Park City, UT is a favorite vacation
destination spot that is showing definite signs of recovery with prices
beginning to rise and housing sales increasing in higher-priced homes.
Apparently, the Case-Shiller U.S. Home Price Index predictions of a 10% rise in
prices over the next four years is coming true in Park City, UT. The greatly
reduced inventory of houses currently for sale in this marketplace allows the
basic principles of supply and demand to resume. As the result of these lower
real estate inventory levels, many higher-priced homes are now receiving
multiple offers which effectively bids prices up.
This type of bidding war was primarily reserved for foreclosure homes in the
past few years since the real estate crisis began. With the median home sales
price increasing to $427,450 from $412,500 in a year's time, sellers now have
reason to be optimistic and are less likely to entertain the
bottom-of-the-barrel offers that buyers felt justified in bidding in 2011.
Realtors and sellers alike recognize a more level playing as the leverage
between buyer and seller becomes more evenly distributed.
Resort Areas Rebound
While real estate markets across the country are recovering at different rates,
it is considered to be a particularly good economic sign when resort areas
start rebounding. Resort areas were hit particularly hard by the Great
Recession since many of these areas have a high percentage of second-home
inventory. Recognized as a premium winter playground for vacationers who love
to ski and play in the snow, real estate in Park City attracts buyers from all
over the country and is well-known as a seasonal hotspot with a median price
point of $427,450.
Area of Showcase Homes
In stark contrast to the "lower priced" homes taking center stage in
many U.S. real estate home shows around the country these days, the 2012 Park
City Showcase homes feature higher-priced, luxury homes starting at $600,000,
and rising sharply up to $3.5 million. No expense has been spared in these
dream homes that range in size from 3000 square feet to over double that
amount, topping out at a generous 7000 square feet. Common amenities in these
homes include gourmet kitchens and "green" features that typify the
best of luxury living.
Statistics Paint a Rosy Future for Park City Housing Market
Both single family and condo homes sales are up for 2012 as compared to 2011
with a 6 percent increase in single-family home transactions and a 10% increase
in condominium sales. Even more dramatic sales figures paint an optimistic
future when comparing the third quarter of 2011 with the third quarter of 2012.
Condo sales rose a full 25 percent.
Adding to the good news is the fact that distressed property sales declined,
decreasing 35 percent from one year to the next when comparing the third
quarters from 2011 to 2012.
Given that the sale of foreclosure properties is believed to keep prices
artificially low, these two pricing trends appear to be delivering a much
improved outlook for real estate in Park City, UT.
Top realtors in the area report that houses priced under $400,000 rarely stay
on the market for a single day. This buyer enthusiasm and willingness to pay
for higher-priced homes again suggests that the Park City, Utah real estate market has taken an important turn on the road to recovery. In a
marketplace known for its skiing and luxury homes, Park City is beginning to
recover its status as a viable investment market for affluent vacationers and
speculators.
