January 1-July 31, 2011 Local Inventory Analysis
All real estate is local and that goes for Park City’s micro markets. Each neighborhood has its own characteristics. Jeremy Ranch, Pinebrook, Silver Springs, Summit Park and Trailside are primarily full time resident neighborhoods. Many owners in these neighborhoods commute into the Salt Lake Valley for work. Thaynes Canyon, Park Meadows, Prospector, Sun Peak and Glenwild have a mix of both full and part time residents. Old Town, Deer Valley® Resort and Promontory are resort neighborhoods with mostly second home owners.
Aside from how many months per year an owner lives in a home, there are other factors that create our local “micro” markets. How much speculation and new construction? What is the median sale price in the neighborhood?
Here are some interesting facts I gleaned from my analysis. [By the way, neighborhoods are grouped according to the Park City MLS]. When we refer to “inventory”, we mean that if no more homes came on the market, how long would the number currently listed homes sell based on the rate of sales. For example, if there are 12 homes listed for sale and one/month sells, that would be a 12 month inventory.
The neighborhoods with the lowest inventory are all mixed or mostly full time neighborhoods. Kimball Junction has a 2.5 month inventory! Truly a seller’s market there! The median sale price is $319,000. This is an area of affordable homes and potential income generating rentals. Blackhawk station is part of this area. Trailside Park, which includes the estate sized homes of Mountain Ranch Estates has only a 5 month inventory. However, the median sale price is $452,000, which shows us that it is the lower priced homes in that area that are moving.
Sun Peak/Bear Hollow and Silver Springs have a 5.5 and 8.5 month inventory, respectively. These are more balanced markets. The median sale price in Sun Peak/Bear Hollow is $855,000 and in Silver Springs it is $604,540. Sales in these neighborhoods were somewhat stalled last year. Prices have finally come down to the point where buyers perceive these centrally located neighborhoods as a good value.
Not one home sold in Empire Canyon this year. There is a 22 month inventory in Lower Deer Valley® Resort and a 23 month inventory in Upper Deer Valley® Resort. The average list/sale price in Deer Valley® Resort is still about 95 percent, which shows that these homes sell pretty close to list price once they are priced attractively. Median sale price in Lower Deer Valley® Resort is $1,871,250 and in Upper Deer Valley® Resort it is $2.6 million.
Whether you are buying or selling a home, it is important to know the dynamics in your particular neighborhood and in your price point. Multiple offers and quick sales are still very common for homes in good condition that are priced right.