Park City Real Estate
Predictions for 2017
4 Factors Impacting the Future of Park City Real Estate
There are four factors that will impact the future of Park City real estate and influence where prices are likely to go.
- National news and headlines about real estate. As I mentioned in the cover article, projecting national real estate news on to local economies can become self-fulfilling prophecies. We see headlines, watch the news, and hear guesstimates about real estate on a daily basis. Right now, the news is not particularly good, as it talks about a slowdown in the number of sales and a decline in property values. While these headlines and commentary are not speaking about Park City in particular, they can actually impact the state of our local real estate market. Even though our local real estate market is quite robust, when we are flooded on the national news about declining sales and prices, people react regionally. Beware and be aware that most of the news is about national averages. Get local information from local experts.
- The increase in new purchase options for today's buyers. There are over 20 new residential developments under construction or near completion in the Park City area which, in time, will flood the market with new options for buyers. These consist of residential homes, rental properties, and second homes. Some are available for purchase now; others will be available in the next year or two. For a list of the subdivisions offering new homes, condos and townhouses for sale, please contact Dean, Kathy or Jeremy, or go to TheWilsteinTeam.com/newhomes to receive the information.
- Buyer resistance to many years of double-digit appreciation and their fear that it will not continue. The Park City market has enjoyed years of double-digit appreciation and, frankly, it cannot continue forever. Markets always adjust, and we are due for a slowdown in appreciation. I'm not suggesting that I expect a reversal in property prices because I do not, but the double-digit pace cannot be sustained much longer. Sellers who insist on trying to get the next record high prices are running into strong resistance. In recent months buyers have been reluctant to pay the next new record high sale prices, for they fear that the market may soon adjust, and their newly acquired property may be worth less in six months.
- Properties that are priced correctly are selling faster than ever before.It may seem from my first three points that the Park City market is slowing significantly, perhaps even about to collapse. This is definitely not the case, which is why I am illustrating this with my fourth and final point. Owners who want to sell their properties are not having any problem doing so, providing they are not greedy and are not over-pricing them. Homes and condos listed at reasonable prices above recent sales are selling, most in record time, and often with multiple offers. This is not the case when sellers list their homes and condos well above their fair market value. Those properties are not selling. Furthermore, if the properties are old and have not been upgraded to match or surpass the features in the new properties coming on the market, they are having more difficulty selling, and often require a price adjustment to make up for being outdated or lacking the latest features that buyers want and are finding in new condos and homes.