First Quarter 2013 Statistics are in… Park City Real Estate’s best quarter since 2007!

Park City, Utah – April 26, 2013 – Park City Board of REALTORS® just released statistics for the first quarter of 2013 showing the number of sales are up 17% from the first quarter of 2012. The sales dollar volume is up 28% over the same time-period last year, climbing from $239 million in Q1 of 2012 to over $306 million for Q1 of 2013. With 402 closed sales already this year, Mark Seltenrich, Statistician for the Park City Board of REALTORS® said, “This is the best first quarter we have seen since 2007.”

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Inventory
The current inventory of active listings in the greater Park City area is lower than it has been since 2006.  As of April 1st, there has been a 21% decrease in listings since April 1st of 2012. The current number of listings is down 47% since the high mark in July, 2008.

Distressed Sales
Foreclosures have become a less significant part of our market.  Distressed properties (foreclosures and short sales) now make up only three percent of active listings and accounted for only 13% of sold properties in Q1– down from 23% in Q1 of 2012.

Single-Family Homes
The number of sales for single family homes in all areas in Q1 increased 18% compared to Q1 of 2012, and the median sales price rose 30% to $619,500.  The median price for single family homes in the Snyderville Basin and Jordanelle area was up 28% reaching $634,500 from Q1 of last year, though down slightly from the year-end 2012 figure of $649,000.  The median price of a home within the city limits for the first quarter was $1,312,500, up 12% from the first quarter of 2012 and up 22% from the year-end 2012 figure. 

Condominiums
Overall, condominium sales decreased 3% from Q1 of 2012; however, the number of sales inside the city limits was up 21%. The median sales price within the Park City limits was $639,000, which is down 18% from the first quarter of 2012—though well above the 2012 year-end figure of $522,500.  While the number of sales in the Snyderville Basin and Jordanelle area was down 23% compared to the first quarter of 2012, the median price for a condo was $334,128, which is up 22% over the first quarter of 2012 and up 8% over the year end 2012 figure. 

Vacant Land
Vacant land sales increased 45% in the first quarter of 2013 with 74 transactions compared to 51 transactions in 2012.  Lot sales increased in both the city limits, up six sales (75%), and in the Snyderville Basin and Jordanelle areas, up 19 sales (73%).

The median price of a vacant lot, for all areas, fell 9% in the first quarter of 2013, dropping to $182,150 from $200,000 in 2012.  Lot prices within the city limits climbed 10% from $468,000 in 2012 to $514,500 in 2013.  Median lot prices in the Snyderville Basin and Jordanelle areas dropped from $237,000 in 2012 to $180,000 in 2013, a 24% decrease.  “These lower prices will not be sustained and prices through the rest of the year should rise as there are far fewer lower priced lots on the market. Prices overall, although higher, are still a great value,” Seltenrich said.

Looking Ahead

Buyer activity continues to be strong, and historically sales in the first quarter of the year are slower than the remainder of the year.  This means that competition for certain properties, especially single family homes under $500,000, will be harder to find. Though, with interest rates remaining historically low, today’s buyer has 43% more purchasing power than they did in 2006, as reported by Rick Klein of Wells Fargo Home Mortgage.

The low inventory is increasing the pressure on price. In some market segments, the absorption rate for a new listing is as low as 1.8 months on the market, while in others it is 144 months. Jeff Spencer notes that, “There are still specific areas within our market that are slower to respond to price increase and demand; therefore, opportunity still exists for good buys.”

Visit www.SheSellsParkCity.com to view current market inventory.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson
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Park City Area Real Estate Market Perspective 2012 – 2013

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After a slow start during the first quarter of 2012, the Park City real estate market turned the corner and finished with three relatively strong quarters. Only 340 units were sold during the first quarter of 2012, this is the lowest number of units sold since the first quarter of 2010. However, during the second quarter there were 491 units sold, the highest since the fourth quarter of 2007. In the fourth quarter of 2012 there were 502 units sold, up over 100 units from the fourth quarter of 2011. This is a 25% quarterly increase of units sold in just one year.

The rolling 12 month total number of units sold in December of 2012 was 1842, a 10% increase over the 12 months ending in December 2011. This also amounts to the highest number of units sold in a twelve month period since July of 2008. The six month rolling average ending in December was the highest since January of 2008, indicating that units were selling at a brisker rate in the second half of 2012 than in the first half and that the market is continually improving. This momentum is likely to continue through the first half of 2013.

The number of active listings in the Park City market continues on a declining trajectory dropping to 1959 listings in December. Active listings have not been this low since July of 2006. At the end of December there was a 12.76 month’s supply of units in the market, down from 16.63 months a year ago. The absorption rate has not been at this level since May of 2007, and is well below the peak reached in August of 2009 when there was a 40.77 month’s supply of units.

With listings on the decline, the absorption rate moving in a positive direction and the number of units sold on the rise there is pressure starting to mount on pricing. The median sales price in the local market at the end of 2012 was 548,000 compared to 523,000 at the end of 2011. May 2009 was the last time the median home price was at this level.

The 12 month rolling total volume sold in the market reached $1.24 billion in December 2012. This is the highest total volume sold since October 2008. At that time there were 1600 units sold to equal the 1.2 billion in sales, in 2012 there were 1800 units sold to equal the same amount demonstrating the decrease in home values over the four year period of time. However, the 1.24 billion in sales over the 12 month period ending in December 2012 is a 15% increase over the 12 months ending December 2011. During the same time frame the quantity of units sold was up 10% indicating there has been a rise in home prices over the past year.

Two final numbers worth noting in respect to the market are the percent of listings that have sold and the percent of asking price received by sellers. At the end of December 52.66% of all properties listed during the previous 12 months were sold. Not since August of 2006 has the percentage of listed homes sold been this high however at that time the measure was contracting and at this time it is growing. The percent of asking price received has remained at a steady rate of 95% over the past several months, signifying that sellers are holding more firm to their asking prices and not quite as willing to negotiate on pricing with buyers.

All major market indicators show that the Park City real estate and the greater Wasatch Back real estate market is on a solid path to recovery. What has been a buyer’s market for the past several years is starting to balance out and become a more equitable market between buyers and sellers. There are of course certain segments and geographical areas that are not performing as well as others but the overall market is stable and is expected to remain this way in 2013.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

www.shesellsparkcity.com
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Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
Friends, followers, and connections are a way of the future. Feel free to share!

Dave Ramsey’s 5 Principles of EntreLeadership

Recently Dave Ramsey spoke to KW agents recounting his days in the Real Estate industry.  Being a small business owner and entrepreneur, I always find his insight and advice most useful.

Ramsey congratulated KW on its rise to #1 and then recounted his own boom and bust years in the real estate industry. He sat for his real estate license when he was 18 years old and sold his first home three weeks later. By 20, he had a broker’s license.

“I set up a farm, gave my clients pumpkins at Halloween and controlled 98 percent of my market,” he said. “In the next few years, I lost everything. I was sued, foreclosed on, had a baby and went bankrupt. I had to start over. That’s how I learned how money and business really work.”

Ramsey shared with the attentive audience his five principles of EntreLeadership:

People Matter

“If you don’t have people at your core, you will fail,” Ramsey said. “Your customers matter. They’re not transactions. They have stories.” And because real estate agents often deal with people during their toughest times, there’s stress and drama. Ramsey urged attendees to always remember that the members of your team are people. “Your competitors are people, too,” he said. “And sometimes we all need a little grace.”

You don’t get to #1 unless you like to help others, Ramsey observed. “And if you help enough people, you don’t have to worry about money.”

An Incredible Team and Culture of Excellence Matters

Ramsey used his own company to illustrate his lessons. “The easiest way to build an incredible team is to build an incredible team,” he said. “Thoroughbreds don’t want to run with donkeys.”

“If you’re going to build an incredible team, hiring and firing matter,” he added.

Ramsey uses the DISC assessment to keep “crazy” at bay. “When ‘crazy’ comes into the building, we try to find out which door they used,” he said.

Ramsey also relies on his wife’s counsel. “I don’t make major decisions unless we’re in agreement,” he said. “If I’m in a big meeting with FOX business, she’s in the meeting. If I’m discussing a deal with Simon & Schuster, she’s in the meeting. I always ask her how she feels. I’ve only overruled her ‘feeling’ twice. And both times ended as disasters.”

Ramsey’s hiring process includes a final interview over dinner with the hiring authority, the candidate and both of their spouses. “You better know what you’re getting into,” he said. “When you join our team, you’re on our team. No one’s loyal to companies anymore because companies aren’t loyal to people.”

It’s also important to treat people as you want to be treated. Ramsey shared a story of an employee whose child was diagnosed with leukemia. He immediately gave her six months off with pay. And during that time, the family never had to mow their yard or prepare meals. Ramsey’s team “got organized” to cover it all. “They’ll do anything for me because I’ll do anything for them,” he said. “That’s how you build a culture of excellence.”

Ramsey has a zero tolerance policy for gossip. “I have no secrets,” he said. “That makes it easy. My failures are my brand. And failure is just the pile of stuff you stand on as success.”

Slow and Steady Matters

“The businesses that succeed are not microwaves but crockpots,” Ramsey observed. The biggest reasons for business failure are cash flow problems and growing too fast. “Don’t outrun your supply lines,” he advised. “When I was broke, I decided to learn from millionaires. Now I want to learn from billionaires.”

Ramsey recounted a meeting he recently had with one of these billionaires, who said the best business lesson comes from “The Tortoise and the Hare” story. Ramsey said market cycles clean out the trash. “Those of you in this room today have the heart of the tortoise,” he said.

Ramsey believes strongly in lifelong learning. “How do you grow in your personal life? Reading and coaching. Personal growth moves the needle.”

Financial Principles Matter

Ramsey urged all Keller Williams associates to follow his basic rules of finance: Stay out of debt, follow a written plan and save money. “When you have a bad idea and borrow money, you pay big,” he said. Create an emergency fund to cover at least 3-6 months, pay in cash, invest for the long-term, live on less than you make and be generous.

A Higher Calling Matters

“If you can’t find a purpose in your work, you need to find other work,” Ramsey said. Money’s nice, but it’s not everything. “If you eat enough lobster it tastes like soap.”

Ramsey concluded by challenging everyone in attendance. “You have what you need to win but it’s up to you. It’s as you will it.”

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:
www.shesellsparkcity.com
Facebook
LinkedIn
Twitter

Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
Friends, followers, and connections are a way of the future. Feel free to share!