Park City Real Estate For Sale - Deer Valley Real Estate For Sale

In a recent article on WSJ.com, the news is that the National Association of Realtors has recently said it is now becoming a Seller's Market for national real estate sales. The article goes on to say: "The number of homes listed for sale in January fell by 4.9%, leaving 1.74 million properties on the market. That’s the lowest since December of 1999, when there were 1.71 million homes on the market. By contrast, there were 2.91 million homes on the market two years ago at this time."

It was also added that: "The upshot is that there’s a growing pool of buyers chasing a shrinking supply of homes. If the trend holds, prices will keep going up. At the current pace of sales, it would take just 4.2 months to sell the current supply of homes available for sale, down from a 6.2 months’ supply one year ago."

How does this relate to the Park City Real Estate Market?

This is precisely what we have been witnessing for a few months now in our local Park City real estate market. There had been an increase in sales which has highly reduced the inventory. The people who had to sell already did. The distressed properties have been bought up. Now the people who dont really need to sell are either waiting for pricing to come back up, or they are now pricing their properties at higher amounts, knowing buyers have little to choose from and may need to move up in price to get what they want.

At the same time there is this increase of buyers who are all out looking at a very limited inventory. When a good property comes up, it receives a lot of attention immediately. Buyers in today's Park City real estate market are reluctant to make a jump up in price, and sellers are pricing higher and have confidence they can wait for their number. It is leaving a huge gap bewteen the two.

We are finding buyers looking at real estate in Park City and Deer Valley to be very frustrated that they can no longer get the same great deals they have been hearing about from friends and family who bought in the last year or two. For many buyers they feel like they have waited too long and missed it.

Buyers need to understand they have not completely missed the boat. There are still good buys out there. But yes, you're going to pay a little more today, than your family and friends did a year or two ago. But the good news is the uncertainty of the market seems to have been removed. We really do appear to be on our way back up. The good news is we are only at the starting line, with a long road to climb back up (hopefully). If we are lucky we may see a long term price increase in real estate values. Hopefully it is a slow and steady ride, but only time will tell.

Park City Real Estate Sales Market | Market Trends From Bottom to Top

Posted by Sean Matyja on Tuesday, February 12th, 2013 at 3:30pm. 

The BIG Question is: "Have we passed the Bottom of the Real Estate Market?"

As Realtors in Park City, we get that question quite often. There is a lot of evidence that suggests that yes, it looks as though we have passed the bottom of the market. The next question to ask is: "Are we heading out of the bottom, and are we finally on our way back up?" So far, it does appear to be that way, but only time will truly tell. Just as when we were headed down to the bottom of the Park City real estate market, it was difficult to truly identify the bottom of the market until we were past it, and only then could we really measure and identify a true bottom of the real estate market in Park City, Utah.

If you follow our Park City Real Estate Blog then you will remember us realtors talking about being somewhere within the range of the bottom of the real estate market, which we call the buyer's "Sweet Spot". We borrow this term from golf. Golfers know that if they can precisley swing and connect their club to the ball in the sweet spot, it has a dramatic positive effect on their shot. Likewise in real estate, if a buyer can precisely time the purchase of a property within the buyer's market sweet spot, it can have a tremendous positive effect on thier investment potential.

According to the Quarterly Statistics Reports provided by the Park City Board of Realtors®, and according to what we see day in and day out in our market, we can say with confidence that we have passed the bottom of the market, but we do believe we are still within the Buyer's Market "Sweet Spot".

The chart above is a simplified visual illustration showing the trends of real estate pricing, from a peak in the market "A", down to the bottom of the market "C", and then back up to the next market peak "E". Looking at the chart above, we would say that for our current Park City Real Estate Market we are somewhere between point "C" and "D". Again, this chart simplifies the theory of pricing in the real estate market. Historically over the long term, pricing generally trends upward at a moderate pace, as you can see in the Long Term Pricing Increase line. Real Estate markets also historically have highs and lows, and therefore peak at times, then bottom out at times, as illustrated above.

For the Park City Real Estate Market, point "A" the peak of the market, occurred somewhere around 2007, depending on which neighborhood you are looking at. The bottom of the market, point "C", we have just witnessed mostly in 2011 and 2012, or possibly are still within (depending on which neighborhood you are looking at). So, it took 5 years to go from the peak to the bottom. Will it take 5 years to get back to the next peak? Who Knows? We think that after such a dramatic real estate downturn that it may take longer than five years to get back to another peak in pricing - but, only time will tell.

So, if we have passed the Bottom of Park City Real Estate Market, what does that mean to us now?

Well, if you are looking to purchase property in Park City Utah, the timing is actually quite favorable for you. Yes, you may have missed the absolute bottom of the real estate market, and yes you might pay a little more today than you would have paid a year ago. But lets look back to remember something. When we were at point "B" we knew, or thought we were close to the bottom, but could not prove it. So the buyers who had the foresight and the guts to buy at that point in time took a big risk. With that risk comes reward. They did not worry about trying to pinpoint the bottom exactly, point "C", or at least they did not let that worry affect their decision to make a purchase when they did. They knew they were so far along from the peak of the real estate market, point "A", and either at or very close to the bottom, point "C". The buyers who bought at point "B" took a calculated risk, and they deserve their reward.

The buyers who managed to buy at point "C" were largeley lucky, and owe gratitude to the group who bought at point "B". Hearing of the great buys that the group at point "B" were able to get, encouraged the group who bought at point "C". With a combination of smarts and luck, the people who bought at point "C" also took a calculated risk, buying with some level of uncertainty and they too deserve their reward.

Now that we have passed the bottom we are only slightly up from the bottom, and pricing is moving up slowly. So for anyone looking to buy, who may be disappointed that they missed the bottom, think again. The buyers who bought at point "B" had a lot of uncertainty at the time. Buying then was quite risky. Now at point "D" there is a real advantage in place. We now know that we are so far from the height of the market point "A", and we are safely pass the bottom of the market point "C" (hopefully). To be buying at point "D" can be considered an excellent investment move, and a fairly safe bet, especially compared to buying at point "B". If we truly are at point "D" and headed to point "E", which we think we are, there really is no better time to buy property in Park City.

Again, this is all in general theory of pricing and real estate market trends. To determine whether you want to buy, or should now buy a home or property in Park City or Deer Valley, allow us to talk with you, and together we can look over the detailed data of the particular neighborhoods you are interested in. As local Realtors specializing in Park City Utah, we can help educate you on the current real estate market trends. The chart above and this article simplifies the theory of real estate market peaks and bottoms. It is in doing research and due diligence of specific areas where we can truly help you determine if the timing is right for you.

Going Green: Keeping Your Home Environmentally Friendly

At Enjoy Park City, so we understand the importance of the environment.  We’re the first to appreciate the aesthetic look of the Park City Mountain Resort , or the setting sun burrowing into the horizon.  To maintain that sense of beauty, we all participate in making the world a greener place to live.   By lowering emissions and using environmentally sound products, we can all be sure to keep our planet green.  In today’s blog, we discuss some easy ways to maintain these same principles in your home.  If you have any questions regarding properties in Park City, or just want to chat with us, feel free to call 435.640.2573

1.    A Green Home is a Clean Home

Green homes allow for bill slashing, efficiency boosting, and the ability to minimize leakage.  One example is dual-paned windows.  They keep cool during the summer and warm during the winter.  One other great feature is a low-flow toilet, as well as tankless water heaters and solar energy systems. 

2.    Watch the Temperature

A lot of energy consumption is used during heating and cooling.  Turn down your thermostat in cold weather and keep it high in warm weather.  According to MSN: “Each degree below 68°F (20°C) during colder weather saves 3%-5% more heating energy, while keeping your thermostat at 78°F in warmer weather will save you energy and money. A programmable thermostat will make these temperature changes for you automatically.”

3.    Save Water

Just changing some of your routines can yield efficient water usage.  For example, try using a broom instead of a garden hose to clean your driveway, it can save you 80 gallons of water!!  Turn off the water while brushing your teeth and you could save 4.5 gallons.

4.    Energy Efficient Light Bulbs

Compact Fluorescent Light Bulbs (CFLs) use 66% less energy than a standard incandescent bulb, lasting up to 10x longer than the standard bulb.  Replacing a 100-watt incandescent bulb with a 32-watt CFL can save $30 in energy costs over the life of the bulb.

5.     Use More Efficient Paint

The average paint contains solvents, toxic materials, and volatile organic compounds (VOCs) that can cause smog, ozone pollution, and indoor air quality problems, according to the EPA.  Try zero-low-VOC paint, made by most major paint manufacturers, they're much better for the environment!

These are just a few quick pointers to get you started, for more tips visit your nearest hardware store for more info and visit http://www.enjoyparkcity.com/

Utah Homes for Sale are More Affordable than Ever!

Did you know buying a home for sale in Utah today is more affordable than any time in the last two decades? Homes are actually at a record level of affordability thanks to lower sale prices and historically low mortgage rates. If you’ve been putting off buying a home of your own, now is the time to do it!

2013 is the Year of Home Affordability for Park City

According to the NAHB/Wells Fargo Housing Opportunity Index, nearly 76% of homes sold during the end of 2011 could have been comfortably affordable for households making the national median income of $64,200. This is the highest recorded home affordability in 20 years. What does this mean for you? Chances are good that you can easily afford most Utah real estate for sale today. And if youre looking to buy a home in Park City Utah, the low mortgage rates really help to make the homes more affordable.

Record-Low Mortgage Rates in Utah

While Utah real estate prices are still relatively low, you’re also more likely to afford a home thanks to record-low mortgage rates. The national average mortgage rate for a 30-year fixed loan is only 3.57%, although Utah mortgage rates are slightly lower. To give you a reference point, twenty years ago these rates were as high as 9.03%!

What does that mean in real world mortgage payments? We have samples below of different rates for the same purchase price of $550,000, which is about the median price for homes in Park City.

Purchase Price: $550,000
20% Down Payment: $110,000
Amount Financed: $440,000

Different Monthly Payments (principal & interest) for Various Rates

Interest Rate:	3.57%	4.5%	5.5%	6.5%	7.5%	8.5%
Monthly Payment:	$1,993	$2,229	$2,498	$2,781	$3,076	$3,383

 

 

Wow, the difference in monthly payments is quite a lot as the rate changes. I remember not too long ago (about 10 years back) when I bought my first home in Park City and the rate was about 6.5%. At the time that felt like a great rate! Just look at the difference now from 6.5% to 3.57%. Thats a savings of about $788 a month. Thats a huge difference!

Renting? Buy Utah Real Estate and Save Money

If you’re currently renting your home, did you know that buying a home can actually be cheaper than renting in many areas? After buying a home, you also gain a wealth of tax advantages and begin putting your money to work for you through property value increases and equity you can use. You build your future, instead of building a landlord's future.

Want to know how much home you can afford? Check out our convenient Mortgage Calculator on our website. Its easy to use, and nice to know in advance how much different home purchase prices will end up costing per month.

To learn more about home affordability in Utah and get help finding the home of your dreams, contact us today!

The above charts were supplied by our friends at Veritas Funding. Below is their contact info. We highly recommend them, and if you call or email please let them know we recommended their services!

Park City Real Estate - End of Year Statistics Report for 2012

Park City, Utah -- The year-end 2012 statistical report released by the Park City Board of REALTORS® indicates an increase in the number of sales and total dollar volume, with inventory the lowest it has been in over six years. It also shows a slight gain in median prices compared to 2011. The total volume of real estate sold for the entire market area (Summit and Wasatch Counties) reached $1,240,542,783 in 2012 -- a 15% increase over 2011.

Number of Sales of Real Estate in Park City

The number of sales continued to climb in 2012 with a nine percent increase over 2011 in all property types combined, reaching 1,817 total transactions. This is up 61% over the low point in 2009. The number of sales now surpasses the early 2000's and is approaching the number of sales necessary to be termed a more balanced market. Sales for the year were very strong after the first quarter of 2012. Each of the last three quarters averaged over 150 sales more than the first quarter. Quarter Four is up 28% compared to the fourth quarter of 2011.

Real Estate Inventory Levels

With only 1,879 active listings on the market for 2012 compared to 2,146 in 2011, the inventory level has decreased by 12%. The greater Park City market has consistently seen double digit yearly decreases in the number of properties for sale since the high point of listings on the market in 2009. Based on an average of the past three months' sales, this inventory represents about a 10 month supply -- excluding the lots, it is at an eight month supply for houses and condominiums. This is the lowest housing supply since the Park City Board of REALTORS® began systematically tracking the monthly active/pended listings in January of 2007.

Pricing of Park City Real Estate in 2012

The median price, for all property types combined (single family houses, condos, vacant lots and fractional interest properties), has rebounded nicely in 2012 reaching $395,000 which is a 13% increase over last year, though this number is still below the median prices of 2010 and 2009. Median single family home prices continued to rise in most areas and had a five percent increase overall reaching $548,107. The median price for condos also increased seven percent to a median price of $343,000 for the entire market area. Vacant lots had the best performance in 2012 with a 22% increase over 2011 reaching $213,750.

Within the Park City Limits area, median single family home prices show an eight percent increase over last year reaching $1,077,500. Condos are down three percent to $522,500 and vacant land is down two percent at $475,000. In contrast, within the Snyderville Basin and Jordanelle areas, the median price for a single family home is down five percent to $649,000, while condos are up 14% to $308,543, and vacant lots are up 51% to $249,500 over 2011. Significantly, even with an increase in the median lot price, the number of sales in 2012 was the same as in 2011, showing that though lots have gone up in price, the number of sales has not decreased.

Distressed Sales and Foreclosure Report for Park City

The number of distressed properties on the market has continued to drop through 2012 and the number of Notices of Default has decreased compared to previous years. Interestingly, the prices of distressed properties that come on the market are listed very close to market price or sometimes even above market. For the fourth quarter in Summit County, distressed sales accounted for only 13% of total sales which is down 31% from the fourth quarter in 2011, according to data compiled by Rick Klein of Wells Fargo Private Mortgage.

Year End Real Estate Wrap Up

The Park City Real Estate market continues to strengthen with positive signs in the number of sales, dollar volume, pricing and inventory. The combination of all of these factors points to a continued active market through 2013. In 2012 the number of sales averaged about 35 per week finishing the year with 1,817 total sales. The Statistician for the Park City Board of REALTORS® says, "If this rate continues through 2013, we would be looking at sales numbers approaching 2000, which would be a healthy pace for buyers and sellers."

Prices have continued to stabilize, with most areas and property types seeing slight price increases. There were a few areas to buck that trend -- most notably: condo prices in Old Town, down two percent; and home prices in Pinebrook, down 13%. The Board notes, "This could be due to buyers snapping up the lower priced properties due to a fear that once those units are gone, they will be replaced with higher priced properties."

Looking Forward

Prices in our market have generally been falling for four straight years, with many parts of our market 40-50% below where prices were at the peak. However the downward pressure on prices now seems to be over. The Board of REALTORS® cautions that "Price increases need to be justified by a proper evaluation of the property's attributes, and just like the market of the past several years, a property needs to be properly priced in order to sell. An overpriced property will continue to sit on the market." With inventory levels in decline, there aren't as many choices as in the past.

There continues to be strong buyer interest and activity, and the number of sales and prices will probably increase in 2013. With specific neighborhoods responding differently to the current market, it continues to be very important to consult with your local Realtor to understand what the market is doing in your area. The President of the Park City Board of REALTORS®, adds that 2013 is off to a strong start, "Realtors are busy and writing offers. We're looking forward to 2013 being an excellent year for real estate in Park City."