The luxury home market is recovering all over the US. Park City, the resort destination of Utah is definitely no exception. According to the Park City Board of REALTORS, local housing sales are at the highest peak the market has seen since late 2007. It appears that home prices may have already bottomed out and are finally beginning to bounce back. The Park City median home selling price was $427,450 during the 2012 second quarter. During the same time last year, median selling price was just $412,500.
Other Good Signs
The inventory of Park City homes listed is at the lowest the local market has seen since 2007. For the first time in almost five years, home buying is on the rise, and sellers are enjoying the benefits of multiple offers again. These multiple offers aren't just in the lowest priced homes. High-end home owners are getting them as well.
The 2012 Area of Showcase Homes in Park City includes 11 homes that are priced between $600,000 to $3.5 million. Although during the housing boom, the amount of featured homes was around 20, this is still a increase from the 9 showcased in 2010.
Many other home parades in the US have moved towards the affordable home market. However, the Park City showcase is still focused on luxury. Its current home lineup features homes ranging in sizes between 3,000 sq ft to over 7,000 sq ft. The homes have numerous bathrooms, gourmet kitchens, multi-car garages and come with high-tech “green” features. One of the homes in the showcase has five bedrooms, and is complimented with seven bathrooms.
Park City is also seeing an increase in cash transactions. Investors are buying homes to rent them out. Others are coming into the area to purchase Utah vacation homes. According to the local Home Builders Association, Park City is a prime market for second, third, and even fourth homes.
Park City's Diverse Housing Market
The real estate market in the Park City area is very diverse. Within the city limits, the current median sales price is about $1.1 million. In the nearby area of Heber Valley, median sales price is much lower, at $245,000. Although this price is more affordable than that of Park City, it's much higher the median price in Salt Lake County.
Local real estate agents in Summit County say that there are less highly discounted foreclosures on the market than in recent years. It appears that most of those incredible deals have already been purchased. Just like any other US city in the housing recovery phase, the lower priced homes and condos in don't stay on the market very long at all. For Park City, these great deals are anything sold for under about $400,000. Sometimes, according to local real estate experts such as Brad Jensen from Jensen and Company Realtors, they aren't even on the market for an entire day.
In the county of Salt Lake, the same dynamic exists. Inventory is very low, while home prices are continuing to increase. The local Board of Realtors in Salt Lake reported that July 2012 was the fourth month in a row where home prices rose on a year-over-year basis.
The last time the Salt Lake area saw home prices increase four months in a row was during the peak housing market boom in during 2007. The median price of both condos and homes that were sold in July in the county was $192,000. That's a one percent increase from the same time last year.
Jensen and Company Realtors