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.
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Convenient Access
Not only is it a snap to get around in Park City with our free, kid-friendly bus system, but getting here in the first place is also incredibly easy. The Salt Lake City International Airport is only 30 miles away by major freeway, and boasts over 450 scheduled departures per day to over 100 non-stop destinations in the United States, Canada, Mexico and Europe. What’s more, in 2008 the Salt Lake International Airport ranked first in the nation for on-time departures and arrivals and had the fewest number of flight cancellations. Compare this convenient access to that of most other major resorts in the country, which require lengthy drives or costly commuter flights to remote regional airports.
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
While Park City’s real estate market does follow the same general trends as most Rocky Mountain resort destinations, this area offers some unique factors that keep our market stronger and steadier than most of our neighbors. The Park City area is earlier in its development cycle, thus offering a better value than many other top tier resorts. In most resort communities, developable land is all but built out, driving prices to nearly impossible heights. While our developable land is becoming scarce, Park City still offers new construction projects.
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 residents are deeply committed to preserving the open space that provides scenic vistas, wildlife habitat, an extensive trail network and rural charm. In fact, we’re so committed, that locals have bonded themselves twice in the city limits and once in the county to the total tune of $40 million, for the sole purpose of purchasing and forever preserving land as open space. Buying into Park City means you’re buying into an area with an increasing supply of protected open space and a decreasing supply of developable land.
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
When you choose Park City for a vacation destination or your new home base, you have a lot of choices. Choices for dining, choices for shopping, choices for real estate and…choices for skiing. Right within the Park City community are three of the continent’s top-ranked mountain resorts. In 2008, the readers of SKI magazine ranked Deer Valley Resort #1, Park City Mountain Resort #5 and The Canyons Resort #13 out of over 750 resorts in North America
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
Playtime doesn’t stop when the snow melts. All year long, Park City residents can be found hiking, running, horseback riding and biking on our literally hundreds of miles of trails. In fact, our trail network is one of the most comprehensive, non-motorized trail systems in the country, and one of the best examples of collaboration between government, citizens, businesses and non-profits. Learn more at http://www.mountaintrails.org.
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 The Park City community actually comprises two markets in one. Of course, the area’s myriad resort and recreation offerings make Park City an ideal second home market. From historic district condominiums to slopeside estates, much of Park City’s real estate is owned by second home residents.
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
The greater Salt Lake Valley is one of the fastest growing metropolitan areas in the country. This healthy population growth combined with one of the lowest rates of unemployment in the nation combine to create an agile and evolving economy. It is not only possible, but also easy to reside in the dream community of Park City and still be only a half-hour from the dynamic career opportunities of the Salt Lake Valley. You can have it all: a thriving career in a bustling metropolis and an inclusive small town community with numerous recreation options
Increased Visibility Through Advertising
Tourism is big business in Utah and the state government is now leading the charge on this important source of revenue. After decades of extremely limited advertising compared with neighboring states, in the past few years, Utah’s State Government has significantly upped its annual marketing budget from less than $1 million to a whopping $11 million for promoting tourism. This increased spending translates to more visitor traffic and more bookings for nightly rentals. As one of the state’s most important year-round tourist destinations, Park City reaps the benefits of this ongoing and comprehensive advertising campaign.
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
Of course, Park City was a renowned winter adventure destination well before the 2002 Olympic Winter Games. But, being beamed onto televisions all over the world made Park City a household name. And, it cemented our reputation as the premier, authentic American ski destination. Today, Park City continues to enjoy increased awareness and tourism traffic into our marketplace because of ongoing recognition from the Winter Olympics
An Ideal Climate
While our mountains receive hundreds of inches of dry, powdery snow during the winter months, temperatures in Park City are surprisingly mild. Compared with many other western resort destinations, the winter months here are downright pleasant, especially considering this area is blessed with over 300 days of sunshine every year.
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
Half of all second homes in America are owned by Baby Boomers. As the 75 million ‘Boomers reach retirement age, they are looking for more than a savvy investment property. Primarily, this generation is looking to create a place for gathering with family and friends. The men and women of this generation have worked hard their entire lives, have become successful and are now looking to reward themselves with the opportunity to reconnect with their loved ones. Park City, with its convenient access, multiple choices for skiing and recreation, and enjoyable climate is becoming an increasingly popular choice for Baby Boomers to purchase real estate.
Park City is “In”
There’s more to do in Park City than ski, and the world is taking notice. From a new spate of high-end boutiques, diverse art galleries and elegant spas, to a vibrant array of world-class restaurants and a dynamic nightlife scene, Park City is a hipster boomtown. From the globally-renowned Sundance Film Festival in January, to big name musical acts performing in the open air during the summer, Park City is the new place to see and be seen.
A Fundamental Stability
Park City’s real estate market will continue to enjoy growth and stability long into the future, because of the fundamental reasoning behind the above-listed factors. The essential draws of the Park City community will continue to override the emotional, ephemeral factors that are influencing so many aspects of our current economy.
Park City Real Estate Sales Continue To Thaw Park City Board of Realtors, 2010 Q2 Statistics
Park City, UT -– July 22, 2010 – Sales dollar volume for the first half of 2010 continues to trend up compared to the same time period of 2009. For the period ending June 30, 2010, Sales dollar volume was up 67% from 2009 at $543 million versus $324 million. The number of sales is ahead 60% in 2010 over 2009 with 669 units closed compared to 415. These figures represent four consecutive quarters of improved sales.
Park City’s real estate market is recovering far above the pace of the National real estate economy. Several outstanding factors contribute toward Park City’s more rapid comeback. One reason is price. Prices today are, on average, about 20-30% lower than they were at their peak in late 2007 to early 2008. For people considering a second or primary home in the western mountain resort communities, this summer is the time to start their Park City search.
Among the other dynamics which make Park City a superior resort purchase are: Increasing numbers of direct domestic and international flights in and out of Salt Lake International Airport and the airports 30 minute proximity to Park City. Park City is also realizing a growth in year-round residency and primary residential sales not only due to the airport proximity; but also as our resort town becomes more dedicated to year-round recreation for residents and visitors. Resort communities that are more remote and difficult to access are still experiencing difficulty and are perceived as a riskier long-term investment.
Park City offers three world-class ski resorts in the immediate vicinity and resort owners that continue to invest in resort upgrades, providing a great draw for visitors and residents alike. The greater Park City area offers more than 7,000 acres of dedicated open space which serves as a canvas for more than 350 miles of recreational trails, many of which are groomed for year-round use.
Sales of Single-Family Homes
Sales of single family homes increased 36% for the first half of 2010 compared to the first half of 2009. Inventory levels are down from where they were in 2009 and we are seeing an increase in sales of less expensive homes (those priced below $1 million). In 2009 there were about 3,500 properties on the market, and as of the end of the first half of 2010 there were about 3,050 properties on the market.
Median Price of Single-Family Homes
The median sales price for all property types, except vacant land, is about the same for the first half of 2010 as it was in the first half of 2009. When taking a longer view of one year of sales figures compared to the previous year, prices are slightly down. However, within the City limits there are a couple of exceptions: median home prices are considerably down while median condo prices are considerably up. The median price for a home within the city limits for the year ending in June was $1,125,000, down 37% from the 2009 figure of $1,806,205. This is due to sellers becoming realistic as to the value of their homes and pricing them accordingly.
Median sales price for a single family home in the Snyderville Basin for the year ending June 30, 2010 is $650,000; which is virtually the same as the end of the first quarter, and down about 7% from the previous year figure of $700,000.
Heber Valley median home price was $289,500 for the year ending June 30, 2010, slightly down from the first quarter and down 12% from the previous year.
Kamas Valley also saw a decrease for the same time frame with a median home price of $272,200 down slightly from first quarter 2010 and 30% from 2009.
Sales of Condominiums
The number of condominium sales for the first half of 2010 increased 93% over 2009.
Median Price of Condominiums
The median price of a condo inside Park City limits for the year ending June 30, 2010 was $940,000, up from the end of the first quarter and up about 29% from $665,000 for the same time period of 2009. Just as home sellers within the city lowered their prices in order to sell, owners of high-end condos took the same approach. These lower prices resulted in many sales of million dollar plus condos, primarily in the Empire Pass area. This, along with closings at the St. Regis boosted the median sales price.
The median price for a condo in the Snyderville Basin for the year ending June 30, 2010 is $325,000, slightly down from the first quarter and down 14% from $380,000 for the year ending June 30, 2009.
Vacant Lots
We are seeing buyers re-enter the lot market and in fact, are even seeing multiple offers on lot sales. Compared to the first half of 2009, lot sales have increased 140% over last year’s volume, while median prices have dropped by almost 50%. Buyers are recognizing the values and are taking advantage of them. Even with the increase, lot sales still only make up about 10% of the dollar volume and about 13% of the total sales.
The reemergence of lot sales is particularly notable as it typically foreshadows housing starts and increases in the construction job market. This is good news on the horizon for our local economy.
Foreclosures
Foreclosures continue to be a significant part of our market. In Summit County Notices of Default peaked in the third quarter of 2009. They appear to be trending down, but remain historically high. We anticipate foreclosure activity will continue, although probably at a lower rate than recently seen. Three out of four sales in our market are not distressed.
Distribution of Sales
The following provides a breakdown by category of the distribution of sales as a percentage of total sales:
Single Family Dwellings 43%
Condominiums 40%
Land 13%
Fractional Ownership 3%
Commercial 1%
Looking Ahead
Continued buyer activity appears likely as prices continue to remain low for the foreseeable future. Interest rates are the lowest they have been in 50 years, making property more affordable than it has been. For the near term inventory levels remain stable and buyers will continue to have many choices.
For sellers, pricing is still the most important aspect of getting their property sold. Sellers control the action on their home. When price correctly, we are seeing sales. “My advice to anyone looking to buy in Park City is to contact your local REALTOR. It is an excellent time to enter the market” said Mark Seltenrich, President of the Board of Directors.
The Park City Board of REALTORS� (PCBR) is a trade association of more than 900 members comprised of REALTORS and Affiliates from the greater Park City real estate industry. PCBR analyzes and reports on real estate trends for the greater resort community of Park City.
Lower Home Prices Are Spurring Sales 2nd Quarter Report Shows Major Improvement Over 2009 Andrew Kirk, The Park Record, 7/2010
About one quarter of all real estate transactions in Park City involve distressed properties.
That's not bad, said Deanna Devey of the Utah Association of Realtors. It's average for the state if not slightly better.
Foreclosure activity is definitely improving, said Park City Board of Realtors president Mark Seltenrich.
"They appear to be trending down, but remain historically high," according to the second quarter report summary from the board released July 22.
Devey said short sales account for 13 percent of all sales in Salt Lake, Utah, Davis, Weber and Tooele counties. They are only 10 percent of sales in Summit and Wasatch counties.
"Comparatively, Summit County isn't doing too bad," she said via email.
Statistics that sound negative but are actually good news was a theme for the mid-year report from the board of Realtors.
For example, sales prices are way down all over Summit and Wasatch counties. That has increased both sales volume and dollar sales volume by more than 60 percent compared to the second quarter of 2009.
The title of the report summary was "Park City real estate sales continue to thaw."
With $543 million in real estate sold, board president Mark Seltenrich said this year compares almost exactly with 2008 as the market was coming off the peak and beginning its slow decline. But perhaps a better comparison might be 2003 or 2004, he said.
Since 2005 was when the boom began, an argument could be made that the 2010 mid-year numbers show the area returning to "normal," he said.
So far this year, 669 units have been sold. That's up from 415 for the same time last year and roughly compares to 2008.
The fact that lower prices are spurring activity in the Park City area is great news, he said, because homes won't move in a depressed market regardless of price and that's happening in other parts of the country.
With fewer speculation buyers shopping, the Park City area is continuing its decade-long trend of becoming more of a year-round community. People are recognizing the convenience of traveling in and out and are choosing to make it their permanent residence, he said. That brings stability to the market.
"It's really unique that people live here who aren't related to the resort industry. That means if the resorts do poorly, the housing market can still be strong," he explained.
Seltenrich said part of the level of controversy over the Sweeney family's Treasure Hill development is evidence of that. When people make a mountain town their permanent home, they tend to be more involved in development decisions their city or county make.
Lower prices resulted in a 36 percent increase in sales of single-family homes during the first half of the year. Homes priced under $1 million are selling the fastest. Inventory levels are down about 450 units from the same time last year. That's still too many for the homebuilding industry, but it is progress, he said.
The median sale price for a home in Park City proper is now $1,125,000 down 37 percent. That's average for 64 homes sold almost twice as many as the same time in 2009.
The median sale price in the Basin is $650,000, which is down 7 percent for 105 units sold. Last year 66 were sold by mid-year.
Heber Valley home prices are down 12 percent to an average sale price of $289,500. Kamas is down 30 percent to $272,200. Seltenrich said the housing markets to the east and south of Park City and the Basin rely on the health of the latter to succeed. The farther away from Park City a community is, the more susceptible to market fluctuations it tends to be, he said.
Condominium sales saw the most improvement, Seltenrich said.
He thinks it is because prices came down on high-end units in Empire Pass. Also, St. Regis Deer Crest this year was successful at closing many of the deals made during the boom something not every development has been able to do.
Because more expensive units sold, the median sale price is up 29 percent from the same period in 2009. Sales volume is up 93 percent.
Even at $1.5 million, many condos were sold at 30 percent below original asking price and that was considered a bargain by those kinds of buyers, he said. Increasing sales also had the effect of bolstering confidence in the market.
Condos in the Snyderville Basin did not fare as well. The median sale price for the first two quarters is $325,000 down 14 percent.
Most of those sales were made outside The Canyons, he said. The developments near the ski resort saw buyers who put deposits down during the boom years but were reliant on bank financing that didn't come after the recession started.
The area has also seen the worst cases of foreclosure because people bought overvalued property and went "underwater" on the mortgages quickly, he said.
This kind of unwise buying was widespread because Park City real estate was so hot that people bought property simply because they could.
"At the very height of the market, the value of a property was that it was for sale people wanted to get in at all costs," he said.
The rebranding of the Dakota Mountain Lodge to Waldorf Astoria Park City was a wise move, Seltenrich added.
"If it was a Waldorf from day one it might have seen a different mix of buyers," he said.
Sellers of vacant lots are also lowering prices and saw a 13-percent increase in total sales. Lots still only make up 10 percent of all real estate sold during the first six months of the year, but that's a major improvement, Seltenrich said. Download the article.
Park City Board of Realtors, First Quarter Statistics, 4/2010
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 Mark Seltenrich, President of the 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” Seltenrich said. 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”, Seltenrich 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” Seltenrich said. „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.
Sales of Single-Family Homes
Sales of single family homes increased 73% for the first quarter of 2010 compared to the first quarter of 2009. Distribution of sales has shifted slightly from year-end figures for 2009. In 2009 sales of single family homes as a percentage of volume was 56% while condo sales held 39%. For the first quarter 2010, single family home sales were 44% of the market, with condo sales assuming a 51% share. “These numbers are expected to flip-flop by years‟ end with single family home sales regaining their position as the strongest part of the market” Seltenrich said.
Median Price of Single-Family Homes The median price of single-family homes sold within the Park City limits for the year ending March 31, 2010 was $1,352,500, down 27% from the year ending March 31, 2009, which was the peak of the market. For median sold price information, comparisons are for the one year period of April 1, 2009 through March 31, 2010 compared to April 1, 2008 through March 31, 2009.
Median sales price for a single family home in Snyderville Basin for the year ending March 31, 2010 is $651,750, which is down 6% from the previous year figure of $692,500.
Heber Valley median home price was $305,000 for the year ending March 31, 2010, down 10.5% from $341,000 for the previous year.
Kamas Valley also saw a decrease for the same time frame with a median home price of $275,000 down 26% from the prior year.
Sales of Condominiums Condominium sales for the first quarter of 2010 increased 118% over the first quarter of 2009.
Median Price of Condominiums Prices of condos in the Park City limits were up 20% for the year ending March 31, 2010. The median price for a condo inside Park City limits was $925,000. However, Seltenrich was quick to report that prices are not going up but rather this increase was caused by a large number of high end condo sales in the Deer Valley area, causing the median price to rise. In fact, many of these high end sales were at prices 30-40% below where they were priced a year ago.
Median price for a condo in the Snyderville Basin for the year ending March 31, 2010 is $329,450, down 15% from $388,000 for the same period in 2009.
Looking Ahead Inventory levels have stabilized since fourth quarter 2009, remaining below 3,000 units for the year compared to 3,500 on the market a year ago. However, inventory will remain at about this level for some time due to a sizeable “shadow inventory” of properties that have not yet come on the market. This “shadow inventory” of homes includes delinquent loans and real-estate owned (REO) property that has not yet reached the market. REO properties are foreclosed homes taken back by the bank for liquidation. In addition, in more broad terms this “shadow inventory” also includes non-distressed properties whose owners are waiting for improved market conditions before they will sell.
Seltenrich adds that for sellers, “pricing is still the most important aspect of getting their property sold”. Correctly priced properties have a good probability of selling, while properties priced just a little high for the market will most likely sit. As for buyers, Seltenrich warns them “not to wait too long, as many of the best priced properties have already sold and at some point these great prices will be gone”. In addition, interest rates are beginning to rise, making any purchase with a loan more expensive.
Nearly two-thirds of Americans think the time is right to buy a house, with a majority believing prices will be the same or higher over the next year, according to a Fannie Mae survey released on Tuesday.
The 64 percent that said it is a good time to buy is just shy of the 66 percent that said the same thing in 2003 as the U.S. housing market was racing higher, said the survey.
However, most of the 3,451 polled said that it would be tougher for them to get a loan than it was for their parents.
The survey comes amid signs that the U.S. housing market is recovering after suffering the worst downturn since the 1930s. But, while home prices in some regions are rising, soaring delinquency rates across the nation mean foreclosures will keep persistent pressure on the market, according to analysts.
Fannie Mae (FNM.N), the largest U.S. mortgage finance company, said that the public still "strongly believes" in upholding their financial commitments, though that weakens once people know someone who is defaulting.
Those who know someone in default are more than twice as likely to have seriously considered stopping payments on their own mortgage, Fannie Mae said.
All-cash buyers play bigger role in investment-home market Andrea V. Brambila, Inman News, 3/2010 Reprinted with permission of Inman News
Sales of new and previously owned vacation homes rose last year, while investment-home sales dropped, according to a survey report [2] by the National Association of Realtors.
NAR's 2010 Investment and Vacation Home Buyers Survey includes responses from residents in 1,930 randomly selected households who bought residential real estate in 2009. The association conducted the survey in March 2010 and controlled for age and income.
Vacation-home sales increased 7.9 percent to 553,000 in 2009 from 513,000 in 2008 [3], the report said. The market share for vacation homes rose to 10 percent, from 9 percent in 2008.
At the same time, investment-home sales declined 15.9 percent, to 940,000 last year from 1.12 million in 2008, the report said. The market share for such homes fell to 17 percent, from 21 percent in 2008.
"The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat. Investment buyers primarily seek rental income," said Lawrence Yun, the association's chief economist, in a statement [4].
Sales of primary residences grew by 7.1 percent, to 4.04 million in 2009 from 3.77 million in 2008, the report said. With that increase, the share for second homes overall dipped to 27 percent in 2009, compared with 30 percent in 2008.
"First-time buyers were at record levels in 2009, with fewer sales of second homes," Yun said.
A quarter of vacation-home buyers plan to rent out their homes to others, compared to 59 percent of investment-home buyers. Only 19 percent of investment-home buyers hope to use the property as a family retreat. Slightly more investors (18 percent) than vacation-home buyers (13 percent) bought the property for a relative or friend to use.
According to the U.S. Census, the national vacancy rates in fourth-quarter 2009 were an estimated 10.7 percent for rental housing and an estimated 2.7 percent for homeowner housing. While the homeowner rate was not statistically different from the fourth quarter of 2008, the rental vacancy rate was 10.1 percent higher.
"The rental market is soft due to the economy, and investors realize it is much higher risk to secure occupancy in their rental property than in prior years,"said Alexis Eldorrado, managing broker of Eldorrado Chicago Real Estate.
About 8 percent of investment-home buyers vs. 26 percent of vacation-home buyers said they plan to use the property as a primary residence in the future, the report said.
The median home price for a primary residence fell 5.6 percent last year to $185,000, and the median price for investment properties also fell, by 2.8 percent to $105,000. About 15 percent of buyers paid all cash for their primary residences, and this was unchanged from 2008. All-cash buyers made up 48 percent of investment-home buyers, according to the latest survey, up from 42 percent in 2008.
Meanwhile, the median price for vacation homes rose 12.7 percent to $169,000, and 29 percent paid in cash. Even with a rise in vacation-home prices, some Realtors say their clients think now is a good time to buy.
"Ultimately (a vacation home) has been a dream for many, and with the sudden shift in market prices due to the economy, many people realize it is a good time to buy. People are buying today at prices from 10-12 years ago," Eldorrado said.
Regionally, half of vacation homes sold in 2009 were in the South, 21 percent in the West, 17 percent in the Midwest and 12 percent in the Northeast, the report said.
"I would say that (NAR's) data is pretty close to being spot on, with a couple of exceptions," said James Crumbaugh, CEO of Allison James Estate and Homes, which does business in 11 states and deals mostly in waterfront properties, beachfront condos, golf course communities and planned resort communities.
Those exceptions are Florida and California -- both areas whose prices Yun said have become especially attractive for buyers over the past year.
"In Southwest Florida, normally 70 percent of our business is in vacation homes or second homes. Most of these buyers plan on eventually retiring in Southwest Florida. However, the investors have (been) buying up the fire sales among these properties for the last year or so, and I would guess that close to 50 percent of these sales are now investor sales," Crumbaugh said.
"Prices are going up, and as a result the investors have determined that the bottom has passed. We are actually starting to see an inventory problem on the horizon for Southern California and Southwest Florida, so prices should continue to climb," he added.
Loren Sanders, a Realtor at Windermere Exclusive Properties in San Diego County, Calif., has seen a rise in both vacation home purchases and investment purchases. Distressed properties have played a key part in encouraging investment purchases, he said.
"The buy, fix and flip people are making good money, which draws more players."
Utah's Other Mountain Biking Gem Park City is a rider's oasis far above Utah's blistering deserts. Mountain Bike Action Destination Special, 3/2010
Play word association with "Utah" and riders will respond "Moab." In fact, Mountain Bike Action receives more images for our monthly feature "Trail Mix" from riders perched above the mesas of Moab than any other location. Riders familiar with our destination suggestions will also recognize the name Gooseberry Mesa, just outside of Hurricane, Utah. For years, we have touted these ultra-fun, snaky trails established by the Harris brothers. Both locations are "must-ride" Utah destinations for riders who want to sample the state's desert experience.
But Utah is a big place that offers more than slick-rock, Native American rock art, sandstone arches and the skeletal remains of unprepared mammals. The polar opposite of the dry, desolate Utah desert destinations are the luscious, high-altitude, green mountains of Park City. This is a place that takes summer recreation seriously and aggressively caters to mountain bikers. Download the full article.
Transactions Same As In '09, But Sale Prices Declined Park Record Article, Andrew Kirk
29 January, 2010 (Park City) – The Park City Board of Realtors' 2009 year-end report reveals total sales volume for the greater area were down 17 percent from the previous year.
Still, some areas saw improvement, but not all Realtors believe that's evidence of recovery quiet yet.
The Board of Realtors' press release puts the 17 percent decline in context: Vail, Colo. was down 60 percent. Park City fared better because it's a residential or bedroom community as much as a destination resort town, explained board president Mark Seltenrich.
Park City-area Realtors are finding willing buyers, as evidenced by the fact that 2009 actually saw nine more single-family home sales than the year before probably more if not for the frozen credit market.
The reason total sales volume was down is two-fold: the total number of transactions of all types of property was down 18 percent, and second, because those buyers with financing are still looking for the best deals, Seltenrich said.
The median price in Park City dropped from $1.8 million to $1.385 because more homes sold in the lower price range than in the upper.
The bad news is that across the board property values have dropped 30 percent from the peak in 2007, Seltenrich said. But the good news is that Park City has never been more affordable. That's not tongue-in-cheek, he emphasized, because looking over the span of a decade, Park City real estate has proven to be an incredibly rewarding investment. Like any stock market, there are swings and we're currently in a down period. When looking at the big picture, however, a down market is a great time to buy.
Unfortunately, many people bought in 2005 or 2006 and now owe more on their loans than the property is currently worth. Some of these are distressed mortgages and foreclosed homes or lots that sell for less. Consequently, that drives the entire market down.
For example, some speculation builders have had to abandon projects in Promontory. Buyers who normally would buy in Park Meadows now take advantage of a great deal outside of town. That hurts Park Meadows because demand has dropped; it also lowers appraisals for Promontory because the property was sold at a distressed price, Seltenrich explained.
All in all, 2009 was a tough year. But 2010 is off to a good start and Seltenrich said he believes it will be an improvement.
Thomas Wright, head of Summit Sotheby's International in the Park City area, said a lot of different kinds of buyers have been taking advantage of the area's lower prices. Outlying communities have enjoyed activity from first-time buyers, and sophisticated shoppers are trying to get the most for their money.
Unfortunately for Realtors, that creates a lot of competition. The recession has been hard on the profession, he said. Still, many are optimistic that the buyer's market will bring the community back to a healthy balance. Seltenrich said he knows of people who have recently joined the profession because of the recession. Just because times are tough doesn't mean anyone has given up, he said.
But Wright does believe foreclosures and short sales are having a bigger impact on the market than many will admit. The numbers he's seen suggest Park City is on par with the rest of the nation.
Broker Jess Reid said he was surprised that the year-end statistics show improvement in some areas such as increased sales within Park City limits.
Although he, too, is hopeful for the future, his own experience suggests there's nothing positive to report about 2009.
His company still turned a profit, and there were successes, but he doesn't want anyone to get the wrong idea that it's time to raise prices again.
"Most businesses will say it doesn't feel like a recovery," he said. "Looking at the graphs and statistics from the (Board of Realtors), I don't think they're representative of the year we've had."
Reid said he's triple-checked the numbers, and they're right, but he thinks a few good sales in a few select developments are skewing the numbers to be more positive than they really are. Also, some deals made two or three years ago were completed in 2009, helping the numbers for the wrong year.
He's aware of how bad that sounds, but he said he wants his clients to have the best information possible when making decisions. And like Wright and Seltenrich, Reid said the information is telling Realtors that there has never been as much inventory, and as much high-quality inventory, as right now.
Reid also said he keeps mentally comparing the current economic conditions with the recession in the 1980s, which lasted a long time, but wasn't as "mean" as the current one. He said sellers haven't been as flexible as they are now since that recession.
"It's a good time for people to come off the fence and buy," he emphasized.
As much as it sounds like a positive spin for Realtors, it's bad news for homebuilders.
Jason Moore, president of Park City Area Homebuilders Association, confirmed that the more and the better available inventory, the fewer new homes get ordered.
Firms like his that do custom homes still have work, but speculation developments are non-existent, he said.
"There's a lot of product out there," he explained.
Many homebuilders are paying the bills by doing renovations helping people improve what they already have since it's not a good time to sell and find something fresh. Unfortunately, subcontractors need work as well, and are competing with the general contractors for these types of jobs.
"There are a lot of hungry people out there... and really competitive labor rates," Moore said.
As is common in this environment, he's seen subcontractors low ball the competition, then be unable to finish the job.
"It's definitely tough out there, no doubt about it," he added.
Park City Real Estate Single Family Homes Sales On The Rise FOR IMMEDIATE RELEASE
25 January, 2010 (Park City) – More than $858 million in real estate transactions changed hands in 2009 in the greater Park City area (Summit and Wasatch counties), according to a report today by the Park City Board of REALTORS�.
The total volume included the sale of homes, condominiums and land. In 2008, total sales exceeded $1.03 billion, which is a 16.9 percent decrease in the volume sold in 2009
“In spite of two difficult economic years, Park City’s economy remains resilient,” said Mark Seltenrich, president of the Park City Board of REALTORS�. Compared to all other Rocky Mountain ski destinations, Park City has fared better than our neighbors in Colorado, Wyoming and other resort towns. “For example, in Vail, Colo., REALTORS� reported that 2009 real estate sales were down nearly 60 percent compared to 2008, while Park City was down only about 17 percent.”
Sales of single-family homes were the strongest part of the market in 2009, with sales of homes in the greater Park City area in 2009 surpassing the levels of 2008. “This is due in large part to homes becoming more affordable and the desirability of Park City as a place to live and raise a family,” Seltenrich added.
Sales of Single-Family Homes
The number of single-family homes sold in the greater Park City area totaled 507 transactions in 2009, a 1.8 percent increase compared to 498 sales in 2008. Sales in Park City limits were up 7.4 percent in 2009 compared to the previous year. The Snyderville Basin saw its sales decline 13.9 percent. Sales in the Heber Valley climbed 18.1 percent and sales of single-family homes in the Kamas Valley increased 29.0 percent compared to 2008.
Median Price of Single-Family Homes
The median price of single-family homes sold within Park City limits during 2009 fell to $1.4 million, a 23 percent decrease compared to $1.8 million in 2008. The Snyderville Basin saw home prices fall to $670,000, down 4.3 percent compared to $700,000 a year earlier. The Heber Valley saw home prices fall 12 percent to $307,500 down from $350,000 in 2008. In the Kamas Valley, the median price of a single-family home in 2009 was down 25 percent at $270,000 compared to $360,000 a year ago.
Sales of Condominiums
The number of condominium sales in the greater Park City area fell to 390 transactions in 2009, down 19.8 percent compared to 486 sales in 2008. Within Park City limits sales fell 28.2 percent. In the Snyderville Basin sales were off 16.3 percent. In the Heber Valley sales were up 40 percent.
Median Price of Condominiums
Prices of condos in Park City limits fell 10 percent to $745,000, down from $825,000 a year earlier. In the Snyderville Basin, the median price of condos sold in 2009 was down 24 percent at $327,000 compared to $430,000 a year ago.
Land
Vacant land sales were down 44 percent in the greater Park City area. In Park City limits, the median price of land in 2009 was $725,000, down 21 percent compared to a median price of $917,500 in 2008. In the Heber Valley, the median price of vacant land was $275,000, down 27 percent compared to $375,000 in 2008. In the Kamas Valley, median land prices were down 7.5 percent at $236,000 compared to $255,000 a year ago.
Looking Ahead
“As prices have come down and properties have become more affordable, more properties in the lower part of the price range have sold, thus lowering the median prices,” Seltenrich said. “Sales of higher priced properties have taken place, but at levels below what we have seen in recent years.”
Seltenrich said that inventory levels have remained fairly stable since the beginning of the year, but have recently started to decline. This is due to some sellers having taken their properties off the market because they are unwilling to sell at today’s lower prices. As inventory levels decline, eventually prices will start to rise, and these sellers may reenter the market.
Buyers continue to be very price sensitive, and are looking for the best deal. Looking forward, distressed sales (mostly short sales and foreclosures) will continue to hold prices down for the first part of the year.
“Park City remains one of North America’s premier ski destinations and continues to have the best public education system in the state,” Seltenrich said. “The factors that make Park City a great place to live and recreate remain. There will always be demand to own here.” With prices lower than they have been in many years, buyers will see the value and continue to invest in the community.
Seltenrich stressed that all real estate is unique, so to find out what the value of any particular property is, one should talk with their local Park City REALTOR�.
According to Forbes.com, it's an anomaly Andrew Kirk, The Park Record, 3/2010
Last week, Forbes.com assembled a list of America's top 25 richest counties. With a median household income of $85,258 in the 2008 calendar year, Summit County made No. 22 on the list.
That's probably no surprise to people familiar with the community and the price of housing here, but what may be surprising is the fact that it's one of very few vacation communities and the only one not adjacent to a major metropolitan area.
The latter point is the explanation Forbes-writer Francesca Levy gives for why these 25 counties are so wealthy. Almost all of the counties are within driving distance of the Washington, D.C. and New York City metropolitan areas. Two are in the Bay Area: Marin across the Golden Gate Bridge from San Francisco and Santa Clara to the south in Silicon Valley. All the rest are bedroom communities for Denver, Colo.; Atlanta, Ga.; Nashville, Tenn.; and Baltimore, Md.
People with high-paying jobs often want to live in beautiful suburban areas with good schools. All 25 counties match that description, but Salt Lake City is not comparable in size to those other seven cities.
What accounts for Summit County's wealth?
Mark Seltenrich, president of the Park City Board of Realtors, helps people look into moving here all the time. He said its proximity to Salt Lake City is only piece of a larger pie.
"Utah isn't known for the high wages of the coasts," he said. "People who live here they're bringing the money with them."
There are plenty of Summit County residents who commute to Salt Lake City, but for several reasons Park City has become attractive to people who can work anywhere. Some residents telecommute or have home offices. Others travel for work - like airline employees - and need close proximity to a major airport.
Park City's year-round outdoor recreation makes it popular with people with enough money to retire early, or who are looking for quality of life in the place they choose to reside, he said.
Many parents also scrutinize school districts carefully.
Aspen, Colo., for example, has great quality of life, but their public education system isn't as good as Park City's, he said. All wealthy areas have private schools, but many parents feel their child gets a more "normal" or well-rounded experience in public schools.
Additionally, Park City has many long-time residents who preserve the community's character. It's a real town, not just homes surrounding a ski resort, he said. Many people value a feeling of community.
All of these factors make Summit County an attractive place to locate one's primary residence - not just a place to buy land or have a vacation home. That's probably why it's the only resort town on the list, he said.
And the richest county in America? Loudoun in Virginia just outside of Alexandria.
– Park City Ranks #4 Steven M. Sears, Barrons, 3/2010
Prices of luxury real estate are finally starting to rise, as bargain hunters swoop in. Some of the best deals are in second homes with prices off as much as 40%.
At long last, the market for luxury real estate is coming back to life.
Prices for primary residences, which plunged at least 20% from the peak in 2007, appear to have bottomed. In some on the snappiest locations, scattered bidding wars are breaking out and prices are turning upward.
In Greenwich, Conn., realty brokers say, the final months of 2009 were almost record-setters for sales volume, as two years of pent-up demand was unleashed. Even the megadeal is back. In Beverly Hills, film producer Jeffrey Katzenberg just plunked down $35 million for an 8,700 square foot home on six acres. There's nothing like a stabilized economy and a huge rebound in stocks to send folks looking for the perfect manse. The return of hefty Wall Street bonuses hasn't hurt, either.
With all that in mind, and with summer just around the corner, Barron's sized up the market for upscale second homes, on e of the greatest luxuries of all. We scoped out dozens of deluxe enclaves across the country, speaking with brokers, homeowners and others. Our conclusion: now could be an excellent time to buy.
Prices are way down - 40% off the peak in some locations. Seemingly at or near bottom, they are starting to attract the first wave of bargain hunters - and not just families in need of R&R. Hard-nosed investors also are on the prowl, says Jan Reuter, head of residential real estate at U.S. Trust Bank of America Private Wealth Management: "We've seen an uptick in buying in just the last couple of months. Top 10
1. Maui
2. Kiawah Island
3. The Hamptons
4. Park City, Utah
Skiers love Park City for its powdery winters, but homeowners relish the summers, too. The crowds thin out, life slows down and the tall aspens lining the nearby Wasatch range shimmer in the breeze. The one-street Old West downtown is dotted with classic Victorian houses, while Deer Valley, an understated year-round resort community, sits on the eastern edge. Its namesake ski hill has been crowned by readers of Ski Magazine as North America's top ski resort for three years running. For $100,000, you can join the nearby Talisker Club, with links designed by PGA Tour Champion Mark O'Meara. Bonus: Salt Lake City International Airport, a Delta Air Lines hub, has direct flights to the East and West Coasts. Median Price: $1 million Drop From Peak: 45% Neighbor: Robert Redford
5. Aspen
6. Pebble Beach
7. Palm Beach
8. Captive/Sanibel Island
9. Asheville
10.Gasparilla Island
Looking for vacation property that's a good investment as well? These communities offer weather, scenery and active real estate markets. Plus: 10 more up-and-comers.
Popularity is a mixed bag when you're looking for vacation property.
A hot destination means more crowds, more traffic, longer lines. But if you're keeping an eye on investment potential -- and more than one out of three second-home buyers say they are -- then you want to buy where others want to be.
What you really want, though, is to buy today in an area that's going to be hot tomorrow, so what are the ingredients that will turn a sleepy village into the next Aspen or Hilton Head?
A beautiful setting is a must, but here are some other important factors: Proximity to growing urban centers. Vacation towns typically need to be within a two- to three-hour drive of a major city, or at least reasonably close to a big airport.
Plenty of recreational opportunities. There has to be lots of stuff to do beyond shopping, which is why most thriving resort towns are near ski lifts, beaches or mountains. Some cultural cachet -- a theater or film festival, galleries or museums -- is also nice.
Decent weather. You have to be able to get outside to enjoy all that recreation.
Significant commercial investment. The old-timers may grouse about the new hotels or malls, but these are good indicators that others think the community is on the way up.
The "it" factor. The community gets discovered by movers, shakers and celebrities -- or at least enough other folks like you -- for prices to get bid up.
Consider the following two lists of hot (and potentially hot) vacation home markets compiled by EscapeHomes.com, an online listing service for second homes, timeshares and other vacation property. You'll see some interesting similarities, as well as a few towns that break the rules.
The top 10 towns for second-home investments EscapeHomes.com identified popular second-home destinations that appreciated at least 10% a year in value between 1998 and 2002 and which may have further to go.
The results are based on their own listings for real estate in these communities. Listings aren't sales, though, and EscapeHomes.com doesn't reflect the whole market. In fact, real estate professionals in some of these towns (Asheville, N.C., for example) say sales were never that hot, while those in others (Park City, Utah, and Sunriver, Ore.) say appreciation has slowed in recent years.
Where possible, Ive included price appreciation figures compiled by the federal Office of Federal Housing Enterprise Oversight, which oversees housing finance companies Fannie Mae and Freddie Mac and which compiles housing sales data for larger metropolitan areas.
With all those caveats aside, here are the Top 10 second-home investment markets: Asheville, N.C. This mountain town boasts the Biltmore Estate and a thriving arts and crafts community. Home prices are up 35% in the past five years, compared with the national median growth of 27.8%.
Park City, Utah. The Olympics-related frenzy has cooled, but Park City is still a preferred destination for skiers and other winter sports fanatics. Prices this year are up between 5% and 7%, according to real estate broker Mike Sloan, statistician for the areas Board of Realtors.
Ashland, Ore. Lovely weather, lovelier scenery and cultural cachet combine in Ashland. Located about halfway between Portland and San Francisco, the town is also home to Southern Oregon University and the highly regarded Oregon Shakespeare Festival. Ashland's home values have exploded in recent years. Home prices in the region that includes Ashland and nearby Medford have risen at least 40% since 1998, according to federal figures, while a local appraiser puts Ashland's average home price growth closer to 70% in that period.
Port Townsend, Wash. This picture-perfect Victorian seaport lay nearly untouched for most of its long history until being discovered by Seattle yuppies in the 1990s. Its still quaint, but relatively mild weather and proximity to Olympic Peninsula attractions have increased its appeal for retirees and urban refugees.
Beaufort, S.C. You know Beaufort, even if youve never been there. You've seen it in movies like The Big Chill and Forrest Gump, and you've read about it in the pages of The Prince of Tides and The Great Santini by one-time Beaufort resident Pat Conroy. Fishing, shrimping and a National Historic Landmark District are features of The Queen of the Carolina Sea Islands.
South Lake Tahoe, Calif. Though it shared Americas largest alpine lake with the more glamorous Lake Tahoe, Nev., this community was long the dowdy little sister. No more. Two new Marriotts have replaced a strip of decaying old motels along the main drag, and theres talk of a convention center. Median home prices are up 21% from last year, said Madeleine Gutierrez, vice president of the South Lake Tahoe Association of Realtors.
Daytona Beach, Fla. Nineteenth-century industrial barons popularized Daytona, which is probably best known for the international raceway built in 1959 and the Daytona 500 auto race. Eight million visitors pour through annually. Home prices are up 44% in the past five years and nearly 9% in the last year alone.
Sunriver, Ore. This central Oregon resort area is near Bend and the Mt. Bachelor ski resort, about four hours from Portland and two hours east of Eugene. Whitewater rafting, hiking and skiing are favorite pastimes. Prices on some properties are about double what they were eight years ago, realtors say, but appreciation has slowed down in recent years along with the economy.
Myrtle Beach, S.C. The beaches along The Grand Strand -- and the areas 120 golf courses -- draw 14 million visitors annually. Despite the crush, Myrtle Beach consistently winds up in various listings of the nations best beaches and best retirement towns, with home prices rising at an 8% annual clip.
Charlevoix, Mich. This little town lies between the shores of Lake Michigan and Lake Charlevoix in northern Michigan. The population of the town and surrounding area is 8,500 full-time residents -- which climbs to 30,000 in the summer. Golf courses and water fun are the main attractions.
10 emerging second-home markets Here's another intriguing list EscapeHomes.com has concocted: vacation-home areas that are just beginning to get popular with its users. Theres no guarantee any of these will become the next Myrtle Beach. In fact, given the more remote and generally northern location of many of these sites, you can pretty much count that out. But there could be some second-home price appreciation ahead.
Burnside, Ky. Community boasts a Catfish Festival and bills itself as The Only Town On Lake Cumberland! Its near Lexington, Frankfort, Louisville, Nashville and Knoxville and not far from the Big South Fork National Recreation Area.
Caribou, Maine. Snowmobilers and cross country skiers venture down from Quebec and New Brunswick to enjoy the scenery in this northeast Maine town.
Ely, Minn. The Gateway to the Boundary Waters Canoe Area Wilderness is a second home mecca for residents of Duluth and Minneapolis-St. Paul.
Island Park, Idaho. This area near Yellowstone and the Grand Teton national parks, is becoming an alternative to Bozeman, Mont. and Jackson, Wyo.
Ketchikan, Alaska. This is a paradise for hunters, hikers and anglers, but you have to want to get there. Its more than 37 hours by road and ferry from Seattle, the nearest big city. Closer is Juneau, the states capital, but you still cant get from here to there by road.
Lake Martin, Ala. Bass fishing is big in this town nestled in the southernmost foothills of the Appalachian mountains. Nearby: Birmingham, Montgomery and Atlanta.
St. George, Utah. Speaking of gateways, this little town is near much of Southern Utah's most spectacular country, including Zion Canyon, Bryce Canyon, Cedar Breaks National Monument and the North Rim of the Grand Canyon. Closest cities: Las Vegas and Salt Lake City.
Sisters, Ore. Another Central Oregon contender, Sisters is northwest of Bend. Its a former lumber town turned fishing and tourist mecca on the edge the Deschutes National Forest. Closest cities are Portland and Eugene.
Waterville Valley, N.H. Tucked inside the White Mountain National Forest, Waterville Valley offers all the outdoor experiences you could want, and then some. Concord and Manchester, N.H. are nearby. Boston is about 2 hours south on Interstate 93.
White Mountains, Ariz. A cooler alternative to Phoenix, about four hours away, the White Mountains region offers snow sports in winter, golf and hiking in the summer and picturesque Indian villages all year round.
23 October, 2009 (Park City) – The dollar volume of real estate transactions in the greater Park City area (which includes Summit and Wasatch counties) totaled $575.5 million in the first nine months of 2009, down 33.7 percent compared to $868.1 million in total sales in the same January through September period in 2008, according to the Park City Board of REALTORS�.
“There continues to be tremendous opportunities in the current market for buyers,” said Lincoln Calder, president of the Park City Board of REALTORS�. “When you look at the entire market for the Park City MLS, median sales prices have come off about 30 percent from their highs in 2008."
The 758 sales transactions in the first nine months of 2009 were down 30.4 percent compared to 1,090 transactions in the first nine months of 2008. The sales trend seems to have changed course in recent months, however. “Since February 2009, we have seen a steady increase in the number of pending sales,” Calder said. “Buyers have come back to the market and have been motivated by lower pricing.” He added that there continues to be pressure on pricing and finding value is of primary concern to buyers.
Single-family properties continue to account for the majority of sales transactions occurring in the market. Condominium sales make up nearly one-third of the total transaction volume.
Pricing (Single-Family Homes)
The median sales price for single-family homes sold in the Park City limits during the first nine months of 2009 was $1.4 million, down 13.3 percent compared to $1.6 million a year ago. The number of single-family homes sold in the first nine months of 2009 was nearly the same as the same period a year earlier (65 sales vs. 67 in 2008), suggesting that price declines have again motivated buyers.
In the Snyderville Basin (which includes Kimball Junction and Jeremy Ranch) the median sales price for single-family homes fell to $650,000 in the first nine months of 2009, down 9.7 percent compared to $720,000 in the same nine-month period last year.
Heber Valley saw its median single-family home price fall to $307,500, down 12.1 percent compared to $350,000 a year ago. The Kamas Valley also saw a decrease in its median price of homes, falling to $285,000, down 18.3 percent compared to $349,000.
Pricing (Condominiums) The median sales price for a condo inside Park City limits during the first nine months of 2009 was $625,500, down 22.7 percent compared to $809,550 a year ago. Lower Deer Valley had an increase of five sales (20 vs. 15 in 2008) with a total volume of $18.8 million vs. $15.0 million in 2008. In the Snyderville Basin, condo prices fell to $350,000, down 18.7 percent compared to $430,450 last year.
Land
Vacant land sales continue to be slow. In the first nine months of 2009, there were 86 land transactions in Summit and Wasatch counties, down from 183 transactions during the same period last year. The median sales price of land fell to $371,000, down 10.6 percent compared to $414,880 a year earlier.
Outlook
Utah’s real estate market continues to fare better than many surrounding states and the nation. Utah ranked No. 27 among all states in the percent of its mortgages “underwater,” according to a recent report by First American CoreLogic. As of mid-year, 25 percent of all mortgages in Utah were in a negative equity position. In comparison, 66 percent of mortgages in Nevada were upside down. In Colorado, 35 percent of mortgages were in negative equity. Nationally, an estimated 32 percent of all borrowers owed more on their mortgages than their home was worth.
At 6.2 percent in September, Utah’s unemployment rate continued to trend well below the national jobless rate of 9.8 percent. According to Economist Mark Knold, Utah’s employment losses hit bottom in August. “Utah is still losing jobs, but at a slower rate,” Knold said. “This suggests that the Utah economy has just passed through an inflection point within the business cycle—that the low point has been reached and the trend forward will now be back up.”
“Going forward the economy continues to show signs of improvement,” Calder said. “Nationally, home prices in many areas have stabilized and have even shown small price increases. Park City did not experience the rampant speculation that plagued many areas of the country. Buyers continue to look to Park City for its great lifestyle and world class resorts.”
Let’s be honest – none of us know what we can be certain of when it comes to the global or local economic recovery. In a single day, one expert will emphatically declare we’re well on our way to prosperity, then another says it’s going to be at least two years before we can even begin to determine where the world’s financial systems stand. About the only point everyone agrees on is that all the rules are changing and things will never be as they were again … which might be for the best.
In light of this, we began to search for some answers to questions we all have about the Park City real estate market. When is it going to be the best time to buy? Have the prices bottomed out yet? What neighborhoods have the best deals? Park City’s home values have not fallen as much as many other ski resort communities - why is that? We sought out the expert’s – local RE Brokers and top agents – to tell us what their thoughts are on this subject. What we learned is extremely valuable information for anyone who is thinking about buying a primary or secondary home in Park City in the next 12 months.
President of the Park City Board of Realtors and Agent for Keller Williams Real Estate, Lincoln Calder, thinks this is the best buyer’s market he seen in years. “Even though consumer confidence relating to the economy as whole has been slow to come around, we’ve seen a 300% increase in pending sales since February of 2009. The ease of access and quality of life here has not been changed by the economic downturn, and as a result many families have taken advantage of the drop in prices and made Park City their primary home. There’s an incredibly wide range of properties available at prices significantly lower than in 2008. Most notably, some very unique homes that offer ski-in/ski-out, one-of-a-kind floor plans, or panoramic views have started to become available. I think in the long-run, these homes will prove to be most profitable investments.”
Chris Robinson, President Elect of the Park City Board of Realtors and Park City Regional Manager for Prudential Utah Real Estate, stated, “The data collected during this past selling season indicates it is the Buyer who is driving the market and values. I believe there will continue to be adjustments downward throughout the end of 2009 while we ‘sell through’ the short sales and the foreclosures currently available. The Buyer must keep in mind, however, that these ‘deals’ are fewer and further between. Also, in many cases, those ‘deal’ properties will not meet the criteria or desires of a Buyer who wants to live or invest in our community. There are isolated ‘best’ deals throughout our diverse geographical areas, but it’s a moving target. It is extremely important for a Buyer to connect with a Park City Realtor� to be better informed and get the most timely information on properties that are available.”
Co-owner of Summit Sotheby's International Realty, Bruce Shannon, believes the sector of Park City’s real estate market with price points below $700k is fairly stable, especially for single-family homes. He thinks this is because lending is readily available for this type of transaction. However, above this price or other types of properties, loans have become very difficult to obtain, particularly second homes or condos. “For cash buyers, there are unbelievable deals all over town.” Shannon went on to say that Park City has been hurt less relative to many of the other resort areas
� Park City Board of REALTORS� 435-200-6900
