Where is the Park City Housing Market Headed In 2019?
Interest rates are still low but not for much longer. According to the National Association of Realtors economists, buying a home will be more expensive. Lawrence Yun, the national associations of realtors chief economist, predicts home prices will continue to rise in 2019, but at a slower rate. Yun expects national home sales to flatten and become more stable in 2019, rising by just 1 percent. Mortgage rates are expected to hit 5.5% by the end of the year.
Yun commented also commented on the economy stating, "the economy is "good." He noted that we have low unemployment, record high job openings, historically low jobless claims, job additions for eight straight years and wages beginning to increase. "This type of activity in the economy should support the housing market, even as interest rates rise."
The following comment was made by Frank Northaft, CoreLogic Chief Economist explained that economic growth only needs to last seven more months in order to set the record for the longest economic expansion in U.S. history, based on business cycle dates going back more than 160 years. Nothaft also predicts that interest rates will continue to rise as the Federal Reserve continues to normalize the level of interest rates. “We expect long-term yields to rise as well, nudging 30-year fixed mortgage rates up to an average of about 5.25% by next December, the highest in a decade."
Park City - 12 Month Rolling - Year over Year January 2017 - December 2018 / January 2016 - December 2017
PARK CITY LIMITS SINGLE FAMiLY HOMES
In the Park City limits there were 155 homes sales from January 2018 to December 2018 for single family homes, a 9 percent decrease from 2017. The median price for a single family home in 2018 was $2,085,500 which is a 16% increase from 2017.
PARK CITY LIMITS TOWNHOME/CONDO
The number of sales for townhome/condos in the Park City limits from January 2018 to December 2018 was 316, a 7 percent decrease from 2017. the median price was $886,200 which is a 24% increase from 2017.
SNYDERVILLE AREA SINGLE FAMILY HOMES
In the Snyderville area there were 360 homes sales from January 2018 to December 2018 for single family homes, a 8 percent decrease from 2017. The median price for a single family home in 2018 was $1,232,500 which is a 21% increase from 2017.
SNYDERVILLE AREA TOWNHOME/CONDO
In the Snyderville Basin area there were 269 townhome/condo sales from January 2018 to December 2018, 12 percent decrease from 2017. The median price for a towhome/condo in 2018 was $540,000 which is a 8 percent increase from 2017.
In general the median prices are holding steady, with single family home prices increasing in Snyderville Basin and marginal increase in all other areas. The Park City condo home price remains steady and stable. The number of properties sold within the Park City Limits was up 9 percent and 14 percent in the Basin, which indicates a stable market and strong demand. The second quarter of 2018 was the strongest quarter since the market downturn of 2006. In the Park City Limits, out of 175 current single family home listings there are only 8 are below $1 million.
Overall, the market is shifting and going forward the Park City real estate market will remain stabile in many areas. In Park City we have micro markets with a myriad of factors that will influence the homes prices and rates of appreciation. It is important to speak with a professional real estate agent when buying or selling a property in Park City. We have a very complex real estate market due to the seasonality, type of inventory, new construction, and location.
Going forward, we are experiencing a shift much like the rest of the nation.
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