Greater Park City Real Estate Market Update
A More Balanced Market for 2022
Following up on our recent blog post about the state of the national real estate market, we wanted to focus on greater Park City (also known as the ‘Wasatch Back’) specifics. As is the case nationally, the Wasatch Back real estate market is showing signs of becoming a more balanced market similar to the strong pre-pandemic market of 2019. So far our stats are more reflective of the even stronger 2020 market. That may change in light of future rate hikes but we’re not here to predict the future. This is great news for buyers because there is now a bit more to choose from and they have more time to make a careful decision. It’s surprisingly good news for sellers as well, because it they’re sellers in one market they be may buyers in another market. Sellers are also benefiting from a less frenzied process with the potential for multiple offers to fall through. Stats show that the Wasatch Back market is stronger than the statewide market which is stronger than our national market. We’re still heading to a more balanced market which is healthy and sustainable.
Our Inventory Chart shows some fascinating trends, including the Wasatch Back market holding on to a pretty strong seller position. The chart shows that statewide inventory tends to rise between January and July so that needs to be factored in. We also see that statewide inventory has increased rapidly between January, 2022 and July, 2022. This steep increase shows the market correcting from the steep decline in inventory we saw from May, 2020 to January, 2021. It’s basically a picture showing the market correcting.
Even more interesting is that the Wasatch Back market continues to show more strength than we would have predicted. The dark blue on the chart shows the Wasatch Back available inventory. The Wasatch Back market has 971 listings in inventory now which would have been an all time low for the 2019 and 2020 markets. Our present inventory is similar to that of January, 2021 which is when inventory hit its peak low statewide. The Wasatch Back market didn’t hit its peak low until January, 2022 when available inventory was 491. In other words, from an inventory perspective the Wasatch Back market is nowhere near the peak inventory of 1,749 listings of July, 2019. This is why it’s critical to understand the market dynamics for the location in which you’re buying and selling. Statewide available inventory shows in entirely different picture than just the Wasatch Back.
Moving on to Properties Sold, we see similar trends statewide and in the Wasatch Back. Statewide, the number of sales has declined by a moderate 4% from March to June. This is a season that typically shows an increase in sales statewide so that needs to be considered. The Wasatch Back showed 207 sales in March, 2022 down to 195 sales in June, 2022. 195 sales for June, 2022 is still higher than the strong June, 2019 market which saw 25% fewer sales at 147 total and the stronger June, 2020 market which saw 183 sales total. This chart, again, shows that the Wasatch Back market is still outperforming 2019 and 2020 in terms of properties sold.
Not more charts and graphs! Last point, let’s examine the Months Supply of Inventory. On the Wasatch Front and in Southern Utah, we’re seeing a steep increase in supply, but that curve is flatter in the Wasatch Back. Drilling down further to markets within the Wasatch Back, this chart shows that Park City limits is experiencing a higher level of standing inventory than the outlying markets of Snyderville and Heber/Midway. Those outlying markets still show the
lowest months supply of inventory since January, 2020.
Bottom line is that national numbers are only part of the picture for our state and local markets which remain fairly robust. In Utah, the Wasatch Back market continues to be stronger than the national and statewide markets. Our market is cooling off the way that a patient with a fever goes from 104 degrees back to 98 degrees. It’s healthier for the patient and better for everyone.