A question we get quite frequently is whether the market is going to see a recession soon. We wish we had a crystal ball and were able to answer this question. In the past few years we have seen properties appreciate up to 13 percent per year in a lot of areas in and around Park City. Currently, we may not see the same hikes, but instead, prices are stable. Properties are still moving in all price ranges. In fact, in the past couple of months we have seen properties move in price ranges we rarely see activity in. River Meadows Ranch sold for $32 million, a $25 million Deer Valley ski home went into escrow within two weeks on the market and several people are buying multiple million dollar new-construction condominiums simply to combine them to one large luxury residence.
The Park City market is for sure very different from other real estate markets. We do see a lot of cash purchases and many sellers are not in the need to sell or discount their properties. Over the past few months we have come across some interesting articles on Inman.com, CNBC.com, Business Insider and Inc.com.
Is it better to invest into real estate instead of the stock market?
The Dow Jones has gone from a low of 6,469 in March of 2009 to 26,599 in the end of June 2019. In the recent months, we have seen buyers enter the Park City market with the long-term investment set mind to avoid the day-to-day stock market volatility.
Of the five potential options suggested by Forbes for investing in a volatile stock market, real estate financed with fixed-rate debt may protect investors against rising interest rates. Long-term rental properties can certainly perform well during an inflationary period. People always need a place to live.
On the other hand, while not a lot of nightly-rental properties in Park City generate a return of 6 percent or higher, most of them do cover all expenses and owners tend to cash-in on long-term appreciation.
We hope you found this information helpful. Please contact us at 435.640.6996 if you have any questions about the Park City real estate market, or if you or anyone you know may be looking to invest into a property prior to winter. We appreciate your business.
