The real estate report for the second quarter of 2018 showed some strong indicators for single-family homes, for the Snyderville Basin, and for Wasatch County.
The President of the Park City Board of Realtors, Todd Anderson, said that sales activity has been steady, despite a lack of inventory.
“Once again we’re still seeing prices rising. we’re still seeing the levels of sales rising at the same time and not so much that it’s pushing prices to unreasonable increases”
He said that the prices for single-family homes have increased by six percent, year after year.
“On that question of how sustainable that is, we just seem to have the inventory levels coming on to really change that.” Although Anderson says that sellers aren’t always getting exactly what they ask for, “We’re starting to see things sit on the market a little longer right now and really starting to see more things on a national level. We’re starting to watch things and say, ‘hey there’s some indicators out there that say things might be slowing up just a little.’”
Anderson said to gauge what’s going on, they look to their feeder areas.
“Generally, you look at anything in California, you look at Chicago, you look at Dallas, you look at Boston, New York. You watch things from those areas and with us being primarily a second home market people have to feel comfortable with their primary residency before they’re out buying a second home.”
The report shows that single-family homes account for 49 percent of the total dollar volume, condo sales are 40 percent, and vacant land is 11 percent of the market share.
He said that activity for vacant land is increasing—both in the number of sales and in prices, up by five percent. Anderson said the activity shows that buyers aren’t very interested in rehabbing established buildings that are 30 years old or more.
“They’re buying a second home. They don’t want to buy a project. So, most people don’t want to come in and say, ‘well if I put X amount of dollars into this, a year from now I’ll have what I want.’ They’d rather say, ‘If I’m going to do that I might as well build and go into it that way.’ So, it’s somewhat a piece of the price issue but it’s also about people getting what they want when they want it. We’re in a (climate where people say) I want it now, I should hit that buy button and it should be mine right now.”
Looking at neighborhoods, Old Town had the highest number of sales, up 36 percent. But there were 20 percent fewer sales in Park Meadows.
The Snyderville Basin reported more than twice the number of home sales as in city limits. Anderson said that for residents who commute to Salt Lake, driving from Jeremy or Pinebrook is easier than from Park Meadows.
The leading area in the Basin is Promontory, with 77 homes sold in the last year.
The Heber Valley continues to be strong, with nearly one sale a day.
“Its new, its less expensive, I think people are understanding how much things have changed out there. I think it’s getting a different feel for people. I think people are understanding how accessible it is. I think that there’s a lot of questions as we see the potential Deer Valley moving closer into that area. Making that a much easier area to call that a second home area.”
Elsewhere, the board is reporting that in the Kamas Valley, the number of sales decreased 15 percent and in North Summit, sales numbers remained the same.