Here's the skinny on the Park City & Deer Valley Market. It's segmented. For listing with more than 30 - 45 days on the market, Sellers had what I call "aspirational pricing" - priced homes well above what recently sold and reaching well above other active listings. This worked from August 2019 - January 2022; there's definitely been a shift, so expect to go back to a more normal market of 60 - 120 days on the market.
Arguably, January/February 2022 was the peak in volume sold and pricing. April had a significant shift due to high inflation, rising interest rates, stock market volatility, war, and the lingering effects of COVID.
So moving forward, sellers with aspirational pricing are making price adjustments to reflect a more realistic value. Fortunately, Sellers still have tremendous gains from their original purchase price, so be grateful for that. It's still good time to sell.
As for buyers, don't think prices are going to drop 30%! In Park City, with more than 55% of the Buyers paying cash over the years, the homeowners are very well insulated from "having to sell" any of these properties anytime soon. They have deep pockets. It's often times their second, third, or fourth home! If you're waiting for the market to decline 30%, go look in big cities where some owners have over-extended by buying homes more then they really qualify for and might lose their jobs. My prediction is that 30% decline is not going to happen here. Homeowners here can afford to keep their property over the long run.
Here's my three recommendations:
One. Buy for the lifestyle. Spend more time with your family and friends in Park City. Come here on ski vacations. Come here for summer bug-free, humidity-free hiking, biking, and golfing. Have a Park City/Deer Valley home. Your kids, grandkids, and friends will love you for it!
Two: Buy for the rental. As inflation goes up, interest rates goes up, rental needs goes up as well. Build your residual income through nightly or long term rentals. It's a great way to put some extra money into a tangible asset for growing long term wealth. I challenge you all in building wealth through real estate and if you want to version of my short upcoming book called "Growing Plants, Growing Wealth (through real estate)", let me know. I am here to make your homeownership as a landlord hassle-free.
Three: Call me. 435.901.0533 There's three best buys right now (see below). I know which Sellers are very motivated (even though the list price doesn't reflect it yet), so let's make an offer now. The longer you wait, the higher the interest rates will be. So take advantage of my local current market knowledge and buy the property that has a unique feature like views, exceptional access, penthouse, corner unit, etc, and lock in a lower interest rate. Because in November, prices will be where they will be, but interest rates will be a lot higher! Watch out for new listings as hopefully, it will be priced more appropriately based on sold comparables, and when it's priced well, these homes will sell quickly as there are still a bunch of buyers out there.
As always, feel free to reach out with any questions. There's so much more to talk about, i.e. (1) will projects such as Mayflower Resort continue to build as prices of materials and labor goes up, (2) what's happening to construction costs for new homes or remodels, (3) what's the current interest rates (5.5% for 30 year fixed), 4+% for 5 year ARM), so it's still low compared to some of us who had 12% - 18% rates).A full market report will be available in a week with a complete break down of this snapshot. If you're interested in this, please email me at info@hongmcdonald.com
For a full report, CLICK HERE: https://mailchi.mp/b0c75d51deee/quick-and-dirty-2nd-quarter-2022-real-estate-market-report-best-buys
