Market Update Want the latest and most up to date information of real estate market acitvity for Park City? You have found the right place! We periodically update this page to better keep you informed of market conditions and activity. Check back often for new information! Real Estate Market Update for Deer Valley and Park City, Utah JUNE 2010 SUMMER IS FINALLY HERE!
Sorry we are a bit late in getting our June Newsletter out, but the weather has just been to nice to be indoors writing newsletters. I shot this photo on June 22nd from the Aerie neighborhood. Looking down into Old Town with views of Deer Valley’s Baldy Peak, and Park City Mountain Resort. Real Estate Market Update
Mortgage Interest Rate Update
Former Fed Chairman Greenspan Warns "Don't Be Fooled by Today's Low Rates" "NOBODY CAN GO BACK AND START A NEW BEGINNING...BUT ANYONE CAN START TODAY AND MAKE A NEW ENDING." Those words by the poet Maria Robinson should hold a special meaning - and warning - for anyone thinking about buying a home or refinancing, especially in light of the article by Former Fed Chairman Alan Greenspan which hit the wires last week. In his Wall Street Journal op-ed piece, Mr. Greenspan stated: "Don't be fooled by today's low rates. The government could very quickly discover the limits of its borrowing capacity." He also added that the present low inflation and low long-term rate environment has fostered a "sense of complacency (within the government) that can have dire consequences." What Mr. Greenspan is saying is that the government, rather than cutting budget deficits and showing fiscal restraint is taking advantage of this low rate and low inflation environment to accumulate more debt - and the consequences can be very bad...just look at Greece. Mr. Greenspan also said Treasury yields could spike, and in a hurry... Greenspan said, "Long-term rate increases can emerge with unexpected suddenness. Between early October 1979 and late February 1980, for example, the yield on the 10-year note rose almost four percentage points." Mr. Greenspan's sobering comments should not be taken lightly. The fact is, there are no fundamental reasons why rates - including home loan rates - should be as low as they presently are. The confluence of factors all coming together at the same time have made for an incredible low rate opportunity, but it won't last long and can change very quickly. And, like Maria Robinson's words of wisdom, once rates begin to change, there's no way to go back to take advantage of them.
Trail Update
There is almost no snow remaining, even as you head up into the higher elevations. If you are looking for a good hike route or bike route, I would highly recommend the Mid-Mountain Trail. You can bike up from Spiro Trail located by Silver Star, or head up Sweeney’s and John’s from Old Town. Or take the Town Lift up from Main Street (you can take bikes up the chair too!) and then head out as far as you like. The trail is very fun, intermediate in level, and enjoys great views. You can get a trail map at any of the bike stores in town such as Jans, Cole Sport and White Pine Touring. You can always get updates by checking online at: http://www.mountaintrails.org/ If you would like recommendations on where to hike or bike, give us a call, we know all the trails very well!
The Canyons Resort Update The owner of The Canyons Resort, Talisker, announced at an informal meeting that they are planning on some significant improvements for this up coming winter. Talisker had been conducting several focus groups to assemble the public's suggestions and as a result they seem to be on the right path. Plans include re-alignment of the Flight at The Canyons gondola to move the base closer to the end of the Cabriolet in the Forum, demolition of the old Smokey's restaurant to replace with a high end "ski beach" in front of a new restaurant (where the Canyons real estate office had been). Other improvements include adding a new “heated bench” ski lift next to the Flight at The Canyons to better get more guests up the mountain quickly, and expanded and improved snowmaking and grooming. It will be a very exciting transformation for the Canyons Resort... we look forward to the 2010/2011 ski season! Calendar of Events Park Silly Sunday Market - Every Sunday 10am-5pm on Main Street Farmers' Market at The Canyons Resort - Noon-6pm every Wednesday Frontier Bank Community Concert Series - Every Wednesday 6-8pm at Deer Valley Resort Silver Star's Plaza Palooza - Beginning at 6pm every Thursday Poker Night at Easy Street - Beginning at 7pm every Monday Friday Night Wine Series - Beginning at 6pm every Friday Gallery Stroll on Main Street - Beginning at 6pm the Last Friday of Every Month Sixth Annual Park City Food and Wine Classic - 8th-11th of July Utah Symphony's Patriotic Celebration at Deer Valley on July 3rd beginning at 7:30pm A full day of activities, including pancake breakfast at City Park, a 5k walk/run, a midmorning parade down Main Street, free live entertainment and games at City Park. Fireworks at Dusk. St Regis Big Stars, Bright Nights Series - One Republic beginning at 7pm
Locals Tips SHABU has two great deals going on right now! Taco Tuesdays. Tow-for-One Sushi Thursday http://www.shabupc.com Park City Newsletter – May 2010
Its starting to warm up, and green up! After a few very late snow storms and epic powder days at Snowbird, we are starting to see some of our very much anticipated summer weather. Why Park City? Why Now? It’s Easy to get Here. Park City’s close proximity to Salt Lake International Airport has always been an advantage over other western mountain resorts. Fly in and ski, golf or play the same day! Great Recreation Choices. Everyone knows about our 3 great ski resorts in town plus 8 more within an hour’s drive. For summer enjoy boating, fishing, outdoor concerts, award winning golf courses & mountain trails for hiking & biking that are second to none! Lower Prices, Great Choices & Increase in Activity. Park City has experienced its real estate slowdown along with the rest of the nation, but evidence shows we may be heading out of “the Bottom” soon. The best properties are going fast, and there is little new construction planned. Interest Rates are still Low. Rates are great, but are bound to move upward soon. The FACT is, all markets are different – nationally, regionally, & locally. Markets go up, and markets go down, but one Park City FACT remains the same: If you wait another year to buy, you & your family will be one year older when you do!
Real Estate Market Update
Activity still looking good! Our total unit sales volume is way up compared to the same time period last year. Below is an article from the Park City Board of REALTORS® that better explains our increased market activity: Buyers No Longer Waiting... Home Sales Continue at Increased Rates Park City, Utah – April 26, 2010 – Overall real estate sales dollar volume for first quarter 2010 was $303 million, up 107% from first quarter 2009 figures of $147 million, according to the Park City Board of REALTORS®. The number of sales for the first quarter was 325, an increase of 95% from 167 sales in the first quarter of 2009. Sales increased across the board for almost all property types. “It is good news for area homeowners and homebuyers that the bleak market conditions that we experienced a year ago have now ended” said the President of the Park City Board of REALTORS®. “The primary reason that sales have increased is because many sellers have reduced their prices to the new market conditions, although better general economic conditions and increased consumer confidence have also helped”. Prices today are on average about 20-30% lower than they were at their peak, which was in late 2007 and early 2008. “We hit the bottom of our market in terms of the number of sales in February of 2009”, the Board President said, “and have now had three consecutive quarters of increased sales”. “It now appears that we may also be bottoming out in terms of the price declines that we have seen over the past two years”. “Prices have not yet started to rise, but appear to have stopped falling. Buyer activity is steady, and properties that are priced correctly have a good chance of selling. In addition, low interest rates along with the lower prices are making real estate more affordable than ever” he added. Read the full story online at:
Trail Update
I have been very excited to get back out on my mountain bike this year after not riding at all last year due to my ACL surgery. Things seem to have dried out quickly after the rain early this week. Skid-Row, Lost Prospector, Gambel Oak & Solamere are in great condition - nice and tacky with an occasional puddle here and there, but the snow is gone. I have also heard that Round Valley and the Glenwild Loop are also in good shape. May be a while until some of the upper elevation trails are ready, lots of snowpack to melt off still. You can always get updates by checking online at: http://www.mountaintrails.org/ Tom Peek was the President of Mountain Trails for many years, so when you see him next, be sure to thank him for all of our great trails we get to use for FREE! And visit the website and join the organization. Our donations help keep this great organization going! If you would like recommendations on where to hike or bike, give us a call, we know all the trails very well!
Did You Know You Can Still Ski and Snowboard at Snowbird?
SNOWBIRD, UTAH –Snowbird Ski and Summer Resort officials announced this week that they will extend Utah’s longest season into June thanks to above average snowfall this spring. The Little Cottonwood Canyon resort aims to remain open for skiing and riding on weekends (Friday, Saturday and Sunday, as well as Memorial Day) through June 20, conditions and weather permitting. The extension would mark 199 days of skiing and riding for the 2009/10 season, two days short of Snowbird’s record 2004/05 season when the resort stayed open for 201 days until July 4. As of May 20, Snowbird’s mid-mountain base stands at 117 inches with forecasts calling for flurries throughout the weekend. “For the third year in a row, Snowbird has surpassed its annual average in snowfall with some incredible spring storms,” said President Bob Bonar. “The coverage on the mountain is remarkable for this time of year, and we’re thrilled to be able to offer high-quality skiing and riding well into June.” Get the full schedule and additional information online:
Luxury Home Tour - Park City Board of REALTORS
The 2010 Luxury Home Tour of Park City at The Colony. This event to benefit Peace House is a TOUR of spectacular multi-million dollar residences put on by the Park City Board of Realtors® Philanthropic Foundation. This is the 19th consecutive year of this event and the Foundation has continued its long-standing commitment to direct proceeds to Peace House. Thanks to the Presenting Sponsor, The Colony. The tour starts on August 14th in The Colony at 8:30 a.m. and the last bus leaves at 3:00 p.m. with homes closing at 6:00 p.m. Tickets are $40 in advance and $45 the day of the tour. The price includes lunch. You can purchase your tickets online or by telephone, (435) 658-4739.
Locals Tips Taco Tuesdays at Windy Ridge. Reyes Adobe. La’ Bar Bohem at Easy Street.
Park City Newsletter and Real Estate Market Update– March 2010 EPIC SNOW!!! Almost 3 feet in the last few days, and more on its way... Here are a couple photos taken yesterday: 1st is a photo I took while hiking up Park City’s 10,000 ft. Jupiter Peak. Next is me on top of Jupiter Peak, ready to drop in for untracked turns! Another epic day in our winter wonderland!
Park City Mountain Resort Extends Season an Extra Week! "Thanks to the recent return to winter and an 87-inch settled base depth, the current conditions are the best they've been all year, which is why we've decided to stay open for an additional week," said Peter Curtis, president and general manager of Park City Mountain Resort. "We will continue to deliver an exceptional guest experience, maintaining our grooming standards and high-level of guest service." Beginning Monday, April 12 the resort will operate eight lifts including PayDay, Crescent, Bonanza, Silverlode, Thaynes, Jupiter, First Time and Three Kings. Pick'n Shovel, PayDay and King's Crown terrain parks will also be open. Lift ticket pricing for the extended week of the season is as follows: ***The Canyons and Deer Valley Resort season pass holders will be able to purchase a single-day lift ticket to the Resort for $25 when they show their current 2009-2010 season pass. http://www.parkcitymountain.com/winter
Real Estate Market Update - for March 2010 Activity still looking good!
Park City hosts a parade on Main Street to celebrate local Olympic Athletes Last Tuesday afternoon with frosty winds whipping through Main Street, Park City residents showed where their priorities lie by lining the streets at a parade for Utah's 2010 Olympic and Paralympic athletes. "It's always great to see the community out to honor the Olympians, because I just remember the 2002 Olympics, and being with this group again brings back memories," said Park City resident Lola Beatlebrox. "The last time it was like this was July 4th," she said. Beginning as advertised at 5:30 p.m. sharp, local junior athletes trod behind a convoy of international stars while viewers took part in the traditional parade fare - waving, screaming and snapping photos. There were no floats, as athletes rode in a cavalcade of SUVs and pickup trucks. 2010 World Cup super G title winner Ted Ligety led off and quickly while recently retired bronze medalist Shannon Bahrke shared a truck bed with Heather McPhie, bronze medalist Bryon Wilson and Nate Roberts. "It was a nice surprise," said New York's Bob Ingersoll, a winter sports fan on vacation in Park City. "Ted Ligety and Shannon Bahrke - that made my day. I watched those guys during the Olympics." Aerialists Lacey Schnoor and Jeret "Speedy" Peterson, Nordic combined medalists Brett Camerota and Billy Demong, and speedskaters Travis Jayner, Rebeckah Bradford, Tucker Fredericks and Catherine Raney Norman were also among the 24 athletes on hand. "We have a lot of pride," said City Manager Tom Bakaly at a Park City Rotary Club meeting on Tuesday afternoon before the parade. "We love being able to pull together, especially with the ski team taking the lead (in medals)." Bakaly said Park City's variety of elite training facilities - like the U.S. Ski and Snowboard Association's Center of Excellence - not only benefit Utah's medal count, but local businesses. "Every time Park City gets mentioned, that's good on a lot of levels," Bakaly said. "But on an economic level, it's very important to us." USSA Vice President of Communications Tom Kelly thought the celebration - hosted by the Park City Chamber/Visitors Bureau, Youth WinterSports Alliance, and Park City Municipal Corporation - was unique for its sheer size. "We're really excited that the city of Park City has been looking for ways to acknowledge and congratulate the athletes," he said. "There's celebrations like this happening all over the country, but I don't think there's any other celebrations that included over two dozen athletes. It really shows how big a role Utah plays."
Fed Pulls The Plug On Mortgage Purchases The Federal Reserve will stop buying mortgage-backed securities, ending a massive program that's been helping the housing market recover. A year and a half ago, the government wanted to drive down interest rates for homeowners to stimulate the economy by making it cheaper to buy or refinance a house. But hardly any banks or investors were eager to lend money for home mortgages, even to people with decent credit. And that drove up interest rates. Riding To The Rescue Pulling The Plug Pulled from an article by CHRIS ARNOLD <http://www.npr.org/templates/story/story.php?storyId=2100196>
Talisker purchases the Dakota Mountain Lodge On Monday, Talisker Corp. announced its purchase of The Dakota Mountain Lodge at The Canyons. It plans to rename it The Waldorf-Astoria, Park City. The Hilton International-run hotel now joins the Grand Summit Lodge, Sundial Lodge, Silverado, the Escala Lodges and Vintage at the Strand as official resort lodging, explained Talisker spokesperson Lisa Roskelley. "It's certainly a great asset," she said. "It makes perfect sense to include it as part of atmosphere at The Canyons. We're delighted to have the new asset as part of The Canyons." The change took effect immediately, but Roskelley said the hotel's management and employees will remain the same and there should be no noticeable differences to guests. The price of the purchase is undisclosed, she said. In a press release, Talisker chairman and CEO Jack Bistricer said, "The Waldorf Astoria will expand Talisker's Definitive Alpine Living experience." In addition to The Canyons, Talisker also owns and is developing more than 13,000 acres in the Park City area including the Tuhaye golf community and Empire Pass at Deer Valley Resort.
MARCH 2010
Monthly Market Update - July 2009 – Market on the Rise? Finally, we have some good news on our real estate market. Activity in sales for both unit numbers and overall volume has been on the rise for 4 consecutive months... March, April, May, June. It is obvious that the combined opportunity of great deals, abundant choices, and low interest rates have brought some buyers back to the market. We continually get asked about the mortgage industry and the availability of getting loans. There is still money out there, but it is harder to get these days, but not impossible. The days of “no doc” and “low doc” loans are long gone, and we will all probably be much better off with this change. Obtaining a mortgage these days requires much more documentation of income and ability to repay the loan. It is also important to know that the timeframe to get your mortgage has now been increased. On July 30, 2009, the new Housing and Economic Recovery Act (HERA) laws will go into effect. They require all mortgage lenders and brokers to help prevent deceptive lending practices and protect customers by helping them become more informed. Most of the changes will be transparent to the homebuyer. However, there are new compliance requirements that we all need to prepare for that impact the process and timelines for mortgage financing, and therefore, could impact closing dates. When a typical “accepted offer to closing” timeline may have been 4 weeks, we will now need 5 or even 6 weeks to allow a safe amount of time to be sure all details of obtaining financing are complete. Monthly Market Update - June 2009 – Are we at the “Bottom”? Are we at the bottom of the market? That is the question everyone seems to be asking. Truth is we don’t know until we have had some time to move up from the bottom and then look back to see that we did hit a bottom.
FEBRUARY 2009 2008 YEAR END NUMBERS PRESS RELEASE - FOR IMMEDIATE RELEASE - 02 February 2009 Sales Slow, But More Than $1 Billion in Park City Real Estate is Sold in 2008 02 February 2009 (Park City) – Utah’s premier destination ski area in 2008 continued to see more than $1 billion in real estate change hands, according to a report today by the Park City Board of REALTORS®. The total volume of all homes, condominiums and land sold in the greater Park City area (Summit and Wasatch counties) last year totaled $1.03 billion, down 49 percent compared to $2.03 billion in total volume sold in 2007. However, the total sales volume in 2008 was roughly the same volume that was sold in 2004, the first time the sales volume surpassed the $1 billion mark. Lincoln Calder, president of the Park City Board of REALTORS®, said in spite of the slower sales, Park City remains one of North America’s premier ski destinations with a number of new major hotels and resorts under construction or completed, including the St. Regis Deer Crest Resort, Montage Resort at Deer Valley and Dakota Mountain Lodge which is being serviced by the Waldorf Astoria and includes the Golden Door Spa. “Park City’s real estate foundation is different than most of the country,” Calder said. “The fundamentals that make Park City such a great place to live or visit make real estate purchases in the area a sound investment. Park City remains a lifestyle purchase and now is a good time to buy.” Sales of Single-Family Homes Median Price of Single-Family Homes Sales of Condominiums Median Price of Condominiums Calder concluded that the Park City area was less prone to the wild investment speculation that overtook many regions of the country. In fact, with a foreclosure rate of 1.43 percent, Utah continues to rank in the bottom 10 states having the lowest percent of foreclosed loans, according to the latest data from the Mortgage Bankers Association. “People buy homes in Park City because it is based on a lifestyle choice. Our market has never been primarily driven by speculation and investment,” Calder said. “Our product is very diverse and buyers have a wide range of properties that fit their needs and budget. Park City's world class resort facilities and year-round recreation opportunities will continue to make our community an attractive choice for many buyers.”
JANUARY 2009 Park City Real Estate Market Fundamental Facts for Continued Growth The global economy may dip and soar, but life in Park City remains pretty stable. While we can't claim total immunity from external economic pressures, this localized real estate market is a safe harbor to weather the storm. Why? The fundamental attractions of Park City — world-class recreation, a comfortable year-round climate, convenient access and a strong sense of community — are unwavering. Together, these fundamentals will continue to create growth and stability in our market, long into the future. *** Scroll down to view all facts! *** Convenient Access It's so easy to access Park City that you could catch a morning flight from almost anywhere in the country and be skiing on our slopes by the afternoon. In fact, the Park City Quick Start program allows visitors to convert airline boarding passes for free same-day lift tickets at Deer Valley Resort, Park City Mountain Resort or The Canyons Resort. Check out this site for details: http://www.parkcityinfo.com/quickstart/ Strong & Competitive Market Values What's more, the Park City area offers incredible variety—both in terms of price and product type. The diversity of real estate offerings ranges from multi-million dollar luxury estates to more affordable options. So much variety only serves to keep our real estate values competitive. A Proven Commitment to Quality of Life Park City's commitment to quality of life is further echoed in its significant strides in sustainable living practices. Park City Municipal Corporation is leading the charge with bio-diesel public transit, a community carbon footprint counter, wind and solar power exploration and a progressive green building program. Major community businesses are also looking ahead with long-term sustainability measures. All three area ski resorts implement eco-friendly practices and Park City Mountain Resort was recently honored for offsetting 100% of its power consumption with the prestigious Silver Eagle Award for Energy Conservation. More Options for Skiing Add to these choices Park City's own White Pine Nordic Ski Center, which offers over 20 kilometers of groomed cross-country ski trails. And, within an easy hour's drive of Park City are seven other major alpine ski and snowboard resorts and four cross-country ski centers A Year-Round Recreation Haven The Park City area is home to six golf courses, with more proposed; tennis courts and swimming pools; a complete city park and an indoor field house. Only a few minutes outside of town, the Jordanelle Reservoir beckons for sailing, canoeing and motor boating, and the mountain rivers feeding it offer blue ribbon fly-fishing A Multi-Faceted Market However, to a much larger degree than many other resort communities, Park City also has a strong and steady primary home market. This year-round community is populated with a devoted and diverse group of local residents who give the town its colorful and unique character. These local residents comprise an entirely separate real estate market of primary, single-family homes. Because our market has two strong foundations, it is less susceptible to the influences that can weaken less balanced markets A Dynamic Metro Market Increased Visibility Through Advertising What's more, Park City's three ski areas, the local Chamber of Commerce, Ski Utah and multiple large scale development projects produce their own advertising, creating a huge visibility for this area and keeping Park City on the map The Olympic Bounce An Ideal Climate For many Park City locals and visitors, the summertime climate is even more enticing than the winter one. With average summer temperatures in the high 70's or low 80's, and low humidity, Park City's summer months are green and idyllic. In fact, the climate in Park City is enviable year-round, from bright, crisp fall mornings, to warm, lazy spring afternoons. In Park City, the old adage holds true: most locals say they came for the winters, but stayed for the summers. Compelling Demographics Park City is "In" A Fundamental Stability
DECEMBER 2008 Expect A Market Rebound By Ric Eldeman From a stock market perspective, the best news about 2008 is that it's over. Sure, the economy is still weak, but don't assume that the stock market will remain so. Indeed, stock prices are likely to recover well before the economy. That's because prices reflect investor expectations of future corporate profits. Because we can envision profits before they are earned, stock prices can rise ahead of any economic rebound. We are already seeing positive signs. The drop in gas prices since July is the equivalent of a $300 billion stimulus package. Furthermore, panicked investors have been selling so many shares for so many months that, according to Bloomberg, 2,267 companies now hold more cash than the total value of their stock and debt. So you could buy all the shares of any of these companies, shutter them, pay off their debt -- and still have a tidy profit.
Second Homes: Park City Is Just A Hop, Skip And A Ski Slope Away By Larry Olmsted With ski towns, getting there is rarely half the fun. Many, like Aspen and Telluride, are hours from a major airport. Moreover, small mountain-town airports operate at the whims of nature. But the ski resorts surrounding Salt Lake City are the most accessible in North America, a city-bus ride away from a major hub airport that rarely closes. Three of the biggest Utah resorts can be found in one place: historic Park City. "We moved here 28 years ago from Laguna Beach," says Ann MacQuoid of Chin MacQuoid Fleming Harris, Utah's top Prudential real estate agent for many years. "We came then for the same reasons people come here now: We were skiers who went to Colorado or Tahoe but found we could get on a plane in Orange County and be here 2½ hours later. This is what has made Park City so popular. That, combined with the really successful Winter Olympic Games in 2002, started a huge upward curve in second-home sales." Many Olympic facilities are still widely used, and visitors can bobsled, luge, speed skate and even try their hand at ski jumping and biathlon. Cross-country skiing abounds; in summer, biking and hiking are hugely popular, as is fly fishing, golf and boating on Jordanelle Reservoir. But by far the main draw is a trio of world-class ski resorts: Deer Valley, Park City Mountain Resort and The Canyons. Park City began as a thriving silver mining town in 1869, and though the full-time population has shrunk to about 7,400, the town issues more than 1.3 million daily lift tickets every winter. The other huge draw is the annual Sundance Film Festival. The very walkable downtown, known as Old Town, is on the National Historic Register and filled with restaurants, shops and galleries. A look at three Park City neighborhoods: •Deer Valley. Anchored by the eponymous ski resort, the master-planned community spans about 3,500 acres with capacity for about 2,000 units, mostly condos and townhouses and a few very expensive single-family houses. Original slope-side units from the 1980s start at about $1.75 million for a three-bedroom townhouse, while new similar-sized townhouses run over $4 million. Single-family houses range from $5 million to $24 million. Also, two-bedroom condos without ski access start at $750,000. At the Talisker Club (taliskerclub.com), a 10,000-acre private community adjacent to Deer Valley, home sites begin at $450,000 and single-family houses at $1.45 million. •The Canyons. The largest of the town's ski resorts, The Canyons (thecanyons.com) also is the leader in real-estate development. Myriad options range from hotel ownership to condos, townhouses, single-family houses and multi-acre estate homes. "You can get new condo construction for as little as $700 per square foot, less than $1 million for a one-bedroom, and you can get condos from the 1970s for as little as $250,000," says real estate agent Ann MacQuoid.
NOVEMBER 2008 Park City Ranked #3 By Orbitz.com Insider Index Park City was ranked #3 in an October 27,2008 Orbitz.com Insider Index Report on the average hotel rate at North America's most popular winter resorts this 2008-2009 season, ahead of many well-known Colorado and Canada destinations.
OCTOBER 2008 Park City homes holding their value By Christopher Smart The good news is Park City real estate hasn't lost a lot of its value. The bad news is that sales volume is down 42 to 45 percent, according to Park City's Board of Realtors. But according to the Park City board's latest statistics - covering Summit and Wasatch counties - the median sales price compared with one year ago is down just 3 percent for single-family dwellings, to $653,750. Set against a national real estate market that's been on the skids amid double-digit losses, that figure is comparatively good. Remarkably, the median sales price in Park City proper was up 12 percent, to $1.82 million. By contrast, that statistic in nearby Snyderville Basin is down 13 percent over the 12-month period that ended Sept. 30. "We're seeing a lot of interest," said Tyler Richardson, the organization's president. "But people are still sitting on the sidelines, seeing how things flesh out." For the past decade or longer, Park City real estate - particularly high-end property - has been largely immune from ups and downs in the economy. The run-up to the 2002 Winter Games and then its afterglow continued to push growth in the area's upscale vacation housing market established 25 years ago by Deer Valley. Resort real estate since the late 1980s - particularly in the Park City area - has proved to be a good investment for those who can afford it. Prices have gone higher and higher. But this financial crisis is different. "We've seen a leveling off of sales and in some cases decreases as we've seen national events unfold," Richardson said. "Nobody knows how it's going to shake out." The majority of second-home owners in the Park City area - as well as potential buyers - live in other states, where real estate values have declined more precipitously. And buyers are waiting for bargains, which means that sellers, if they are in a position to do so, have to be patient. "Buyers are in the driver's seat," Richardson said. "They have a lot of choices to look at." The low sales volume has left many in Park City's veritable army of real estate agents with little to do but watch and wait. Utah economists say real estate prices in the state are not yet at their lows, according to Dave Anderton, public relations director of the Salt Lake Board of Realtors. "I have people call me every day and ask if we've hit the bottom yet? I think the median price will go lower statewide." Sales volumes also are way off in tony Deer Valley. But the transactions that have gone through represent increases in the median sales price, said Bob Wells, the resort's vice president of real estate and development planning. In lower Deer Valley, the median sales price is $1.98 million. In upper Deer Valley it's $6.65 million. To some extent, Deer Valley remains buffered from economic ups and downs. "The property owners are a very affluent group," Wells said. "They buy in Deer Valley for family use, not for speculation. And a lot of them pay cash." Nonetheless, Deer Valley and Park City, like the rest of the nation, should prepare for tough times and a slow recovery, Wells added. "You have to expect this will have an effect [on real estate sales] this winter. In history, that's been determined by snow, not economic downturns. This could be different."
JUNE 2008 A MARKET APART: How & Why
Park City is Largely Unaffected by the National Crisis A Strong and Balanced Market Matyja and the rest of the Board of Realtors recently launched parkcityhousingfacts.com, a site dedicated to providing updated, detailed information about the local market. On the site are market statistics and links to relevant articles, like the February 2008 article by Marie Mischel in Utah Business that attests “Utah’s booming economy shelters the local real estate market.” M. Anthony Carr’s December 2007 article in the national Realty Times cites the greater Salt Lake City area (including Park City) as the “hottest economy in the nation” with low unemployment and healthy population growth, and notes that the state is on track to add 53,500 new jobs in 2008. A Safe Haven Amid a Turbulent National Market “This is not a market prone to foreclosures, says Carol Agle, Prudential Utah Realtor® and chair of the statistics committee for the Park City Board of Realtors®. “In general the price points here are too high, and because of the stability of the market, buyers didn’t have to take out the aggressive loans that might have gotten them into trouble later on.” Another reason for the market’s stability is the size of the community. With only about 8,000 people in the Park City limits, and under 30,000 in the entirety of Summit County, the real estate market is small. “This is a good, safe place to make a home and raise a family,” remarks Green. “There are still many more people who want to move into this community than people who want to move out of it.” A January 2008 article in MoneyNews.com states: “the luxury home market is an economic anomaly. High-end homes are selling quickly and at prices that are breaking previous records.” With Park City’s abundance of high-end homes, the trend of luxury homes being “recession-proof ” adds to the stability of the local market. “Of the 76 million Baby Boomers, 10% own a second home,” says Agle. “And, 50% of all second homes are owned by ‘Boomers. Most aren’t buying second homes as investments, but as family gathering places. Park City is one of the most accessible resort towns in the country, so buying a family legacy property here just makes sense,” she adds. Matyja sums it up best: “ If we return to the fundamentals of what makes real estate valuable, those characteristics are exactly what we have now in the Park City area—location, scarcity, demand, and new, quality product.”
|
|
(435)
645-5811
| 2200 Park Avenue, Bldg B Park City, Utah 84060 | Contact Us Today at 435-901-2158 | info@enjoyparkcity.com |  |