When the supply of properties for sale is low and buyers are plentiful, as it is today, prices go up. We have been reporting double-digit annual appreciation for several years now, and investors have been taking advantage of these opportunities.
The happy medium, or sweet spot, that we're seeing where buyers and sellers are coming together during negotiations is at a price that is slightly higher than the last comparable sale but not so high that buyers are refusing to buy.Home Sales & Prices
The total number of homes sold in the last 12 months was 516 compared to 553 the prior 12 months. Within the Park City city limits, homes decreased by 10 sales, or 6%, with 159 homes sold in the last year compared to 169 sales the year before. Homes sold in the Snyderville Basin were down by 7%, or 27 sales, from 384 to 357.
The comparison of median sold prices shows us that home prices increased 10% within Park City city limits, and went up 22% in the Snyderville Basin. Median prices in town went from $1,850,000 to $2,042,506, and from $1,022,000 to $1,250,000 in the Snyderville Basin. That means there was an average uptick of approximately 16% for our areas.
Condo Sales & Prices
The total number of condos sold dropped from 675 sales between December 2016 and November 2017 to 593 between December 2017 and November 2018. Condominium sales within the city limits were down by 13%, or 47 sales, while condo sales in the Snyderville Basin fell by 36 sales, which is an 11% decrease from the previous year.
Median prices of condos had an increase of $143,000 or 19% in town and an increase of 8% (about $40,000) in the Basin. That makes for an average 13.5% increase between Park City and the Snyderville Basin condominium median sold prices.
Land Sales & Prices
When the total vacant land sales in Park City city limits and Snyderville Basin are averaged, the last 12 months compared to the prior 12 months shows a decrease of 5%. But, when we break it down, there was an upsurge in sales in the city limits, from 23 to 31; a 35% increase! Lot sales in Snyderville Basin decreased 11% or 18 fewer sales.
Overall, median lot prices showed a marked increase of 19.5% -- 29% in city limits, and 10% in the Snyderville Basin. This roughly translates to an increase of median lot price in Park City of $230,000 and about $45,000 in Snyderville Basin.
Average Time on the Market of Closed Home Sales vs. Active Home Listings
When properties are priced correctly, based upon recent comparable sales, they sell in 113 days, on average. Meanwhile, the current inventory of properties for sale in Park City is staying on the market an average of seven and a half months without selling. So what’s going on?
Left side graph: The silver bar shows that homes that are selling are taking 113 days on average to sell. The red bar shows the average days on the market of the actively listed homes in the Park City is 180 days. From this we may conclude when property owners price their properties correctly, they can expect to sell them in approximately 113 days, on average. However, when they over-price them, they can reasonably expect that their properties will be on the market for about six months without selling. But that's only part of the story . . .
Right side graph: The red bar on this graph shows the cumulative days on the market when properties are relisted (either with the same Realtor or a different one), after not selling during their initial and, in some instances, subsequent listing periods. When you add up the total days on the market of properties that have not sold, considering multiple listing time frames, when applicable, the days on the market without selling climb to 249 days, on average. That is more than eight months on the market without selling.
Many factors impact why one property sells over another. They include location, views, the age and condition of a property, upgrades, and so forth, but the number one factor is price. After more than 30 years of selling real estate in Park City, I have learned that there is a buyer for every property, at a certain price.
If you’re thinking of selling your property, realize that selling a home is a hassle. You must keep your home clean and in "ready to show" condition at a moment's notice. Nobody wants to be inconvenienced for eight months or more, especially with no sale to show for all the effort. When you decide to list your property, choose a price that will result in a sale within a reasonable time.
