1st Quarter 2023 Market Pulse

Our market still has some ground to cover inventory-wise in order to return to a “normal” condition. With many homeowners enjoying low-interest mortgages at a fraction of current rates, a significant number of them may opt to stay put until the mortgage market shows signs of improvement. Until then, our real estate market will likely continue to experience a relatively moderate rate of sales. Rest assured, we'll keep you informed as the year unfolds. The information below provides statistics and trends for your areas of interest. See how they fared during the first quarter of 2023, and reach out with any questions.

For single family homes, all but one of the major areas that make up the greater Park City market showed drops in units sold through the 1st quarter of 2023 versus 2022. The exception was in the Jordanelle area, where interest is growing in anticipation of the Mayflower Mountain resort project opening for the 2024-25 ski season. Sales in the Jordanelle area increased 71% over the previous year, albeit at a lower median price point of $1.6 million, which is down from $2.5 million the year prior. The drop in median sale price was attributed primarily to the Benloch Ranch development, where homes priced in the low 7-figures accounted for almost half of all sales in the area. This more than offset higher priced developments like Tuhaye and Victory Ranch, where prices start at twice that figure and climb rapidly from there.

HIGHLIGHTS  |  Stats by Neighborhood

The number of units sold across the primary market area (Summit and Wasatch counties) dropped 32%. A 2% decline in the median sales price to $1.55 million contributed to the 31% drop in total sales volume. Through Q1-23, the $2.05 billion in total sales was down from the Q1-22 year-over-year total of $2.99 billion.

The condominium market across the entire Wasatch Back continued to report even more and larger median price increases than did the single-family market. Every major area across the region reported increases of 10% or more, with the overall median increasing by 23%. Total sales volume declined in all areas by 20% to 35%, primarily due to a lack of inventory. 
 

In years past, buyers who bought vacant lots with the intention of building in Park City found that two to three years later, the cost of construction (both materials and labor) had increased. Furthermore, supply chain issues remained so pervasive that they no longer wanted to build. Instead, they are putting those lots back on the market. But even those resales were not enough to boost available inventory. This was the only market sector that showed a decline in sale units, volume, and prices across the board

HIGHLIGHTS  |  Stats by Neighborhood

As you can see from the numbers, our market here in Park City has shifted out of overdrive, with the rapid price escalations beginning to taper off and absorption rates beginning to increase. In short, we are seeing signs of a return to activity levels that more closely resemble the pre-pandemic market. We could still use more inventory, and it is possible that our usual spring selling season is running a little behind with the extended winter we had this year. We have heard anecdotally that some folks are waiting for the snow to melt so they can finish sprucing up their properties before hitting the market.
 
Speaking of snow, we would be remiss if we didn’t take one last chance to appreciate the remarkable winter season that we had this year. Park City Resort closed down its winter operations only a few days ago, and several resorts in the state are still open. And in case you didn’t hear, Alta recorded a record-shattering NINE HUNDRED INCHES of snowfall this season. Incredible!