Brief Overview of the Park City Real Estate Market

By Jess Reid

2011 SALES TOP ONE BILLION AGAIN! That's pretty impressive for a small town in the mountains. It also means inventory levels are slowly decreasing which will eventually stabilize and even increase pricing. That said, with the exception of single family homes, we still see some downward pressure on current property values. The good news is that the number of transactions is up which reflects continued interest in owning a home in Park City at some of the most reasonable prices in many years.

SINGLE FAMILY DETACHED HOUSING. It's up in three categories; number of transactions, sold volume and average sales price. This could be another sign that we are either near or at the bottom of the market.

TOURISM AND SKIIER DAYS. The news this winter is very promising. Some hotels and lodging companies are reporting bookings that are up 30 per cent over last season! Overnight lodging rates appear to have stabilized and in some cases, actually increased. Further, there seems to be a resurgence in the number of high end visitors which is good news for Park City's luxury resort properties.

DEER VALLEY REAL ESTATE. The number of sold transactions, average sold price and volume were down in 2011 but winter is shaping up to be much more active. As Deer Valley is primarily populated by vacation homes, the recovery in this sector is lagging primary residences. Four new projects in Deer Valley still have several developer units available; Silver Strike, Flagstaff, The St. Regis and The Montage.

THE CANYONS. Utah's largest ski and snowboard destination still has excess condominium inventory.  However, the newest developments are now finished to a very high standard and will ultimately sell for the right price. In the meantime, Talisker's ownership of the resort has brought great improvements for the future and there's now talk of someday linking The Canyons to Solitude Ski Resort on the other side of the mountain. Stay tuned for details.

WHAT DOES THE FUTURE HOLD FOR THE PARK CITY REAL ESTATE MARKET?  We will see a continued slow recovery through 2012.  It is very hard for anyone to project when the U.S. economy and housing market will start showing more significant signs of healing.  With the entire world going through historical economic changes, there is still much we don’t know about what it is going to take to get things turned around.

PARK CITY IS FORTUNATE. We continually hear that people come here for several reasons; it's easy to get to, our quality of life is second to none, the schools are the best in the state, we are blessed with an abundance of beauty and recreational opportunities. A number of clients have told us they are tired of playing the stock market and want to invest in their lifestyle and families. Owning a home here is not just a real estate hedge against inflation, it's an investment in their family's enjoyment.

INTEREST RATES. We all know that mortgage rates are at historic lows. But qualifying remains a challenge and until banks make financing available to more buyers, we believe consumer confidence will remain tepid. About half of all buyers now purchase homes here with cash.

IN THE MEANTIME. What a great place to visit and eventually call home. There's no place better to weather the unknowns of our current recessionary times than on a beautiful mountain with the world below.

“STATE OF THE INTERNATIONAL LUXURY REAL ESTATE MARKET”
RELEASED BY CHRISTIE’S INTERNATIONAL REAL ESTATE

Survey Results and Commentary by the Leading Global Network
of Luxury Real Estate Specialists
Jess Reid Real Estate is the Exclusive Affiliate in Park City

London, UK - Christie’s International Real Estate released its inaugural “State of the International Luxury Real Estate Market” report. The research paper compiles the results of a survey completed by affiliated brokerages in the network—all experts in the luxury market—enhanced with their supporting commentaries and insights.

“The resulting report is an intriguing snapshot of the current global prime real estate market as viewed by the world’s leading network of luxury real estate experts,” says Neil Palmer, Chief Executive Officer of Christie’s International Real Estate. 

The paper examines the prevailing mood of buyers and sellers, how market activity is trending worldwide, and how transactions in the upper levels of the market are completed. For instance, when it comes to buying, 87 percent of the network reported that cash is the preferred means of payment.  

Luxury home sales in the Park City Market have improved this year when compared to last. From January 1, 2010 to October 1, 2010 there were 98 sales over one million dollars. During the same time period this year the Park City Multiple Listing Service showed 108 home sales over one million; of those eight exceeded four million. The ski in/ski out Colony community boasted the highest sale price to date in 2011 reporting in at over six million. Luxury condos in town have also performed well this year with 55 closed sales over one million- the priciest weighing in at eight million.      

 The report further reveals that buyer optimism is slowly increasing while seller expectations in pricing are improving but remain somewhat unrealistic. More than 67 percent of the survey respondents reported an increase in buyer activity for the first eight months of 2011 when compared to the same period last year. The largest upticks were reported in metropolitan cities like London, Paris, Hong Kong, New York, and Beverly Hills.

Spanning more than 40 countries with a combined annual sales volume estimated at US$100 billion, the Christie’s International Real Estate network focuses exclusively on the world’s properties valued above US$1 million. Real estate brokers are invited to become Affiliates only after a rigorous approval process.

The report concludes with bulleted market reports from a selection of the geographies represented by the exclusive Affiliates of Christie’s International Real Estate.

About Christie’s International Real Estate
Christie’s, originally founded in 1766 by James Christie, pursued an innovative real estate venture in 1995 by acquiring Great Estates, a luxury real estate network founded in 1987 by Kay Coughlin. Christie’s International Real Estate is an invitation-only Affiliate network composed of the world’s most proven and qualified real estate specialists. The company has central hubs in London and New York; field offices in Beverly Hills, California, and Palm Beach, Florida; an operations centre in Santa Fe, New Mexico; and circa 130 Affiliates in Europe; North, Central, and South America; and the Caribbean as well as Asia, Africa, and Oceania. In 2011, new Affiliates were signed in Dallas, Texas; Pyrénes-Atlantiques, France; Johannesburg and Cape Town, South Africa; Highlands, North Carolina; Maui, Hawaii; Lake Tahoe, California; Phoenix, Arizona; the Turks & Caicos; and Toronto, Niagara-on-the-Lake, and Ottawa’s Rockcliffe Park, all in Ontario, Canada. 

The full article can be read here:

State of the International Luxury Real Estate Market

Jess with kids from current and past Interact Clubs and Park City Leadership classes

Click on the link to read the full article from the Park Record November 2-4, 2011

Leadership Park City award

We have a diverse group of Realtors here at Jess Reid. Here are just a few of the many you may choose from to work with...

Good news – last winters’ overnight visitation was up over the previous year although still at discounted rates to keep things moving.  Overall skier days were also up substantially and not at discounted rates.  This is a good sign as our base economy (tourism) leads us out of difficult economic times.

The “Soft Recovery” Continues.  Year-to-year comparisons (2010 vs. 2011) show for the overall Park City market (all property types) that transactions are up approximately 18% with closed sales volume up just over 2%.  However, our average sales price has declined further by approximately 13%.  It seems that this indicates good activity in the market place at incredibly low prices as our buyer’s market continues.  Inventory levels are dropping during this time and we could finally be nearing the bottom or bottoming out on our property values.  For buyers sitting on the fence, this may be the time to move in while you still have a reasonable amount of choices for your purchase decision. 

Loans are available for most types of properties.   However, they are difficult, to say the least, to obtain.  We are back to having to prove that you can qualify for a loan to get one (nothing wrong with that).  But lenders are still very nervous and greatly regulated as are appraisers and are really looking closely at the property as they decide whether or not to make a loan.  Interest rates remain at historic lows – even if interest rates go higher - a six or seven percent loan is still incredibly low historically.

Short Sales and Foreclosures are still occurring in the area and are still difficult to navigate.  They continue to make up approximately one-third of our local sales activity and should continue that way for a while longer. 

Deer Valley Real Estate (all property types) is showing declines in both closed sold volume and number of transactions sold and average sales price.  This is primarily driven by condo sales statistics.  Very little of the newer built product in Empire Pass remains unsold.  The St. Regis and The Montage still have plenty of inventory to choose from.  The Montage has reported outstanding sales for the winter season with 14 new units being sold in the approximately $1,300 per square foot range.  Their new slightly increased pricing has just come out. 

Quality Time Remaining continues to drive most buyers to purchase in the greater Park City/Deer Valley area.  Obviously pricing and selection right now is also a big factor in this buyers market.  But people are buying for the right reasons again and that is for the enjoyment of their home because they feel they deserve it.  Their Park City home gives them the opportunity to gather with their family and recreate and all of this is so close and easy to get to via the Salt Lake International Airport.  People are focusing on the fact that real estate is a long term investment and a great way to enjoy your investment while it appreciates over the years. 

The 2011 Real Estate Recovery continues to be frustratingly slow – much like the national economic recovery.  As we continue to see different healing going on within our national economy and the global economy we should see our local market improve in the second half of 2011.  Certainly this will not be a “rebound” but it is entirely possible we will see upward trends in the recovery of our local real estate market as we begin to “feel” a national recovery.

-by Jess Reid

Thaynes Canyon Area

The Thaynes Canyon Park City real estate area spans the hillside area behind the big white barn (McPolin Farm) you see coming into Park City proper. Homes here also surround the Park City Golf Course (which becomes a cross-country skiing area for the winter). This is a well established neighborhood with single family homes tucked away in the trees for privacy, and offers easy access to Main Street and the ski resorts by way of a short walk or the in-town bus lines. From Thaynes Canyon it is a leisurely walk to Hotel Park City where you will find Ruth’s Chris Steakhouse, Bandanas Café, the golf pro shop, a fitness center, and a luxurious spa and in the winter; cross country skiing, rentals and lessons.

Numerous condo projects are adjacent to the South. This includes Silver Star with its ski in and out access, ski shops, restaurant etc.

Located within the Park City Limits        

   This area is comprised of:

•     4 single family detached neighborhoods
  • Thaynes Canyon
  • Iron Canyon
  • Aspen Springs
  • Thaynes Creek Ranch

The average sold price between 8/8/10 and 8/8/11 is:

• Single Family detached - $1,021,368

Neighborhood amenities and unique characteristics :  

• Park City Municipal Golf Course - parkcitygolfclub.org 
• McPolin Farm - parkcity.org
• Rotary Park - parkcity.org
• Hotel Park City - hotelparkcity.com
• Schools servicing the neighborhood:
  • Parleys Park Elementary, Parleys Park Elementary
  • Treasure Mountain International Middle School, Treasure Mountain Middle
  • Park City High School, Park City High
• Year round paved trail access to schools and Old Town - mountaintrails.org 
• Silver Star ski access

 *The above information is provided as an “approximate” guide to help in understanding the area.  All of the information is subject to change at any time, so please verify anything that is important to you.

What is an Academic Decathlon?

It is an annual high school academic competition organized by the non-profit United States Academic Decathlon Association.

The students compete in 10 academic events including  seven multiple choice tests, two performance events, and an essay.

The team of nine is made up of students with different grade point averages. There are 3 divisions: Honors (3.75–4.0 GPA), Scholastic (3.00–3.74 GPA), and Varsity (0.00–2.99 GPA). 

Each team member competes in all ten events against other students in their division, and team scores are calculated using the top two overall individual scores from each team in all three divisions.

To learn more about Park City's team:  Park Record-Decathlon article

To learn more about the decathlon in general: US Academic Decathlon on wiki

Aerie

The Aerie area is located on the mountain between Old Town, Prospector Square, and Lower Deer Valley. The Aerie is right in the heart of Park City. This area was the first development to move off the valley floor and into the surrounding mountains.  It accesses Deer Valley Drive from two locations.   The Aerie is comprised of older and newer homes and a section of condominiums at April Mountain as well as vacant land for new construction and boasts big views of ski resorts and the basin. 

Located within Park City limits

The area is comprised of:

• 2 Single Family detached homes neighborhoods

  

  Homes in Aerie

• 1 Condominium neighborhood

The average sold prices are: (between 3/1/10 and 3/1/11):

• Single family detached $1,845,583
• Condominiums $1,024,200
• Vacant Land $552,500

Neighborhood amenities and unique characteristics are:

• Miles of trails throughout, visit http://www.mountaintrails.org/
• Panoramic views of the Snyderville Basin and the ski areas
• Within the Park City School District
• Conveniently located 5 minutes from 3 ski resorts and a few minutes from Main Street.
• Walt to Gambel Oaks Park

View from Aerie

*The above information is provided as an “approximate” guide to help in understanding the area.  All of the information is subject to change at any time, so please verify anything that is important to you.

Silver Springs

The Silver Springs area is located a few miles from Park City’s Historic Main Street and is an attractive mix of primary residential home and condominium neighborhoods.  The demographics are mostly families and individuals who either work and play in Park City or commute to Salt Lake City; a quick 30 minute drive down the canyon.  Parley's Park Elementary and some light commercial such as a bank, gas station and convenience store, and a small office building enhance this neighborhood. Being situated directly across from The Canyons Ski area and minutes from The Park City Mountain Resort and Deer Valley, there are some vacation home owners in the area.

Silver Springs enjoys recreational lakes located directly within the community and immediate access to an attractive well maintained trail system to hike or bike into Park City or Kimball Junction.  Within minutes the trail system goes directly past The Willow Creek Park hosting children’s play area, ice skating, soccer fields, basketball and volleyball.  

The homes, on a third to half acre, and condos are two to seventeen years old, all attractively landscaped, and most with wonderful views of all three ski areas.  Homes that come on the market in Silver Springs usually sell well due directly to its very desirable Park City locale.

 To visit Silver Springs on line go to www.silverspringshomeowners.com.    

Located two miles from Park City and a similar distance to Kimball Junction and I-80 to Salt Lake.

 This area is comprised of:

• 7 single family detached home neighborhoods.
• 5 condominium neighborhoods.

The average sold prices are:   (as of 3/1/11)

• Single Family detached $655,184
• Condominiums $308,000

 Neighborhood amenities and unique characteristics:

• Adjacent to miles of hiking and biking trails, www.mountaintrails.org
• Walking distance to Parleys Park Elementary School, http://ppes.pcschools.us/
• Ten minutes to three ski areas and five public  and private golf courses.
• The Willow Creek Park, and adult pavilions overlooking little lake, http://www.basinrecreation.org/Parks/willow_creek_park.html
• Ice skating and groomed cross country trails
• Free Bus system in and out of town, http://www.parkcityinfo.com/static/index.cfm?contentID=765

*The above information is provided as an "approximate" guide to help in understanding the area. All of the information is subject to change at any time, so please verify anything that is important to you.

Prospector Square area is a mixture of residential, on the east side, and commercial, on the west side, with a Marriott hotel, condos, office buildings, medical facilities, a fitness center, a conference center, restaurants, shops a great in-town location, parks and great access to Park City’s immense trail system.  

Residential construction started in the mid 70’s and included some Victorian Style architecture.  There are three residential neighborhoods Prospector Village, Prospector Park and Chatham Hills.  Condos range from studios to large three bedrooms and are found mixed in both the residential neighborhoods as well as nearer the shops and restaurants.  Prospector Village is zoned for nightly rentals, allowing more mixed use.  

The prospector area is very convenient to three public schools (grades 1- 5, 7-8 and 10 -12)  Students living here can easily ride a bike to school, with the exception of the two years they ride a school bus to Ecker Hill Middle School. 

Prospector Park

Park City’s Free Bus Service comes through Prospector taking riders almost anywhere in the city, to all three ski resorts and through much of this side of the County.  

It's been snowing here and there is a ton of new snow! In the last 72 hours Deer Valley has had 25 inches, Park City Mountain Resort reports 26 inches and Canyons has 20 new inches. Plus Sunday and Monday have been beautiful sunny days! Go skiing!

Here are a few snow photos from the Deer Valley area.

Have you ever wondered where something is on Main Street? The Historic Park City Alliance has a wonderful website full of information.

We like the Park City business directory map of Main Street: http://www.historicparkcityutah.com/maps

But that is not all this website has to offer. Explore it and learn more about Park City's colorful history.

http://travel.nytimes.com/2011/01/09/travel/09where-to-go.html?scp=9&sq=Park City&st=cse

Let us know why you think Park City is a great place to visit or live!

Read the article here:

http://online.wsj.com/article/SB10001424052748704482704576071984006994652.html

New SNOW!

Park City Mountain Resort  has 6" of new snow!  

Deer Valley Resort has 7" of new snow!  

The Canyons has 5" of new snow!  

Let's go skiing!  

Click here for discount lift tickets at 10 Utah ski resorts!  

Click here to find the location of a Canyons Sports store

Montage Deer Valley  

Montage Deer Valley is the latest luxury hotel and private residence development in Park City.  

It's located on 15.96 acres in the Empire Canyon area, mid-mountain near the top of Deer Valley. The Montage is a self contained, year-round mountain community offering 174 guestrooms and suites and 81 private residences.  The first 8 floors (7 floors-hotel, 8th floor-residential) and public space opened December 8, 2010. Total build out of remaining residential units is scheduled for the end of April, 2011.   

The development features views to the north, down Daly Canyon toward Lady Morgan and the distant Uinta Mountains and uphill views to the south of Empire Canyon and the Daly Chutes. It is owned by DV Luxury Resort LLC, a partnership of Montage Hotels & Resorts, The Athens group, and private investors. It's operated by Montage Hotels & Resorts which also manages Montage Laguna Beach and Montage Beverly Hills in California.  

Located in Park City, Summit County  

This area is comprised of:  

• Montage Deer Valley Resort
• Future development parcel for town homes, owned by Talisker, to the east of Montage where temporary sales offices are now located. 
• Deer Valley Resort Empire Canyon Lodge

The Montage is comprised of:  

• 174 hotel guest rooms and suites.
• 81 private residences (1, 2, 3, 4 bedroom units) ranging in size from 1200 to 6900 square-feet on upper six floors of resort.
• 55,000 square feet of interior and exterior meeting and event space including 4300 square foot ballroom and 2450 square-foot junior ballroom.
• "Grand Lawn," "Grand Patio,” and "Mountain Lawn" areas designed for private outdoor events. 
• Retail space including ski and bike rental shops, signature boutique, and sundries shop
• 4 Restaurants and 3 Bars
• 24 hour room service 
• 4 lane bowling alley
• Billiards and game arcade
  

  Montage

   

• Heated underground parking for more than 500 vehicles
• 35,000 square foot spa with indoor lap pool
• Outdoor pool and whirlpool spas
• Outdoor après-ski terrace and fire pit
• Private owner's lounge and residential concierge staff on 8th floor

The average sold prices: (as of October 2010)  

• 3 Sold Condominiums - $3,050,000
• "First Tracks" Introductory Incentive- First choice of 12 residential units at 20% discount off list price
• "First Tracks" Pricing- $3,450,000 to $7,860,000 minus 20%
• Monthly Assessment including Empire Pass Dues - $1,135 to $3,470 depending on square footage. This is equivalent to $10 per square foot (per unit) per year. Portion of Empire Pass dues will be reduced by $700 to $800 per year for non use of association's Dial-A-Ride program.

Neighborhood amenities and unique characteristics:  

• Direct Access to Deer Valley's Empire and Lady Morgan ski mountains including chutes, glade, mogul and groomed skiing
• Membership available at Talisker Club which includes Tuhaye Golf Course, The Tower Club, The Cabin and The Yurt. (four different options including Full Membership and use of Tuhaye Golf Course or Mountain Membership restricted to on mountain facilities) Private shuttle service
• Only bowling alley in Deer Valley
• Direct access to mountain bike and hiking trails
• Only resort to feature 360 degree ski access from property 
• Part of Empire Pass Master Association which mandates 92% of terrain to be preserved as open space

* The above information is provided as an "approximate" guide and is subject to change at any time. Please verify details to your own satisfaction.

To celebrate their 30th Anniversary Deer Valley is selling $30 lift tickets December 6-8!

Happy Anniversary Deer Valley!

By Jess Reid

Signs of recovery are showing in Park City.  Transactions in 2010 were up dramatically over 2009.  However, prices fell dramatically to help achieve this level of sales activity.  The big debate of the day is whether the market has bottomed out or we are close to the bottom.  In any event 2010 closed over a billion in sales and that is really good for a community of this size. 

            Interest rates continue to remain at historic lows.  However, a large amount of the transactions (at least 50%) that we are seeing are for all cash. 

            Foreclosure sales and notices of default are trending downward per the public records at the County.  However, the other side of this is that sales of foreclosed properties and short sales have made up approximately 35% of our area wide sales and will most likely continue to be a significant part of our sales activity into part of 2011.

            Deer Valley Real Estate has been very strong through the recession and slow recovery, especially as regards condominiums.  Condo dollar volume, number of transactions and average price were all up substantially over the previous year.   Deer Valley has also been named the number one ski resort in North America by Ski Magazine for an unprecedented fourth year in a row. 

            The Montage Hotel opens this winter.  This will be an incredible addition to the entire community. This upscale luxury hotel will be offering 174 hotel rooms and 81 condominiums, as well as 3 different restaurants and bars, a bowling alley, swimming pools, a 35,000 square foot spa, 17,000 square feet of meeting space and more. 

            Why are people continuing to buy in Park City?  Obviously pricing and tremendous selection right now in this buyers market.  Drilling down deeper, what is really driving our buyers hasn’t changed – it is often what we refer to as Quality Time Remaining.  People are buying for the right reasons again and that is for the enjoyment of their home because they feel they deserve it, it gives them an opportunity to gather with their family and recreate and is all so close and easy to get to via the Salt Lake International Airport.  People more and more are remembering that real estate is a long term investment and a great way to enjoy your investment while it appreciates over the years. 

            Park City’s Real Estate Recovery – much like the national economy has been frustratingly slow.  This will continue into 2011, but we will see things steadily improve in small increments during the year. 

The Reid Building – 750 Kearns Blvd • 435-649-3000

Celebrating 26 years in Park City Real Estate