Park City Home & Condo Prices and Offers

By Todd Anderson

Feb 23, 2012

Days on market for real estate in the Park City adn Deer Valey, Utah area

Days on Market is a piece of information that can give us some information about home sales in an area, but it is not the end-all statistic. In Park City, Utah the current average days on market for real estate is about 150 days from initial list to sale. This statistic counts only those properties that have sold (not inventory or expired/removed properties).

In general a lower number of days on market relates to a “hotter” market and less of a “buyer’s market” but there are other factors that also have to be considered. Note that the 2007 timeframe has a relatively higher days on market; yet things were selling within days at this time. New construction is the reason in this case. Projects were selling out quickly, but the days on market statistic counts from the time the property goes under contract until the sale closes which in this case does not happen until the home or condominium is complete. Similarly, current days on market may be averaging a little longer due to the loan process taking longer now than it did a few years ago.

Buyers often ask how long something has been on the market and try and use that information in determining an initial offer. Unfortunately the correlation between days on market and accepted sales price does not always have a straight forward correlation. No two properties are exactly the same, so the sales price of two similar homes need not be the same. Similarly, the financial situation and reasons for selling are never the same for two individual sellers.

This is not to say that days on market does not have any value in determining a fair price. It is interesting to note that of the over 500 sales in the past 6 months, over 20% sold in less than 21 days (sales this quick are cash purchases). The average sales price of these quick sales was over 95% of the list price. Conversely, Park City properties that took longer than 180 days to sell had a sales price of about 90% of the list price.

Tags: buyers, days on market, Deer Valley, offers, Park City real estate, prices, sellers
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Park City Real Estate's Different Worlds

By Todd Anderson

Dec 23, 2009

Real estate prices in Park City, Utah show a wide array of ownership possibilities. Single family home prices start in the mid $300K range and top out at over $50M. While there are homes that may be considered reasonably attainable for the average buyer, the influences of the luxury resort community impact averages and median pricing. Of the nearly 600 homes currently listed for sale across the Park City MLS, more than one third presently are priced above 2 million dollars. Over sixty percent of the homes on the market are priced at $1M and above. These offerings bring the average asking price to well over $2 million. Many agents in the Park City area have considered these multi-million dollar homes and their Buyers and Sellers to be somewhat insulated from the effects of the national economy. There is without a doubt a certain air among Sellers that the price they paid or believed the home was worth a few years ago is still the current value. Other Sellers however are aggressively making price reductions in an effort to move their property. It would almost appear as if these Sellers are living in different worlds. Here are some examples of each:

In the Glenwild subdivision - a 200 unit private development of custom luxury homes situated around Utah's best rated golf course - a showcase home finished and offered for sale in the middle of 2008 has seen price reductions of over $2M since its first offering. The price reductions and aggressive changes make for a nearly 40% off sale price. In the Deer Crest community of 144 homesites and the new St. Regis luxury hotel, the "Ski Magazine Dream Home" with its 6 bedrooms, 10 baths, 15 fireplaces, fantastic view and ski-in/ski-out location has actually seen its price rise by over $2M during the 3 years that it has been offered for sale. The Promontory golf club and resort second home community in Park City has after emerging from bankruptcy seen prices slashed in many cases by more than half of original asking price. Some homes in this area have been priced below their replacement or build costs in an effort to move them quickly. The new Dakota Mountain Lodge at The Canyons Resort is part of the Waldorf-Astoria collection of luxury hotels. The resort condominium hotel has been open just a few months and still has over 50 contracts still waiting to close (most all were written years ago during the height of the Park City real estate boom). One owner recently closed on their 4 bedroom 4 bath top floor model and immediately offered it for sale at $300K over the price they paid. The developers of the Silver Strike Lodge in the Empire Pass area of Deer Valley are auctioning 8 units of the development next month with opening bids set at approximately half of their original asking price. Approximately one third of the homes and condominiums that are complete in the Empire Pass area are currently offered for sale.

Sellers in the Park City real estate market appear to have dramatically different ideas of current valuations. In the end, no matter what belief the Sellers have about the market, it is the Buyers that will set the value. Recent sales would appear to show that those Sellers willing to negotiate and/or aggressively reduce their prices are those that will sell their properties in our current market. For more information regarding Park City sales trends, home valuation opinions, and marketing alternatives contact a YouInParkCity.com real estate professional.

Tags: Deer Crest, Deer Valley, Empire Pass, Glenwild, Luxury, market, Park City, prices, Promontory, Real Estate, resort, sellers, Ski
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Pricing Schemes in Utah

By Todd Anderson

Nov 04, 2009

I recently read a blog post by another Utah real estate agent discussing Buyers in her area that were putting in offers on property that were sure to be accepted by sellers (as they would be the highest priced offers) with the background idea that the property would later not appraise for the offer price and then the seller would lower the price to the appraisal value and settle on that as the selling price. It is an interesting type of bidding scheme and an idea that probably works well for short sales and bank owned properties in the current national real estate market where appraisers are bearing some of the blame for our financial crisis. Buyers using the ‘offer high and hope to pay less' tactic are counting on the appraisal coming in lower than the offer price. This will mean that the Buyer can't get their expected loan or that they simply state that they are not willing to "overpay" for the home unless the price is lowered. Appraisers in Park City currently have a tough time with property appraisals not only because they are under increased scrutiny, but also because there are relatively few sales and therefore finding a comparable property that has sold recently can be tough. I have seen a few Park City real estate sales recently that were affected by low appraisals. The end result is not always a lower price. In one recent case, the seller did lower the sales price (although not to the appraised price). In another case of an appraisal lower than the agreed upon sales price, the seller just removed the property from the market; effectively stating that they would not sell for what the appraiser had established was market value. The Buyer did subsequently purchase the home at the original offer price. The Buyer's side tactic of offering over what the buyer wants to pay in hopes of an appraisal effectively lowering the price may or may not work in Park City. It is probably best left to investors that have no emotional attachment to the property they are buying. The YouInParkCity.com group suggests finding a property that you want based on location, features and local amenities. Present an offer that makes sense to you as a buyer. The appraisal may give you an idea of fair market value or it may not. Appraisers only have data as to other "similar" sales, but no two properties are alike. In the end, fair market value can be defined by a willing Seller and a willing Buyer.

Tags: appraisal, buyers, homes, market, Park City, price, pricing, property, scheme, sellers, Utah
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Park City, Utah Real Estates Sales Statistics 2008

By Todd Anderson

Feb 08, 2009

The Park City Board of REALTORS® last week released statistics for the year ending December 31, 2008. The February press release shows that sales in the Park City, Utah area were down by nearly 50% in dollar volume versus 2007. The sales dollar volume at just over $1 billion was roughly equal to the sales of 2004. Looking at the sales a little closer and narrowing the scope of the statistics to only include Park City (not outlying areas such as Kamas, Francis, Heber and Midway) and focusing on sales by property type and unit volume, the statistics show that: single family home sales were down by 43%, condominium sales were down 41%, and leading the fall was vacant land sales which fell by 75% in unit volume. Local REALTORS® are quick to note that median sales prices have only fallen slightly and that Park City and Deer Valley fundamentals remain strong. The president of the Park City Board of REALTORS® was quoted as saying: "People buy homes in Park City because it is based on a lifestyle choice. Our market has never been primarily driven by speculation and investment our product is very diverse and buyers have a wide range of properties that fit their needs and budget. Park City's world class resort facilities and year-round recreation opportunities will continue to make our community an attractive choice for many buyers." While this may be true, there is no denying that our market is affected by what goes on in the rest of the country and the rest of the world. The Park City and Deer Valley real estate markets have many opportunities and choices for buyers; something that wasn't true while the market was soaring. Vacant lot sales indicate that home building is down (Park City building department permits concur) and will be for the near term. There are a number of very high-end properties due to open in the near future including the St. Regis Deer Crest Resort, Montage Resort at Deer Valley and Dakota Mountain Lodge which is being serviced by the Waldorf Astoria and includes the Golden Door Spa. The impact of these resorts and the associated real estate sales will be felt in the next two years. Sales of new construction condominiums played a major part in Deer Valley sales in 2007 with over half of the 180 condominiums that sold being newly built. Sales of condominiums in Upper and Lower Deer Valley combined with Deer Crest and Empire pass were down 67% in 2008, but there were far fewer new condominiums available. Real Estate numbers nationwide show slow sales and many point to the fact that we still have sales in the Park City area as a good sign. To discuss how these sales numbers affect you and your decision of whether or not to buy or sell realty in the Park City and Deer Valley, Utah area call or email your http://www.youinparkcity.com/ Keller Williams Park City Real Estate agent today.

Tags: buyers, condominiums, Deer Valley, homes, market, Park City, Real Estate, realtors, realty, sellers, statistics, trends, Utah
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Entry Level housing Deals in Park City

By Todd Anderson

Apr 21, 2008

The Park City housing market has seen change recently. The rocketing upward of prices has slowed and Park City is returning to a more normal real estate market. The effect of the changing market varies greatly depending on the price, neighborhood and subdivision. The entry level market appears to have been affected the least by the downward pricing pressure here in Park City, Utah. Finding a single family home in Park City that is under $400,000 is still very hard to do; the same goes for a truly affordable condominium. There are a number of factors keeping the entry level home pricing up while other Park City marketplaces flatten or fall. The economy of Park City and most of Utah is still strong. Job losses and cutbacks have not been a problem here, and the resorts are still enjoying strong tourism. The fact that the job market hasn't changed much means that people living in Park City aren't falling behind on mortgage payments and aren't being forced to sell their homes. The entry level tier of the housing market has the most resistance to falling prices. While no-one ever wants to take a loss on an investment, the people who scraped everything together to buy the home they live in truly can't afford and refuse to take a loss and start over. If these people aren't forced into selling their homes due to job-loss or some family tragedy, chances are they will just stay where they are until such time that the market changes or they have accumulated enough wealth to move upward within the area. People still want to live in and raise their families in Park City. Demand for housing, especially entry level housing has not changed much. There is a very strong service industry in Park City and the wages that coincide with these jobs dictates that entry level housing in Park City is what these workers can afford. The recent changes affecting credit and financing have made it harder to get loans, but in truth these were not the people that needed sub-prime loans anyway. Things do happen and people are forced into selling their homes at "rock bottom" prices at times in order to move them quickly, but there are few indicators that "the bottom is falling out" and that entry level pricing will fall dramatically in the near future. For more information regarding pricing in specific Park City real estate neighborhoods and/or subdivisions, visit http://www.youinparkcity.com/

Tags: buyers, condominiums, deals, entry level housing, homes, neighborhood, Park City, Real Estate, sellers, Utah
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Buyers and Agency in Utah

By Todd Anderson

Feb 17, 2008

Buyers and Sellers Agency are possibly the most misunderstood portions of Utah real estate law. This may be more true in Park City real estate transactions than other portions of Utah as many of the buyers are second home buyers and their knowledge is based on another state's law. Agency is something that at first glance seems quite straightforward; that is, until the idea of dual or limited agency is introduced. Agency is defined as: The relationship created when one person, the principal, delegates to another, the agent, the right to act on his or her behalf in business transactions and to exercise some degree of discretion while so acting. An agency gives rise to a fiduciary relationship and imposes on the agent, as the fiduciary of the principal, certain duties, obligations, and high standards of good faith and loyalty. To understand this we need to further define Fiduciary as: The relationship of trust, honesty and confidence between agent and principal; the faithful relationship owed by an agent to the principal. In a straightforward real estate sale or purchase, there is an agent working for the Buyer and one working for the Seller. Things change though when the Buyer is not represented or is represented by the Seller's agent (Limited or Dual Agency in Utah). Utah law allows for these types of transactions to exist and many agents actually try to involve themselves in them. Why? Money of course! Sellers, when agreeing to allow and agent to represent them in marketing and selling their home, agree to pay the agent a commission regardless of who sells the home. The agreement allows the agent to offer a commission to a Buyers agent for bringing a Buyer and taking care of the Buyers side of the sale. If the Seller's agent can find a Buyer, the agent doesn't have to share with a Buyers' Agent. The agent doubles up their commission. The issue that presents itself here is: how can an agent act as a fiduciary in when their responsibility is to two different people with somewhat opposing interests. The Seller wants the most money for their home and the Buyer wants the home for the best price available. How can the agent work to get the most money for the Seller and the best deal for the Buyer at the same time? They can't. In fact all parties involved have to sign an agreement allowing for Limited or Dual Agency. The form effectively states that the Agent involved now works for no-one and is merely an intermediary making sure that all paperwork is understood by all parties and completed correctly. And for acting in neither party's best interest, the agent gets "both sides" of the commission the Seller agreed to pay. Unfortunately, this situation presents itself due to an innocent mistake made by the Buyer thinking that they will get a better deal by dealing with the Seller's agent rather than getting their own. We at the YouInParkCity.com group attempt to not involve ourselves in the practice of "Dual" or "Limited Agency". We encourage all of our Park City real estate clients to be represented by a Realtor that is working solely in their best interest. Feel free to contact us by phone (888) 968-4672 or email so that we can start working for you!

Tags: Agency, buyers, Park City, Real Estate, realestate, search, sellers, Utah
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Park City Year End Stats

By Todd Anderson

Feb 06, 2008

The Park City real estate market is compiling its year end data. Spin is surely soon to follow. The two graphs here can tell different stories. There are more available Park City real estate listings on the market currently, and this number has been on the rise. During this same time-frame, pended sales numbers have been decreasing. First glance may indicate that there are more people trying to sell and fewer buyers. A second look may also show that properties that were sold to speculators are being completed, sold and put back on the market (no longer pending and becoming active listings). The two graphs above tell a much different story when viewed together than they do apart. Park City total sales volume when viewed as a year-to-year comparison shows a very good year, with 2007 being not far from its peak in 2005. This graph or statistic is the one that people seem to cite the most when asked about the state of the Park City real estate market. The second graph shows that the number of transactions for 2007 was down dramatically from its peak in 2005. The two graphs together indicate that the average price of a sale in Park City has gone up while the number of sales has gone down. The past year has seen the completion of many homes in the Empire Pass area of Deer Valley as well as many new high-end homes in the Promontory and Tuhaye golf communities. Many of these were speculative "flips" in the Empire Pass area and speculative builds in the others. All of these new available properties have been built for the luxury buyer and contribute to all of the different data shown here. Another angle that has to be considered when looking at this data is location and scarcity. The boundaries of Park City, its ski resorts, its golf courses, its lack of available land for building, and peoples' desire to live and own homes here contribute greatly to Park City's property values. It is very hard to consider any one piece of land, condominium, or home in Park City without considering nearby alternatives. This means that much of the data needs to be cropped down to much smaller sample sizes for true comparative analysis. Interpreting data can lead to many different opinions about the state of real estate in Park City and a valid argument can be made for all of them. The http://www.youinparkcity.com/ group loves to discuss these numbers and help you to make sense of how they affect your Park City real estate buying or selling decisions. Contact us for more information. http://www.YouInParkCity.com/contact.php