are nearly triple year-over-year and prices are 34% higher because of increased demand.

Areas winners in our tracked statistics

(Minimum 10 or more sales)	Single Family Homes	Condominiums	Vacant Land
Quantity sold:	Promontory – 139	Canyons Village – 217	Tuhaye/Hideout – 185
Volume sold:	Promontory - $390M	Canyons Village - $270M	Tuhaye/Hideout - $85.2M
Average sale price:	Canyons Village - $6.76M	Empire Pass - $2.98M	Canyons Village - $2.45M
Median sale price:	Canyons Village - $6.80M	Empire Pass - $2.640M	Canyons Village - $2.40M

Market Overview Year 2020	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		CDOM Avg.		% Chg
All 2019 – 12 Months		1,113				1,622,661,840				1,457,917				951,500				141
All 2020 – 12 Months		1,562				2,896,203,646				1,854,164				1,265,000				144
Inc/Dec		449		40%		1,273,541,806		78%		396,246		27%		313,500		33%		3		2%
CONDOMINIUM SUMMARY		Qty Sold		% Chg		Volume		% Chg		Average		% Chg		Median		% Chg		CDOM Avg.		% Chg
All 2019 – 12 Months		971				867,873,436				893,793				643,840				130
All 2020 – 12 Months		1,250				1,172,738,694				938,191				675,000				114
Inc/Dec		279		29%		304,865,258		35%		44,398		5%		31,160		5%		(16)		-12%

LAND SUMMARY	Qty Sold	% Chg	Volume	% Chg	Average	% Chg	Median	% Chg	CDOM Avg.	% Chg
All 2019 – 12 Months	483		220,737,100		457,013		300,000		197
All 2020 – 12 Months	995		566,654,690		569,502		325,000		248
Inc/Dec	512	106%	345,917,590	157%	112,490	25%	25,000	8%	51	26%

 

 

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, 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.