The Park City and Deer Valley market entered 2026 in a position of strength but with a clear and meaningful shift in how demand is concentrating. Through the first quarter, 264 homes closed for $845M in total volume. Unit count is down 13% from Q1 2025’s exceptional pace, but dollar volume reflects the underlying reality: this is a luxury-led market, and the luxury end is performing.

Median pricing has eased modestly year-over-year, while average sale prices remain elevated at approximately $3.24M, supported by continued strength in the upper tier. That tension continues to define today’s environment. Park City and Deer Valley are not one market, but several—segmented by price point, product type, and buyer profile. Understanding where a property sits within that structure remains the most important variable for both buyers and sellers.

The $1M–$2M range led Q1 in unit volume with 72 transactions, continuing to serve as the market’s core segment, though also the most rate-sensitive and the tier experiencing the greatest pricing friction. The $3M–$5M and $5M–$10M tiers each posted double-digit year-over-year gains, while the $10M+ segment surged 28% versus last year. Below $1M, entry-level condos and studios continue to clear efficiently, supported by a broader and more diverse buyer pool.

Performance across Park City’s submarkets varied considerably in Q1. Deer Valley remained the undisputed volume and pricing leader. Promontory posted $128M on just 22 sales — a median of $4.81M and the fastest median DOM of any premium community at 43 days. Jeremy Ranch and Park Meadows stood out as the market’s hottest neighborhoods by absorption, with Park Meadows recording a median DOM of just 3 days on 7 closings.

The $5M+ segment generated $399M in Q1 — 48% of all dollar volume from just 18% of units. Forty-six transactions above $5M closed during the quarter, with 61% of those buyers paying all cash. This is the segment of the market that is functionally rate-immune; its direction is driven by equity markets, lifestyle decisions, and the scarcity of premier properties — not monthly mortgage math.

Three data points define Q1’s character more than any other. First: 78% of closings sold below original list price — the highest share since 2020 — with an average discount of 7.4%. Properties that opened within 5% of their eventual sale price cleared in under 60 days. Those that did not are still on the market. Second: 28% of closings transacted within 7 days of listing, which coexists with an average DOM of 87 days. The market is not slow — it is bifurcated. Third: nearly half of all Q1 buyers paid cash, and that figure climbs to 61% above $5M. The financing environment is shaping activity in the middle of the market, not the top.

Active inventory reached 736 listings in March — up 20% from 613 a year earlier and the highest level since 2020. With 143 properties under contract at quarter-end, the overall absorption rate sits at 19% and months of supply at 4.8 — a balanced market overall, though the picture varies sharply by price tier. Below $2M, supply is tight and conditions favor sellers. Above $5M, inventory is elevated and buyers have meaningful negotiating room.

Interest rates remain the primary external variable shaping market behavior in the middle tiers. Early 2026 saw a brief window of improved affordability as rates dipped, bringing financed buyers back to the table. The subsequent move back toward 6.50% reintroduced caution, particularly in the $1M–$2M financed segment where a 51 basis point increase translates to approximately $320 per month on a $1M loan — meaningful friction for buyers already stretching for a Park City second home.

The picture differs dramatically above $5M, where 61% cash concentration means rate movements are largely irrelevant to transaction velocity. The luxury market’s direction is set by equity markets, global demand, and the scarcity of premier inventory — variables that have remained favorable through Q1.

March contracts reached 112 new signings — 3.6x the January pace, confirming a strong seasonal acceleration. That pipeline provides a meaningful foundation for Q2 regardless of rate direction. The range of outcomes, however, is wide.

Interest rates remain the primary external variable shaping market behavior in the middle tiers. Early 2026 saw a brief window of improved affordability as rates dipped, bringing financed buyers back to the table. The subsequent move back toward 6.50% reintroduced caution, particularly in the $1M–$2M financed segment where a 51 basis point increase translates to approximately $320 per month on a $1M loan — meaningful friction for buyers already stretching for a Park City second home.

The picture differs dramatically above $5M, where 61% cash concentration means rate movements are largely irrelevant to transaction velocity. The luxury market’s direction is set by equity markets, global demand, and the scarcity of premier inventory — variables that have remained favorable through Q1.