Park City, Utah - April 26, 2013 – Park City Board of REALTORS® just released statistics for the first quarter of 2013 showing the number of sales are up 17% from the first quarter of 2012. The sales dollar volume is up 28% over the same time-period last year, climbing from $239 million in Q1 of 2012 to over $306 million for Q1 of 2013. With 402 closed sales already this year, Mark Seltenrich, Statistician for the Park City Board of REALTORS® said, “This is the best first quarter we have seen since 2007.”
The current inventory of active listings in the greater Park City area is lower than it has been since 2006. As of April 1st, there has been a 21% decrease in listings since April 1st of 2012. The current number of listings is down 47% since the high mark in July, 2008.
Foreclosures have become a less significant part of our market. Distressed properties (foreclosures and short sales) now make up only three percent of active listings and accounted for only 13% of sold properties in Q1-- down from 23% in Q1 of 2012.
The number of sales for single family homes in all areas in Q1 increased 18% compared to Q1 of 2012, and the median sales price rose 30% to $619,500. The median price for single family homes in the Snyderville Basin and Jordanelle area was up 28% reaching $634,500 from Q1 of last year, though down slightly from the year-end 2012 figure of $649,000. The median price of a home within the city limits for the first quarter was $1,312,500, up 12% from the first quarter of 2012 and up 22% from the year-end 2012 figure.
Overall, condominium sales decreased 3% from Q1 of 2012; however, the number of sales inside the city limits was up 21%. The median sales price within the Park City limits was $639,000, which is down 18% from the first quarter of 2012—though well above the 2012 year-end figure of $522,500. While the number of sales in the Snyderville Basin and Jordanelle area was down 23% compared to the first quarter of 2012, the median price for a condo was $334,128, which is up 22% over the first quarter of 2012 and up 8% over the year end 2012 figure.
Vacant land sales increased 45% in the first quarter of 2013 with 74 transactions compared to 51 transactions in 2012. Lot sales increased in both the city limits, up six sales (75%), and in the Snyderville Basin and Jordanelle areas, up 19 sales (73%).
The median price of a vacant lot, for all areas, fell 9% in the first quarter of 2013, dropping to $182,150 from $200,000 in 2012. Lot prices within the city limits climbed 10% from $468,000 in 2012 to $514,500 in 2013. Median lot prices in the Snyderville Basin and Jordanelle areas dropped from $237,000 in 2012 to $180,000 in 2013, a 24% decrease. “These lower prices will not be sustained and prices through the rest of the year should rise as there are far fewer lower priced lots on the market. Prices overall, although higher, are still a great value,” Seltenrich said.
Buyer activity continues to be strong, and historically sales in the first quarter of the year are slower than the remainder of the year. This means that competition for certain properties, especially single family homes under $500,000, will be harder to find. Though, with interest rates remaining historically low, today’s buyer has 43% more purchasing power than they did in 2006, as reported by Rick Klein of Wells Fargo Home Mortgage.
The low inventory is increasing the pressure on price. In some market segments, the absorption rate for a new listing is as low as 1.8 months on the market, while in others it is 144 months. Jeff Spencer notes that, “There are still specific areas within our market that are slower to respond to price increase and demand; therefore, opportunity still exists for good buys. It is important to consult your local REALTOR® to find out what the market is doing in your neighborhood.”
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