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As the 2nd Quarter of 2020 drew to a close, the overwhelming effect of the COVID-19 pandemic was in full force in Summit and Wasatch counties. The area had weathered the near complete shutdown of businesses and recreational activities. The U.S. as a whole was going through a bounce in reported cases as many states reopened too soon and without appropriate safeguards in place to quell the spread of the disease. Many governors were forced to reinstate closures and issue mask mandates. The only good news seemed to be that the real estate market in the Wasatch Back was resilient and rebounding.

So how did the local market fare through the end of our first full pandemic-riddled quarter? The news is very interesting. Let’s take a look at the changes that have taken place since the start of the year, as well as some of the quarter results reported on a rolling year-over-year basis.


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Pendings (homes going under contract) are perhaps the best leading indicator of market demand from the buyer side. The Wasatch Back's buy-side is strong and getting stronger. Pending contracts bottomed in mid-April, but exceeded 2019 totals to finish the quarter with more than twice as many contracts reported than a year ago in all but one of the following ten weeks. Closed sales, which usually track four to six weeks behind contract signings, were expected to catch up quickly.

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What’s pushing the market? Mortgage rates are the lowest they have been in almost 60 years, with some programs dropping below 3%. This has made borrowing more attractive, especially for first time home buyers. Sellers have been slow to return to the market, perhaps out of concerns about strangers touring their homes without sanitation awareness. This has pushed median sale prices higher, particularly in “outlying” areas, with Jordanelle (up 18%) and Kamas Valley (up 10%) seeing the greatest gains.



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Because the pandemic created such a short-lived dive and rapid bounce back to previous (and better) levels of performance, the % change compared to the same time period in 2019 has been omitted in the statistics below. Most home values have regained any short-term losses and are now valued higher than what was anticipated at the beginning of the COVID crisis.
Not all sold data in the Heber Valley is included in the Park City MLS data; please call for more specific details.


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Absorption Rate: the number of months it would take to sell the
currently listed properties in the market factoring in median list price.

 
If you are contemplating listing your property, consider the balance between your pricing and absorption timelines. The data below weighs the time on market against the median price. It clearly demonstrates that those properties priced at or below the median are generally sold at a significantly higher pace. 
PARK CITY LIMITS

(Areas 1-9) Includes: Old Town, Thaynes Canyon, Lower Deer Valley Resort, Deer Crest,
Upper Deer Valley Resort, Empire Pass, Aerie, Prospector, and Park Meadows.

 

MEDIAN HOME PRICE
$2,030,000
 
ABSORPTION RATE
AT MEDIAN:  7.8 months
BELOW MEDIAN:  3.6 months
ABOVE MEDIAN:  10 months

MEDIAN PRICE
$791,000

ABSORPTION RATE
AT MEDIAN:  6.2 months
BELOW MEDIAN:  4.4 months
ABOVE MEDIAN:  8 months
SNYDERVILLE BASIN & JORDANELLE

(Areas 10-27) Includes: 
The Canyons, Sun Peak/Bear Hollow, Silver Springs, Old Ranch Road, Kimball, Pinebrook, Summit Park, Jeremy Ranch, Glenwild/Silver Creek, Trailside Park, Promontory,
Quinn's Junction, Deer Mountain, Tuhaye/Hideout,  Jordanelle, and South Jordanelle.

 

MEDIAN HOME PRICE
$1,390,000

ABSORPTION RATE
AT MEDIAN:  4.8 months
BELOW MEDIAN:  1.8 months
ABOVE MEDIAN:  6.9 months

MEDIAN PRICE
$668,000

ABSORPTION RATE
AT MEDIAN:  6.9 months
BELOW MEDIAN:  5.8 months
ABOVE MEDIAN:  7.2 months



 
HEBER VALLEY
 

MEDIAN HOME PRICE
$545,000

ABSORPTION RATE
AT MEDIAN:  4.6 months
BELOW MEDIAN:  0.7 months
ABOVE MEDIAN:  8.5 months



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The data contained within the below graphic is unlikely to reflect the economic impact of COVID-19, as the data is for Q1 of 2020, which is the most up-to-date data on price appreciation by state available. 
Data for All States


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The biggest unknowns facing our industry in the months ahead focus on how the continuing Covid-19 pandemic will affect the outcome of the fall opening of schools (with three options available - live, online and a blend) and the upcoming ski season. Can both activities be allowed to continue while still following appropriate social-distancing guidelines? Or will a resurgence of the virus compel local authorities to tighten the restrictions and further complicate the economic relationships between business, education, and recreation? As always, we will be closely watching and reporting any findings. 

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Photos: Tanzi Propst/Park Record
PARK CITY HIGH SCHOOL GRADUATION

Deer Valley® Resort was gracious in hosting the Park City High School 2020 graduates on July 31 for a chairlift ride before their "socially distanced" commencement event! This created a very unique memory for our graduates in an otherwise challenging year. More photos of this event can be viewed and purchased at the Park Record by clicking here.
TAX NOTICES ARE OUT

Tax notices for Summit and Wasatch Counties have been mailed. If you have questions on your valuation, please reach out for comparable data we can provide.

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ZACH WHITE  |  Realtor®
435.640.9722  |  Zach@UtahLuxuryGroup.com
www.UTLUX.com


Best Wishes from Our Family to Yours

Our thoughts are with you and your loved ones during this difficult period of time, and we wish you the best of health. If we can be of any aid or service to you and your family during this unprecedented time please do not hesitate to reach out. We would be glad to help in any way possible.
#2 AGENT at Keller Williams Park City  |  #4 AGENT in UTAH in Closed Listings

All data, information, and interpretation derived from the Park City Multiple Listing Service, the Park City Board of Realtors®, and Rick Klein. Graduation photos courtesy of the Park Record.

Copyright © 2020 KW Park City Keller Williams Real Estate, All rights reserved.



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