The Park City market is HOT! This comes at quite a surprise when we assumed the worst in March, when COVID-19 forced the shutdown of the resorts and ultimately, the whole town. As of August 13, Pending volume for the past fifteen weeks is 59% higher than the same period a year ago. For the third week in a row, new Pendings (properties going under contract) were double the count from the same week in 2019. In the past seven weeks Local Realtors closed 479 transactions, up from 378 the year before (27% increase). So even though we see more inventory than last year, we are still unable to serve all of our clients due to a lack of inventory; this is holding true in the high end of the market, even for those with budgets up to $6 million.
While this kind of market can be advantageous to sellers, we are finding that many Parkites are staying put. They are staying for the same reasons why others, especially younger families, are moving in from all over the country. We have a great lifestyle here in Park City with a beautiful scenery and so many outdoor activities we can enjoy while distancing from others. However, there really is not much growth possible in town. Demand lies mainly in single family homes rather than higher density resort properties as social distancing is such a “must have” these days. There is not much land left in Park City to build a new home. Most of the growth is happening in the golf communities such as Tuhaye, Promontory and Glenwild, or other gated communities like The Colony at White Pine Canyon and The Preserve with large parcels of five to fifteen acres for sale. A lot of people from cities such as San Francisco or New York are now able to work remotely and enjoy private, amenity-rich communities. The Jordanelle area, Heber and Kamas Valleys are also seeing a lot of growth. Many locals are taking the opportunity to cash out and move into the outskirts. Remund Farms in Heber, High Star Ranch in Kamas or Sky Ridge at Jordanelle are just a few of the developments offering beautiful new construction at a much lower price point so people cashing out can enjoy their equity.
When investing into real estate, keep an eye on long-term growth of an area. The Kamas Valley is going to see major changes in the future with a new high school and development opportunities with farmers selling off large parcels. Silver Creek Village will be home to a new school serving the South Summit district (Promontory and Silver Creek Village) and currently offers green-friendly homes by Garbett with other regional and national builders about to launch new home options. Nightly rentals are allowed and businesses like the Beau Collective (rumor!!) are planning to move into the commercial district of the Village once completed.
As always, please do not hesitate to contact The Park City Investor Team at 435.640.6966. Let’s chat about the market, selling your home, investing in property, or anything real estate that may be of interest to you.