Newsroom

Real estate market rebounding

By Park City Board of REALTORS
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

Park City Board of Realtors Q3 Statistics

By Park City Board of REALTORS
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.