A strong first half of the year for the Park City area real estate market:

All major segments of the Park City area market show a steady increase in quantity and volume sold along with increases in both average and median sale prices. Drilling deeper, different trends are apparent. Within the Park City limits, the median price of single family homes has moved up 20% to $1,900,000 while the median condo price has increased by 6.2% to $701,000. The lack of affordable housing is a growing problem and as more affordable housing moves further beyond Park City limits, increased traffic and parking problems also increase. The Snyderville Basin shows a similar pattern with the median single family home price up 4.75% to $970,000 and the median condo price up 13.4% to $487,500. Moving further out, the gated golf communities maintain steady volume and luxury prices, but small outlying communities like Kamas, Oakley and Woodland show increased sales, but the median price of single family homes is still under $400,000. Going all the way to the Heber Valley, activity and volume are up, but the median price of single family homes is under $400,000 and new construction activity is strong.

The latest statistics support a message delivered in my past 2017 blog posts that a large majority of buyers are looking for full-time or second homes vs. vacation or investment properties. Park City is seeing many older nightly rental condos being remodeled and sold to full-time or second home residents who do not enter into nightly rental agreements. Many of these purchases are as more affordable alternatives to single family homes within the city limits. We are also seeing owners of large, older upper-end homes downsizing, but choosing to stay in Park City in smaller upgraded properties. (see the 7/17/2017 post "How did Park City, Utah become a top retirement choice"). A related trend lurking behind the numbers is the rise of a new generation of luxury condominium residences built for nightly rental performance. These new projects are being pre-sold well before the completion of construction. This is also a major reason for significant unsold resale inventory in Empire Pass - product that is now aging and club oriented. Todays buyers seem to be increasingly allergic to high carrying costs in the form of club dues and high HOA expense unless they are confident that rentals can pay those bills. Last week a significant project was announced by the owners of the Goldener Hirsch Inn to be located on the last remaining parcel in Silver Lake Village. This luxury hotel will be the first new project in over a decade in Silver Lake Village and will join St. Regis, the Stein Eriksen Lodge, Stein Eriksen Residences and Montage as full service luxury properties. These 39 contemporary residences will be connected to the iconic Goldener Hirsch Inn by a sky bridge and are being sold fully furnished with completion scheduled for the summer of 2019. Visit http://www.goldenerhirschbrochure.com    for details. This offering is well priced and yes, I do have strong opinions on best location values. I expect strong interest when reservations commence on August 4, 2017.

There were 53 pended sales reported by the Park City Multiple Listing Service in the week ended 7/28/17. 35 closings and 70 new listings were reported during that week.