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KW SPECIAL EDITION

Rick J. Klein

kleinrickj@msn.com

Park City Real Estate

Q3 2025

Another Solid Quarter

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National Real Estate News

“A Tale of Two Markets”

National Economic Impacts

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Bearish

National

Billionaire Jeff Greene predicts house prices will soar once rates fall — and warns the US faces a ‘downward spiral’” (7/2025) https://www.businessinsider.com/jeff-greene-house-prices-interest-rates-immigration-debt-trump-economy-2025-7

“Market Conditions Are Improving For Homebuyers” as of September 2025, pending home-sales are inching up and listings are rising. (7/2025) https://www.investopedia.com/improving-market-conditions-for-homebuyers-11799700

Average long-term US mortgage rate drops to 6.19%, lowest level in more than a year. AP (10/23/25) https://apnews.com/article/mortgage-rates-housing-interest-financing-home-6dfe7db9f54eeee330cb8b669cab60ac

U.S. home-builder sentiment vaults to 6-month high in October” https://www.reuters.com/business/us-homebuilder-sentiment-vaults-6-month-high-october-2025-10-16/

The housing market’s fall surprise: Buyers are back, and Zillow says the momentum isn’t over yet (10/26/25) https://fortune.com/2025/10/26/housing-market-fall-surprise-buyers-back-zillow-predicts-momentum/

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Bullish

National

America’s housing Market is shuddering (8/25) U.S., home-prices have drifted lower in the first half of the year and many cities show recent quarterly declines (The Economist 7/2025) https://www.economist.com/finance-and-economics/2025/08/10/americas-housing-market-is-shuddering

“U.S. economy braces for twin housing, labor market headwinds” (9/15/25) The U.S. housing market is showing strain just as the labor market appears to be deteriorating — two negative forces that threaten economic stability. Reuters.com/markets/us/us-economy-braces-twin-housing-labor-market-headwinds-2025-09-15/

Housing: 3 Reasons It Gets Much Worse From Here (9/20205) https://seekingalpha.com/article/4822998-housing-3-reasons-it-gets-much-worse-from-here

Roughly half of U.S. states are effectively in a recession and ‘hanging on by their fingertips,’ Moody’s chief economist says (10/9/25) https://fortune.com/2025/10/09/america-feels-recession-state-dependent-income-cohort-moody-zandi/. (note- Utah is one of the expansion states..:)

“Home sellers have a ‘tough pill to swallow’ this fall, real-estate agents warn”. (10/23/25) https://www.marketwatch.com/story/home-sellers-have-a-tough-pill-to-swallow-this-fall-real-estate-agents-warn-a8f79825

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CPI: Inflation remains sticky

Source: Bureau of Labor (10/24/25)

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Unemployment Rising

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Consumer Confidence

Conference Board

Consumer confidence declined

again in September to 94.2 (1985 = 100)

to the lowest level since April

As of 9/30/25

Present Situation index registered

its biggest drop in a year.

Expectation Index below the threshold of

80 typically signals a recession,

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Consumer Sentiment

University of Michigan

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Interest Rates

Both graphs show similar inverse correlation between rates and number of sales.

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Cash Sales

% Cash Sales

Condo: 53%

SFR: 55%

VL: 86%

NAR: 30%

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Cash Sales

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Demand

Pended and Closed Transactions

Demand

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Demand: Pended Sales

NAR announced (929/24) the pended home sales index rose 4.0% in August from the prior month and has increased 3.8% the past year. The West had a 5% increase last month and YOY increase of 0.2%.

"Lower mortgage rates are enabling more home buyers to go under contract," said NAR Chief Economist Lawrence Yun. "In the Midwest, low mortgage rates combined with high levels of affordability are attracting more buyers compared to other regions."

September was not our best month for pended sales. GPC fell 18% from August and 10% from last year. However, in August GPC was up 15% MOM and 23% YOY.

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Demand: Pending Sales

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Demand: Pended Sales

A few years snapshot before

and after Covid; September

down 10% from last September.

Demand: Pended Sales

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Demand: Pended Sales

Q3 2025 to Q3 2024 > 6%

Q3 2025 to Q32024 > 11%

Q3to “normal” < 3%

normal

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Demand: Pended Sales

First three quarters of 2025 reflect

the average for “normal” years

(prior to and after Covid).

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Normal

2025 to 2024 >1.2%

2025 to 2023 > 24%

Q3 to “normal” spot on

Demand: Pended Sales

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NAR announced (10/10/25) the existing home sales rose 1.5% in September to SAAR of 4.06M over August and is 4.1% higher than last year.

According to NAR Chief Economist Lawrence Yun, "As anticipated, falling mortgage rates are lifting home sales. Improving housing affordability is also contributing to the increase in sales."

The GPC existing sales fell 5% over August but is 5% higher than last September. Compared to last year, Condo sales are down 15%, SF up 57%, and VL sales down 11%.

Demand: Existing Sales

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Demand: Existing Sales

As with pended sales,

GPC bouncing back faster then national stats

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Demand: Existing Sales

Closed transactions in September were 9% higher than September 2024 and similar to September 2023.

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2025 to 2024 > 6.8%

2025 to 2023 > 6.5%

Green dotted line is the “normal range”

Demand: Existing Sales

In Perspective:

50%

35%

15%

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Demand: Existing Sales

Dotted lines avg. # of sales

between 2013 and 2019

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Demand: Volume

35%

56%

9%

2025 to 2024 < 0.6%

2025 to 2023 > 11%

2025 to normal < 5%

Blew past the prior record

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Demand: Existing Sales

# of Sales are similar

to level of sales in 2002.

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Supply

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NAR reported (10/23/2025) Total housing inventory at the end of September was 1.55M units, up 14% from last year. Unsold inventory sits at a 4.6-month supply at the current sales pace, up from 4.2 months last year.

"Inventory is matching a five-year high, though it remains below pre-COVID levels," Yun added. "Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth."

GPC inventory also rose. Since last year inventory increased 4% with inventory in condos rising 24%; SFR flat, and VL down 11%.

Supply: Inventory

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There were 922 listing as of 10/1/25 compared to 884 as of 10/1/24 a 4% increase over last year.

Supply: Inventory

Compared to a year go Condos up 24%

Single Family same

Vacant Land down 12%

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Supply: Inventory

Q3 is the first time since 2000,

Inventory exceeded 1,000 units

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Supply: Inventory

As of 10/25 AR: 5.5 months

Normal AR 2013 - 2019: 7.2 months

AR for Q3 2025 is 5.7 months

NAR reports AR 4.5

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Supply/Demand

Absorption Rate by Area/Price

as of 9/2025

Compiled by Rick Klein

Areas 1- 9 (In Town)

Condo

<$2,150,000

>$2,150,000

CDOM*

4.3 months

5.5 months

3.1 months

19days

Single Family

<$4,075,000

>$4,075,000

CDOM

7.1 months

6.6 months

7.6 months

43 days

*CDOM is the median CDOM for existing properties only

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Supply/Demand

Areas 10 - 29 (Basin & Jordanelle)

Condo

<$1,174,000

>$1,174,000

CDOM

6.1 months

6.7 months

5.6 months

59 days

Single Family

<$2,830,000

>$2,830,000

CDOM

6.6 months

4.7 months

8.6 months

57 days

Absorption Rate by Area/Price

as of 9/2025

Compiled by Rick Klein

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Supply/Demand

Areas 31 - 38 (Heber Valley )

Single Family

<$1,080,000

>$1,080,000

CDOM

7.9 months

5.5 months

10.3 months

56 days

Single Family

<$1,091,950

>$1,091,950

CDOM

12.1 months

8.2 months

16.1 months

73days

Absorption Rate by Area/Price

as of 9/2025

Compiled by Rick Klein

Areas 31 - 38 (Kamas Valley )

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Supply/Demand

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Pricing

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Home Prices

CoreLogic S & P Case Shiller reported (9/30/2025) YOY home price witnessed a 2.7% annual gain as of April down from 3.4% the previous month.“The housing market continued its gradual deceleration in April, with annual price gains slowing to their most modest pace in nearly two years,” said Nicholas Godec, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices. “We're witnessing a housing market in transition,” Godec concluded. “The era of broad-based, rapid price appreciation appears over, replaced by a more selective environment where local fundamentals matter more than national trends.”

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Home Prices

Monthly HPI as of August 2025

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Home Prices

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Home Prices

CoreLogic S & P Case Shiller reported (9/30/2025) YOY home price witnessed a 2.7% annual gain as of April down from 3.4% the previous month.

FHFA reported (10/28/2025) monthly housing prices rose 0.4% in August 2024 and rose at an annual rate of 2.3%. The previously reported 0.1 percent price decline in July was revised to 0.0 percent. For the nine division price changes ranged from -0.6% in the Pacific division to 6.3% in the Middle Atlantic division.

.

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Home Prices

Quarterly HPI as of Q2 2025

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Home Prices

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Home Prices

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Home Prices

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Home Prices

CoreLogic S & P Case Shiller reported (9/30/2025) YOY home price witnessed a 2.7% annual gain as of April down from 3.4% the previous month.

FHFA reported (10/28/2025) monthly housing prices rose 0.4% in August 2024 and rose at an annual rate of 2.3%.

NAR reported (10/23/2025) home prices were $415,200 up 2.1% from

one year ago. This is the 27th consecutive month of year-over-year price increases. “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth."" Yun said.

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Home Prices

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Home Prices

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Home Prices

CoreLogic S & P Case Shiller reported (9/30/2025) YOY home price witnessed a 2.7% annual gain as of April down from 3.4% the previous month.

FHFA reported (10/28/2025) monthly housing prices rose 0.4% in August 2024 and rose at an annual rate of 2.3%.

NAR reported (10/23/2025) home prices were $415,200 up 2.1% from

one year ago.

GPC Q3 2025 12-month median price for homes and condos was $1,595,000 up a staggering 26% from one year ago. However, if only existing existing properties are included, the 12-month median income increased 6.7%.

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Home Prices

Beware the metrics

Time required for property values to double:

NAR just over 11 year (136 months)

For GPC just over 4 year (51 months)

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Prices in the long run (since 1/1/2001) have appreciated 7.3% annually (compounded monthly) The red regression line indicates long term trend.

Pricing

Prices tend to revert to the mean

Since trough (01/12) prices up 10.3% annually; Since peak (04/08) prices up 6.8 %

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Prices

2024 Median Prices compared to

2023 up 11.6%

2022 up 18.9%

2025 Compared to

Median

Average

# Sales

2024

> 26%

> 21%

> 9.6%

2023

>33%

> 25%

< 19%

However, excluding all new construction;

Median prices increased 6.7%

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Prices

2024 Median Prices compared to

2023 up 11.6%

2022 up 18.9%

2025 Compared to

Median

# Sales

2024

>15%

<6%

2023

0%

>15%

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Prices

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Prices

Subprime

Covid

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Prices/Market Segments

Compared to 2024 and 2023

Average price 42% / 30%

Median price 34% / 30.3%

# of transactions 10% / 15%

New Construction: 22.5%

Median Price New: $5,081,000

Median existing price 22%

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Prices/Market Segments

Compared to 2024 and 2023

Average price 16.3% /19.4%

Median price 7.2% / 20.4%

# of transactions -1.5% / +11.1%

New Construction: 34.4%

Median Price New: $1,636,600

Median Price Existing: -9.8%

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Prices/Market Segments

Compared to 2024 and 2023

Average price 10.8% / 11.9%

Median price 2.9% / 14.1%

# of transactions +21.2% / 35.6%

New Construction: 13.9%

Median Price New : $6,120,820

Median Price Existing: +9.8%

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Prices/Market Segments

Compared to 2024 and 2023

Average price 10.4% / 21.2%

Median price 13.5% / 30.3%

# of transactions 18% / 25.5%

New Construction: 22.5%

Median Price New: $4,100,000

Median Price Existing: 8.7%

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Prices/Market Segments

Compared to 2024 and 2023

Average price 11.8% / 22.3%

Median price 9.6% / 13.2%

# of transactions +9.0% / +55.5%

New Construction: 21% (est)

Median Price New: $1,100,000

Median Price Existing: +15.3%

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Prices/Market Segments

Compared to 2024 and 2023

Average price 28.9% / 15.2%

Median price 10.0% / 6.1%

# of transactions -7.1% / 18.2%

New Construction: 24%

Median Price New: $1,201,000

Median Price Existing: 1.2%

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Heber / Kamas

In May, Heber held the lead by ~ $10,000;

In September, Kamas is in the lead ~ $10,000

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Market Snapshot

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Demand remains as steady as a chairlift with both pended and closed sales rising slightly for Q3.  The GPC area saw a 6.4% year over year increase in overall sales fairing considerably better than the 1.5% nationally.   Condos in the basin were down slightly (less than 1%) and lot sales in the basin fell 5%.  However, all others areas saw a considerable increase with single family sales rising by ~20% for both Park City and the Basin.  Also, while Park City experiences a high percentage of cash buyers, it appears our market is not exempt from the gravitational drag of interest rates.    

 

Similarly, supply continues to inch upward, cautiously like a hiker on the Mid-Mountain Trail.   For the overall market, inventory listings increased by 4.3% cresting over1,000 units of inventory in Q3 for the first time in five years.  Much of this oxygen in the market came from fresh builds and new product - a welcome sign developers have not ghosted us.

Overall prices continue to rise at a supernatural rate.  The median price for existing property in GPC jumped 26% over the past year; the kind of increase that makes appraisers question if they are seeing a poltergeist. Once the influx of new builds is factored in, the increase moderates to a still-heady 6.7%, a far cry from the 2% national increase.   The cost of a single family property is staggering: median price in Park City now exceeds $4 million while in the basin the median price is over $2.8 million.  We not only live in a bubble, but at a very high altitude. 

We live in a paradox: insulated yet influenced by national economics. Market volatility is driven by the media with stories of rate anxiety, affordability fatigue, but improving supply. Given the noise, our crystal ball is lost in escrow while out counterparts debate whether housing is about to sink or soar. But in Park City, no need to fear ghosts unless they are named “Rising Rates” or “Higher HOA fees,” as out makes continues its steady climb somewhere between the lift line and the mountain summit.

Market Summary

Rick J. Klein

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