The median sales price for Park City real estate surpassed all historical price points ever and the 2018 dollar sales volume also broke all records. But the actual number of transactions was down compared to previous years. Carolyn Murray has this:
Park City Board of Realtors President Sheila Hall has a goal this year to increase membership engagement with the board. She said Park City is not a volatile real estate market and homes remain affordable.
“While our prices might be a little higher than our previous record, it’s been a sustainable increase coming out of the recession. Nothing crazy. No big increases. We definitely know markets that have that. Interest rates definitely make things more affordable than the pricing was 10 years ago. We are not seeing sub-prime lending currently. Believe it or not, it’s still an affordable market and when you have the right real estate agent help you understand that even though the sales price is higher, maybe you don’t negotiate on the price of the home so much, you negotiate on a credit to buy down the points on your mortgage to make your monthly payment more affordable."
Inventory is higher compared to sales and she said Park City typically follows the national market trends. However, it is usually a couple years behind the coastal markets.
“The National Association of Realtors Economist, Lawrence Yun is predicting a slight increase in the real estate market in the next three years. While it’s not going to be as much of an increase as the coastal markets have seen, He is still predicting increasing pricing. Taking it down a notch to like two to three percent increases.”
Affordability is an issue for many who work in Park City and want to live here. Hall said realtors are more interested in the client relationship than the commission leverage on expensive homes.
“I don’t believe that any of the professionals in this association goes after the number. They go after the relationship with the clients. And, we want to help our clients achieve their goals. So, it’s not about the sales price and we are definitely not motivated to try to get the sales prices up. But we also can’t control it. It is not our market to have any influence over the pricing. It’s just outside of our control, period.”
Hall said the year-end statistics show just one picture of what is currently selling.
“The average prices and the median prices that are posted, those are the houses that are selling right now. It doesn’t mean that every home is worth that. And that that’s your only option to buy a home in this community. We still have hundred thousand-dollar condos in Prospector. It’s not that those things have changed that much. So, it’s not the best option. It’s not a single family home but not every home is worth $2 million-dollars.”
Lot sales and new construction is more robust than re-sale properties. Limited lot availability in Park City drives the price of land higher.
“Our stats last year do show an increase in vacant land sales. And that does reflect the softening of the re-sale homes. Consumers are just wanting new product. So, they’re willing to buy the land and try to go through that process of finding the builder and building what they want. It’s a painful process but for some that’s more appealing than buying that existing home.”
That’s Park City Board of Realtors president Sheila Hall.