As visitors start returning to Park City for the summer with extra safety precautions, the housing market is seeing an uptick in activity and robust sales. This trend is partially due to buyers feeling more comfortable about purchasing a second home in one of the county’s top vacation destinations.
Park City, UT real estate trends
Park City’s real estate market trends lean towards low inventory, increasing prices, and fewer days on the market. The number of units sold increased by 78% from 2,874 in June 2020 to a staggering 5,130 in June 2021 with sales activity outpacing the number of new listings. The result is a highly competitive market. The most desirable and best-priced properties tend to sell quickly.
Home and land prices were already increasing even before the pandemic. The housing market was very active in 2019. And while the pandemic temporarily paused activity for roughly three months in 2020, the following year has seen an uptick in real estate activity.
Based on Park City MLS data for all housing types, the average sales price climbed 34%, from $940,000 to an impressive $1,260,000. The median sales prices also increased by 25%, jumping from $593,000 to upwards of $744,025.
Park City, UT real estate market has rebounded from the pandemic
As already mentioned, real estate activity screeched to a halt for over three months after the World Health Organization (WHO) declared a global pandemic and as local governments imposed restrictions. As the economy slowly reopened and restrictions were lifted, real estate activity resumed in Park City, with the focus on larger residential properties that were ready for immediate occupancy. Realtors observed continued demand and sales activity began to extend to condo units and vacant land.
The uptick in sales activity was initially driven by buyers looking to escape from congested metropolitan areas with heightened restrictions across the United States. However, this real estate trend eventually evolved into a more long-term lifestyle change for many buyers. Realtors in Park City still expect single-family homes to be the main focus of real estate activity in the area.
However, they are also seeing increasing demand for ski properties, golf course properties, vacation condos and custom homes as buyers become more confident about making real estate purchases.
How buyers are financing real estate purchases in Park City, UT
Real estate experts have noted stringent lending requirements in 2021 with banks and lenders exercising more caution in approving home loans. But buyers have found ways around stricter loan requirements. According to Inside Park City Real Estate, 49% of total real estate transactions in Q1 2021 were cash purchases.
Realtors have also observed that the modern buyer tends to be exceptionally qualified to purchase a property. They also have different motivations for buying, which are primarily pandemic-related lifestyle and work changes coupled with pent-up demand.
If companies continue to allow buyers to work remotely, Realtors speculate that they will continue to see an influx of new residents in Park City and the surrounding areas.
If you’re one of many buyers who are looking for a home in Park City, Team Schlopy is here to introduce you to the mountain resort lifestyle. Contact us at (435) 640-5660 or Info@TeamSchlopy.com for inquiries.