Park City Real Estate: 4th Quarter and Annual Performance Appraisal
Park City Real Estate Market: Q4 Annual Performance Appraisal The year 2013 saw the Park City Real Estate market best the performance of 2012 by a significant 17.
6% and that of 2011 by a whopping 31%.
As compared to the deep low seen in 2009, the number of units sold last year was nearly double at 2230 sales transactions, with condominiums accounting for the bulk of these.
The last time there was a comparable jump in sales figures was in 2004 -2005 in the lead up to the infamous bubble that appeared on the scene shortly afterwards.
The total sales volume, which topped $1.
52 billion by the end of 2013, saw a corresponding increase of 22% over the figure achieved at the end of 2012.
Most of this came from the sale of single family homes which notched a median sale price of $1,257,000.
The overall appreciation in property prices has been a steady 7%, more or less across all categories, with the median price for the year 2013 standing at $508,250.
The pending demand though dipped marginally by.
4% in December, 2013, which was still up by.
5% over the December 2012 figure.
In any case, the demand for Real Estate in Park City typically dips in December.
But, there is concern with our current low inventory levels with only 1156 active listings.
This is down 7.
3% when compared with the same time last year.
This is the lowest that it has been since January 2007.
These inventory levels, right throughout 2013 have been lower, quarter for quarter than 2012.
Another significant development witnessed last year was the dramatic fall in the number of foreclosures and short sales which constituted less than 4% of the total number of sales transactions.
This is a marked decline from the 13% figure of 2012.
This is truly good news for both buyers and sellers.
While the former can take heart from the fact that the market is on the upswing, the latter don't have to worry about skewed pricing caused by a large distressed inventory.
As a consequence of the reduction in price differential between distressed and market prices (down to 2%), we are starting to an increase in buyers financing their purchases.
This is reflected in cash sales falling to 48% of overall sale transactions from 50% in 2012.
What is interesting is that a fall in inventory levels would normally herald a spike in prices; but that really hasn't been happening in Park City.
Similarly the interest rates too were expected to rise in view of the signals emerging from the economy, but these remain reasonably low (2.
875% to 4.
250% depending upon the term and type of loan).
This continues to be good news for people looking to purchase a property.
But the market is highly segmented with the price ranges varying quite a bit between different areas of Park City.
Buyers would be well advised to seek professional advice to not only identify the best deals on the market, but also other factors like lifestyle, price, and inventory in the various neighborhoods.
The stats viewed from the buyer's perspective are quite attractive both from a short term and a long term perspective.
The low pricing and interest could make buying that much easier, though the low inventory does make it a little tricky to find the right property to buy.
At the same time the low inventory will keep the price going upwards, making it a good investment decision to buy property in Park City.
From a long terms perspective as well, investment in a premium ski resort town like Park City is always going to be a great investment choice.
At this point in time both potential home owners and investors will find it a great time to invest in Park City with both the prices and interest rates at reasonable rates.
However, the forecast are for prices to increase which will change our local real estate market dynamics.
6% and that of 2011 by a whopping 31%.
As compared to the deep low seen in 2009, the number of units sold last year was nearly double at 2230 sales transactions, with condominiums accounting for the bulk of these.
The last time there was a comparable jump in sales figures was in 2004 -2005 in the lead up to the infamous bubble that appeared on the scene shortly afterwards.
The total sales volume, which topped $1.
52 billion by the end of 2013, saw a corresponding increase of 22% over the figure achieved at the end of 2012.
Most of this came from the sale of single family homes which notched a median sale price of $1,257,000.
The overall appreciation in property prices has been a steady 7%, more or less across all categories, with the median price for the year 2013 standing at $508,250.
The pending demand though dipped marginally by.
4% in December, 2013, which was still up by.
5% over the December 2012 figure.
In any case, the demand for Real Estate in Park City typically dips in December.
But, there is concern with our current low inventory levels with only 1156 active listings.
This is down 7.
3% when compared with the same time last year.
This is the lowest that it has been since January 2007.
These inventory levels, right throughout 2013 have been lower, quarter for quarter than 2012.
Another significant development witnessed last year was the dramatic fall in the number of foreclosures and short sales which constituted less than 4% of the total number of sales transactions.
This is a marked decline from the 13% figure of 2012.
This is truly good news for both buyers and sellers.
While the former can take heart from the fact that the market is on the upswing, the latter don't have to worry about skewed pricing caused by a large distressed inventory.
As a consequence of the reduction in price differential between distressed and market prices (down to 2%), we are starting to an increase in buyers financing their purchases.
This is reflected in cash sales falling to 48% of overall sale transactions from 50% in 2012.
What is interesting is that a fall in inventory levels would normally herald a spike in prices; but that really hasn't been happening in Park City.
Similarly the interest rates too were expected to rise in view of the signals emerging from the economy, but these remain reasonably low (2.
875% to 4.
250% depending upon the term and type of loan).
This continues to be good news for people looking to purchase a property.
But the market is highly segmented with the price ranges varying quite a bit between different areas of Park City.
Buyers would be well advised to seek professional advice to not only identify the best deals on the market, but also other factors like lifestyle, price, and inventory in the various neighborhoods.
The stats viewed from the buyer's perspective are quite attractive both from a short term and a long term perspective.
The low pricing and interest could make buying that much easier, though the low inventory does make it a little tricky to find the right property to buy.
At the same time the low inventory will keep the price going upwards, making it a good investment decision to buy property in Park City.
From a long terms perspective as well, investment in a premium ski resort town like Park City is always going to be a great investment choice.
At this point in time both potential home owners and investors will find it a great time to invest in Park City with both the prices and interest rates at reasonable rates.
However, the forecast are for prices to increase which will change our local real estate market dynamics.
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