Do you hear that? It’s the winds of change. Is it simply a change in the weather as Park City begins to fully embrace springtime temperatures and mountains shifting from white to green, or is there a real estate market shift taking place?
With the value of Bitcoin being cut in half in the last six months, and the stock market reeling, all while interest rates tick up, talk of the economy and the housing market seems to be the most popular topic at the trail head. So how is the market? What should buyers expect in the marketplace? How should sellers look for a great agent? How should properties be priced right now?
As much as everyone wants to know our opinion on what may or may not happen in the future, we are not fortune tellers, and do not predict the future. Our business has been built on observing and interpreting the facts and measurable metrics of the Park City real estate market, not speculating on things that are outside of our control. We dive into an assortment of common questions and observations along with some fast stats in this months market update.
What We Are Seeing in the Marketplace
- New listings and active inventory have increased in the Wasatch Back over the last 2 months, just as they have historically in the months of April through June
- Active inventory for all property types (single family, condo, land) on the Park City MLS in April 2022 was 700 properties, well below the average of 2,041 properties for April between 2013-2019, and 809 in April of 2021
- Between 2013-2019, inventory has typically been the highest for the given year in June, July, or August, so it’s certainly possible to see a continued increase in inventory over the next few months
- This year is Park City’s first “real” spring or fall shoulder season since 2019. Many seem to have forgotten that the natural rhythm of our ski town leaves it feeling sleepy and with few visitors – and consequently less home shoppers – from mid-April through late May
- The average days on market for residential property (condo, townhome, single family) in Park City and the Snyderville Basin held steady at 7 DOM for April; flat from 7 days in March
- The percent of list price received for residential property in Park City and the Snyderville Basin for April was 101.1%, down from 101.9% in March, but on average properties are still selling above their list price
- The market remains segmented, with sought-after properties still selling quickly, and at times before being publicly listed, like our most recent listings in Canyon Creek and Blackhawk Station
- Compared to historical interest rates, current mortgage rates are still quite reasonable, however they feel high do to the speed of the increase and having such historically low rates the last 2 years
Advice and Observations for Buyers
- Make an Offer
- Not every property is flying off the shelves instantaneously. If a property checks 80% of a buyers criteria, but they feel the price is too high and there aren’t competing offers, we would encourage them to make an offer even if it’s not at asking price, and then negotiate
- Don’t Expect a Deal
- Based on the inventory and days on market data above, this is still very much a sellers market at this time, and we would not advise any buyers to go in expecting a substantial discount
- Real Estate is a Good Investment and Hedge Against Inflation
- Real estate has historically been used by investors as a hedge against inflation, and an alternative to the stock market. With inflation forecasted to continue and stocks underperforming, we are seeing some clients diversifying their portfolio into more real estate
- Utah Still Has a Strong Outlook
- Park City and Northern Utah still remain a great place to live and work, with strong forecasts for job and population growth, low property and corporate tax rates, and a favorable lifestyle
Advice and Observations for Sellers
- Don’t Be a Victim to FOMO
- We don’t want to get ahead of ourselves, but May’s Park City real estate market numbers will be very interesting to observe, and as rates are having an impact on some buyers, sellers who have a Fear of Missing Out on the recent record sales prices may be in danger of overpricing their property and then having to backpedal and reduce their price in order to sell
- Good Properties Priced Right Still Selling Fast
- Taking into account the the tangible and intangible aspects of each property before deciding on a final list price has never been more important. Are you building the list price based on market data and demand, or are you trying to justify the sales price based on active listings and having room to negotiate? We would advise the former strategy
- Work with the Right Agent
- We are seeing some agents listing homes at exorbitant prices in order to get the listing. We would advise extreme caution with this strategy. Agents that do a higher number of transactions and sell properties specific to your neighborhood, size, and price point will have the best feel for the current market dynamics that affect your home. Hire based on expertise and proven systems even if you don’t love their advised list price, and the market will give you what the property is worth.
- Pricing is an Art
- Now more than ever, forming a relationship with a real estate advisor you can trust with a proven track record is paramount. Experience and expertise is what will set the best agents apart who can price your property accurately and confidently, and be honest upfront in the process to set expectations
Choose Park City Real Estate Sales for March and April 2022
- We put 7 properties under contract for our clients for a total of nearly $9,345,000 in pending sales
- 8 transactions closed for just over $12,900,000 in sales volume
- Of our buyers competing against multiple offers, 100% of them had their offers accepted
- 2 buyers went under contract on properties not publicly listed on the MLS
- We referred our clients to top performing agents in other markets resulting in 1 successful purchase and 4 other properties under contract
Thanks for reading this months market update, and as always, reach out to us if you have questions on how these numbers will affect you and your situation. Whether you are a possible Park Meadows home buyer, potential Deer Valley home seller, or an interested property investor, we can put the stats and our Park City housing market knowledge to work for you no matter what your needs and interests are. Everyone’s situations are different, so knowing how to apply the data is integral to making wise real estate decisions.
-Brendan Trieb, Choose Park City