As of late, it seems attitudes toward the housing market have been both up and down and changing almost weekly. This week, economists have reported their optimism for housing’s outlook but for many Utah homebuyers and sellers, that might not mean much. If you’ve been on the fence about buying or selling your home in the Park City area this year, here are five reasons why you don’t need to worry about a real estate market slump in the near future:
Foreclosures are down As compared to past years, foreclosures are now few and far between. New data from CoreLogic shows a drop in nationwide foreclosure inventory from May to June and a decline of 35% when looking at the levels of the previous years. The Park City Board of Realtors advises that distressed sales are no longer a topic as they accounted for less than 3% of the sales in the second quarter, not to mention less than 2% of all properties currently listed. The housing market is recovering and the lack of foreclosures in markets across the country is a strong indicator of that.
Inventories are tight As you may have seen in my previous blog post, inventory throughout the Park City area has remained generally low; such is the case for the housing market in general. The effect of low inventory can be seen in rising housing prices and as a result, home sellers are starting to feel more confident in the payoff of listing their homes. And while low inventory has had a major impact on housing prices, compared to year-over-year levels, the total number of listings nationwide is only down about 1%.
Home values are rising Home values are rising in nearly every part of the country and you have probably noticed locally in the Park City area real estate market. “Pricing in most areas is climbing at a gradual pace,” reported the Park City Board of Realtors. The median price for a single-family home within Park City is $1,675,000— a 36% increase from the second quarter of 2013. Other areas, like the Snyderville Basin, are rising at a much slower pace, but still rising nonetheless. Park City area homebuyers are at both ends of the spectrum in terms of reaction to these rising prices, some cautious and resistant, some willing to pay for a new product they like.
As your Park City area real estate expert, I’m happy to share the details of the current market where you live. Contact me today to see how prices are acting in your area, from Kamas to Heber City to Park City, Oakley, Francis, and Midway.