PARK CITY REAL ESTATE MARKET UPDATE
The Greater Park City Market continues to recover from the great recession. Comparing the first six months of 2013 to the first six months of 2014, we see improvement. The total sold volume of all property types/all areas is up 9% ($766,000,000) and the number of transactions is up 2%, in 2014. The average sales price is up 7% to $743,000.While we are all grateful for a recovering real estate market, the improvement varies depending on the area, price range and/or property type.
Condominiums and vacant land are currently leading our recovery. Until recently, they were lagging behind single family detached. Now, more vacation home buyers are re-entering the marketplace and more buyers are confidently purchasing land for construction.
Single family detached homes had been strongly leading the market but sales seem to have stabilized. The sold volume and number of transactions sold are slightly down, however, average sales price is up 7% to just over $1 million.
Inventory levels may be low in some areas, however, there is still an oversupply of houses for sale over $5M
Deer Valley is showing solid signs of improvement. Previously, Deer Valley’s recovery had been slower than the rest of the market. The average sold price for a single family home in Deer Valley is $4.4 million, which is up 70% from last year. This is primarily due to sales in Deer Crest and Empire Pass. Condominium sales have picked up considerably, although there is still room for appreciation in value.
Canyons real estate sales are relatively stable and improving like the rest of our market; no new projects have been started. The golf course is under construction and nearing completion.
Luxury home sales are still a growing factor in our real estate market. In 2013, we had 12 “reported” sales from 5 to over 10 million dollars. In 2014, we already have 8 sales in the 5 to over 10 million dollar range. Interestingly, the majority of these sales are vacation homes. The Montage in Deer Valley had over 8 closings last winter with an average sold price of $4.2 million.
Golf course communities in the Park City area are a tremendous asset to our community. Unfortunately we are oversupplied with them, much like the rest of the United States. Promontory and Red Ledges have very healthy sales while Tuhaye and Victory Ranch are slower than their competitors.
Synderville Basin is doing well. In the Greater Silver Springs area, well priced homes in the $800-900,000 range are selling rapidly, with multiple offers. In Jeremy Ranch and Pinebrook, single family homes sales are slightly down, year to date compared to the first half of 2013.
New construction permits are going through the ceiling. There is a huge amount of remodeling and custom homes being built, with a smaller amount of spec homes and development projects. On the high end of pricing, Stein Eriksen Residences in Upper Deer Valley have pre-sold 70% of their mountain contemporary project at over $1,300 per sq ft. On the more affordable side, the new projects of Blackrock Ridge and the Rustler, both near the Jordanelle Reservoir, are selling quickly in the $300,000-$450,000 range. In Kimball Junction, there has been much added density commercially and the Newpark Terrace Condominiums have been selling well in the $400,000 range.
Other market influences affecting the long term health of Park City and Deer Valley Real estate markets are significant. Deer Valley and the City are still very serious about constructing the new gondola from the Old Town transit center to Silver Lake Village. The Salt Lake City International Airport has announced a large multi-year expansion totaling 1.8 billion dollars. This further enhances Park City’s accessibility which is unrivaled in any other mountain resort in North America. With support from the state of Utah, Park City’s Chamber/Bureau hit an all time budget high of $8 million dollars to promote our base industry of tourism.
If not now, when? With the national economy continuing to grow stronger daily and many people making great returns on the stock market, more and more people will be continuing to look at improving their quality of life by getting involved in the Greater Park City community through real estate investments.
To see statistical graphs – click here.