New listings dropped as sellers were clearly nervous about contagion in their properties and numerous sellers took their properties off the market. Listings fell from a peak of 79 in the week ending March 8 to just 28 by the week ending April 14. Pending sales followed a similar trajectory, peaking at 49 and dropping to 15 in the same period. Closings held fairly steady throughout the quarter. 

The economic impact of the pandemic is expected to be widespread. Unemployment has spiked by magnitudes unseen in history. The stock market index charts look more like a roller coaster ride than a healthy bull market expansion. But the effect on housing is predicted to be far less than during the housing crisis that began in 2008 for several reasons.

Mortgage rates remain at a 60 year low, allowing more potential buyers to remain in the market.  The low rates mean their borrowing power goes much further from a pricing standpoint. While lending guidelines have been tightened, particularly in the jumbo category more relevant to our market, low rates are keeping the market going. Further, many homeowners have more than 50% equity in their homes and our local market has always boasted about 50% cash buyers. Along the Wasatch Front, multiple offers are still the norm.

The great debate is whether the housing recovery will be U-shaped or V-shaped – a gradual upturn once the virus has been controlled, or a sharp “bounce” as pent up demand returns to the marketplace with a vengeance, triggering price wars as demand far exceeds supply. We have no crystal ball. Only time and patience will tell the tale of the housing economy in the months to come.

After four weeks where the new listing count for this year was headed downward and two weeks where it was trailing last year by a widening gap, new listings during the week ending April 26 show a demonstrable upward turn, a positive sign that we may be countering inventory declines seen elsewhere across the country.

We have heard from many potential buyers in higher density parts of the country that they intend to ramp up their decision to move here, either on a part or full-time basis. The "Stay at Home" order has given them time to reflect on where they want to be coming out of this. The Wasatch Back has so many attractive lifestyle attributes, a wonderful health care system, new airport opening soon, favorable tax climate, strong tech sector - the list goes on and on. We certainly are thankful we live here in these beautiful mountains. 

Park City Limits

Within Park City Limits, total unit sales were up 13% to 180 units over 2019 while sales volume was down slightly, $456 million, a 2% drop year-over-year. The median price of a single-family home across the city fell 10% to $1.9 million. But in Old Town, while sales volume was up 13% (49 units), the median price rose 7% over 2019 to $1.9 million.

Snyderville Basin

Snyderville residents saw a slight increase in sales volume (up 4%) while the Median price remained flat at $1.25 million. The hotspots were south and east of the metro area in Jordanelle which saw an explosion of activity (sales units up 70%) that more than doubled the sales volume to $128 million from the year earlier.

Heber + Kamas Valleys

Heber Valley saw a 23% spike in sales units and 32% higher sales volume while the Median price remained steady at just over a half-million dollars.

The condominium market in Park City proper continued apace with sales up 28% in units and 21% in volume over the year earlier on a modest gain in Median price of 7%. Park Meadows was the standout neighborhood performer with sales up 60% while the Median price dipped slightly to $800,000.
 

In the Snyderville area, Canyons Village saw the biggest gains with sales units doubling last year’s number (250 units) and sales volume nearly tripling on a 50% rise in the Median price to over $900,000. 

Condominium sales in Midway were up 15% with the Median price increasing slightly by 9% gain to $312,000.

 

Land sales in Summit and Wasatch counties were down slightly (5%) as lots become harder and harder to find. However, the price increase expected when supply decreases and demand remains steady, did not appear. The median sales price for land region wide was down 9% to $281,000. Jordanelle saw the largest increase with sales units up 43% on a median price drop to $287,500 (down 27%). Kamas Valley saw the biggest drop in sales of  24%, but bucked the pricing trend by pushing the median price 62% higher to $240,000. Only 20 lots sold within the Park City Limits but with no change in the median price of $1.1 million.