The above graph (reflecting condominiums & single family homes in the Park City and Jordanelle neighborhoods) was prepared by Rick Klein of Wells Fargo Private Mortgage for the Park City Board of Realtors. As you can see, inventory continues to trend downward. In general
- Under 5 months inventory is considered a “Seller’s Market”
- 5-7 months of inventory is considered a “Stable Market”
- Over 7 months of inventory is considered a “Buyer’s Market”
Park City was a “Buyer’s Market” for over 6 years. Starting early last year, that began to change. It is important to note that Park City is comprised of several micro markets and these micro markets can and do shift rather dramatically.
Neighborhood Differences
For example, a year ago, Old Town was a “Seller’s Market”. Today, the inventory is bloated, with 41 homes for sale and only 9 closings in the last 90 days. At this rate (3 sales/month), there is over a 13-month inventory of homes in Old Town.
But let’s look a little closer. Of those 41 active homes, only 6 are priced under $1 million. Of the 9 closings in the past 90 days, 4 were priced at under $1 million. So, we can say the Old Town market priced at under $1 million is a “Seller’s Market” with only 4.5 months of inventory, while single family homes priced over $1 million are a “Buyer’s Market”.
Park Meadows is another “Seller’s Market”. There are currently 21 homes for sale, with 18 closed in the past 90 days, making the inventory in Park Meadows just over 3 months.
Jeremy Ranch is a “Stable” or “Balanced Market”. There are currently 26 homes on the market with 14 that closed in the past 90 days. At a rate of 4.6 sales/month, the Jeremy Ranch inventory is about 5-6 months.
Get the Absorption Rate of Any Neighborhood
If you are considering buying or selling a home in Park City, the Absorption Rate for the targeted neighborhood and price point is important. Sellers can be more aggressive on list price in a “Seller’s Market” and buyers need to act quickly. On the other hand, in a “Buyer’s Market”, sellers need to price competitively while buyers have more choices and opportunities to negotiate.
Leave a comment or contact me if you are curious about the inventory in your neighborhood.
2 Comments
I liked this article. Very insightful breaking up the “buyers vs Sellers” market by price point. I own a condo in the Westgate at Park City and I was wondering in this area is it a buyers market or a sellers market. I have owned the condo since 2008 and I would consider selling for the right price.
Jay, please contact me at nancytallman@gmail.com. I need to find out more info about your condo before I can answer this question.