Q3 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

The summer months saw continued growth in Utah’s labor market, which had already recovered all of the jobs lost to COVID-19 earlier this spring. The latest data available (August 2021) showed non-agricultural employment 48,100 jobs higher than the pre-pandemic peak. With the healthy growth in jobs, the unemployment rate currently stands at 2.6%, a level that has not been seen since before the pandemic hit. As impressive as the current jobless rate is, it is also worth noting that unemployment continued to fall even as the labor force expanded to a point never seen in the state before. Utah’s economy is currently in great shape, and short of any unforeseeable events, I see no reason why anything would derail the impressive growth the area has experienced.

park city, utah Home Sales

❱ In the third quarter of 2021, 73 homes sold, which is 47.9% lower than in the same quarter a year ago, and 3.9% lower than in the second quarter of this year.

❱ Year-over-year, sales rose in Summit Park and Trailside Area/Silver Springs but were lower in the balance of the neighborhoods contained in this report. Compared to the second quarter of 2021, sales were higher in six neighborhoods, static in one, and fell in the remaining eight.

❱ Lower home sales are primarily a function of the number of homes for sale. With 48% fewer homes on the market than a year ago and 3.9% fewer homes than in the second quarter of this year, it’s not surprising that sales slowed.

❱ Pending home sales were down 58.7% compared to last year and were 2.6% lower than in the second quarter of the year. This, combined with significant supply constraints, suggests that home sales in final quarter of the year may not be strong.

park city, utah Home Prices

❱ The average home price in the Park City neighborhoods contained in this report rose 29.7% year over year to $2.26 million but was 3.6% lower than in the previous quarter.

❱ The Wanship, Hoytsville, Coalville, & Rockport market is the only one where prices were below $1 million in third quarter. The most expensive home sales were again in the Canyons/The Colony market, where the average price was $11.83 million.

❱ Prices rose in all neighborhoods other than Park Meadows, though the drop in prices there was marginal.

❱ Compared to the second quarter of the year, prices rose in all but four neighborhoods: Old Town, Park Meadows, Midway, and Wanship, Hoytsville, Coalville and Rockport.

A bar graph showing the annual change in home sale prices for various areas of Park City, Utah during the third quarter of 2021.

Days on Market

❱ The average time it took to sell a home in the Park City area fell 41 days compared to the same period a year ago.

❱ While days on market fell overall year-over-year, when you compare the third quarter to the second quarter, the amount of time it took to sell a home rose four days everywhere except Canyons/The Colony and Old Town.

❱ In the third quarter, it took an average of 41 days to sell a home, with homes selling fastest in the Canyons/The Colony neighborhood, and slowest in Upper Deer Valley Resort and Empire Pass.

❱ In small, expensive markets, such as those in Park City, it’s not surprising to see the speed at which homes sell swing wildly from one quarter to the next. There is clearly still buyer demand, but given high average prices, it’s taking a little longer for homes to sell.

A bar graph showing the average days on market for homes in various areas of Park City, Utah during the third quarter of 2021.

Conclusions

A speedometer graph indicating a seller's market in the Park City, Utah area during the third quarter of 2021.

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.

Utah’s economy stands on very solid ground, which, when placed alongside historically low mortgage rates, leads to increased home buying activity. While the number of days it takes to sell a home has risen modestly compared to second quarter, home sellers still have the upper hand. As such, I have moved 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 Q3 2021 Park City, Utah Real Estate Market Update appeared first on Windermere Real Estate.

Q2 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

Utah’s impressive post-COVID job recovery continues unabated. In the first quarter Gardner Report, I reported that the state had not only recovered all the jobs that were lost due to the pandemic, but employment was continuing to rise. This trend has continued. With 96,400 jobs added over the past year and 14,500 over the past quarter, total employment is now 26,900 jobs higher than the pre-pandemic peak. The only other state in the country that has recovered all the jobs lost due to COVID is Idaho. With a full recovery in the job market, it’s no surprise the jobless rate dropped further to 2.7% in June—its lowest level since March 2020 and the second-lowest rate in the nation; only Nebraska is lower at 2.5%.

park city, utah Home Sales

❱ In the second quarter of 2021, 76 homes were sold in Park City, more than doubling the total number of sales in the same quarter a year ago, but down 12.6% from the first quarter of this year.

❱ Sales rose in all but two markets and doubled in seven of them. However, I would note that the pandemic was gripping the nation last summer, which clearly impacted sales and skewed growth-rate data.

❱ Although the number of homes for sale rose 12.3% from the first quarter, inventory levels were 47% lower than a year ago, which is impacting sales. I would like to see more homes come to market in the second half of the year, but I am not sure that will be the case.

❱ Pending home sales were 22.6% higher than a year ago, but down 28.3% from the first quarter of 2021 due to persistent supply limitations.

park city, utah Home Prices

❱ The average home price in Park City rose 53.9% year over year to $2.347 million, but prices were 12.2% lower than in the previous quarter.

❱ Only one neighborhood—Kamas & Marion— saw average sale prices below $1 million. The most expensive home sales were again in the Canyons & The Colony, where the average price came in at $10.89 million.

❱ Prices rose in all neighborhoods other than Canyons & The Colony. Because there were no sales reported there a year ago, I cannot make a comparison. All other areas saw double-digit increases.

❱ Of note is that four neighborhoods saw average prices breach the $1 million mark in second quarter. These were Heber, Midway, Summit Park, and Wanship/Hoytsville/Coalville/Rockport.

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

Days on Market

❱ The average time it took to sell a home in the Park City area dropped 46 days compared to the second quarter of 2020.

❱ The amount of time it took to sell a home dropped in ten neighborhoods relative to the second quarter of last year and was down in six areas compared to the previous quarter.

❱ In the second quarter, it took an average of only 13 days to sell a home. Homes sold fastest in the Wanship/Hoytsville/Coalville/Rockport, Pinebrook, and Jeremy Ranch neighborhoods, and slowest in the Canyons & The Colony neighborhoods.

❱ The significant drop in market time can again be attributed, at least in part, to the ongoing impact of the local listing service instituting a rule that new construction developments add sales “en-masse.”

A bar graph showing the average days on market for homes in various areas of 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.

Compared to most of the country, Utah’s economy is flourishing, and this is undoubtedly influencing expensive markets like Park City. Financing costs remain very competitive, which is driving demand as supply levels remain very low. I doubt there will be enough improvement to the number of homes for sale to meet buyer demand, which will continue to cause prices to rise at a very significant pace.

Given all these factors, sellers continue to control the market, and I am therefore moving the needle 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 Q2 2021 Park City, Utah Real Estate Market Update appeared first on Windermere Real Estate.

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.