Choosing the right agent

The Real Estate trend that we have been following throughout the summer has continued through September, with the number of sales up, prices flat or in some areas still dropping and number of listings decreasing.

 

If we just look at the numbers with no understanding of the market, we will get a false impression. For example, The average price of a home sold in the Park City area from Jan 1 through September 2011 compared to 2010 rose 4.5%. However, just comparing the month of September 2011 to 2010, the average sold price rose 24%. Condo sales were just the opposite, Year to Date average sold price dropped 27% and the September to September sold price dropped 35%. What I can tell you for sure is that home prices have not increased 4-24% and condo prices have not dropped 27-35%. So what is going on?

 

In some cases, a look at the stats quickly reveals the truth. If we look at condo sales in lower Deer Valley for September 2011 vs September 2010 we see that in 2010 one condo sold with a price of $2,289,000 and in 2011 one condo sold for $514,000, or a decrease of 77.5%. Prices did not fall, just what was sold. Similarly, we are seeing more homes sold in a higher price range than in 2010, thus showing an increase in average sold price.

 

As with all real estate, and particularly resort real estate, having "behind the scenes" knowledge is critical to understanding the market and in turn, being able to make informed and wise decisions. When looking for resort real estate, do your homework. Look for a seasoned agent who understands what you are looking for and can demonstrate a better than average knowledge of the local real estate market.