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Park City real estate exits 2023 in substantially better condition than it entered based upon nearly every quantifiable metric. To have equaled the previous year’s total number of transactions while achieving modest growth in average and median price amid a year in which interest rates spiked compromising affordability and leverage and historic snowfall rendered many roads impassable for much of winter, is short of incredible.

Our region experienced a monumental amount of snow throughout the entire winter; an impact that is incredible stimulus for winter sales activity until it hits a tipping point at which travel becomes impossible and, in many cases, the homes become unseeable. Nevertheless, the region welcomed an identical number of residential transactions to the prior year. While both years underperformed historic averages, they reflect a resolve that underlies the incredible demand that it foundational to Park City.

The luxury market that increasingly defines Park City real estate, outperformed other market segments that may be more negatively impacted by rising interest rates. Nearly 3 out of every 4 residential sales closed at a number above $1 million, the greatest share of any year on record including the frothiest moments of 2020 and 2021. A record number of closings occurred above $2 million and pinnacle of the market at $10 million as well.

Correspondingly, median price surged by 3% and average price surged by 9% respectively. Average price outpacing median is another indicator that premiere homes outperformed the market in general and that consumers remain willing to pay top dollar for the best product within any given sector. Properties with elements of deferred maintenance or functional obsolescence had a more difficult time finding buyers, even at compelling values resulting in fewer overall transactions and giving greater weight to those at the high end.

The outset of 2024 finds the supply of available listings greatly diminished from the same time a year ago. 2023 began with over 700 active listings but quickly fell below 500 as snow pummeled the region. Today, inventory is just over 500 units, about 4 months of supply at current absorption.

With the Federal Reserve signaling rates cuts on the horizon, buyers that have been sidelined can start to return to the market. This may, in turn, unlock some supply from would-be sellers that have been waiting for better conditions to redeploy their funds. With this outlook, a return to historic averages for transaction quantity seems realistic while values continue on their current trajectory.

Wishing you the best for 2024.