A Compelling Time to Buy Real Estate in Park City Utah

The Stars Have Aligned! Now, more than ever, is a compelling time to buy real estate in Park City. We are in the midst of a very favorable real estate market for buyers, so why wait further? We currently enjoy extremely low mortgage rates, the distressed properties are going away, sales activity is up, property inventory is declining, and pricing has remained low, although has started to bump up in some areas of Park City.

We are entering a turning point... The market is about to change.

Mortgage Interest Rates Remain Crazy Low
Today's rates for borrowers are simply put, "crazy low!". Not just low, but yes, crazy low. When can you ever remember mortgage loan rates under 4%. Never, except this last year. And how much longer do you think that will last? That is the real question. The US and the entire world have seen some tough financial times and that has lead to very low interest rates. Although the recovery is slower than hoped, it has held the rates down and is leaving opportunity for new home buyers to make a move. When interest rates are as low as they have been, your buying power is much greater. For example a $650,000 home in Park City with 20% down and an interest rate of 7% would cost about $3,450 a month (principal & interest). That can be a hefty payment for many people, and might be just out of reach for many. But in today's very low rates of about 3.75% that same loan amount would only cost about $2,400 a month. That is a huge difference in affording to own a home in Park City or not.

Distressed Property is Going Away
There simply is much less distressed property in our Park City real estate market. Don't think so, doubt it? Just take a look through our website and see for yourself. There are very few options for short sales and bank owned foreclosures today. On our website, you can search by Short Sale or by Bank Owned and you'll quickly see everything available on the Park City MLS. There simply is much less of these distressed properties to choose from. With less and less of these low priced properties dragging down everyone's values, it leaves the opportunity for pricing to eventually start to move back up.

Sales Activity is Up
What does declining prices for five years do to a real estate market? It finally resets the market and eventually brings back buyers. Over the last one to one-and-half years we have been seeing a strong amount of sales activity in Park City real estate. There have been many people who want to own property in Park City, many people do want to be here. But over the years buyers have been scared to buy, and have been very cautious not wanting to make a foolish investment. Well after years of watching and waiting many have jumped back in, and many have scored great buys. We have been seeing sales unit numbers reaching amounts similar to the height of the market in 2007. With so much activity, there simply is zero reason to move any pricing down at all. And, it leads to believe that eventually, soon enough, we'll start to see an increase in pricing. In fact, we have already seen it in a few locations throughout town.

Inventory is Declining
With the lower amount of distressed properties no longer flooding our real estate market, and with the strong sales activity, we are no seeing a decrease in the amount of available inventory. Thats not to say you cannot find good properties, nor cannot find a good buy, but were here to say that if you do you better act fast. Its not like it was a couple years ago, when there was a plethora of amazing homes at amazing prices.

Pricing Should Start to Increase
Plain and simple, pricing has got to start moving up soon. With everything known that we just talked about above, it leads to only one conclusion, that pricing is due to start moving up again. It may go up slow, but it should start heading back up, there is no reason for it to stay the same or go down from here. You cannot have five years of declining property values, then have such a change in sales activity, and a decrease in inventory and expect things to stay as they are. In many areas of Park City, pricing has already bumped up a little. Even looking at statistical numbers you might only see a small increase, or see about the same numbers for sold home values. But we can tell you that a year or two ago you could get a much better home at that same price. A million dollars could get you much more two years ago than what it will get you today, so don't wait much longer. The good news is that a million will get you much more home for your money than what you would have gotten in 2007!

Quality Time Remaining
Here in Park City we often talk about Quality Time Remaining or QTR. Many of our clients are buyers from out of state, looking to purchase a legacy vacation property for their family. They view this as a way to dedicate time and reconnect with their kids, grandkids, spouses, siblings and parents. The downside of being so successful in business is often the fact that it takes up so much time, and pulls people away from the time they want to spend with family and friends. At some point in life, you just have to decide to dedicate time and a place to spend away from work, in an environment that rekindles the connections within your family. Owning a home or ski vacation condo in Park City is such a great way to do just that. Because we are so close to an international airport (only 35 minutes away) it is easy for everyone in your extended family to gather here in one place, It does not matter how spread out the family is over the country, everyone can find an easy flight here.

Why Wait Any Longer?
It is clear we are at a turning point in our Park City and Deer Valley real estate market. How soon, how quickly, and how much will pricing go up? That is a good question, but really who cares? Why focus on the investment value, why focus on the numbers? If youre looking for a way to make money, then buy a business and run it, or invest in companies or stocks, or continue to do what ever it is you already do that makes good money. Buying property in Park City is a good investment. It is a great place to park your hard earned money, and is generally a safe haven for it. Also, you can use your property and enjoy it. Your family can use it. Your friends can use it.

Isn't it time that you finally reward yourself?

Isn't it time you finally reward your family?

One thing is for sure. If you wait another year to buy your Park City or Deer Valley dream home, you and your family will be one year older when you do.

Give us a call today, and we'll happily discuss real estate options that might work well for you, and for your family. (435) 901-2158.