Park City Life Realty Blog

Thank you for taking the time to review our 2021 Year End Market Report presentation. 2021 was a record setting year for real estate which is interesting in the middle of a global pandemic. I think the pandemic really changed people’s mindset on many things in life and the way we live and go about our everyday lives. More of us are working remotely and/or from home and we saw a huge uptick in people looking for what we have here in Utah- open spaces, opportunity for that outdoor and active lifestyle we all love, low tax rates, and increasing job opportunities.

All of this has led to strong demand for properties in Utah, and more people wanting to stay put and so here we are- limited availability of properties for sale which has increased prices an average of 28% year over year in Park City. Is a 28% growth rate sustainable? Not likely- certainly at some point people are just not going to pay the next record setting high sale price. With interest rates rising, this will also put downward pressure on demand.

If you are contemplating selling your property, there is likely no better time than right now. We know demand is strong right now, but with these expected increases in mortgage rates and concerns over rising inflation on the horizon, this strong seller's market could shift. Pay close attention to page 14 at the very tip of the average trend line. Days On Market, which is how long it takes for properties to go under contract, has always been a leading indicator that I have looked at over the years to determine which way the market is likely to go. Do you see a slight uptick in the Days On Market trend line? I am certainly not saying any decreases in value is on the horizon, and so if you are looking for property in Park City, it is also a good time to purchase as even if the market does slow to a more normalized 7% increase range in value, you will want to purchase now rather than pay that 7% more next year.

Click the image below to review the full Summit Sotheby's International Realty report.

The Park City Life revolves around outdoor recreation, and saving our green spaces is a critical movement to preserve the Park City Life.  Summit Land Conservancy has done an outstanding job over time protecting our open spaces from development.  Notably, The Summit Land Conservancy has saved the following areas, partnering with other donor groups and individuals:  Round Valley Recreation Area, Swaner Nature Preserve, Bonanza Flat, Hi-Ute Ranch, Armstrong Snow Ranch, Treasure Hill, Osguthorpe Farm.  There must be a balance between home development and our beloved open space.  We are eternally grateful!

Just recently, Osguthorpe Farm was groomed for Nordic Skiing and today Doug is up on Bonanza Flat riding his fat bike, embracing the Park City Life.

For those of us that already own a home or desire to purchase a home in Park City, this type of conservation is imperative.  Consider donating or volunteering or voting for more protected open spaces!

Click on the image below to visit the "we save land" site.  Below, Doug skate skiing at Osguthorpe Farm this week.

Buying a Home in the Park City Seller's Market

Who would have thought that a global pandemic would create so much demand for property?  We’re now almost 2 years into the Covid 19 pandemic and we have people from across the globe desiring to be in places like Park City that afford an optimum lifestyle with open space, outdoor recreation, and less congestion. Current owners in Park City are not wanting to sell because they already live in this amazing place. So here we are- extremely low inventory with very strong buyer demand, AKA, a “Sellers’ Market”.

How is a buyer to compete in this competitive environment?

Don’t be Surprised to Pay More than Asking Price We may likely make an offer over list price, or utilize a strategy called an “Escalation Clause” to ensure that you are able to procure your dream property. One of the early observations I had as this market heated up was that the buyer profile changed dramatically. No longer were buyers concerned about the “comparable property” that sold down the street but were comparing Park City to other ski resort destination locations such as Vail, Breckenridge, Jackson Hole, and others. Park City is still priced below these other ski resort towns, and so Utah is still the undervalued asset for you to purchase in a desirable mountain town.

Be Ready to Act Quickly One metric we use is called the “Days On Market” or DOM, which is how long it takes a property to go under contract with a buyer. Our average DOM is significantly down which means that properties are going under contract very quickly. As soon as there’s a property that you are interested in, we will schedule an in person showing or if you are out of town, a Face Time tour.  We’ll want to be one of the first buyers to view any new listings of interest.

Cash is King for Real Estate Offers, however if you are not paying in cash, it’s advisable to have a mortgage pre-approval letter ready to submit with your offer. Ensure that it shows the lender has verified your credit, assets, and required cash down payment. Contact me early so that I can get you in touch with trusted, local, lenders. There are pitfalls to real estate lending such as HOA regulations, etc.  Local lenders are aware these challenges and will be helpful in avoiding issues that national lenders may not foresee.

There is More to an Offer than Just Price Using a trusted Realtor such as Park City Life Realty, we dig deeper into what the seller is looking for selling their property.  There may be other terms of the offer, besides price, that are important to them. The seller may need a “lease-back” or a quick closing that could help strengthen your offer.

The “Almost Perfect House” Let’s remember the goal is to live in Park City to enjoy the amazing lifestyle. This may mean that you don’t get 100% of the items on your home’s wish list and that’s alright because once you start living the Park City Life, the lifestyle trumps all else.

Click image for full report.

Preliminary real estate statistics for the third quarter are here. The in-depth analysis of the numbers is a work in progress and will be complete in a couple of weeks. If you are interested in my full analysis, be sure to reach out to me soon.

The total number of sales in some market areas are down when compared to the prior year, however, both median and average home prices continued their upward trajectory in most market areas and across all property types- single family, condominiums, and vacant land. This shows the continuation of the ongoing shortage of supply of properties in our local markets.

The month-to-month change in inventory turned downward in July, but toward the end of August began to rise again. However, this increase was short lived, as September closed nearly 100 listings down from August- a decrease of 12.5%. This end of summer downward trend is normal for our local market, and we will wait to see if the coming months deliver an increase in inventory.

So- what does all that mean? Your equity position is likely to be the highest it’s ever been. If your needs have shifted, this may be the optimal time to sell your property.

Don’t just take our word for it! Discoverer.com ranked all states in the US by the coolest city in the state, and in spite of Utah's fantastic other towns and many National Parks named Park City as the coolest state in Utah! 

https://www.thediscoverer.com/blog/the-coolest-city-in-each-state/XvHyVpKgiwAG5amw?utm_source=blog&utm_medium=email&utm_campaign=1377055250

Set yourself up for less hassle this winter by preparing your Park City Home for winter.  Here are our recommendation, give me a call to discuss if you have any questions. Real Estate is likely one of your biggest investments, protect it. 

Doug - 435-731-0170

As though there aren't enough mountain-town sports to keep us busy each season, our area also has sailing to offer both at the Jordanelle and Deer Creek Reservoirs.  This video is also a great example of the videography offered by Summit Sotheby's.

We don't need an article to tell us the Park City is one of the best small towns, however the recognition is nice.  Small towns have so much to offer, and one our our favorite aspects is the community feeling.  

Before the snow flies, check out these Fall Home Maintenance tips to ensure you and your home are ready for winter.  Call if you have questions. - Doug 435-731-0170