For almost two years the Park City real estate market has been acting peculiarly. We’ve been reporting in our monthly webinars, podcasts, websites, and newsletters, two consistent market patterns related to homes, condos and vacant land sales in Park City. (1) The number of sales has been dropping, year-over-year, as buyers have been resisting the high asking prices by sellers. (2) The prices of closed homes, condos, and vacant land sales have continued to rise, year-over-year.
In our monthly summaries, we have stated the obvious. Price your property fairly, and it will sell (in 113 days on average, for homes), and usually at a record high price compared to a year ago. Over-price it, and it will remain on the market for 243 days on average (for homes) without selling.
Real estate markets typically don’t behave this way; sooner or later something has to give. Well, we’re finally seeing the anticipated change.
PRICES ARE STARTING TO DROP
Prices are starting to drop, particularly within the Park City limits. Sellers are finally adjusting their asking prices to attract more buyers and it’s working. The number of sales of both homes and condos is climbing from a year ago.
The number of lot sales within the city limits is so small, due to the lack of available inventory, we do not see the change there yet. With only 17 lot sales during the past 12 months, three or four fewer sales compared to a year ago will look like a large percentage decline and may be misleading if viewed in isolation.
When home and condo prices are high, buyers turn to purchasing land as an affordable alternative. Once asking prices adjust downward, resulting in more home and condominium sales, a decline in land sales will follow.
THE NUMBER OF SALES IS REBOUNDING
With list price reductions becoming more common, the number of sales is increasing. The fair market price range (“sweet spot”) brings buyers and sellers together, resulting in sales.
STILL PLENTY OF OVER-PRICED LISTINGS
Don’t get me wrong; this doesn’t mean that we no longer have over-priced properties listed for sale. The ratio has been 2 to 1 (two over-priced listings fore every one correctly priced property), but there appears to be a heightened awareness in more sellers that buyers are simply saying “no” to over-priced properties. Motivated sellers are correcting their asking prices and selling their properties.
This is an article written by Ron Wilstein in our December 2019 newsletter, the Park City LINK. Click here to learn more about the Park City real estate market and how The Wilstein Team can help you with your Park City real estate buying and selling needs.
Articles in this Park City LINK issue:
A Critical Transition for Park City Real Estate
Baby Boomers Impact Park City’s Market
What is Mayflower Mountain Resort?
Real Estate Stats and What They Mean
Woodward Park City Sports Park
Five Ways to Successfully View Real Estate During the Ski Season