Median home prices up from 2011 | ParkRecord.com

Median home prices up from 2011

Gina Barker, The Park Record

Park City area median home prices are moving up in the first quarter of the year. According to the Park City Board of REALTORS (PCBR), the median price increased from the same period last year by more than 20 percent, with the median home price at $400,000 in 2012 as of March 19.

Mark Seltenrich, the PCBR statistician and local realtor, said Park City can expect to see home prices rise in the coming year, a good sign the market has reached its bottom.

"Our prices, because they did go so low, will see an increase by the end of the year," he said. "Last year at this time, things that were on the market for $220,000, on the lower end of real estate prices, it would sit there for 30 days before selling. This year, if something came on for $260,000 and it was the same condo, it would sell in a week."

Bargains are starting to thin out along with foreclosed homes, which have depressed home pricing in the area.

More than 1,600 home sales made up last year’s end median price of $350,000. Revenues generated by sales remain below last year, althoug a number of key properties are pushing the median above last year.

"From January 1, 2011 to March 1, 2011 in the Park City multiple listing service area, $70 million worth of real estate was pending or in escrow," said Craig Reece, an associate broker for Prudential Real Estate, regarding Prudential sales. "In the same time period this year, that number is at $170M. It may be a buyer’s market, and prices are low. But prices are not going any lower."

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Reece said the smart money is buying property now, before the good deals are all gone.

"You can be a buyer in a buyer’s market or a seller’s market," he said. "The smart people are buying now. The economy is better and people are buying."

Park City trends while more unique than national trends because it is a second home and retirement destination are still following state and national trends. Nationwide, economists are expecting to seem home prices stabilize before the fall.

"That’s a product of three plus years of modest economic growth," said Jeff Thredgold, a Zions Bank economist. "Obviously Park City is a little different and benefits from an overall better economic performance.

"Park City will of course benefit from better performances in Utah and nationally, but at the same time another element will more heavily affect Park City. That is the stock market. The stock market is now at a four-year high and portfolios are looking better, stock options are worth more. People are more willing to convert stock market gains into real gains by buying real estate."

A Montage Deer Valley property recently sold for $8.25M the 16th sale for Montage in the past 15 months and a major sale for the area, making it one of several properties pushing the median home price into a higher position.

"For the first time in a long time there is some pent up demand," Seltenrich said. "People are looking, watching the market, and when something comes up, they are snagging it."

2011 Sales:

City Limits Median Prices

Homes at $990,000

Condos at $620,000

Snyderville Basin Median Prices

Homes $632,000

Condos at $220,000

2012 Sales:

City Limits Median Prices

Homes at $1,195,000

Increase of 21 percent

Condos at $690,000

Increase of 11 percent

Snyderville Basin Median Prices

Homes $490,000

Decrease of 22 percent

Condos at $280,000

Increase of 27 percent

*Numbers based off of homes sales as of March 19