Park City, Utah –The highlight for the first quarter of 2012, as
reported by the Park City Board of REALTORS®, is that the median sales
price for vacant land and condos, in all areas, has gone up. The median
sold price for condos went from $335,000 in the first quarter of 2011 to
$401,628 for quarter one in 2012. Vacant land also saw a rise in median
sold price from $134,500 in 2011 up to $200,000 in 2012. The overall
sales dollar volume for quarter one, however, came in at $235 million,
down from the first quarter of 2011 when overall sales topped $254
million. The total number of sales is also lower for the first quarter
of 2012, with 338 sold properties, where as last year the number was
374.
Prices
Median prices in the first quarter of 2012 have rebounded nicely from
lower numbers which dominated much of last year. This increase in price
can be directly attributed to an increase in condo and vacant land
prices. The all area median price for single family homes is slightly
lower for the first quarter of 2012 at $475,000 compared to $515, 000 in
2011. By area, first quarter statistics for single family homes are as
follows: within the Park City Limits there were 37 sales with a median
price of $1,130,000. In the Snyderville Basin Area, there were 41 sales
with a median price of $489,900. In the Heber Valley, there were 36
sales with a median home price of $248,450.
A year ago, we
continued to see downward pressure on prices which seems to have
flattened. “Prices throughout our market seem to have stabilized, and
in certain segments prices have started to increase. We saw this trend
start in 2011 with single family homes, and we are now seeing it in
condo and vacant land sales,” says Mark Seltenrich, statistician for the
Park City Board of REALTORS®. He adds, “In certain parts of the
market, and in certain areas, some pent up demand is being demonstrated
and even among buyers there is little talk of prices continuing to
fall.”
Number of Sales
The total number of sales in the first quarter is the lowest quarter
total since the first quarter of 2010. This lower number can be
directly linked to slow sales in January, which followed a slow December
in terms of pended sales. This slow January appears to be an anomaly
as the number of pended sales in February increased, and March saw the
highest number of pended sales since mid-year 2007. This high number of
contracts portends well for second quarter numbers.
Sales have
occurred in all market segments, with the very high end in upper Deer
Valley and in Deer Crest doing well. On the other end of the scale, low
end condos and low priced lots are becoming more and more difficult to
find. Sales of new product has continued, and now the abundance of new
developer units in the Empire Pass area has ended with only Montage
having any stock of brand new units. Sales of new product in the
Jordanelle area has also been quite active, with sales occurring on
units that are nothing more than a drawing on a map.
Distressed
Properties
Another point of interest is in the category of distressed properties
which has become a smaller portion of our market. According to Rick
Klein of Wells Fargo Home Mortgage, distressed sales, which include both
foreclosures and short-sales, made up about 23% of sold properties in
the first quarter of 2012, compared to over 36% in first quarter 2011.
Specifically, 16% of all sales were bank owned and short-sales were just
over 7%. However, distressed sales will continue to make up a good
share of the market as notices of default have once again had an uptick
in the last quarter of 2011 and the first quarter of 2012. Currently,
only 7% of listings in Summit County are distressed.
Inventory
Another positive outlook for 2012 is that inventory levels have
continued to decrease at a steady pace, with about 2100 units on the
market now compared to about 2400 units in 2011, about 2775 in 2010 and
about 3500 units on the market in 2009. At the end of 2011, prices for
condos and vacant land continued to fall, while home prices saw a very
slight rise. It was predicted at the beginning of 2011 that prices
would stabilize more than they did. “It was mentioned many times that we
were in a strong buyer’s market and that at some point prices would
stop falling and start to rebound. It now looks like that has happened,
and even though prices are still excellent, the chances of prices going
down overall look very slim,” says Seltenrich.
In Summary
In the first quarter of 2012, the number of sales was somewhat lower
than a year ago, but prices rebounded nicely. The increase in the
median sale prices in all areas is due to both condo prices and vacant
lot prices going up in value. It appears that the bottom of the market
has now passed in all property types. Although singular great deals will
still occur, it will be more and more difficult to find those great
deals and buyers should be content with finding a property that meets
their needs and wants, at a good price, as opposed to that “steal”.
Prices have flattened, inventory levels are down, and with the great
interest rates and still a good selection, 2012 looks like it will be an
excellent time to invest in Park City.
The Park City
Board of REALTORS® (PCBR) is a trade association of over 800 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.
By parkcityboardofrealtors
PRESS RELEASE
FOR IMMEDIATE RELEASE:
April 20, 2012
Reposted by:
Derrik Carlson
Keller Williams Park City
435-200-5478
www.MountainDreamHouse.com
