2023 Year End Review For Park City Utah Real Estate Market

Photo Courtesy of Brent Haddock. 
The real estate market in the greater Park City area continues a return toward pre-COVID conditions, leading to a 2023 that was characterized by moderate price appreciation, a drop in sales volume and number of properties sold, and an ongoing recovery in inventory.

Across the primary market area in 2023, the median sales price for single-family homes and condos each increased around 3% year-over-year to $1.65M and $1.136M respectively. Total sales volume for single-family homes was down 2% and condo sales volume was down 19% during the same period. Inventory levels continued their recovery, peaking in late summer at a total of 1800 homes for sale. 

    As always, the year-end market stats showed a good deal of variance across property types and neighborhoods. However, the general trend seems to be a return to a more “normal,” less volatile market, with steady price appreciation and a continued trend toward pre-covid levels of inventory and transaction activity.

    Other Noteworthy Items

    • Despite unit sales and sales volume for the entire year being down compared to 2022, the 4th quarter of 2023 stats showed a return to the more “normal” period of 2013 - 2019. Pending sales in the second half of the year were strong, demonstrating that the market may be rebounding as we head into 2024. In the seven months from June thru December of 2023, PCMLS members signed 1,260 residential purchase contracts; 20% more than the previous year (1,054).
    • Price appreciation in our market continues an upward march. The past year’s price appreciation was 6.6%, which is nearly equal to the historic average of 6.8%. While it doesn't compare to the unprecedented gains that occurred from 2020 – 2022, it still represents a stable, healthy increase.
    • Pricing was variable across the broader market, dependent on property type and neighborhood. For example, median prices for condominiums in Park City proper were up 8%, while most other areas were either flat or showed a slight decrease. Similarly, median prices for single-family homes in Snyderville Basin were up 7%, but seven of the twelve neighborhoods in that market area experienced price declines. 
    • Inventory continues to recover, approaching more typical levels after years of shortages.
    • Mortgage rates appear to have stabilized and may be poised for a drop at some point later this year, which would be likely to spur an increase in market activity. 
    # SOLD PROPERTIES  |  Summit & Wasatch Counties
    Total Sold Single-Family, Condos, Land Properties
    Source: PCBOR for all property types across the PCMLS service areas in Summit and Wasatch Counties.
    Today's Mortgage Interest Rates

    "The 30-year fixed-rate has remained within a very narrow range over the last month, settling in at 6.69% this week. Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market. Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace."

    FreddieMac.com  |  January 25, 2024

    30-Year Mortgage Interest Rates  |  1971 - 2023
    Source: Freddie Mac, 30-Year Fixed Rate Mortgage Average in the United States [MORTGAGE30US],
    retrieved from FRED, Federal Reserve Bank of St. Louis; January 28, 2024.
    Interest rates remain high compared to the very low rates that prevailed from 2009 - 2022. However, when taking the longer-term view of interest rates (above), the current rates are not outside of a historically-common range. That said, the recent rise in rates did exert a cooling effect on the nationwide real estate market.
     
    With a higher incidence of all-cash purchases, sales in many of our neighborhoods are less affected by interest rates, especially in areas that are popular with vacation homes and/or second homes. Other neighborhoods that are popular for primary homes are more affected by the mortgage market conditions, as buyers are more likely to need financing.
     
    Mortgage rate increases appear to be paused for the moment, so hopefully this stability will induce some on-the-fence buyers to move forward with potential home purchases. Better yet, any rate decreases would be very likely to spur more activity in both the national and local market.
    PARK CITY LIMITS  |  Market Overview
    Average & Median Sale Prices  |  Q4 2023
     
    AVG SALE $   ↑1%
    $4.67M
    AVG SALE $   ↑14%
    $2.27M
    AVG SALE $   ↑15%
    $2.6M
    MED SALE $   ↓5%
    $3.69M
    MED SALE $   ↑8%
    $1.61M
    MED SALE $   ↓11%
    $1.75M
    Neighborhood Highlights  |  Neighborhood Stats

    SINGLE-FAMILY HOMES   Within Park City limits, total unit sales were down 11% to 102 units. Sales volume declined 10% to $476M in the past 12 months. The median price of a single-family home within Park City limits fell 5% to $3.69M. In the popular Old Town area, the median price dipped slightly to $3.5M. 

    CONDOMINIUMS & TOWNHOMES   The number of condominium sales in Park City was down 19%. However, the median sale price rose 8% to $1.6M. The median sale price in Old Town was flat at $1.2M. Upper Deer Valley experienced the biggest gains in Park City, with a 45% median increase to more than $3.6M.
     
    Yearly Median Sale Prices  |  2000 - 2023
    Not all sold data in Park City Limits is included in the Park City Multiple Listing Service data; please call for more specific details. All data, information, and interpretation ©2023 Park City Multiple Listing Service, Inc
    SNYDERVILLE BASIN  |  Market Overview
    Average & Median Sale Prices  |  Q4 2023
    AVG SALE $   ↑11%
    $3.32M
    AVG SALE $   ↑4%
    $1.33M
    AVG SALE $   ↓11%
    $1.25M
    MED SALE $   7%
    $2.26M
    MED SALE $   8%
    $987k
    MED SALE $   ↓21%
    $855k
    Neighborhood Highlights  |  Neighborhood Stats
    SINGLE-FAMILY HOMES   Snyderville Basin residences followed the prevailing market with sales volume down (15%), and a modest gain in the overall median price, up 7% to $2.3M. Canyons Village, Sun Peak, Kimball, and Jeremy Ranch all saw increased sales which helped make Snyderville the only major area to see growth in sales volume, average prices, and median prices. Silver Creek South and Promontory had the largest median price gains, 34% each. The median price of a Promontory home is now above $4M. Canyons Village held on to the crown of the “most expensive area” with a median price again topping $10M. 
    CONDOMINIUMS & TOWNHOMES   Unit sales in Snyderville were down 48% compared to 2022, and the median sale price dipped 8% to just under $1M. Perennial volume leader Canyons Village suffered a steep decline in sales, with units and volume both down over 50%. Canyons Village accounts for more than 65% of all sales in Snyderville, so those declines brought down the overall area performance significantly.
     
    Yearly Median Sale Prices  |  2000 - 2023
    Not all sold data in the Snyderville area is included in the Park City Multiple Listing Service data; please call for more specific details. All data, information, and interpretation ©2023 Park City Multiple Listing Service, Inc
    JORDANELLE  |  Market Overview
    Average & Median Sale Prices  |  Q4 2023
    AVG SALE $   ↑65%
    $3.51M
    AVG SALE $   ↑3%
    $1.12M
    AVG SALE $   ↑71%
    $1.6M
    MED SALE $   ↑94%
    $3.18M
    MED SALE $   ↑9%
    $1.06M
    MED SALE $   ↑97%
    $1.29M
    Neighborhood Highlights  |  Neighborhood Stats
    SINGLE-FAMILY HOMES   The Jordanelle area had the lowest volume of sales (only 76 this year, down from 149 last year), probably because the median price nearly doubled during that time. More and more luxury homes are coming to market in anticipation of the opening of the new Mayflower ski resort, pushing the median sale price above $3 million.

    CONDOMINIUMS & TOWNHOMES   The number of sales in Jordanelle was up 13% in 2023 compared to 2022. Jordanelle Park demonstrated a trend we expect to see more of in the future – new resort activity stimulating sales and rising prices. Condo unit sales were up 63%, pushing sales volume to more than double 2022’s excellent performance.  
    Yearly Median Sale Prices  |  2000 - 2023
    Not all sold data in the Jordanelle area is included in the Park City Multiple Listing Service data; please call for more specific details. All data, information, and interpretation ©2023 Park City Multiple Listing Service, Inc
    HEBER VALLEY  |  Market Overview
    Average & Median Sale Prices  |  Q4 2023
    AVG SALE $   2%
    $1.37M
    AVG SALE $   33%
    $873k
    AVG SALE $   20%
    $825k
    MED SALE $   ↓4%
    $941k
    MED SALE $   ↑17%
    $581k
    MED SALE $   ↓10%
    $470k
    Neighborhood Highlights  |  Neighborhood Stats

    SINGLE-FAMILY HOMES   Median prices in the popular Midway area were up 3% to $1.2M, while Red Ledges homes were up 7% to $2.78M. Timber Lakes led single-family median prices gains in the Heber Valley, rising 35% to $910,000, while homes in Heber City proper were down 9% to $735,000. 

    CONDOMINIUMS & TOWNHOMES   Year-over-year units sold increased in the Heber Valley area by 33%. Red Ledges led the way with an increase in median sales price of 29%, up to $1.73M. In Heber City proper, median prices were down 1% to $419,900. 
    Yearly Median Sale Prices  |  2000 - 2023
    Not all sold data in Heber Valley is included in the Park City Multiple Listing Service data; please call for more specific details. All data, information, and interpretation ©2023 Park City Multiple Listing Service, Inc
    INVENTORY ON THE RISE

    Inventory in the total market area increased during 2023, peaking at 1,800 available properties in late summer. This total is getting closer to pre-COVID inventory levels, which averaged 2,100 listings per month before the pandemic. In the greater Park City area, there were 840 active listings on January 1, 2024, which represents a 200% increase over the same time the year before. Much of this improvement is due to new product. At the start of 2024, more than half of the residential listings in the greater Park City area are new construction.

    Demand for properties remains healthy in the greater market. However, new listings continue to outpace sales, so inventory is poised to continue its recovery into the coming year. This increase will be welcome, as despite the recent recovery, current levels remain 25% lower that pre-pandemic (2012 - 2019) inventory.

    # ACTIVE LISTINGS BY YEAR & AREA   2000 - 2023
    PRICE APPRECIATION BY STATE
    What's the Health of Our Primary Market?
    Purchase-Only Index (Seasonally Adjusted)  |  Q3 2022 - Q3 2023
    Data for All States
    The year-end numbers for 2023 were mixed, but the big takeaway is that real estate in Park City and the surrounding areas remains a solid investment, with reliably positive returns over the long term. The trend right now is one towards more stability in our market. The decrease in our market volatility mirrors the nationwide trend, as business returns to a more seasonal pattern and extremes become less common.

    As we move forward into 2024, we will continue to keep an eye on the variables most likely to exert influence on our market: inventory, interest rates, and the health of the larger economy. We will keep you posted as the market evolves, and please don’t hesitate to reach out if you have any questions about how the current conditions are affecting your areas of interest. In the meantime, hope that you are having an outstanding winter!  
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    All data, information, and interpretation derived from the Park City Multiple Listing Service, the Park City Board of Realtors®, and Rick Klein, Private Data Consultant. 

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