Park City March 2020 Housing Market Update

Posted by Kathryn Vallee on Tuesday, April 28th, 2020 at 12:07pm.

Park City March 2020 Housing Market Update

What Impact Has The Covid19 Pandemic Had On The Park City Real Estate Market?

In Summit and Wasatch Counties, Covid19 hit our real estate March of 2020 with the "Stay At Home Orders" deeming summit County real estate as a non-essential business for a few weeks. The town shut down. For the months of January and February, we were on track for a stellar year. Probably one of the best years since 2009.

BAM! Covid19 HIT 

The big challenge that Wasatch and Summit County faces is the housing industry and determining what impact the current pandemic may have on the real estate values. I know that many home-buyers are hoping for are major price reductions. 

First Q1 2020 in Review

Looking back for the week ending March 8th to the week ending April 14th we start to see a decline with the number if properties entering the market. The Pended  sales followed a similar trajectory, peaking at 49 and dropping to 15 in the same period. Of course, the number if closings will not show up for another 60 to 90 days as there is a lag.

Single Family Homes

  • Within Park City Limits, total unit sales were up 13% to 180 units over 2019 while sales volume was down slightly, $456 million, a 2% drop year-over-year.
  • The median price of a single-family home across the city fell 10% to $1.9 million
  • But in Old Town, while sales volume was up 13% (49 units), the median price rose 7% over 2019 to $1.9 million.
  • Snyderville residents saw a slight increase in sales volume (up 4%) while the Median price remained flat at $1.25 million.
  • The hotspots were south and east of the metro area in Jordanelle which saw an explosion of activity (sales units up 70%) that more than doubled the sales volume to $128 million from the year earlier.
  • Heber Valley saw a 23% spike in sales units and 32% higher sales volume while the Median price remained steady at just over a half-million dollars.
  • Tuhaye/Hideout was the hot spot in the region with Median price jumping 68% in a year on more than double the sales units and volume.

Condominiums/Townhomes

  • The Condo market in Park City proper continued apace with sales up 28% in units and 21% in volume over the year earlier on a modest gain in Median price of 7%. Park Meadows was the standout neighborhood performer with sales up 60% while the Median price dipped slightly to $800,000.
  • In the Snyderville area, Canyons Village saw the biggest gains with sales units doubling last year’s number (250 units) and sales volume nearly tripling on a 50% rise in the Median price to over $900,000.
  • Condo sales in Midway were up 15% with the Median price increasing slightly by 9% gain to $312,000.

According to a forecast by Goldman Sachs, JP Morgan, and Morgan Stanley. They are all stating that we are in for a wild ride for the next 90 days, and most likely the rest of the year.  They demonstrate that the housing market will most likely be less in crisis than during the housing crisis that began in 2008.

Land Sales

  • Land sales in Summit and Wasatch counties were down slightly (5%) as lots become harder and harder to find. However, the price increase expected when supply decreases and demand remains steady, did not appear. The Median sales price for land region wide was down 9% to $281,000.
  • Jordanelle saw the largest increase with sales units up 43% on a Median price drop to $287,500 (down 27%).
  • Kamas Valley saw the biggest drop in sales of 24%, but bucked the pricing trend by pushing the median price 62% higher $240,000.
  • Only 20 lots sold within the Park City Limits but with no change in the Median price of $1.1 million.

Six Reasons 2020 Will Not Be Like 2009

 

1. Lending guidelines have been tightened and the loose market that allowed homeowners to refinance home equities far above the real market value of homes are gone.

2. Mortgage forbearance is common practice of lenders who want to avoid the massive foreclosures they implemented a decade ago.

3. Mortgage rates remain low allowing more potential buyers to remain in the market.

4. Great Depression era banking regulations imposed in 1933 were repealed in 1999 allowing banks to grow to a size called “too big to fail.” New regulations passed in 2010 reversed that laxity in banking oversight.

5. A great debate is continuing as to whether the housing recovery will be U-shaped or V-shaped – a gradual upturn once the virus has been controlled, or a sharp “bounce” as pent up demand returns to the marketplace with a vengeance triggering price wars as demand far exceeds supply.

6. We have no crystal ball. Only time and patience will tell the tale of the housing economy in the months to come.

Resources:

Links below

Did you know? 

We offer far more than just a pretty Park City real estate website! We can provide you COMPLETE market evaluations for your home, take you on a VIRTUAL walkthrough of any property, and even offer assistance with special circumstances (divorce, estates & probate, 1031 tax exchanges, trusts and other more complicated real estate transactions) where needed. We have the experience to make your real estate vision a reality. Call us today for a consultation. We are happy to assist you!

 

How Much is Your Home Worth??

Whether you are thinking of selling now or some point in the future, you can ALWAYS check your homes value with us! We prepare a professional market analysis with no cost or obligation to any home or condo owner in the Park City area. Automated Valuation tools are notoriously innaccurate in our area. Let us provide you with the information you need!

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