The market is moving again! We are seeing a high buyer demand with some multiple offers. As most lodges have reopened, people are coming to enjoy the outdoors. Many of them looking at Park City Real Estate with the goal to move their primary residences away from the cities. Many people are realizing they can work from home and live where they want to, which for many people is in the mountains. Hiking, biking, fishing, you name it, it’s a great place to invest in quality family time as well as your health, physically and mentally. Pending listings are up 30 percent over last year. We see demand in land and single family homes, especially in the upper price ranges.
As we move into summer, the tone around the Realtor community is optimistic. The effect on housing is predicted to be far less than during the housing crisis that began in 2008 for several reasons. This time around we have low inventory instead of a housing surplus. Interest rates remain at a 60-year low, allowing more potential Buyers to remain in the market. The low rates mean Buyer’s borrowing power goes much further from a pricing standpoint. Further, many homeowners have more than 50% equity in their homes and our local market has always boasted about 50% cash buyers.
Looking at Park City’s low inventory numbers and increasing Buyer demand, simple economics tells us that prices should remain the same or increase. Each day is a little different and pricing is a little more fluid these days. Most property owners can afford to carry their homes and are able to wait for acceptable offers.
If you need to move and are looking to sell, right now is great time. CDC Guidelines and Regulations are easy to follow and ensure proper precautions are taken to sanitize the listing before and after showings. Virtual Tours are a great way for buyers to narrow down their search before they need to physically see the property. At the end of the day the property owner is in charge, so put a strong plan together that fits your comfort levels before listing the property.
Currently interest rates are at a 60-year low. Looking at all indicators, it is more likely interest rates will go up 1 percent before home prices fall by 10 percent. Did you know that if interest rates went up by 1 percent the cost of owning a home goes up by 10 percent? If you were purchasing a home at $300,000 and interest rates went up by 1 percent, you’d now be paying the same monthly payment for a $270,000 home.
As always, please do not hesitate to contact The Park City Investor Team at 435.640.6966. Let’s chat about the market, selling your home, investing in property, or anything real estate that may be of interest to you.