Park City Single-Family Sales Rise 150% Year-Over-Year in Q1 2021
The high demand for single-family properties in the Park City area continues to push home prices upwards, according to a recent Q1 report released by the Park City Board of Realtors.
Park City’s residential real estate market is on the upswing, with investor and homebuyer interest showing no sign of slowing down in 2021. The market picked up steam during the pandemic, mainly due to its unbeatable outdoor offerings and much-needed isolation. While many saw this phenomenon as a temporary ‘overheating’ of the market, recent data shows that it’s not the case, and Park City’s appeal remains just as strong.
The high demand for single-family properties in the Park City area continues to push home prices upwards, according to a recent Q1 report released by the Park City Board of Realtors. Fears that the market was experiencing an artificial boom triggered by last year’s lockdowns seem to be unfounded, as interest in the market continues to intensify. At LUXred, we’re witnessing unprecedented investor interest in this growing market, and the constant uptick in sales and prices means this is the best time to invest in real estate here.
Low supply, high demand – competition for Park City real estate continues to intensify
As vaccination efforts continue across the country, people are slowly returning to their pre-pandemic lives, heading back into the office, socializing again, and traveling. However, the pandemic has caused a massive shift in the way people live, work, and play, and more and more companies are embracing remote work models. This trend opens up more opportunities for homebuyers, as they are no longer required to live close to the office.
The result is that more and more people are now looking for housing outside crowded urban centers, and that’s where destinations like Park City truly shine. The plethora of outdoor activities and green spaces, coupled with proximity to a major airport and some of the best ski resorts in the country make Park City a highly desirable destination. Before the pandemic, resort towns were popular among those looking for a second home or a vacation home; fast forward to 2021 and people are choosing Park City for their primary residence.
Although data from the PCBR shows that new residential listings were up 17% in Q1 compared to last year, inventory is still low in Park City, which triggers intense competition for any available spaces. Data shows that Q1 2021 ended with just 651 residential and land units available for sale, just one-third of the previous year’s inventory of 1,909.
Median home prices in Park City climb 38% year-over-year
In terms of sales, the market had a busy first quarter. Sales of residential single-family homes rose 150% year-over-year, with 643 contracts closed. Within Park City limits, the sales volume rose 122% year-over-year, ending Q1 with 324 units worth $999 million sold.
The intense competition and low supply continue to push home prices upwards. According to the data, the median home price in Park City rose 38% year-over-year to $2.7 million. The Aerie neighborhood recorded the highest climb in median home prices, nearly doubling year-over-year and reaching $3.3 million. In terms of the number of units sold, Promontory stands out with 153 units sold, while the median home price in Glenwild surpassed $3.5 million in Q1. In Old Town, both the sales volume and the number of units sold doubled, and the median home price rose 11% to $2.1 million.
Land sales in Summit/Wasatch counties rose 100% in Q1 2021
Interest in Park City land continues to intensify, as well, particularly as inventory is low and buyers have a hard time finding a property to their liking. According to the Park City Board of Realtors, land sales in Summit and Wasatch counties climbed over 100% year-over-year in Q1. The high demand and low supply pushed median sale prices for land in the area to $363,800 – a 28% increase compared to Q1 2020. In Tuhaye/Hideout, sales of vacant lots nearly quadrupled year-over-year, while median sale prices are 30% higher due to demand.
The rise in land prices can also be attributed to a rise of 250% in lumber costs. Because of this, a new home in Park City now costs $38,872 more compared to 2020. What’s more, more than 1 million construction jobs were lost during 2020, which is another factor slowing down construction and fueling demand.
Comparisons to 2008 suggest the market isn’t likely to lose its appeal
Over the past year, many have drawn comparisons between Park City’s evolution in 2020 compared to that recorded in 2008 during the financial crisis. The Park City Boards of Realtors report highlights some crucial differences between the two events, emphasizing the fact that the market is very different in 2021 than it was in 2008.
Firstly, there are more lending requirements nowadays, whereas in 2008 almost anyone could get a loan. Secondly, in 2008, supply was high, while in 2021 there is a shortage of available land and properties. Thirdly, mortgage interest rates are low in 2021, but not nearly as low as they were in 2008, when loans often included negative amortization and zero down payments. These differences suggest that the Park City boom is more than just a temporary overheating, and the market’s appeal isn’t likely to die down anytime soon.
Looking to tap into the potential of the Park City luxury market? Reach out to LUXred to find your next investment opportunity in this burgeoning market.