Things aren't like they used to be in the Park City real estate market.  Listings of distressed properties have declined substantially,  which for the potential homebuyer will mean two things.  First, for each listing of distressed property there are typically multiple offers being made.  This is making the competition for any foreclosed or bank-owned property much stiffer than it has been.  Second, these are indicators of a stabilizing market in Park City.  We think these are good signs for the prospective buyer — if you're looking for a property in this unique community, this is a great time to take action.

First, the good news for sellers: Sales are up dramatically for the first quarter of 2010. The number of sales in the Park City market is up 95% over first quarter last year, and the dollar volume is up by 107%. In contrast with the bleaker conditions of a year ago, if you have a home or property for sale and it reasonably priced, you have a good chance that it will sell.

Second, good news for both buyers and sellers of Park City homes and property: although prices are not increasing, no longer do they appear to be decreasing, according to Mark Seltenrich, President of the Board of REALTORS. A stabilization of pricing is of course excellent news for homeowners who are considering selling and no longer have to watch the value of their property diminish. It is also good news for buyers who have been waiting for the right time to buy.

Buyers are recognizing the opportunities that now exist at the intersection between value pricing and low interest rates, and the market activity in Park City property is reflecting this.

The creation, then expiration, then extension and expansion of the first time homebuyer credit has had a significant impact on home sales across the country. How has this affected the market in Park City, Utah?

In short, Park City's market differs from the nation's as a whole in ways that mean the impact there has been much smaller than in other areas. Investors in Park City homes and real estate are disproportionately second-home buyers. This doesn't mean that the area has not seen a slowdown—even though sales are up dramatically over last year, a lot of shoppers have been waiting to buy.

There is good news as a result: this market today is the product of a period in which these buyers have been biding their time waiting for a good deal. The result: there are now plentiful deals to be found on the market, and they are starting to sell. Foreclosures and short sales are predictably moving healthily, buyers are getting their asking prices, and an environment of multiple bids on a home or property in the Park City area is once again not uncommon.

And the market shows other signs of improvement: the rate of defaults has declined, and we are now seeing much less distressed inventory on the market. This could be a time of opportunity for investors in Park City.

Learn more about the Park City real estate market from the experts at http://www.parkcityhomes.com

A new report from the Standard and Poor's / Case Shiller Home Price Index indicates reason for optimism. Maybe cautious optimism is a better term. Cautious, because the average rate of change in prices over the twenty cities sampled is still slightly negative. Cautious, also, because the summary level of this data doesn't reflect the wide variability behind the summary - some cities are doing much better than others. That said—just look at the curve in this graph. By late 2009 the price changes were only negative by about 4%—up dramatically from mid-2008, when they approached -20%. If the trend continues, we will be flat before long, and heading back into growth. Does past performance guarantee future results? Of course not. But I can't help but feel optimism looking at this trend. Cautious? Certainly. But, optimism, nevertheless.

[click to enlarge graph]

• Lincoln Calder, President, Park City Board of Realtors: "unique homes that offer ski-in/ski-out, one-of-a-kind floor plans, or panoramic views [...] will prove to be most profitable investments."• Chris Robinson, President Elect of the Park City Board of Realtors: "it is the Buyer who is driving the market and values."
• Bruce Shannon, Co-owner of Summit Sotheby's International Realty: "Park City represents the best real estate values in the intermountain west."
• Jeff Lykes, Principal Broker for Talisker Mountain Realty: "Our gut feeling is that we still have some downward pressure on pricing to come and that will make Park City very attractive to buyers."
• Matt Green, CEO of Keller Williams Park City Real Estate: "We all know that the Feds will have to at some time raise interest rates to avoid inflation so right now represents the best combination of low prices and interest rates."