SALES IN SECOND QUARTER 2011 HIGHEST SINCE 2007

Sales Up, But Prices Still Down

Park City, Utah – July 22, 2011 – As reported by the Park City Board of REALTORS® Multiple Listing Service (MLS), there have been two straight years of relatively good real estate sales since the low at the peak of the Great Recession. Even better news, however, is that the second quarter of 2011 saw the highest number of sales since the fourth quarter of 2007. Overall inventory levels have also decreased since last year, with about 2700 units currently on market compared to 3060 in 2010. However, prices have yet to recover and remain soft.

The number of sales is looking healthy through the first half of 2011 compared to the first half of 2010. Total sales are up 24% with the increase in the number of sales of single family homes up that same 24% amount. Condo sales are up 8% while lot sales are up significantly at 55%. This noteworthy increase in lot sales bodes well for future new home starts which will contribute to our overall economy.

In reviewing the sales figures to date and the variation between the different areas, it has become even more evident that for homebuyers and homeowners to fully understand the market and the corresponding pricing in an individual neighborhood or market segment that one should consult a local member of the Park City Board of REALTORS®. For example, when comparing the first half of 2011 to the first half of 2010, area wide home prices are basically flat. However, upon a closer look average home prices in Old Town are down 16.5% to about $1,019,000, while average home prices in Park Meadows are up 8.9% to about $1,065,000. In the Silver Springs neighborhood average home prices are up 9.7% to about $668,500, while home prices in Pinebrook are slightly down to an average of about $662,000 and in Jeremy Ranch average prices are slightly up at $730,000. So throughout our area there is a wide variation.

Sales of Single-Family Homes

Activity in the single family home segment of the market is strong, with home sales accounting for 44% of all sales and 55% of the total dollar volume. Overall sales volume is up 24%, while prices are also reflecting an uptick with a 1% median price increase. Also interesting to note is that homes are selling at about 5% off their final list price, very close to the historical norm. The percentage of sales price being tied more closely to list price reflects more realistic market list pricing.

Vacant Land

The vacant land segment has been the most affected in the downturn, but now we are seeing that segment coming back the strongest in terms of number of sales. The strongest activity in lot sales has been in the Promontory area due to buyer’s perception that they are receiving a great value for their money. Our analysis reflects that the market in Promontory may prove to have hit bottom, with average prices on the rise. Promontory lot sales accounted for 42% of all lots sales this period. Although lot prices are down in many areas, they are higher inside city limits year to date 2011 than they were in 2010.

Condos

Condo prices in general are below where they were a year ago. Condo prices in the Canyons area are down 32% from a year ago to an average of $485,000, while prices in the Kimball Junction area are down about 23% to an average of about $175,000. However, average condo prices are up in several areas including Empire Pass (now $2,590,000), the Prospector area ($167,000) and even Park Meadows ($741,000).

Prices

Median prices are down 15% for our overall market, although single family homes continue to be the strongest part of our market with a one percent increase. Condo median prices are down 23% and vacant lot median prices are down 29%. However, when comparing just the second quarter of the year to just the first quarter, home prices are well up (median price of $575,000 vs. $515,000) while condo prices are slightly up (median price of $341,500 vs. $335,000) and lot prices are up as well (median price of $208,000 vs. $134,500). If these trends continue, by the end of the year prices still may be relatively the same as what they were in 2010.

Foreclosures

Sales of distressed properties remain a major part of our market, but have dropped to 27% of all sales, down from 35% of all sales at the end of the first quarter. These properties continue to represent only 7% of all properties on the market.

Looking Ahead

In summary, when comparing the first half of 2011 to the first half of 2010, the number of sales is well up, while in general prices are down. Single family homes remain the strongest part of our market, with homes accounting for about 44% of all sales and about 55% of the entire dollar volume. Home prices for the first half of the year are basically flat compared to 2010, but have increased significantly from where they were at the end of the first quarter 2011. There continues to be strong buyer interest and activity, and overall with prices still down it continues to be a buyer’s market. However we are seeing some strengthening of prices in certain neighborhoods and now more than ever it is important to consult with your local REALTOR® to understand what the market is doing in your area.

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The Park City Board of REALTORS® (PCBR) is a trade association of more than 900 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.

1889 Prospector Avenue Park City, UT 84060 Phone: (435) 200-6900 Fax: (435) 200-6901

Source: Park City Board of REALTORS®