Q2 Monthly Market Report 2023
Quarterly Statistics
2nd Quarter 2023 Provided by the Park City Board of Realtors and the PCMLS
April 1-June 30, 2023
The Park City real estate market continues its progressive return to a more normal market in the continuing aftermath of the Covid-19 pandemic.The first reported case of Covid-19 was on January 20, 2020 with the first confirmed case coming six days later. Just 51 days later, on March 11, the World Health Organization declared a global pandemic and the real estate world went into a tailspin. Active listings fell from over 2,000 to only 600, with barely half of those being residential listings. In reaction to declining inventory, average residential sale prices climbed by 50% over the next two years.
In 2023, second quarter sales totals for single family homes in Summit and Wasatch counties were 13% higher than in first quarter, with unit sales climbing 22%. Sales prices are a different story. The median home sale price in the PCMLS primary market area dropped from $1.66 million in Q1 to $1.59 million, a decline of 4%.
The market volatility experienced during, and immediately following, the Covid crisis has abated considerably. The Park City real estate market is reflecting trends seen elsewhere in the country, as business returns to a more “normal” seasonal pattern.
Listing inventory is rising – At the end of Q2-2022 only 858 residential properties were for sale. By Q2-23, that number rose to 1,030. That’s still short of the 1,100 active listings in pre-pandemic time (January 2020) but moving in the right direction.
Prices are starting to level off – For the 12 months ending 6/30/22, the overall median sale price of all residential properties was 1.6 million. For the same period ending 6/30/23, that price was $1.57 million, a drop of just 2%. Buyers are becoming more hesitant to make instant offers above the asking price and sellers are reacting by lowering those asking prices at a faster pace. In Q2-22, 519 active listings saw at least one price reduction. In Q2-23 that number rose to 608. Some listings reported multiple price adjustments.
Sale prices for single family homes in the primary market area of Summit and Wasatch Counties, as reported by the Park City Board of REALTORS® Multiple Listing Service for the 12-month period ending June 30, showed mixed results, with the average down 3.0% and median down 2.1%. For the year earlier, both increased 15% and 11% respectively.
The rate of sales (number of units sold) dropped 33% for single family homes and 43% for condominiums from the year prior. Sales declines across the region were attributed to continuing high mortgage interest rates and low available inventory, with the latter being the prime driver. Agents noted that the large majority of homeowners still carrying a mortgage financed their purchases at rates from one-third to one-half below the current prevailing market rates, making them extremely reluctant to sell if they have to finance a replacement home elsewhere.
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