Realtors see market improvements | ParkRecord.com

Realtors see market improvements

Alexandria Gonzalez , The Park Record

Almost five years after the economic recession, buyer confidence has hit a new high according to Jeff Spencer, president of the Park City Board of Realtors. In April of 2009, houses in Park City and surrounding areas were staying on the market for about 60 months. A new quarterly report from the Board of Realtors shows that houses now stay on the market for only 5.7 months.

"Near historic low interest rates mean buyers have the ability to buy more than they could have just a few years ago," Spencer said. "There is a regained confidence in buyers, because their purchasing power is now much greater."

He said that they are seeing buyers from across the country, especially New York, California, Florida and Texas. They are buying more in the Park City limits while locals are buying more in outer-lying areas such as the Heber Valley and Kamas areas.

Those out-of-town buyers, he said, are usually second-home buyers. That means that they live in Park City for maybe six months out of the year and maintain a primary home somewhere else. They typically would rather live in single-family homes in neighborhoods than in condominiums.

Mark Seltenrich, the Park City Board of Realtors’ statistician, said that single-family homes account for the biggest chunk of sales in numbers and dollar value making them the strongest part of the market.

The number of single-family homes being sold this year is up 22 percent from last year. There are only 160 active home listings right now compared to 173 at this time last year. Seltenrich said that prices are still lower than they were pre-recession – $1.275 million in 2013 compared to $1.8 million in 2008 – but they are still selling homes at the rate they usually do which means prices will continue to go up.

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"There are more primary residents that live here year-round than second-home owners, and they want to live in homes and not condominiums," Seltenrich said. "There is more drive to own a home and prices are still relatively good."

He said that when it comes to specific areas around town, Park Meadows had a 43 percent increase in median price of single-family homes from last year to this year, which is a large percentage gain. The median price is currently $37,000 less than last year but the average price has increased by $100,000, bringing the price basically back to where they were at during the peak of the market pre-recession.

Spencer said that sales of vacant land have also shown a large increase across the board, because there is not enough inventory of homes under the $500,000 mark.

"Within the Park City School District, there is a high demand for homes under $500,000, but we just don’t have enough of those homes," Spencer said. "So prices have rebounded enough that people are realizing the advantages of building, and we’re seeing the $300,000 lots being bought up."

Seltenrich said that there is also very little "new product" meaning new homes or condominiums and what new product there is sells very well. Now that prices are going up, he said, there will most likely be more new homes coming on the market. In that respect, he said that new condominiums are being built in Wasatch County close to the Summit County border, and sales should continue to go very well for new product.

As a sign of the times, distressed sales short sales or bank-owned properties have experienced a significant decline, Spencer said. Right now, those sales account for only 1.1 percent of the 160 active listings, whereas they used to account for about 25 percent.

"Because of market turn-around and the economy being stronger than what it was, we are not seeing so many foreclosures or notices of default," Spencer said. "People are either getting better jobs or have a stronger income, so they are not as over-leveraged as they may have been previously in terms of real estate."

Another sign that the real estate market is bouncing back is that, according to Seltenrich, realtors have sold more throughout the first three quarters of 2013 than in all of 2012. Last year, property sold totaled out at $1.24 billion, and at the end of September, the total was already at $1.19 billion.

"That total was at the end of September, but I’m positive we have surpassed $1.24 billion now at the end of October," Seltenrich said.

Both Spencer and Seltenrich agree that consumer confidence has increased dramatically. Seltenrich said that the housing recovery is taking place nationwide with prices up 12 to 14 percent. The entire Park City market is up about 11 percent, just under the national average, but it has gone up 15 percent in Heber. He thinks it is a good thing that prices are going up "super-fast."

"For a long time, buyers were waiting to see how low the market would go, so there was no urgency to buy," Spencer said. "Those buyers are now back in the market after realizing prices are continuing to go back up."

Specific numbers are listed below:

As submitted by the Park City Board of Realtors: Third Quarter Results 2013 Neighborhood by Neighborhood

Inside the Park City Limits in General: Number of active listings: 466 (-19%)

  • Homes: 160 (-8%)
  • Condos: 216 (-25%)
  • Vacant land: 58 (-22%)
  • Other: 32 (-22%)

Number of units sold: 503 (+25%)

  • Homes: 157 (+22%)
  • Condos: 273 (+20%)
  • Vacant land: 41 (+41%)
  • Other: 32 (+78%)

Total volume sold: $569,225,520 (+29%)

  • Homes: $281,143,360 (+37%)
  • Condos: $231,390,685 (+14%)
  • Vacant land: $37,122,775 (+156%)
  • Other: $19,568,700 (+9%)

Average sales price: $1,131,661 (+4%)

  • Homes: $1,790,722 (+13%)
  • Condos: $847,585 (-5%)
  • Vacant land: $905,434 (+81%)
  • Other: $611,522 (-39%)

Median sales price: $703,500 (+10%)

  • Homes: $1,295,000 (+26%
  • Condos: $550,000 (+1%)
  • Vacant land: $625,000 (+33%)
  • Other: $261,250 (+93%)

More specifically Number of single-family home sales: +22% Median price of single-family homes: +26% to $1,295,000 Number of condominium sales: +20% Median price of condominiums: +1% Vacant land sales: +56% Median price of vacant land: +33% to $625,000

Snyderville Basin Number of single-family home sales: +17% Median price of single-family homes: +26% to $1,295,000 Number of condominium sales: +3% Median price of condominiums: +13% to $321,497 Vacant land sales: +41% Median price of vacant land: +/-0% at $300,000

Jordanelle Area: Number of single-family home sales: +6% Median price of single-family homes: -17% to $643,000 Number of condominium sales: +74% Median price of condominiums: +11% to $349,000 Median price of vacant land: +116%

Old Town: Number of single-family home sales: +51% Median price of single-family homes: +14% to $912,500 Number of condominium sales: +57% Median price of condominiums: +18%

Lower Deer Valley: Number of single-family home sales: +73% Median price of single-family homes: -24% to $1,500,000

Park Meadows: Number of single-family home sales: +23% Median price of single-family homes: +43% to $1,470,000 Number of condominium sales: +38% Median price of condominiums: -1%

Silver Springs: Number of single-family home sales: +109% Median price of single-family homes: +10% to $689,025 Number of condominium sales: +75% Median price of condominiums: +26% to $356,700

Pinebrook: Number of condominium sales: +25% Median price of condominiums: +14% to $315,000

Trailside Park Area: Number of single-family home sales: +59% Median price of single-family homes: +11% to $510,000

Heber Valley Area: Number of active listings: 373 (-4%)

  • Homes: 198 (+16%)
  • Condos: 7 (-13%)
  • Vacant land: 159 (-21%)
  • Other: 9 (+13%)

Number of units sold: 243 (+29%)

  • Homes: 148 (+19%)
  • Condos: 12 (+33%)
  • Vacant land: 82 (+61%)
  • Other: 1 (-75%)

Total volume sold: $83,725,863 (+47%)

  • Homes: $67,653,144 (+49%)
  • Condos: $2,033,500 (+5%)
  • Vacant land: $13,704,219 (+46%)
  • Other: $335,000 (-33%)

Average sales price: $344,551 (+13%)

  • Homes: $457,116 (+25%)
  • Condos: $169,458 (-21%)
  • Vacant land: $167,125 (-9%)
  • Other: $335,000 (+167%)

Median sales price: $250,808 (+12%)

  • Homes: $338,000 (35%)
  • Condos: $152,000 (+13%)
  • Vacant land: $153,755 (+4%)
  • Other: $335,000 (+195%)

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