Q1 2021 Park City, Utah Real Estate Market Update

The following analysis of select neighborhoods in the Park City real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

 

Regional Economic Overview

Much like the rest of the nation, COVID-19 had a very significant impact on employment levels in Utah; the state shed 140,000 jobs in only two months. However, I am delighted to report that—as of the end of the first quarter—the region has not only recovered all of the jobs that were lost, but employment levels are now 11,300 jobs higher than the pre-pandemic peak in February 2020.

With the recovery complete, at least for the time being, the unemployment rate continues to drop and is currently only 2.9%. At this level, Utah—along with Nebraska, South Dakota, and Vermont—now has the lowest jobless rates of any states in the Union.

park city, utah Home Sales

❱ Only 87 homes sold in Park City in the first quarter of 2021. This was 38.1% higher than in the first quarter of last year, but 82% lower than in the fourth quarter of 2020.

❱ Sales rose in six markets, remained static in three, and dropped in nine.

❱ Inventory levels remain well below the levels I would like to see, with the average number of homes for sale down 49.8% from a year ago and 77.5% compared to the prior quarter.

❱ Pending home sales were 96.3% higher than a year ago but were down 75.7% from the fourth quarter of 2020 as the lack of inventory continues to limit sales activity.

park city, utah Home Prices

❱ The average home price in the Park City neighborhoods contained in this report jumped 70.4% year over year to $2.673 million. Sale prices were 73.2% higher than in the fourth quarter of 2020.

❱ The most affordable neighborhoods relative to average sale prices were in the Wanship/ Hoytsville/Coalville/Rockport and Kimball neighborhoods. The most expensive home sales occurred in Canyons Village, where the average sale price hit $13 million.

❱ Prices rose in all but two neighborhoods, with double-digit increases in 13 markets.

❱ Of note is that all but four neighborhoods saw sale prices in the quarter exceed $1 million.

A bar graph showing the annual change in home sale prices in the Park City, Utah area.

Days on Market

❱ The average time it took to sell a home in the Park City area dropped 100 days compared to the first quarter of 2020.

❱ The amount of time it took to sell a home dropped in all but four neighborhoods compared to the first quarter of last year.

❱ In the first quarter, it took an average of only 21 days to sell a home, with homes selling fastest in the Summit Park and Promontory areas, and slowest in the Thaynes Canyon neighborhood.

❱ The significant decline in market time can again be attributed in part to the local listing service instituting a rule that led new construction developments to add sales “en-masse.” This lowered market time dramatically.

A bar graph showing the average days on market for homes in the Park City, Utah area.

Conclusions

A speedometer graph indicating a seller's market in the Park City, Utah area.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Although mortgage rates have risen recently, they remain very competitive compared to historic averages, and buyers are taking advantage of this. I would like to see far more homes for sale, but do not anticipate that this will occur in the near term. The lack of housing inventory is not only frustrating buyers, but owners who are thinking about selling are unlikely to come to market unless they have found a home to buy. If there is nothing to buy, there is no compelling reason to sell! Given all these factors, sellers still have the upper hand. I am therefore moving the needle a little more in their favor.

 

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

The post Q1 2021 Park City, Utah Real Estate Market Update appeared first on Windermere Real Estate.

Q4 2020 Park City, Utah Real Estate Market Update

The following analysis of select neighborhoods in the Park City real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

 

Regional Economic Overview

The recovery in employment following the very significant job losses in Utah from COVID-19 continues to impress. Of the over 144,000 jobs that were lost in the state, all but 7,800 have returned. With the recovery clearly in place, the unemployment rate, which peaked at 10.4% in April, has dropped as jobs have been recovered and now stands at a very respectable 4.3%.

In the third quarter Gardner Report, I mentioned I was a little concerned that rising COVID-19 infection rates might curtail the economic recovery, but the impact thus far has been minimal. I am pleased to see new infection rates starting to drop again and hope this trend will continue.

park city, utah Home Sales

❱ There were 484 home sales in the final quarter of 2020, an increase of 81% compared to the fourth quarter of 2019, and up 38.7% compared to the third quarter of 2020.

❱ Sales rose in all markets other than Summit Park, where they dropped modestly. The Tuhaye/Hideout neighborhood saw a remarkable 471% increase in sales, but that meant that sales only rose from 7 to 40.

❱ The growth in sales was even more impressive given that there were almost 27% fewer listings than in the third quarter of the year.

❱ Pending home sales were 139% higher year over year but were 15.1% lower than in the third quarter. This is likely a function of inventory limitations and seasonality.

park city, utah Home Prices

❱ The average home sale price in the Park City neighborhoods contained in this report rose 24.1% year-over-year to $1.543 million. Home prices were 5.1% higher than in the third quarter of 2020.

❱ The most affordable neighborhoods—relative to average sale prices—were in the Kimball, Wanship/Hoytsville/ Coalville/Rockport, and Midway neighborhoods. The most expensive areas were the Upper Deer Valley Resort & Empire Pass, where average sale prices exceeded $3 million.

❱ Prices rose in all but one neighborhood, with double-digit increases in all but three of the markets contained in this report.

❱ The Park City market is relatively small but is home to some very expensive real estate. It is clear that the pandemic has not impacted demand for homes in the area, as limited supply and significant demand continue to push prices higher.

A bar graph showing the annual change in home sale prices for various areas of Park City, Utah.

Days on Market

❱ The average time it took to sell a home in the Park City area dropped 30 days compared to the final quarter of 2019.

❱ The amount of time it took to sell a home dropped in all but four neighborhoods—Old Town, Kamas & Marion, Trailside Park, and Tuhaye/Hideout—relative to the fourth quarter of 2019.

❱ In the final quarter of 2020, it took an average of 31 days to sell a home. Homes sold fastest in the Summit Park, Thaynes Canyon, and Canyon Village areas, and slowest in the Kamas & Marion neighborhood.

❱ The significant drop in market time was primarily due to the local multiple listing service instituting a rule that led new construction developments to add sales “en-masse.” This lowered market time dramatically.

A bar graph showing the average days on market for homes in Park City, Utah.

Conclusions

A speedometer graph indicating a seller's market in the Park City, Utah area.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Even as mortgage rates start to increase, I do not believe this will have much of a slowing effect on the Park City market. In fact, jumbo mortgage rates, which spiked significantly when COVID-19 hit but have since dropped, have encouraged buyers to resume taking advantage of relatively cheap money.

Given all these factors, sellers still have the upper hand, and I am therefore moving the needle a little more in their favor.

 

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

The post Q4 2020 Park City, Utah Real Estate Market Update appeared first on Windermere Real Estate.