2023 has begun on an optimistic note for snowfall and real estate activity in Park City. While transaction activity was average, even in comparison to the typical lackluster beginning to any given year, pricing continued to hold steady so as to undermine any theories of major market regression.
84 residential transactions are nearly identical to the long-term average for January. For the market to have delivered proportionate transaction volume and held pricing amid the moderation that defined the second half of 2022 demonstrates the resilient demand for property in our much sought-after region. Heading into February, transactions exceeding January’s total by 10% are currently pending demonstrating the momentum clearly evident on the ground in Park City.
Of the 84 transactions, 71% closed for prices above $1,000,000. This exactly equals the proportion throughout all of 2022. Perhaps more notable is that half again this number closed above $2,000,000 as activity in premiere resort communities lead the market.
Unsurprising amid a stellar winter, properties providing the most immediate access to skiing drove the highest premiums. An $11 million transaction in Timberwolf Estates providing ski-in / ski-out access to Canyons Village topped all sales followed by $5 million transactions in each of Empire Pass, Tuhaye, and a 6-bedroom ski-in townhome in Canyons Village.
An abundant snowfall can be a double-edged sword for resort markets. The record totals have delivered unfailingly great ski conditions and showcase the region in idyllic conditions. Conversely, access for potential customers can become a challenge, albeit one that typically only defers activity until conditions become more welcoming.
On the supply side, heavy winters can accelerate selling decisions among homeowners already nearing the end of the useful life of the property. This can result in slightly increased inventory at the end of ski season however any such bump is typically absorbed by powder-crazy consumers assuming normal market conditions.
Current inventory remains balanced at an even 6 months of supply. This almost perfectly represents a neutral market where neither buyer nor seller holds any meaningful leverage over the other. As such, pricing is likely to remain mostly stable through Q1. Additional inventory is likely to be introduced throughout Q2. Should this be met with an improved interest rate environment and diminished concerns of recession, Park City real estate could be poised for yet another excellent year.
