Posted on May 14, 2014
April was a great month for Park City home sales. A total of 29 homes in the Park City/Deer Valley area sold at a median 98 percent of their original listing prices. The total sales volume for April was $41,512,483.
I show around 300 homes per month. I’m in the trenches as much as anyone – maybe more than most. What I’m seeing is a hot, hot move-up market. Higher-priced homes are becoming more and more popular as people are more financially stable and better able to afford their dream homes.
The median listing price for Park City and Deer Valley homes sold in April was $1,125,000. The median sold price was $1,100,000. Compare that to April 2013 and you’ll understand the significance of recent pricing: In April 2013 the median original listing price for homes was $554,000. The median sold price was $510,000. Check out the differences in total April sales volume for the last five years:
- 2009: 11 homes, total sales volume $10,744,900
- 2010: 20 homes, total sales volume of $15,284,500
- 2011: 26 homes, total sales volume of $13,741,277
- 2012: 15 homes, total sales volume of $12,761,850
- 2013: 33 homes, total sales volume of $25,359,800
- 2014: 29 homes, total sales volume of $41,512,483
It’s not enough to look at the number of homes sold to determine market conditions. It’s important to consider the volume. Although more homes sold in April 2013 than did in April 2014, this year’s total sales volume was nearly 64 percent higher.
Last year people were just coming out of rental properties and purchasing homes. In some cases they had lost homes to short sales and foreclosures. The stress on the rental market caused rents to go higher. As Utah’s economy improved, people were anxious to get out of high-rent homes and apartments so they settled for conservative homes they could afford. Now consumer confidence is up, interest rates are still great, job security is improving and the unemployment rate is getting lower. They are selling and upgrading; and all this shuffling feeds Utah’s economy.
It really is the perfect storm for that homeowner who has waited until the market recovered so they could get what they wanted. In fact, the market is the most balanced I’ve seen for a long time. Sometimes the market favors buyers, sometimes it favors sellers; the pendulum is right in the middle now. Sellers are still willing to negotiate, and pay buyer’s closing costs and, buyers are able to afford more because of low interest rates.
Park City home sales are a great example of this. In many cases homes there serve as luxury vacation properties. Expendable income is more readily available again and people are ready to get out there and live large.
If you’re looking for a luxury home in Park City or a vacation home in Deer Valley, we have an excellent inventory of them and they are still very reasonably priced. Take advantage of today’s rates and a level market. Visit http://www.allparkcityhomes.com 24/7. Call me at (435) 200-3490 for personal assistance in finding your dream home.