Sales Volume Exceeds Billion Dollar Mark in 2010
Park City Board of Realtors Press Release
Park City, Utah – January 28, 2010 – Real estate sales in the Park City area, as reported by the Park City Board of REALTORS Multiple Listing Service, surpassed the billion dollar mark, putting 2010 as one of only six years where real estate sales reached that benchmark.
Overall sales dollar volume for 2010 was $1,009,582,720, up 16% from $867,430,118 for year-end 2009. The number of sales continues to trend upward across the board for almost all property types, with 1421 closed sales for 2010 compared to 1131 in 2009 and 1341 in 2008.
Current activity levels are as high now as they have been in the last three years. The most significant increase in number of units sold is in the vacant land portion of the market, up 60% in 2010 compared to 2009. However, sales of single family homes also saw significant gains, up 26.4% from 2009 with 652 units sold compared to 516 units sold in 2009. While single family homes actually saw a modest increase in median price, median prices are still down in most market segments. “Buyers are recognizing value, which is creating a flurry of activity and increase in number of units sold,” remarked Patrick Giblin, President of the Park City Board of REALTORS.
While the National Association of REALTORS (NAR) is reporting a regional drop of 1.5% in existing home sales for the West, Park City’s real estate market continues to recover far above the pace of the regional and national real estate economy. Local sales figures continue to reflect buyers demand to own in the Park City market.
Sales of Single-Family Homes
Single family homes continue to be the strongest part of the market at 46% of all sales for the year, and 54% of total dollar volume. These figures reinforce the unique aspect of our market as both a destination resort and desirable year-round residential community.
Median prices for all property types are down just under three percent compared to one year ago, with average prices down a little more than seven percent. Prices in individual areas vary and certain neighborhoods have found their bottom. Buyers are taking advantage of new technology by signing up for automatic price change alerts through their agent and then are prepared to act on that information. Giblin added “activity is still dependent on pricing your home correctly.” There are indicators that prices may show a marginal increase in the coming year.
The largest surprise of the past year is the major correction in pricing seen with vacant land. Median prices for all areas dropped 43%, with some areas experiencing 50-60% declines in vacant lot median prices in just the year from 2009 to 2010. These huge price declines resulted in a large increase in the number of lot sales, with sales increasing 60% for all areas. Again, with such large price declines and a corresponding increase in the number of sales, it could indicate that we are near or at the bottom of the market for lot pricing as well.
Although the number of Notices of Default (NOD’s) dropped in 2010 by 32% in Wasatch County and 20% in Summit County compared to 2009 levels, foreclosures continue to be a significant portion of the market. Bank-owned and short sale properties account for only about 10% of the total properties for sale, yet they made up 35% of all sales in our market in the second half of 2010. These properties are priced very well and frequently attract multiple offers. On a positive note, this means that close to two-thirds of our sales are market rate.
Foreclosures will remain a major factor in the Park City market in 2011, but it is anticipated that those numbers will decrease during the year as we move to a more stable market.
Increase in the Number of Sales
The following provides a breakdown by category of the increase in the number of sales through year-end 2010 compared to 2009:
Single Family Homes + 26%
Condominiums + 22%
Land + 60%
The outlook for 2011 is more of the same as what was seen in 2010. According to Mark Seltenrich, 2010 Board President, “The market will continue to be very price sensitive with properly priced properties selling. It will continue to be a buyer’s market, and excellent deals, while becoming more rare, will still be able to be found.”
Interest rates remaining at record lows coupled with positive economic indicators are helping to drive the activity levels Park City is experiencing. Pricing, however, seems to be the driving force to getting a buyer to act. The number of sales could continue to rise in 2011, and the stage could now be set for a slight price increase to occur in 2011.
The Park City Board of REALTORS (PCBR) is a trade association of more than 900 members comprised of REALTORS and Affiliates from the greater Park City real estate industry. PCBR analyzes and reports on real estate trends for the greater resort community of Park City.