Park City Real Estate Statistics Update 2014 Year End

PCBOR STATISTICS 2014 YEAR END

Now that we have ended the year 2014 we can finally compare the end of year results to the previous year of 2013. Looking at the macro market level there was a total of 2,362 unit sales for our entire Park City multiple listing service in 2014. This was only up by 4% from 2013’s 2,265 unit sales. The total dollar volume sold in 2014 was $1.67 billion compared to $1.52 billion the previous year which gave us a 10% increase. The average selling price for the entire MLS was $672,000 in 2013 and moved up 5% to $707,004 in 2014.

So to recap for all product types in the entire Park City MLS: The quantity of units sold went up 4%, the total dollar volume sold went up 10% and the average sales price went up 5%.

It's great to look at these large generalized numbers but the real value is looking more closely at our micro-markets and analyzing those sales statistics and continuing trends.

Old Town has always been one of the most sought-after and favorite locations in the greater Park City area with it’s close proximity to skiing as well as the walkability to Main Street. For single-family homes Old Town saw a decrease in sales. 2013 had 68 sales compared to 2014’s 58 sales for a decrease of 15%. The average selling price remains relatively the same at about $1.3 million for each year. We would note that what you could buy in 2013 for $1.3 million was much nicer than what you could buy for that same price in 2014 and hence the slowdown in unit sales. For condos in Old Town we actually saw an increase of 6% with 157 sales in 2013 and 166 sales in 2014. The average price also remained relatively the same at about $523,000. Additionally in Old Town we are seeing new construction projects such as 820 Park Avenue located near the Town Lift Plaza. This would add an additional 10 residential units that are currently under contract for sale with an average price of around $1,400,000. As these and more of the available luxury condo properties sell in the Main Street area, we will see a dramatic increase in the average and median condo price for Old Town.

Single-family homes in the Lower Deer Valley resort area saw a 23% increase in price from about $1,500,000 in 2013 to $1,800,000 in 2014. Coinciding with this price increase we saw a 38% decrease in unit sales with 21 sales in 2013 and 13 sales in 2014. The condo market in Lower Deer Valley has remained about the same in price at around $730,000 on average. With condo prices not moving up recently in Lower Deer Valley the unit sales have increased from 40 to 51 giving an increase of 28%. In contrast the Upper Deer Valley resort area saw a 13% increase in prices from $1,445,000 to $1,637,000 and sales decreased 33% from 33 sales in 2013 to 22 sales in 2014.

Empire Pass condos once again saw a busy year with a 68% increase in sales. In 2013 22 condos sold and in 2014 we saw 37 condos sales. The average sales price remains steady with a 1% change at an average of $3 million.

Single-family homes in the Prospector neighborhood saw an increase going from 13 sales to 18 sales. The selling price was also up by 26% moving from $639,000 to $803,000. Prospector has been a long time favorite location for full-time residents as it is close to the schools and close to town. With prices remaining fairly affordable for “in-town” Park City, there has been a lot of interest in this community.

Park Meadows is a very sought after neighborhood for both full-time residents and second-home owners. Following the trends in Park Meadows each year this community has been less susceptible to the ups and downs of the real estate market. Comparing 2013 to 2014 we see the same results. For single-family homes in Park Meadows, both 2013 and 2014 had 56 sales so no change year to year. Additionally the sales price in 2013 was an average of $1,669,000 and an average in 2014 of $1,650,000 for only a 1% change. The condo market in Park Meadows did decrease by 13% in unit sales but increased by 32% in price with an average price of $712,00 in 2013 going up to $942,000 in 2014.

In total for the Park City limits area which includes all of Park City from the white barn in, we saw a 6% decrease in single-family home sales and a 5% increase in the average selling price. For condos we saw a 6% increase in units sold and a 16% increase in the average selling price.

For the Snyderville basin which includes all of greater Park City from the white barn out, we saw a 13% decrease in single-family homes sold, and a 14% increase in the average selling price. Much like other areas in our market as we see the prices heading back up we are starting to see a slowdown in the amount of sales. For condos in Snyderville basin we saw a 7% increase in average selling price and also a 7% increase in units sold. The Silver Springs neighborhood saw a 24% decrease in single-family homes sold but that is probably due to the lack of available inventory, and not any lack of demand. Pinebrook also saw a decrease in homes sold by 33% and this is also most likely due to a lack of inventory. Jeremy Ranch had a very large decrease in sales from 73 homes in 2013 to only 45 and 2014. This 38% decrease is probably due to two things, One a lack of inventory and to an increase in List prices for the neighborhood that exceeded the buyers appetite. The luxury home market in promontory saw the average selling price only change by 2% and the amount of homes sold has increased by 22%.

Looking ahead, what do we expect to see for the first quarter of 2015?

Activity in 2013 and 2014 has remained quite steady and active in all market segments. We are continuing to see a steady rise in selling prices for most market areas. However the issue we are starting to see is generous overpricing by sellers who know the market is active and have high expectations on the value of their home. We see many buyers in the marketplace out looking but not finding the right fit in their price range. Buyers are often willing to move up in price in incremental amounts from previous sales but if the gap grows too large they tend to sit back and wait. This example of overpricing by sellers and inactivity by buyers is most evident in the Old Town area right now. The exciting news of Vail Resorts purchasing PCMR has helped fuel activity but is now helping to also fuel overpricing of homes. The future for Park City looks really good over the next few years so if we do have a little bit of a slowdown in unit sales early in 2015 we expect the sellers to adjust their prices and activity will flourish once again.

As you have just read, the real estate market in Park City can be looked at in a generalized manner but it is more important to look at each individual micro market. The trends we see in let's say Park Meadows might be totally different than what we will see in maybe Old Town. If you are interested in buying or selling please give us a call and we will happily get the specific data to you and we can help you sort through it all and possibly figure out what direction the trends are headed.