"Luxury Market" is redifined!

March 13, 2006


Luxury home market in Park City and Deer Valley is alive and well! Last year’s real estate market in Park City, broke through the $2 billion mark. All areas and price ranges have been hitting levels not seen before in years past. The upper price range saw a huge jump in activity.

Total sales in the $2 million and above priced homes saw an 85% increase in the number of sales from 2004 to 2005, (33 vs. 61). The total dollar volume sold for 2004 vs. 2005 was up 70%, coming in at $211 million for 2005 on homes over $2 million in price. Not only has the number of sales improved dramatically, but the average sales price vs. asking price strengthened from 87% of asking price in 2004 to 94% of asking for this past year.

Presently there are 26 homes over $2 million under-contract with an average asking price of $571 per sq. foot. The first 2 months of the year tallied 15 closings over the same price point at an average sales price per foot of just over $500 per foot and they closed at 95% of the asking price.

Home sales on homes over $3 million are up from 14 total sales in 2004 to 28 for 2005, for a 100% increase. This year is off and running with on two and a half months under our belt we have had 13 closings over $3 million which averaged $587 dollars per square foot. Presently 15 homes over $3 million are under-contract. Those that are under-contract have an average asking price of $627 per square foot.

Obviously the high-end luxury homebuyers have discovered the Park City and Deer Valley markets. The private jet traffic at the Heber Valley Airport has been increasing throughout the ski season. With the likes of the St. Regis making their mark in Deer Valley and the continued success in Empire Pass, 2006 will undoubtably be a huge year for the upper end market here in Park City.