You don’t have to be in the real estate business to know that the first half of 2021 saw the Park City market explode in a way not seen since the housing bubble that peaked in 2006, perhaps not since the silver rush of the early 20th century.
But unlike the boom-and-bust days of old, the Park City Board of Realtors (PCBR) says today’s record-setting numbers do not indicate problems around the corner.
Hot can be healthy
According to board president Mark Jacobson and president-elect Rene Wood, several factors point to a market that while hot, is also healthy.
Stricter lending requirements mean that banks are not as free to tempt unqualified borrowers with irresponsible loans. The shortage of available properties establishes control over the market, keeping prices high. And mortgage rates, while low, are not the rock-bottom variety of the early 2000s.
Into the weeds
A handful of highlights from the first months of 2021:
• Within Park City Limits, the number of total sales rose 38% over 2020 totals.
• The median price of a single-family home across the city climbed 38% to $2.7 million.
• Snyderville saw a 113% spike in sales volume.
• Promontory enjoyed the highest increase in sales dollar volume of individual units, which rose 165% to $435 million.
• Jordanelle saw individual property sales roar up 59%, which pushed the sales volume to $256 million, approximately double 2020’s total.
• Outside of Park City Limits, properties in the Sun Peak/Bear Hollow neighborhood realized a 50% jump in median price, from $515,000 to $751,000, as sales more than doubled.
• The number of condo sales in the Empire Pass neighborhood nearly quadrupled, driving the median price up 30% to $2.8 million.
Looking ahead
The future may be unknowable, but according to the PCBR, some predictions seem fairly safe. First, as the pandemic retreats, the dramatic migration of urbanites to sanctuaries prized for their outdoor lifestyle and open spaces should start to level off. New housing is also predicted to return to a more normalized flow, as the price of lumber, which rose 250% in 2020, falls to pre-pandemic highs, and construction workers return to their jobs.
While prices of established homes may not drop significantly, demand is bound to decrease from the current level of 10 buyers to 1 seller. Finally, interest in Park City is at an all-time high. Having polished its profile during the pandemic, the area proved to be a safe haven that rode out the worst of the storm.