Real estate prices continue to climb in Park City
May 13, 2016
As summer’s warm weather hits, Park City’s status as a desirable place to buy a home seems unlikely to cool down.
Real estate numbers from the Park City Board of Realtors at the end of the first quarter show home prices all over the area are rising as buyers willing to pay a premium for the Park City experience continue to flock to town.
And within city limits, that trend is coupled with a relatively small inventory. Single-family home and condominium sales were down 12 and 19 percent, respectively, but the costs for both soared. The median price of a home in town rose 13 percent, while the cost of a condo increased 7 percent.
"On the surface, it looks like classic supply and demand," said Rick Shand, president of the Board of Realtors. "There aren’t as many homes on the market, and therefore homeowners are starting to ratchet up their pricing."
The Snyderville Basin saw a similar trend in single-family home sales, which were down 4 percent but saw a 13-percent increase in the median price. Much of the action in the Basin was in Promontory, which experienced a 31-percent rise in sales over last year. Condominium sales in the Basin, without the restraints of a low inventory, flourished and saw a 26-percent increase in total volume and a 14-percent bump in median price.
Shand noted that, as well as the Basin, other areas outside of Park City proper are also seeing heavy action. Home sales in the Jordanelle area increased 5 percent, while sales in the Heber Valley increased 13 percent. Condo sales were also up 22 percent in the Heber Valley.
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He said that, for new buyers, the lines of being in town or out of town have become blurred.
"People who buy out in Jeremy Ranch, they think they’re just as much in the Park City community as somebody who buys in Deer Crest," he said. "People who come into the market and are new to the area see us as one big community. Even though they’re willing to pay more to live closer to town — or at least the property values are more — the growth and the demand seems to be pretty universal."
The surge in prices is a direct result from the increased interest in living in the area. Shand said that median home prices have risen by an average of about 6 percent over the last six years, a rate of growth that is "nice and steady." The recent price surge, though, has presented some question marks.
"I don’t know if that’s indicating even more demand out there," Shand said. "I don’t know if, after this next quarter, we’ll see things mellow out a little bit."
If prices continue their climb, it may become more difficult for average buyers to snag a home currently on the market. But Shand said the large amount of housing projects under construction in the area insulate against worries that normal families will eventually be priced out.
"If we weren’t building any more new property, it wouldn’t be such a good thing," he said. "But with Park City Heights coming online hopefully in the near future, Silver Creek Village and the proposed development around the Jordanelle (Reservoir), that’s going to bring online a lot of middle-level priced property."
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