Home prices up in Summit, Wasatch counties | ParkRecord.com

Home prices up in Summit, Wasatch counties

Pamela Manson
The median price for a single-family home in Park City in the 12-month period ending Sept. 30 was $3.9 million. | David Jackson/Park Record
| David Jackson/Park Record

Home prices continued to rise in Summit and Wasatch counties in the 12-month period ending Sept. 30 but the rate of increase slowed compared to 2020-2021.

The average sales price in the past year for a single-family home — calculated by adding all amounts paid and dividing by the number of units sold — was $2,376,651, a 7% increase from the prior year.

The median, or the amount in the middle of the range of prices, went up 3% to $1,590,000

For the prior year, those increases were 40% and 50% respectively, according to data in a report on the real estate market from the Park City Board of Realtors.

Rick Klein, a local lender, says in the report that there is some easing in prices as mortgage rates rise and competitive bidding becomes less frequent.

“The wild price and sales swings that buyers and sellers have witnessed over the past two years seem to be moderating as the market returns to a more ‘normal’ seasonal pattern,” the report says. “Listing inventory is rising, prices are starting to level off… Buyers are becoming more hesitant to make instant offers above asking price and sellers are reacting by lowering those asking prices in much greater numbers.”

Median prices for homes varied widely depending on location. A single-family residence in the Park City limits cost $3.9 million, a 33% jump from the previous year. The price was $705,000 in Wanship/Hoytsville, an 18% increase, and $2 million in the Snyderville Basin, a 5% bump. And in Jordanelle, the cost plunged 32%, to $1,722,937.

Condominium median prices increased 38% through the third quarter of 2022 over the same period ending in 2021.

A condo in Park City set buyers back $1,500,000, a 20% increase; $1,049,500 in the Snyderville Basin, a 70% increase; $600,000 in Kamas Valley, up 20%; and $496,000 in Heber Valley, a 30% rise.

The number of units sold in the region dropped to 1,077 single-family homes, a 30% decline compared to the year ending in September 2021, and to 1,163 condominiums, a 27% drop.

“Fears that the market might be overheated, reinforced by a continuing rise in interest rates, supply chain difficulties, and other inflation indicators (gas prices), slowed sales across the region,” the report says.

The dollars spent on homes also fell. The total paid for single-family homes was nearly $2.6 billion, a 25% drop from the prior year, and to about $1.63 billion for condos, an 8% decline.

Lower available inventory continues to drive price appreciation but the trend is reversing, the report says.

“As of January of this year, there were only 287 residential properties for sale across the region and many of those were still under construction,” the report notes. “That number jumped to 836 by September as more sellers feared they might miss out on a nice profit and put their properties on the market.”

Sales of vacant land declined 35% across the region but the median price for lots increased by 42% to $695,000. The total sales volume dropped 17% to nearly $834 million from a year ago

The amount paid for the 853 lots sold varied by location. A Park City lot cost $2.1 million, a 45% increase, and a 25% rise brought the price in the Snyderville Basin up to $930,500. Kamas Valley had a relatively modest increase of 15%, to $425,000, while Wanship/Hoytsville saw a whopping 284% jump to a $362,500 median price for the lots sold there.

Another change is how long it takes to sell residences. Klein says in the report the average time single-family homes and condos sit on the market now in greater Park City is 4.2 months. Six months ago, it was 1.5 months and the average from 2013 to 2019 was 7.2 months, “so we are still selling homes much faster than in recent history, but the timeframe is more than twice what it was six months ago.”

As sale prices and interest rates for area real estate continue to climb, housing affordability becomes even more challenging. | David Jackson/Park Record
| David Jackson/Park Record

The report also says the dramatic climb in prices in the past three years is “eerily similar” to the same rise in the mid-2000s.

“Economic forecasts are predicting a continuing economic slowdown, but none has projected a bubble bursting crash such as we experienced in 2008,” the report says.

Park City agents also provide observations in the report, including that the erratic stock market has affected the willingness to purchase a single-family home, but they expect to see more post-election activity now that some of the uncertainty is eased.

“We are slowly returning to a more balanced market, much closer to what was happening pre-Covid, both in terms of number of sales and sale prices,” they say.

The agents also say the lack of inventory is more prevalent in the $3 million-plus end of the market and asking prices are more ambitious in that range, resulting in fewer offers.

“It’s important not to use the broader market trends to paint every local neighborhood,” they say. “The market is highly segmented, and each neighborhood in Park City has unique values, and unique pricing trends.”

A key takeaway in the report is that affordability is becoming more of a challenge with both interest rates and sale prices continuing to go upward.

Rene Wood, president of the Park City Board of Realtors, said more people are getting priced out of the market and have to rent. With property taxes and other costs going up, rents also are increasing, she said.

The board is working with developers to create affordable housing for teachers, police officers, firefighters and other community members, Wood said.

“Everybody is on board to make that happen and it’s just going to take everybody working to do that,” she said.

Summit County

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