Real Estate demands outpace the supply
Since the start of the COVID-19 pandemic, real estate prices in the Park City area have hit the stratosphere, while the number of homes for sale remains at record low levels.
Park City Board of Realtors President Mark Jacobsen said there are no homes listed inside Park City town limits under $2.5 million. Only two are below $3 million.
"In the basin, there are six homes listed under 1.5. Four of them are located in Summit Park. And in Silver Springs, there's no homes under 2.5."
Jacobsen said that single-family home prices in Park City are up 48% in the past two years. The basin area is up 46%, with Heber prices up 58 %.
He gave an example of 27 properties under contract within 24 hours between Monday and Tuesday. Summit County's median home price is now $2.4 million. And new construction costs are at all-time highs, rising from $1,500 to $2,500 per square foot.
"It's pricing a lot of people out that we continue to have our issue of affordability here for everyone else. You know, like our teachers, and our firemen, city workers. It's kind of hard for our everyday people to buy houses here."
Jacobsen said Wasatch Back homes and condominium prices are still lower than other mountain towns. Still, with the resorts marketing Epic and Ikon passes, many are discovering the area.
"And when we talk about the new construction--the 1,500 to 3,000 (cost per square foot) you're looking at, you know, all these new high-end condos going up in Deer Valley, all the new stuff--Pendry and things that are out at the Canyons, we still have a better value than most of the other ski resorts. And then with our proximity to the airport, I think that's why we're seeing more and more people come here."
Condominiums in Old Town have increased their median price by 7% to $729,000, and the number of units sold is up 45%. Condo unit sales in Empire pass have tripled, with the median price over $3.3 million. Lower Deer Valley unit sales have doubled, with median pricing at 1.4 million. Condominiums throughout the basin have similar trends.
Jacobsen predicts the heated real estate market isn’t going away in the foreseeable future.