The Park Record Newspaper (Park City Utah’s twice weekly news resource) ran an article this week stating that while construction costs should be enticing for building, builders and suppliers remain quiet. 

            Park City home building costs have come down recently due to a lower lumber, asphalt, steel and concrete costs. Jim Drexinger, senior vice president of sourcing for Stock Building Supply, which has a large store near Kamas that supplies local builders, said global markets are affecting many of the products they sell. Some lumber products have seen a “significant” reduction in price and some to “multi-year historic lows,” he said. Additionally, the slow building market has lead to a glut of construction laborers which has lead to very favorable labor costs for those people choosing to build.

            Unfortunately while costs are down (Jared Rakisits, president of the Park City Area Homebuilders Association was quoted as saying “It’s probably the best time in quite a few years to build a house”), we are still dealing with a tight credit market and construction loans are not easy to obtain in Park City & Deer Valley (or most other spots in the country).

            Not all home construction costs have gone down in the Park City area. A local lighting retailer noted that prices in their field have been steadily rising at five to ten percent a year. This has some Park City and Deer Valley home builders trying to cut costs and search for cheaper materials.

            The lack of recent sales of vacant land in the Park City and Deer Valley are another indicator of the slow construction and building market. There are currently over 450 listings for vacant land in the greater Park City real estate area and there have been 9 sales over the past 3 months. 

            Local Park City and Deer Valley builder Richard Jaffa of Jaffa Group Design/Build was quoted as saying ‘While the recession may be over by next year, it will take about three years for the area’s housing boom to fully recover.’

            Predicting the bottom of the Park City and Deer Valley real estate market is anybody’s guess, but there is no doubt that the current high inventory levels coupled with low building costs make this an opportune time to purchase and build n Park City, Utah.

            As skiing film maker Warren Miller liked to say: If you don’t do it now, you’ll just be a year older when you do next year.

                Park City & Deer Valley real estate can boast of having many fine golf communities completed or nearing completion.  These include Glenwild, Tuhaye, Promontory Ranch, Hideout Canyon, Victory Ranch and Red Ledges.  Promontory features two courses, an equestrian center, club houses and numerous kids programs.  Tuhaye has one course (plus another in the works), a ski boat on the Jordanelle Reservoir, many kids programs but is unique in that its membership includes the Talisker Club amenities at Deer Valley ski resort. Victory Ranch will have an exceptional course but what separates it from the other clubs is that it has private river frontage on the Upper Provo River and fantastic fly fishing,  Red Ledges will open its Jack Nicklaus designed course 4^th of July weekend and will have world class tennis facilities and other amenities. Glenwild’s crown jewel is its Fazio designed golf course. It is a golf country club type of community complete with workout room, restaurant and swimming pool. All of the above are gated communities.

                 I think Park Meadows Country Club, which often seems to fly under the radar screen, is worth considering when a family is deciding to purchase a primary residence or vacation home in a Park City and wants golf to be a part of their Park City lifestyle.  It is not a gated real estate community and does not have many of the built in programs and amenities associated with these other clubs. On the other hand it is located within the Park City town limits which means all of the activities and amenities in Park City are readily available to families that purchase a home in Park Meadows and join the Park Meadows Country Club.  Some of the amenities in Park City are the Racquet Club, the free bus system, the Skate Park and City Park.  The Park City restaurants, clubs, events and shopping match its real estate in being world class.

                Park Meadows Country Club, originally designed by Jack Nicklaus, was renovated last year by John Harbottle. Park Meadows has a swimming pool, restaurant and workout room. It is adjacent to the Park City Racquet Club and is part of the city-wide free Park City bus system, a real plus for getting kids to and from all that Park City, Utah has to offer.

                No one knows what Park City real estate areas will appreciate more rapidly as we climb out of this recession but if I had to put money on it I would bet homes, condominiums and lots inside of the Park City town limits to bounce back more rapidly just based on the principle of scarcity. 

                If you are considering the purchase a home or condominium in the Park City or Deer Valley area and want to live on or near a golf course don’t forget to take a peek at Park Meadows.

                For more info on Park City Real Estate contact a YouInParkCity.com Keller Williams Park City Real Estate specialist.

             Golf courses and spas are a major component of resort real estate in the Park City and Deer Valley area. Many of the real estate communities in The Canyons area of Park City have some reliance on golf in the area. A meeting will be held today to discuss why the proposed golf course adjacent to The Canyons Resort in Park City, Utah has not come to fruition.

            In the late 1990’s as part of The Canyons Resort specially planned area (SPA), a golf course was required as part of the plan. The plan required a course to be in place by 2002.

            The Spa allows for increased density at the base of The Canyons Resort and has many conditions which allow for the density increase such as a golf course (golf is often developed as “open space” in large development and SPA areas in and around Park City, Utah), roads, trails public right-of-ways, etc. Many of the problems with the proposed golf course and overall development of the base area at The Canyons Resort stem from the fact that there are over 25 different land owners involved dealing with complicated trades, leases and other transactions to get the original SPA approved.

            With the Talisker Corp. as the new owner of The Canyons Resort, it was widely anticipated that due to its golf background, the course would move forward quickly. This has yet to happen and the lawsuits surrounding the area can only make matters worse.

            Many of the real estate developments within and around The Canyons and Park City have made mention of the future course and no doubt many Buyers have made real estate purchases based on the proposed course.

            The proposed golf course at The Canyons could play an important role in making the resort and surrounding tourism driven developments more profitable year-round. Most of the newer real estate developments in The Canyons area (The Grand Summit, The Sundial Lodge, Escala, Vintage on the Strand, The Westgate, Dakota Mountain Lodge, Fairway Springs and more) have made some claim to proximity to and added benefit to owners and guests that the proposed golf course at The Canyons will bring.

            Unfortunately, golf courses are not cure-all prescriptions for real estate and tourism. Local private and semi-private Park City area golf courses are experiencing difficulties. These can be seen by the recent bankruptcy and subsequent emergence from bankruptcy at Promontory, as well as the exodus of over 100 members at the Jeremy Ranch golf club and heavily discounted memberships becoming available at Park Meadows Country Club.

            The completion of the proposed course at The Canyons Resort in Park City will be a welcome addition by area golfers and tourists alike, but how well the Park City area which boasts more than 14 golf courses (and at least 3 more on the way) within a 20 mile drive can absorb enough tee times to make them all work is yet to be seen. The effect on the real estate surrounding the Park City and Deer Valley area golf courses is a great discussion.

            For more information about golf related real estate opportunities in the Park City and Deer Valley areas, contact a YouInParkCity.com real estate agent.

                Several clients have asked me if the new St. Regis at Deer Crest will be open for the 2009/2010 Deer Valley® ski season in Park City. And after my tour yesterday of this amenity rich hotel I have to say I believe it will. Everywhere I looked I saw people working, over 400 of them in fact.  The 100% wool carpet is going in; kitchen equipment is being hooked up for the banquet kitchen as well as Chef Jean Georges new restaurant. The final touches are being added to features like the waterfall, and the fire garden (my name for it) next to the “ski beach” slope-side pool area. After watching the steady progress over the last couple of years all of the pieces seem to be coming together for the Park City and Deer Valley ski season opening. 

                Another question I can now answer is: what justifies the price? The condominium and residence units will be appointed at least as well as the other newer luxury homes and condominiums in the Canyons, Empire Pass, Old Town and Upper Deer Valley. I didn’t see a residence or condominium without a fantastic view; even those on the first level appear to be about forty feet above the Deer Hollow ski run and look up to other ski runs. But when one considers the Five Star Services and amazing common area which owners of the Residence and Condominium units will include the price seems in line. In my opinion this will be one of the finest real estate offerings in Park City or Deer Valley.

                Granted Park City Real Estate has experienced a down turn but I think scarcity will play a role in these condominiums and residences bucking the trend. If you want the level of service, the on hill location and the common area amenities that the St. Regis offers there are only 32 units still available, 8 residences and 24 condominiums. I can’t help but think there are 32 more families out there that will see the value in this exceptional project.

                For more information on the St. Regis and other Park City and Deer Valley real estate opportunities please contact us.

                Rob Harris - YouInParkCity.com

                In Park City and Deer Valley, Utah summer is here, well almost, and the lift assisted mountain biking and hiking program at Deer Valley Resort which opens June 19^th will be a great way to see the beautiful mountain views, the wildlife and the wildflowers all of our spring showers will bring.  You can see all of this without a lot of uphill hiking or riding.  For more information on the Deer Valley Resort lift assisted hiking and biking programs see the YouInParkCity.com news release.

                For the adventurous home buyer looking for that perfect Park City home or condo biking can also be a great way to see some of Park City and Deer Valley real estate and a few fantastic neighborhoods. With the lift assisted program you can easily visit Upper Deer Valley communities like Bald Eagle, Black Bear Lodge, the Chateaux at Silver Lake, Stein Erikson Lodge, Stag Lodge just to name a few.  Continuing down the mountain to Lower Deer Valley  it is an easy ride through some of Park City’s great communities like Solamere, the Lodges at Deer Valley, Silver Baron, Pinnacle, Fawngrove, Deer Lake Village, Black Diamond Lodge and many others.  If you have the energy, just continue downhill into Old Town where you can visit one of the fine restaurants for a light lunch for a well deserved beverage before continuing on to Prospector Square, Park Meadows or Thaynes Canyon.

                  Park City is, for many homebuyers, as much about lifestyle as it is about the home or condominium you purchase. Some of the communities are gated and if you want to get into tour individual homes or condominiums you will need a REALTOR®. So, if you want to take a ride and visit some great Park City homes we are offering our services (think of it as a summer ski tour).  Just contact us and let us know you want to do a Deer Valley or Park City home tour on bikes and we schedule some time with you.

            On June 2, 2009 KSL.com News reported that ‘short sales‘ are on the rise in Salt Lake City, UT. The report gives very few details and goes on to quote a few Realtors in Salt Lake City about the effects of short sales and whether or not they are good for a potential buyer. The overall report had very little information in terms of data, but it does note that 1 in 7 listings in Sandy, Utah (a suburb of Salt Lake City) is listed as a short sale.

            Information like this that goes out nationally (most of the news about Utah is delivered via Salt Lake City) gives people the idea that the news is applicable throughout the state including Park City and Deer Valley, Utah. Real estate is a very local commodity and it is impossible to make assumptions based on one neighborhood and imply that it is true across all neighborhoods. The number of short sales per active listing in the Park City area is less than one in 25. While there is a glut of homes on the market here in Park City, most homes are not a distressed sale.

            This is not to say that there are not any deals to be found in the Park City area. Many neighborhoods in the Park City real estate area are seeing prices of homes and condominiums fall by 20% off of their highs. There are also short sales in the Park City & Deer Valley real estate market, and they cover just about every price range including a short sale in the Colony at The Canyons Resort listed at $3.99M down to condominiums in the Kimball Junction area listed at $119K. Of the 50 or so short/distressed sale inventory in the Park City area, nine are listed at over $1M, and 20 are over $500K.

            Short sales are not the only way to purchase a property in Park City and Deer Valley at a bargain price, and the relatively few short sales in the area (1 in 25 versus 1 in 5 in Draper, UT) make them a longer and tougher process. Due to the fact that many owners in Park City have a lot of equity in their homes, the deal is often not a short sale, but just an owner taking a large loss.

            So when you are looking for a real estate deal in Park City, keep a focus on the end you are hoping for, whether it is a home to retire to, a weekend get-away, an investment or rental property. The deals are there, contact your YouInParkcity.com Keller Williams REALTOR® to find the one that is right for you.

             The Park City Board of Realtors welcomed speakers from the Rocky Mountain Resort Alliance (RMRA) at its monthly luncheon last week. The alliance is made up of the Boards of Realtors from destination ski towns in the western United States. The alliance includes Park City, Utah, Sun Valley, Idaho, Jackson Hole, Wyoming, Whistler, BC, Aspen, Vail, Steamboat Springs, Telluride, Summit County, and Winter Park, CO. Speakers were present from Lake Tahoe area of California as well as Vail, Co and Jackson Hole, WY.

            The real estate sales statistics for first quarter of 2009 were presented to the Park City Board attendees for each area in the Alliance. A quick look at the statistics gives an immediate sense of “misery loves company”. Statistics across the board show sales figures being down from 50% to 75% along with falling median sales prices. There does not seem to be any area that is immune to the effects of the National and International economic downturns especially since it is combined with the current squeeze on credit markets.

            The interesting part of the meeting was the discussion that followed. It was noted by each of the speakers that there were bright spots and areas (price ranges) that are seeing activity. Much of the activity is in the lower and entry level end. Some areas also noted sales activity on the very high end of the market. Many of the “bright spots” in the current market may be attributed to the small sample size we are dealing with when looking at the latest quarter statistics. The speakers all seemed to agree that there are many “lookers” in the current market and that while many people are waiting for the bottom, there is a sense of pent-up demand.

            All of the resort towns in the Rocky Mountain Resort Alliance seemed to agree that it is a Buyers market and Park City real estate is right in step with the others. Increased inventories and few sales are leading to strong values in the secondary home and vacation markets.

            For more information; contact your YouinParkcity.com Keller Williams Park City Real estate Agent.

             In the spring of 2008 creditors forced the Promontory luxury golf subdivision in Park City, UT into bankruptcy. The developer, Arizona based Pivotal defaulted on loans amounting to over $270M.

            On April 15, 2009 a group named Pivotal 7000 headed by the CEO of Pivotal, Francis Najafi, purchased the development for a price far less than the debt on which Pivotal defaulted. The $70M bid by Najafi which was approved by the U.S. Bankruptcy Court effectively wiped out $275M in loans that had been packaged by Credit Suisse.

            During the bankruptcy, Promontory maintained its operations which consist of two golf courses, clubhouses (golf, tennis, kids, outfitters, etc) an equestrian facility and more than 1000 building lots. The assets have been valued between $230M and $560M.

            The new ownership plans to move forward with Promontory’s original vision for the second home luxury community. While some property owners within Promontory may still have a bad taste for Pivotal, the fact that the development is no longer in bankruptcy and is being run by a company familiar with the project may be a benefit. Promontory’s plan of reorganization binds Pivotal 7000, LLC, as the new owner, to observe key provisions of the court-approved plan and sale procedures.  These provisions include the obligation to honor Promontory’s county-approved master plan, the Promontory Club’s membership agreements and membership plan, and the assumption of all lot purchase agreements with Promontory lot and home owners.  In addition, provisions have been made in the plan for funding of legitimate unsecured creditor claims and the creation of a reserve fund for Promontory’s homeowners’ association, the Promontory Conservancy.

            The stigma of bankruptcy and the relatively large number of speculative purchases and building that was done by private investors has hurt the market in Promontory. The luxury homes that are for sale in the Promontory area are currently some of the best values in Park City. Now may be a perfect time to invest or purchase a second home in a golf course community as the developer should be on much more stable ground for the near future.

            On another positive note, Golf Digest just ranked the Jack Nicklaus and Pete Dye designed courses at Promontory as the number 2 and 3 courses in the state behind Glenwild (also in Park City).

             The first quarter of 2009 Park City real estate statistics show that the Park City and Deer Valley area are not immune to the impacts of the national and global economic downturn.

            There were 91 total sales in the greater Park City area (PCMLS 1-22): 30 Single Family Homes, 55 Condominiums, and 6 Vacant Land parcels. These numbers as a total are less than half when compared to the same period for 2008 both in terms of total unit volume as well as total dollar volume. While these numbers show a steep decline in the market, there are some bright spots.

            One major difference between Park City real estate sales in the first quarters of 2008 and 2009 is the lack of new development communities available in 2009. In the first quarter of 2008, nearly half of the condominiums sold were brand new (Newpark Hotel and Silver Star were a large portion of sales). If these are removed from the comparatives, the 2009 numbers while definitely down, do not show nearly as dramatic a decrease.

            A more telling statistical comparison may be to look at original price versus list price when sold and final sales price. For the first quarter of 2008, the list price of homes sold was actually higher than its original price and the final sales price was about 5% off of the list price. So prices were holding very steady and sellers were getting offers very close to their asking price. The first quarter of 2009 shows a definite softening of prices. Original prices versus list price when sold show a 3% drop in price while the actual sold price represents an additional discount of approximately 8% versus asking price.  

            As with all statistical analysis, it can be very hard to see a true picture when too small or too large a sample is taken. The Park City and Deer Valley real estate markets have bright and dim spots which vary not only from subdivision to subdivision, but vary greatly depending on which side of a transaction you find yourself.

            Real estate sales in Park City are influenced dramatically by location and views as well as amenities available to the property. Scarcity is a major factor and while there are new products on the horizon, there are very few places that can offer all of what Park City offers its residents and second home owners. For more complete analysis or information on a particular Park City neighborhood or community contact a YouInParkCity.com Group Keller Williams Park City REALTOR® or call us at (888) 968-4672.

            Data compiled from the PCMLS for sales of Single Family Homes, Condominiums, and Vacant Land in areas 1-22 from 1/1/2009 thru 3/31/2009 deemed reliable but not guaranteed

            Efforts to work through the Chapter 11 bankruptcy moved forward last week as it was announced that the Promontory Development will be auctioned off on the 15^th of April, 2009.  Credit Suisse has opted to send the property and operations to auction rather than provide the $70 Million in exit financing mandated by the bankruptcy court.

            It is expected that Promontory will emerge from bankruptcy in April and the winner of the auction will be bound to observe key provisions of the Court-approved reorganization plan and sale procedures.  The provisions include the new owner’s obligation to honor Promontory’s County-approved master plan, the Promontory Club’s membership agreements and membership plan and the assumption of all lot purchase agreements with Promontory lot and home owners.  With some luck, this will remove some of the cloud of uncertainty that has been over the development since it was forced into bankruptcy in March of 2008.

            The Promontory luxury golf, equestrian and “club” community of second homes covers approx. 7200 acres in the Park City Area with a master plan including 5 golf courses (2 are currently complete), pool, tennis, kids clubhouse, trails, outfitters cabin, ski resort amenities at Deer Valley and Park City Resorts and more (many of which are currently in place). The area includes over 1900 home sites. Of the 700 or so lots that have been sold, nearly 300 have homes completed or homes under construction. 

            Many of the homes and lots were purchased and constructed during the Park City real estate boom. They have not escaped the current market downturn and the effects of the bankruptcy cloud over the development. There are currently over 100 lots for sale and nearly 90 homes in various states of completion.  Many of the lots are offered at prices near or below their original sales price. There are 26 homes available for under $2 Million (I can recall a time two years ago when there was only one).

            If The Promontory development emerges successfully from this bankruptcy and is able to complete its original vision as a four-season, multi-generational luxury community, this may prove to be one of the best times to purchase. See the Promontory golf page of the YouInParkCity.com website for a couple of our favorites.