2007 Park City Real Estate Transactions Reach Nearly $2 Billion
Home Prices Show Double-Digit Appreciation
30 January 2008 (Park City) – Big homes, big condos and big transactions led to a big year in 2007 for Utah’s premier destination ski area.
In the 12 months ended Dec. 31, 2007, Park City real estate transactions reached $1.98 billion, an increase of 3 percent compared to $1.92 billion in volume a year earlier, according to a report released today by the Park City Board of Realtors.
“Our total volume in 2007 was the second best-ever year in real estate in Park City,” said Tyler Richardson, president of the Park City Board of Realtors. “I don’t think Park City real estate prices have peaked if we look at what has gone on in other resort destinations in the Rocky Mountains.”
The median price of single-family homes sold in Park City during 2007 climbed to $680,000, an 11 percent increase compared to $615,000 in 2006. Condominium sales in 2007 reported a median sales price of $559,750, a whopping 31 percent rise compared to $427,000 a year earlier. The median sales price of vacant land also climbed in 2007 to $549,000, up 17 percent compared to $470,000 in 2006.
While sales prices continued to rise, the number of single-family homes sold in 2007 fell to 828 units, a 13 percent decline compared to 957 homes sold in 2006, the report noted. The number of condominium sales showed a 3 percent drop to 778 units, down from 799 units a year ago. Land purchases dropped to 514 transactions, down 40 percent from 859 land sales in 2006. The average days on market for all types of listed properties increased in 2007 to 210 days, up 42 percent compared to 148 days the previous year.
The 2007 report included sales statistics of Summit and Wasatch counties and tracked sales volume, average sales prices and median sales prices. Sales figures varied widely among market segments and neighborhoods. Board President Richardson encouraged the public to talk to a local REALTOR® for a more complete analysis of the sales trends.
“The fundamentals for the Park City market are very good,” said Lincoln Calder, president elect of the Park City Board of Realtors. “The Park City real estate market has never been focused primarily on investment speculation.
People buy in Park City because it is a place they want to be and a place they want to bring their family and friends.”
Richardson indicated that the Park City area was less prone to the wild investment speculation that gripped many regions of the country, artificially driving up demand and prices. “People buy homes in Park City because they’ve got the income and they’ve got the ability to do it and Park City is the place that they want to be,” Richardson said. “They are making a lifestyle purchase, a family legacy purchase.”
Within Park City proper, the median sales price of single-family homes sold in Old Town climbed to $1.3 million, up 28 percent compared to $987,000 in 2006. The Prospector area witnessed a 28 percent increase in its median sales price – from $622,250 to $797,000. In Park Meadows, the median sales price rose to $1.6 million, a 14 percent increase compared to $1.4 million a year earlier. At Jeremy Ranch, the median sales price increased to $873,500, up 17 percent compared to $745,000. In Pinebrook, median prices fell to $748,000, down 2 percent compared to $764,950 in 2006.
The median single-family sales price in Kamas and Marion increased to $329,450, a 20 percent jump compared to $275,000 in 2006. In Heber City and Daniel (Wasatch County), median sales prices also climbed 20 percent, from $264,500 to $318,000. In Midway and Charleston (Wasatch County), the median sales price inched up 4 percent to $528,000 from $507,500 a year ago.
“Research tells us that the demographic trends look very positive for resort areas like Park City. Baby Boomers are now hitting their peak earning years and one of the main areas they are investing that income are second homes to enjoy with their family,” Calder said. “As more and more Baby Boomers invest in second homes, Park City real estate sales are likely to benefit.” In fact, according to the most recent data of the National Association of Realtors, vacation-home sales rose 4.7 percent to a record 1.07 million units in 2006 from 1.02 million units in 2005, while investment-home sales fell sharply, down 28.9 percent to 1.65 million in 2006 from a record 2.32 million in 2005.
“The demographics point to an increase in second-home ownership,” Calder said. “Park City has a lot of great things going for it. It is very easy to get to and from anywhere in the country. Delta Air Lines is adding an international flight from Salt Lake City to Paris this year. In addition to Park City’s world class resort facilities and year-round recreation opportunities, our community offers a wide range of cultural events including the Sundance Film Festival, Kimball Arts Festival, Park City Jazz Festival, the summer concert series and Eccles Center events just to name a few. There are a lot of great reasons why Park City is such a great place to be.”
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