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2014-03-05 17:13:39
Park City Vs National Real Estate Performance

National and Park City Seasonally Adjusted Annual Rate (SAAR) FOR Q4 2013The year gone by was a mixed bag for the national Real Estate industry. While on the one hand the annual sales figures for 2013 were a seven year best, there was considerable softening up of demand in the closing months of the year. This was due to a combination of factors like disruptive weather, a spike in home prices and a shortfall in inventory.

Park City mirrored the trend in that the pending sales fell by .4% in the month of December, though overall the figure was a tad (.5%) better than in the month of December 2012. The level of sales achieved nationally in 2013 are the highest since 2006 and a good  20% above the 2011 level though there has been a tapering in the months of November and December, which in fact have reported weaker sales figures than the previous year.

In so far as distressed sales as an indicator of the state of the Real Estate markets is concerned Park City has acquitted itself quite well when compared with the state of affairs nationally. Distressed properties constituted a negligible 2% of the listings and fewer than 3.5% of sales transactions in Greater Park City area in Q4 of 2013. The price differential with the market price was a mere 2%. Nationally the number of distressed sales was a lot higher at 25% and the price differential with the retail price too was distinctly steeper at 18%.

The national inventory levels declined 9.3% at the end of December 2013. This represents a 4.6 month supply at the current level of sales. This unsold inventory is actually 1.3% above the 4.9 month supply that existed at the end of 2012. For Greater Park City the inventory going into January of the new year is 7.3% lower than the level a year back. The market absorption rate consequently has climbed from 6.1 to 7.4 months on account of the few sale transactions. The inventory levels which have hit the lowest since January 2007 have put a definite end to what was a buyers' market.

The growth in home prices has seen a somewhat similar trajectory being maintained both nationally and locally in Park City. According to most estimates the national median price of a home grew by 9.9% to 11% at the end of 2013 as compared to the previous year. The Greater Park City growth in home price was in much the same range at 7%. While the national median home price at the end of 2013 stood at $198,000 the Greater Park City figure stood $508,250 reflective more of the profile of the Park City (which is a luxury ski resort) buyer than anything else.

As far as national cash sales figures go they increased marginally to 32% at the end of November 2013, when compared to the 30% figure of November 2012. The trend was just the opposite in the case of Park City where the cash sales percentage for the same period declined from 50% to 48% of the transactions. The number of financed sales however maintained an upward trajectory.

The purchase based price index for all the states over the 4 quarters between Q3 2012 to Q3 2013 showed an appreciation of 8.4%. Against this the state of Utah, where Park City is located showed a highly creditable increase of 11.8%, which places it in the company of best performing states like California(22.8%), Nevada(25.2%), Arizona(15.2%), Washington(11.9%) and Colorado(10.3%).

To sum it all up the year 2013 has been good in certain aspects and not so good in others and this applies to both the national scenario and the situation that obtains in Park City. While the level of sales achieved has been quite high in the past year, one is witnessing a tapering going forward into the new year. Declining inventories have made things increasingly complex for buyers and going forward while there may be still good deal to be had, they will need to exercise more circumspection.

 

Nick Coleman, Park City Realtor

By Nick Coleman
Call 435-640-7781 or email [email protected] 
to find your Dream Park City Home.

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