4th Quarter Market Pulse: 2022 Year-End Review

In our local MLS area, the number of homes sold dropped 29% in the single-family market, while the median sale price rose 3%. In the condominium market, every major area reported median price increases, with the overall average increasing by 35%. In vacant land sales, every major area showed drops in the number of closed transactions, while the median price increased across the MLS by 12%. 

Additional statistics below delve deeper into the numbers and trends across Park City and the Wasatch Back, and I encourage you to discover how your area(s) of interest fared during 2022. If you have any additional questions, please reach out. I would appreciate the opportunity to explore how market trends have affected the value of your property or to discuss your potential as a future home buyer.

For single-family homes, most areas saw a decline in the number of sales in the 4th Quarter of 2022 compared to 2021. However, there were exceptions like Silver Creek Village, where new construction boosted sales to 200% higher than in 2021. Also, the South Jordanelle area experienced sales growth, as the new Benloch Ranch development contributed to 68 out of 85 sales in the $1 to $2 million range.

Excitement is building in the Jordanelle area, where the upcoming Mayflower Mountain Resort is set to open during the 2024-25 ski season. The Jordanelle area experienced a 78% increase in sales compared to the previous year but with a lower median price of $1.6 million versus $2.3 million.

HIGHLIGHTS   |  Stats by Neighborhood

• Within Park City Limits, total sales were down 47% over 2021 to 115 homes sold, but sales volume declined just 38% to $530 million. The median price of a single-family home within Park City limits rose 18% to $3.9 million.
• In the popular Old Town area, homes sold were down 59% (76 to 31) as the median price set a new record above $3.9 million (+57%).
• Snyderville Basin residents followed the prevailing market with sales volume (down 35%) on a respectable gain in the overall median price up 12% to $2.1 million. All but two Snyderville neighborhoods (Kimball Junction and Silver Creek South) saw declines in homes sold with Jeremy Ranch dropping the most (62%) to 24 total sales. Silver Creek South had the biggest gain with 34 homes sold, more than triple the previous total. One-third of the overall sales volume in the Basin was in Promontory ($276 million)
• Jeremy Ranch saw the biggest price increases with the median rising 43%, with the median sale price up to $2.4 million.
• Canyons Village held on to the top position with a median price of over $11 million.
• Among the outlying areas, the Kamas Valley showed a substantial median price increase of 47%.

The condominium market in Park City followed the same trend as single-family homes, with a decrease in sales due to limited inventory. Despite a drop in sales volume by 44% within Park City limits, median prices saw an increase of 15% to $1.5 million. On the other hand, the Snyderville Basin saw a boost in sales volume by 32%, as both average and median prices rose by almost 50%.
 

• The condominium market in the Old Town neighborhood paralleled the single-family numbers with total sales and volume down, while a gain in median price of 15% was seen. The median price of a condominium sold in Old Town is now $1.5 million.
• Price gains were nearly uniform across all neighborhoods, with only Upper Deer Valley Resort declining by a small fraction. Old Town, Park Meadows, and Prospector led the gainers, up 46% or more.
• In the Snyderville area, outside of perennial volume leader Canyons Village, Silver Creek South, and Silver Springs led in sales volume increases (224% and 59% respectively), while all other Snyderville neighborhoods saw sales decline due to lack of inventory.
• In Wasatch County, (areas with 10 or more sales are reported) Jordanelle Park showed the largest gains in sales volume over the prior year (up 68%) despite a slight decline in median price, down 3% to $934,000.

The number of vacant land listings in Park City changed dramatically in the wake of the pandemic. In mid-2019, there were 902 listings, but this number plummeted to 275 by spring 2021. However, by the end of 2022, the number of listings had risen to 525.

HIGHLIGHTS  |  Stats by Neighborhood

• Jordanelle showed the most activity, selling 329 lots this past year. The median sale price was $653,000, up slightly from the year before.
• Overall land sales in Summit and Wasatch Counties were down 41%, as supply decreases and steady demand pushed the median sales price for lots region-wide up 14% to $670,000.
• All the major areas of the market saw a drop in closed transactions. Snyderville, Heber Valley, and Wanship/Hoytsville were hit the hardest, dropping by half from the previous year’s total.
• Only 32 lots sold within the Park City Limits, but that lack of inventory, coupled with high demand, kept the median sale price for the few that did sell to just below $2 million.

The absorption rate has increased dramatically from the lows of several quarters ago, but it remains 40% below levels prior to Covid.

By the end of 2022, a few major trends were emerging that will likely continue to affect our market in 2023. Many owners with mortgages are reluctant to give up their 3% loans by selling when they have to re-purchase at 6-7% interest. This will continue to exert downward pressure on inventory. 

With our wonderful quality of life and relatively low tax rates, our market is still seeing buyers from others states looking for an opportunity to relocate to our mountains. At the same time, there is significant inventory being planned in Heber Valley that will likely come to market in the next year. Watch for a jump in activity around Heber City, particularly on the north end of town, where there is significant new construction activity. 

With any luck, the pandemic is behind us. We have a new normal, at least given recent price gains. The issue is whether our market now stabilizes or continues to see a decrease in sales and the rate of price appreciation.  

Remember, our market is highly segmented and trends vary widely by neighborhood and price point. Reach out to discuss how the market trends have affected the value of your property or to discuss your potential as a future home buyer.