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.
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