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The market statistics for the second quarter of 2021 demonstrate the continued strength of real estate in Park City and the Wasatch Back. Sale prices and overall homes sales continued their upward trajectory that began in the second half of 2020, and inventories remained at historically low levels. As usual, some of our local neighborhoods performed better than others, but it is noteworthy that not a single one of the defined market areas had any negative sales results to report.
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Some key statistics for the 2nd Quarter of 2021:
- Inventory remained low. New listings for residential and land totaled 1,010.
- Pending sales were up considerably, with Park City Multiple Listing Service (PCMLS) members signing 1,029 purchase contracts in Q2-2021. This was nearly a third more than the 774 pending transactions in Q2-2020.
- There were a few more homes coming to market in 2021 than during 2020. However, they were absorbed almost immediately, resulting in a substantial drop in inventory.
- Closed sales were nearly double the second quarter of 2020, with 850 contracts settled versus 443.
- With pending sales much higher than new listings, available inventory dwindled. 747 properties were active at the end of the second quarter, compared to 651 at the end of the first quarter. While the increase was beneficial, the active inventory was still less than half the previous record low of 1,715 in December 2017.
Source: PCMLS 2021-Q2 Press Release
Note: statistics referenced are for the 12-months ending June 30, 2021 compared to the same period in 2020.
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How did the local market fare? Here is our analysis of the total year-long results reported on a rolling year-over-year basis for the period ending June 30, 2021.
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Not all sold data in the Heber Valley is included in the Park City Multiple Listing Service data; please call for more specific details.
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Statistics drawn on rolling year-over-year basis for the period ending June 30, 2021, unless otherwise noted.
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Park City Limits
Within Park City Limits, total unit sales more than doubled over 2020 to 367 units, while sales volume tripled from $390 million last year to almost $1.2 billion this year. The median price of a single-family home across the city rose 37% to $2.75 million. In the popular Old Town area, units-sold more than doubled (49 to 130), and sales volume tripled to $307 million, as the median price topped $2.1 million. The Aerie neighborhood once again took the grand prize for greatest increase in median price, more than doubling over the year earlier to $3.4 million.
Snyderville Basin
Snyderville residents saw a spike in sales volume (up 165%) while the median price tracked equally well, up 37% to $1.75 million.
Promontory + Glenwild
Promontory led the neighborhoods in sales units (161, up 118%) and dollar volume ($470M, up 154%), while Glenwild saw the biggest price increase, with the median in that neighborhood passing $3.6M, up 77% year over year.
Jordanelle
The hotspots were north and east of the metro area around the Jordanelle reservoir. Deer Mountain and Tuhaye/Hideout both more than doubled their units sold. Deer Mountain more than tripled its sales volume on a 37% increase in median sale price of $1.8 million. Prices were particularly robust in the Tuhaye/Hideout area, where the median rose 40% to $2.4 million.
Heber Valley
Heber Valley saw a respectable 26% rise in sales units but 65% higher sales volume, propelled by a median price that jumped 40% to $758,000.
Other Noteworthy Areas
Other neighborhoods that saw both year-over-year units sold and sales volume double this year were Thanes Canyon, Deer Valley (both upper and lower), Deer Crest, Canyons Village, Old Ranch Road, Glenwild, Promontory, and Heber East.
More detailed information for most neighborhoods can be found here:
Single-Family Stats by Neighborhood
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Park City Limits
The Condominium market in Old Town Park City continued to be solid with sales up 66% in units and a comparable gain in median price of 14% to $702,000. Empire Pass was the standout neighborhood performer with sales more than quadrupled, driving the median price up 46% to $2.93 million. Prospector unit sales recovered from two previous quarterly drops, rising 27% on sales volume that almost doubled as the median price jumped 15% to $225,000.
Snyderville Basin
In the Snyderville area, outside of perennial volume leader Canyons Village, Pinebrook led in unit sales (92, up 136%), while Sun Peak/Bear Hollow eked out the sales volume lead at $60 million, almost five times last year’s tally.
Wasatch County
In Wasatch County, Jordanelle, Tuhaye, Hideout, and Red Ledges all saw gains of 100% or more in units sold, with Red Ledges leading in price increase, up 36% to $900,000.
Other Noteworthy Areas
The standout neighborhood outside of Park City Limits was Sun Peak/Bear Hollow, where sales more than doubled, and the median price jumped 40% from $534,000 to $746,000.
More detailed information for most neighborhoods can be found here:
Condo + Townhome Stats by Neighborhood
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Land sales exploded in second quarter as buyers who could not find an existing home to their liking elected to build their own instead. Although with lumber prices soaring, many have deferred groundbreaking until later. Sales units and dollar volume were both up triple digit percentages in almost all primary service areas, including Park City limits, Snyderville Basin, Heber Valley, and Jordanelle.
Overall land sales in Summit and Wasatch counties were up 129%, and the median sales price for land region-wide was up 28% to $363,800.
Four of the six major regions saw sales units doubling the previous year. Jordanelle led the way with almost 500 lots sold on a median price rise to $395,000 (up 37%). Jordanelle, Park City metro, Snyderville, and Heber Valley all saw a substantial increase in sales volume and units sold for 2021. Only 61 lots sold within the Park City Limits, and the city was the only region that fell in average and median sale prices, with the median dropping 18% year over year.
More detailed information for most neighborhoods can be found here:
Vacant Land Stats by Area
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If you are contemplating listing and selling your property, consider the balance between your pricing and absorption timelines. The data below weighs the time on market against the median price. It clearly demonstrates that those properties priced at or below the median are generally sold at a faster pace and in some neighborhoods, a significantly higher pace. Take note of the drastic reductions in time on market, demonstrating how quickly properties are being absorbed.
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Absorption Rate: the number of months it would take to sell the currently listed properties on the market factoring in median list price.
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PARK CITY LIMITS
(Areas 1-9) Includes
Old Town, Thaynes Canyon, Lower Deer Valley Resort, Deer Crest,
Upper Deer Valley Resort, Empire Pass, Aerie, Prospector, and Park Meadows.
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MEDIAN HOME PRICE
$2,750,000
ABSORPTION RATE
AT MEDIAN: 1.5 months
BELOW MEDIAN: 0.8 months
ABOVE MEDIAN: 2.2 months
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MEDIAN PRICE
$1,195,000
ABSORPTION RATE
AT MEDIAN: 1.6 months
BELOW MEDIAN: 1.3 months
ABOVE MEDIAN: 1.9 months
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SNYDERVILLE BASIN & JORDANELLE
(Areas 10-28) Includes
The Canyons, Sun Peak/Bear Hollow, Silver Springs, Old Ranch Road, Kimball, Pinebrook,
Summit Park, Jeremy Ranch, Glenwild/Silver Creek, Trailside Park, Promontory,
Quinn's Junction, Deer Mountain, Tuhaye/Hideout, Jordanelle, and South Jordanelle.
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MEDIAN HOME PRICE
$1,850,000
ABSORPTION RATE
AT MEDIAN: 1.4 months
BELOW MEDIAN: 0.7 months
ABOVE MEDIAN: 2.1 months
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MEDIAN PRICE
$650,000
ABSORPTION RATE
AT MEDIAN: 1.5 months
BELOW MEDIAN: 1.4 months
ABOVE MEDIAN: 1.5 months
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MEDIAN HOME PRICE
$758,500
ABSORPTION RATE
AT MEDIAN: 1.6 month
BELOW MEDIAN: 0.8 months
ABOVE MEDIAN: 2.3 months
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| As of press time, the Delta variant of COVID is spreading rapidly, largely amongst the unvaccinated segment of the population. While it's hard to predict the impact this will have on our local economy, best practices suggest we go back to social distancing and wearing masks indoors. We are concerned about potential impacts to our restaurants, who have been hit the hardest locally. Ironically, when the 20-21 ski season results were tallied, this was the best season ever in terms of visitation on a statewide basis. As we look into our crystal ball, we are hopeful that Mother Nature will bless us with abundant snowfall, which we desperately need to offset the drought that continues to plague the West. |
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On a more positive note, the summer has been busy for the hospitality industry, including a slight uptick in group business, as both weddings and the corporate world slowly return to in-person destination gatherings.
OTHER MARKET OBSERVATIONS
- While sales continue to be strong across all sectors, the market is not as frenetic as it has been, potentially signaling pricing plateaus in some areas. We are noting a drop in the number of multiple offers.
- Lumber prices have dropped considerably over the past two months, which should help stabilize the pricing volatility in new construction later in the third quarter.
- Potential sellers who haven't checked in on the current valuation of their properties might just find that selling now makes sense, particularly if the utility of the property has shifted.
- Even with mortgage rates at record lows, buyers able to pay cash have a much higher likelihood of success in a multiple offer situation.
- New buyers should keep the faith. We are experiencing success in finding off market properties. However, buyers should anticipate an expanded time frame for their property search.
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Utah's market continues to be one of the strongest in the nation, moving up from the #4 position nationally to #2 this quarter. While many businesses are requiring certain staff positions to return to the office, an equal number are allowing a more hybrid approach to remote work. This flexibility continues to elevate the Wasatch Back's popularity for those who can work from home and choose from an abundance of recreation right outside their door. For sellers, our advice is to carefully study the comparables when pricing your property, as we don't expect these huge price increases to continue indefinitely. Consider your timing goals as well. Buyers need to be prepared with their list of "must haves" and be prepared to move quickly when a property surfaces that meets those requirements. Time is of the essence, as demonstrated by the significant drop in absorption rates. We keep our finger on the pulse of our market in order to offer you the highest level of service. Let's discuss your goals as fall approaches.
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