Park City Real Estate Market Report - 2012 1ST QUARTER STATISTICS

2012 1ST QUARTER STATISTICS

By Park City Board of Realtors

PRESS RELEASE - FOR IMMEDIATE RELEASE:

Park City, Utah –The highlight for the first quarter of 2012, as reported by the Park City Board of REALTORS®, is that the median sales price for vacant land and condos, in all areas, has gone up. The median sold price for condos went from $335,000 in the first quarter of 2011 to $401,628 for quarter one in 2012. Vacant land also saw a rise in median sold price from $134,500 in 2011 up to $200,000 in 2012. The overall sales dollar volume for quarter one, however, came in at $235 million, down from the first quarter of 2011 when overall sales topped $254 million. The total number of sales is also lower for the first quarter of 2012, with 338 sold properties, where as last year the number was 374.

Prices

Median prices in the first quarter of 2012 have rebounded nicely from lower numbers which dominated much of last year. This increase in price can be directly attributed to an increase in condo and vacant land prices. The all area median price for single family homes is slightly lower for the first quarter of 2012 at $475,000 compared to $515, 000 in 2011. By area, first quarter statistics for single family homes are as follows: within the Park City Limits there were 37 sales with a median price of $1,130,000. In the Snyderville Basin Area, there were 41 sales with a median price of $489,900. In the Heber Valley, there were 36 sales with a median home price of $248,450.

A year ago, we continued to see downward pressure on prices which seems to have flattened. “Prices throughout our market seem to have stabilized, and in certain segments prices have started to increase. We saw this trend start in 2011 with single family homes, and we are now seeing it in condo and vacant land sales,” says the statistician for the Park City Board of REALTORS®. He adds, “In certain parts of the market, and in certain areas, some pent up demand is being demonstrated and even among buyers there is little talk of prices continuing to fall.”

Number of Sales

The total number of sales in the first quarter is the lowest quarter total since the first quarter of 2010. This lower number can be directly linked to slow sales in January, which followed a slow December in terms of pended sales. This slow January appears to be an anomaly as the number of pended sales in February increased, and March saw the highest number of pended sales since mid-year 2007. This high number of contracts portends well for second quarter numbers.

Sales have occurred in all market segments, with the very high end in upper Deer Valley and in Deer Crest doing well. On the other end of the scale, low end condos and low priced lots are becoming more and more difficult to find. Sales of new product has continued, and now the abundance of new developer units in the Empire Pass area has ended with only Montage having any stock of brand new units. Sales of new product in the Jordanelle area has also been quite active, with sales occurring on units that are nothing more than a drawing on a map.

Distressed Properties

Another point of interest is in the category of distressed properties which has become a smaller portion of our market. According to Rick Klein of Wells Fargo Home Mortgage, distressed sales, which include both foreclosures and short-sales, made up about 23% of sold properties in the first quarter of 2012, compared to over 36% in first quarter 2011. Specifically, 16% of all sales were bank owned and short-sales were just over 7%. However, distressed sales will continue to make up a good share of the market as notices of default have once again had an uptick in the last quarter of 2011 and the first quarter of 2012. Currently, only 7% of listings in Summit County are distressed.

Inventory

Another positive outlook for 2012 is that inventory levels have continued to decrease at a steady pace, with about 2100 units on the market now compared to about 2400 units in 2011, about 2775 in 2010 and about 3500 units on the market in 2009. At the end of 2011, prices for condos and vacant land continued to fall, while home prices saw a very slight rise. It was predicted at the beginning of 2011 that prices would stabilize more than they did. “It was mentioned many times that we were in a strong buyer’s market and that at some point prices would stop falling and start to rebound. It now looks like that has happened, and even though prices are still excellent, the chances of prices going down overall look very slim,” says the board's statistician.

In Summary

In the first quarter of 2012, the number of sales was somewhat lower than a year ago, but prices rebounded nicely. The increase in the median sale prices in all areas is due to both condo prices and vacant lot prices going up in value. It appears that the bottom of the market has now passed in all property types. Although singular great deals will still occur, it will be more and more difficult to find those great deals and buyers should be content with finding a property that meets their needs and wants, at a good price, as opposed to that “steal”. Prices have flattened, inventory levels are down, and with the great interest rates and still a good selection, 2012 looks like it will be an excellent time to invest in Park City real estate.

The Park City Board of REALTORS® (PCBR) is a trade association of over 800 members comprised of REALTORS® and Affiliates from the greater Park City real estate industry. PCBR analyzes and reports on real estate trends for the greater resort community of Park City.