The Park City real estate market has been very active as of late and we are seeing some significant improvement in the marketplace. Inventory is back to 2007 levels, pricing seems to have stabilized with the clearing of distressed inventory, and multiple offer situations are becoming more prevalent. Many buyers visiting the area have a limited amount of inventory to choose from with the summer winding down and winter fast approaching.
Demand: Pended Sales
If you take a look at the graph below you can see that the pended sales are as high as they were previously in 2007. The end of 2011 was especially slow for the Park City market but halfway through the 1st quarter activity really started to increase throughout the area. These figures put us up 18.8% above 2011 levels in pended sales with Q3 being the at the highest level since 2006. One astonishing number in regards to these sales is that 52% were cash sales compared to the national average which is around 27%.
The amount of active listings on the market is the lowest it has been since Jan. 07' with 1,349 active listings. Based on an average of the last three months sales this represents an 11.8 month supply of inventory. When looking at the absorption rate for single family homes and condos, we're at the lowest number since 04/07.
For Q3 in Park City, distressed inventory (Bank owned or short sales) accounted for 13.5% of the total sales from the Park City MLS which is down 27% from this time last year. Distress sales sold for a discount of only 3.1% off of market sales! For those buyers limiting themselves to only looking for deals on bank owned homes, you may want to rethink this strategy. Great buys can be had all over the market with strong offers and finding motivated sellers.
Park City Real Estate Prices
According to the statistics from PCMLS, the median price trends have been bouncing along at bottom levels since the middle part of 2011. With all of the multiple offers going on in the market and low inventory levels, we could be geared for a slight uptick in market pricing. One issue that can come from this and we're already starting to see signs of are issues with appraisals. When appraisers look at comparable sold properties on the MLS the data can be skewed if market conditions have improved but the previous sales say otherwise.
- Demand is improving. Closed sales are up 6.5% year to date and Q3 pended sales at 2006 levels.
- Supply is declining significantly with just under 12 months of inventory on the market.
- Distressed sales are declining and only offering a 3.1% discount off of market pricing.