The real estate market was left in limbo for many months last spring because of the pandemic. However, the housing market rapidly recovered. The pandemic has sparked a surge in housing demand, especially in lower-density suburbs, thanks to low mortgage rates and a rise in working remotely.
Park City, Utah, has also enjoyed the recent boost in the housing market. This article will discuss Park City real estate updates for the 1st quarter of 2021, including information regarding Utah as the bigger economic picture. Keep on reading to learn about the current status of Park City real estate.
The Bigger Picture
Before diving into the Park City real estate market, let’s first examine the bigger economic picture within Utah.
The Fastest Growing State
According to the Associated Press, Utah’s population has increased by 18.4% in the last decade, making it the fastest-growing state in the nation. Additionally, the U.S. Census Bureau reported on April 26, 2021, that we are now the 30th most populous state, with nearly 3.28 million residents. Between 2010 and 2020, Utah’s population grew by much more than the national average of 7.4%.
The Bigger Picture
The state’s gross domestic product is now expected to grow by about 6.2% in 2021, which is exceptional considering ideal growth is usually between 2-3%. After entering the pandemic with one of the country’s most robust economies and being recognized in the media for being the fastest in the U.S. at job creation, our state unemployment rate is now at an enviable 2.5%.
Construction also boomed in Utah during the pandemic. According to the U of U’s David Eccles School of Business, the value of the state’s residential, commercial, and other construction in January topped $1.1 billion. Construction and real estate were also deemed essential services in Utah at the start of the pandemic; demand for housing and a pipeline of building projects have kept that boom going.
Large numbers of people seek suburban living in search of more rooms, home offices, or bigger backyards, while others are migrating to Utah from larger cities to find relatively less expensive real estate with more access to open landscapes and abundant outdoor recreation.
Park City Real Estate in 2021
Since the pandemic lockdown started in mid-March 2020, it’s essential to keep in mind that COVID skewed the data from the last two weeks of March. Even though our economy has more than stabilized from the brief dip in April and May of last year, March was the final month of what we used to refer to as a “normal” market. The numbers from quarter to quarter defy the concept of “normal.”
Single-family homes in Park City Limits are up 94% in transactions, 163% in volume, 35% in average price, and 55% in median price. The median price is now over $3M for the first quarter of 2021.
Inventory in Park City is still remarkably low. On April 9, the inventory got down to 629 active listings, the lowest level in eight years and 63% lower than the previous record.
We finally experienced a slight uptick in inventory toward the end of this month. Hopefully, our market will exhibit the usual spring recovery inventory-wise, and we will see more available homes to help satisfy the strong buyer demand.
Indication of Increase in Inventory
Early signs for this coming summer suggest that there may be some relief on the way for the inventory-starved real estate market. According to a recent national survey conducted by Realtor.com, about 10% of current homeowners plan to put their homes on the market this year, which is a 25% increase over last year, and equals about 1.5 million more total homes.
Realtor.com’s Senior Economist, George Raitu, recently stated that “there is a brighter light at the end of the tunnel for many weary buyers,” and indeed, the increased supply of homes could help attenuate the skyrocketing price increases that have characterized the recent market. Still, it is unlikely that we will experience a price drop, but rather just a flattening of price growth to more normal levels.
Raitu went on to say that “as we look to the year ahead, the demand wave will continue outpacing the supply inflow, even with more sellers coming to market,” and that “we will not solve a decade’s worth of underbuilding and lack of listings in one year.”
Advice from Park City Realtors
If you are considering selling your property, now is the time to explore your spring or summer options and ready your home for sale. Buyer demand may have lessened some of the typical “come to market” standards, such as waiting for your landscaping to show at its best. However, you’ll still find that decluttering, staging, and beginning the packing process, as well as making necessary high-return repairs, will drive greater market appeal.
If you are a buyer competing in this market, several strategies have proven effective at similar price points or in specific neighborhoods. The local norms have changed significantly over the past year. A successful acquisition now requires fortitude, determination, and creativity!
The Bottomline
Despite the economic uncertainty caused by the pandemic, there has been a surge in demand in the real estate market. Park City, Utah has also benefited from the recent housing market boom. In itself, Utah has been growing in terms of population and economy. This has had a positive impact on Park City’s housing market. Park City real estate has seen an increase in housing demand to the point that inventory can no longer keep up. Fortunately, Park City realtors predict that there will be an increase in inventory soon.