Blog | Paula Higman | Park City: MARKET UPDATE | PARK CITY MARKET SUMMARY FOR JUNE 2022

When reviewing the Park City real estate market, we can't consider the year the property was built, the views, or if the home or condo would be regarded as a ski property. We have over 25 different micro-markets in Park City, and when you run sales statistics on a small area, there won't be enough sales to be meaningful. We know that home prices have increased, but price gains have not been as dramatic as the number of homes sold.

PARK CITY MARKET SUMMARY FOR JUNE 2022

In six months, we may be looking back at how we were listing to the Wind of Change. Have the higher interest rates finally caught up to the real estate market in Park City, Utah? Relative to major cities that have similar price ranges, we have a small unique market - you could say boutique market that is different in many ways. Unfortunately, Park City doesn't have enough real estate transactions to be confident about what's going on in the market. Like when the market was screaming up when we were getting out of lockdowns - we won't know the details for a few months.

I like to keep things simple - my tell-tale gauge of the market is when inventory goes up, and the number of transactions goes down; in theory, prices will soon follow the number of transactions. Historically, real estate in Park City sells at 95% list price to sales price - I believe we'll need to hit that first before the market is noted as a downturn. It is possible buyers and sellers are so used to 100% of the asking price that sellers lower the list price to strike a price before hitting 95%.

ABOUT THE NUMBER OF LISTINGS FOR MAY - JUNE 2022:

The Number of Listings chart displays listings counts by status.

Active listings: How many listings were for sale during each month. The number of active listings is a "snapshot" of active listings on the 15th of the month. Rather than showing the number of all active listings during the month, this chart represents the number of active listings in one day. However, the number of activities is not static and depends on when the report is run. A trend of upward or downward from month to month can be established using the same day of every month.

New listings: How many properties were put on the market each month. The total number of listings newly added to the MLS system during the month. (All listings whose Date Listing Effective falls within that particular month.)

Pended listings: How many properties have a sale agreement made each month. During the month, the total number of listings went under a sale contract (or were "pended"). (All listings whose Under Contract Date falls within that particular month.)
Note: if a listing was under contract, but the contract later fell through, the listing is no longer counted as pended during that month and is left out of these statistics.

Sold Listings: The total number of listings whose sales contracts were completed or closed during the month.

ABOUT THE LISTING PRICE:

Active listings were active on a single day of the month, providing a "snapshot" of a day. A trend of upward or downward from month to month can be established using the same day of every month. However, the number of activities is not static and depends on when the report is run. The 15th of the month is used.

New listings are all the properties put on the market during an entire month.

Pended listings are all the properties that had a sale agreement made (or were "pended") during an entire month.
Note: if a listing was under contract, but the contract later fell through, the listing is no longer counted as pended during that month and is left out of these statistics.

Sold listings are all the properties whose sales contracts were completed or closed during the month.

ABOUT THE ABSORPTION RATE:

The Absorption Rate in Months shows how long the current inventory of properties would last at the current sales rate. If no new properties were added to the market and sales continued steadily, the Absorption rate indicates the number of months required to sell all the properties on the market.

The absorption rate is based on two numbers:

The number of active listings
The average number of listings sold per month for the previous n months.

The number of active listings is a "snapshot" of listings active on a single day (the 15th of the month). However, the number of activities is not static and depends on when the report is run. For example, the number of months of sold listings here is 12.

The formula is Absorption Ratio = A ÷ N
Where A = listings active on the 15th of the month, and
N = the average number of listings sold during each of the previous 12 months.

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