In reviewing the large amount of statistics for the 3rd Quarter of 2012 we have noticed a decline in inventory, largely due to the increase of sales. In fact, when looking at the Greater Park City area, pended sales were slow to start in January but then have been quite high from February on to September. September 2012 saw the highest amount of pended sales since early 2007. 2007 was generally the height of the market for Park City real estate, and 2012 numbers for pended units are quite close to those historic numbers. After a decrease in pricing for 5 years, we certainly have hit the point where buyers feel confident in making purchases again. Pended sales for the first 3 quarters of 2012 look to be quite evenly split between single family homes and condos, and land has made a strong comeback.
When looking at the same time period for closed sales, the numbers are off slightly. It appears that we are still seeing a few of the pended sales fall out and do not close. This may be mostly due to appraisals, and tough mortgage underwriting guidelines making the closing process quite difficult. Closed sales may be off slightly from the pended numbers but they are still up heavily, and about double from what we saw in the lowest point in the market in 2009, when comparing the first 3 quarters.
Distressed Sales The amount of distressed sales in the Park City real estate market has been dwindling down. Distressed sales would include both foreclosures and short sales. In 2010 about 33% of all closed sales were distressed sales. In 2011 it was about 16%. Now in the third quarter of 2012, we have under 14% of all closed sales are distressed sales. For active listings, there are only about 6% of distressed properties in the market. It has become difficult to find distressed properties to purchase as we no longer have as many in the market to choose from. The good news for sellers is that we have cleaned up much of the bad inventory. And good news for buyers is that these distressed properties have pulled the overall market's pricing down, so now all properties must compete at this new lower price level. For Summit County the number of Notice of Defaults and Trustee's Deeds are way down. In fact, Quarter 3 of 2012 shows the lowest amount for Notice of Defaults since the beginning of 2007, and only about 20% of what we saw at the peak in Q3 of 2009. The number of Trustee's Deeds is the lowest we have seen in about 4 years.
Pricing Trends Well, the question has been "Are we seeing pricing move up?" >From working within the market it does seem like pricing has started to step up a little. For sure in certain market segments it has. Promontory homes and lots have moved up in pricing, and condos in Prospector and Empire Pass have too, just from our own insight. But overall, lets see what the numbers actually say.
Looking at our Year-to-Year comparison report (this last 1 year back, compared to the previous year) and looking at the Park City "In-Town" area which includes Deer Valley, the median sales price of single family homes was $1,025,000 this year, and $1,025,000 for the previous year. You don't need to be a math wizard to see that is exactly 0% change in median price. Quite interesting. Overall for Park City "In-Town" the amount of closed sales was up by 9%.
For Park City "Extended" this year's median home price was $598,000, and the previous year was at $715,000 - a decrease of median price by 16%. For the Heber Valley this year was at $237,745, and the previous years median price was at $272,500 - a decrease of 13%.
For condos this years median price in Park City "In-Town" was $535,000 compared to $542,847 for the previous year - a decrease of only 1%. Park City "Extended" saw an increase of 5% for median price of condos.
We all know real estate is local, and we find it best to look at local neighborhoods individually to get the best data, and to get a better story of what is really happening. Below are some quick bullets of individual market trends:
Single Family Homes In Old Town homes saw a 5% decrease in median price and a 14% increase in closed sales. Park Meadows seems to have stabilized and saw only a 5% decrease in median price and a 2% decrease in closed sales, not much change there. In contrast Lower Deer Valley enjoyed a large increase in homes sold by 44% with 13 sales vs 9 sales in the previous year. And oddly enough their median pricing for homes went up from $1,700,000 to $1,885,000 which is up by 11%. A big change was seen in Pinebrook where they had 63 sales vs 37 for the prior year, which is an increase of 70%, probably fueled by the pricing being down by 14%. And in Jeremy Ranch, the pricing was down only by 5% but sales had increased by 27%.
Condos In the Old Town area condo sales saw a small 4% decrease in median price and a 4% decrease in closed sales, a fairly stable market. Lower Deer Valley, another popular choice for vacation condos, saw a 9% increase in pricing, and therefore had a substantial 36% decrease in sales. Oddly enough in contrast is what we saw in the Upper Deer Valley condo market. Upper Deer Valley condos sales boasted a current median price of $1,678,750 from $1,075,000 which was an increase by 56%. And their closed sales went form 17 to 30 units which is an amazing increase of 76%. Prospector condos saw a small 5% decrease in median price from $95,000 to $90,000, but saw a substantial increase of sales from 25 to 46 which is an 84% increase. And at Canyons Ski Resort, the condominium median sales price went from $320,000 to $276,000, a 14% decrease in price which fueled unit sales from 63 to 80 which was an increase of 27%.
Inventory Report That is analyzing the past, and we wanted to look at an update of our current inventory numbers of available product compared to what has sold, or currently is pending sale. Basically if you are a buyer, what will you see in the current real estate marketplace? The number below show some of the more popular areas and what is currently active on the market, compared to what is pending or has sold within the last 1 year back. You'll see fairly balanced markets in Deer Valley and Park City "In-Town" and will see very heated markets with scarce inventory in the Park City "Extended" areas.
DEER VALLEY REAL ESTATE MARKETS
Upper Deer Valley Condos 33 Active Listings for Sale 37 Pending or Closed Sales in last 12 months
Empire Pass Deer Valley Condos 31 Active Listings for Sale 31 Pending or Closed Sales in last 12 months
Lower Deer Valley Homes 22 Active Listings for Sale 15 Pending or Closed Sales in last 12 months
Lower Deer Valley Condos 53 Active Listings for Sale 38 Pending or Closed Sales in last 12 months
PARK CITY REAL ESTATE MARKETS
Old Town Park City Homes 45 Active Listings for Sale 54 Pending or Closed Sales in last 12 months
Park Meadows Homes 47 Active Listings for Sale 54 Pending or Closed Sales in last 12 months PARK CITY "EXTENDED" REAL ESTATE MARKETS
Silver Springs Homes 12 Active Listings for Sale 38 Pending or Closed Sales in last 12 months
Jeremy Ranch Homes 33 Active Listings for Sale 63 Pending or Closed Sales in last 12 months
Pinebrook Homes 25 Active Listings for Sale 73 Pending or Closed Sales in last 12 month