Park City’s real estate price explosion!

From 1985 to this day, the consumer price index (cost of living) has been multiplied by about 2.5 which means that in the US, a decent car that could be purchased for $12,000 would now cost $30,000. 

Some products like televisions or computers would have seen less of a price increase or even some decrease, not to mention be a much better buy today. 

The same can’t be said about real estate, at least where we live in Park City, Utah. When we came to town in the summer of 1985, we purchased a home for $250,000. Yesterday, I found out that 36 years and four or five owners later, that very home just sold for $2,8 million, that’s more than 11 times more than what we originally paid for!

Granted, the house has kept up with the times, receiving several upgrades, but still the soaring real estate prices all over our small town are both unbelievable and unsustainable.

Just like Wall Street’s current levels, all of these sky-high and numbing records might be part and parcel of a giant bubble ready to blow up, as it remains at the mercy of some dramatic world developments or, closer to home, the tax hikes that are inevitable should Biden prevails with his big infrastructure and family plans.