Park City Board of Realtors CEO Jamie Johnson said the local real estate market has slowed relative to recent years, largely due to a lack of inventory. And the properties going on the market don’t last long.
“We have some Old Town properties that have come on the market in the last couple of months, and they still are selling in one or two days,” Johnson said. “They’re getting multiple offers. The lack of inventory in Old Town makes the price go up and it makes the people jump on the homes that are available. But then you might go out into more of another outer-lying area of Park City, so a Jeremy Ranch or somewhere like that, and you might have a few more days on the market, and the price might be a little bit more flat.”
In Park City limits, single-family homes and condos were on the market for an average of 26 days in September, a sharp increase from the same month last year. The median sales price for Park City homes sold last month was $3.2 million, a 13% decrease from last year. The median sales price for condos sold was down 42%, at a little over $1 million.
Single-family homes and condos in the Snyderville Basin were on the market for an average of 59 days, according to September data from the Board of Realtors. Home prices are up 8% in the Basin, while condo prices are up 32%.
The median sale price for condos in the Jordanelle area is up 40% year-over-year, with a median sales price over $1.2 million.
President of local MLS board, Katrina Authement, partially credited that to Deer Valley’s recent expansion into Wasatch County.
“That’s due in part to a lot of inventory coming online with the Mayflower, Skyridge,” Authement said. “People are flying to new construction areas and higher-end luxury properties in our marketplace, and a lot of excitement around the whole Mayflower development.”
Home sales in the Heber Valley have slowed this year, which she attributed to low inventory.
Authement said the all cash bidding wars for homes that came during the onset of the pandemic have largely faded.
“We’re a highly-segmented marketplace. So what we’re seeing is that prices that are priced appropriately and priced right for the market, we are still seeing some multiple offers happening on those properties. But if a property is priced even 5% above what the market rate would be, we’re seeing them sit on the market and the days on the market are longer.”
A key variable during the explosion in home sales during the pandemic was abnormally low interest rates. Authement said mortgage rates are now at a 23-year high, and developers are beginning to offer incentives to prospective buyers.
