Back in the spring we thought the real estate market would be in a holding pattern indefinitely due to Covid-19. No one could have predicted that the pandemic would create such enormous demand in our real estate market. We’ve seen from our own clients that working from home is creating new opportunities for owning real estate in the Park City and Heber Valley markets. Our clients are splitting time between New York and Park City or relocating from LA, Las Vegas, and even Cleveland. With Utah being the number one state for cumulative population growth in the nation, it’s no wonder real estate sales volume is off the charts.
Market statistics from November 2019 – November 2020 show that the real estate market in the greater Park City area is not just hot, it’s on fire. Unprecedented demand, shown here as sales volume, is combining with inventory lows, to create notable upward pressure on pricing. Where it used to take several months to sell a property in the Heber Valley, days on market is down to a median of just 23 representing an 80% decrease from last year. In Park City, that number is down 20% to 67 days on market.
Properties in most submarkets that are well priced are selling quickly and frequently with multiple offers. Agents in our office have reported as many as 72 offers on one property. We have been involved with several multiple offers on behalf of our clients. It’s hard enough to find your dream property and even tougher when you lose it in a multiple offer situation. Even in such a frenzied market, buyers remain hesitant to buy properties that are overpriced and there are a few notable submarkets are still slow. In those submarkets, supply is continuing to outpace demand – a trend we don’t foresee lasting that long.
Average pricing has soared in the Wasatch Back market, which emcompasses Park City proper, Snyderville Basin and Heber Valley markets. Park City proper has shown more than a doubling of average prices since July, 2020, as has it's neighbor 10 miles to the east - the Snyderville Basin market. The Heber Valley market has been steadily active in the past but it is now in high demand too. Located just 20 minutes from Park City, the Heber Valley is a growing sector of the Wasatch Back market. This isn't surprising as it's located in Wasatch County - the third fastest growing county in the United States. Overall low inventory and high demand are continuing to put upward pressure on pricing in our market.
Looking into our crystal ball we see . . . clouds . . . more clouds . . . a sea of swirling mist. It’s not working. Hey, is this thing on? We can’t predict the future, but we can say that unless property inventory increases dramatically or demand falls significantly, the Wasatch Back market looks poised for significant growth.
January 13, 2021