A glut of expensive homes...

Park City has been booming for as long as we've lived here, but not as much as it has in recent years, and particularly after Vail Resorts purchased two of our three local ski areas.

Lately, I have been shocked by how much real estate prices have soared. If we focus solely on the City of Park City (8,000 inhabitants) and look at its real estate listing for single family homes (not including multi-family dwelling), we find 129 listings, ranging from less than $1 million to over $20 million for a total of $575 million at an average listing price of $4.44 million!

Out of these numbers only 6 homes are listed under $1 million, 26 range from $1 to $2 million, 30 from $2 to $3 million and 97 are scattered from $3 to $20 million...

The bottom line is that we are faced with glut of expensive homes and their price distribution is totally out of kilter as it doesn't reflect the typical pyramid of affordability.

Is a correction coming? Most probably in my view, and much faster than we might anticipate...