By Todd Anderson
Oct 16, 2009
The end of September marks a shift in focus for Park City and Deer Valley real estate Buyers. Traditionally we see a shift away from single family residential homes and toward resort and ski property as the winter nears. This marks a good time to take a look back and compare the latest quarter real estate sales with past years.
Park City real estate sales for the 3rd quarter 2009 show only a small drop in sales and unit volume versus the same period last year. Unit sales were effectively flat while dollar volume dropped by about 9%. -Note that for statistic purposes The YouInParkCity.com Group uses only sales in the 84060 and 84098 zip codes and only considers sales of single family homes, condominiums and vacant land- The 3rd quarter of 2008 is when sales in the Park City area started seeing the impacts of the economic downturn and people began to realize that we were not totally insulated from the national housing crisis.
The downturn in dollar volume indicates that prices have receded slightly. Price corrections have varied greatly by neighborhood and the relatively small unit volume means that a few sales can have a large impact statistically. As a case in point, Dakota Mountain Lodge at The Canyons Resort sales represent over 10% of the dollar volume for this past quarter.
Pricing in general is also showing downward pressure as the sold prices versus the list price was off by 8% while the list prices had shown an 8% discount already.
Year to date sales versus the same period in 2008 show a decrease in dollar and unit volume of over 35%. The fact that the current period is flat may indicate that the downward market pressures have subsided and we are experiencing a bottom. There is a "feel" among most REALTORS® in town that business is getting better. Most agents are busy with many clients searching for values and beginning to write offers.
To discuss more in depth statistics and analysis of the Park City and Deer Valley real estate markets, contact a YouInParkCity.com realty professional.
Tags: Buyer, condominiums, Deer Valley, homes, market, Park City, quarter, Real Estate, realtor, realty, resort, statistics, The Canyons
Posted in buyers, Park City Economy, Park City Real Estate Notes, sellers |
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By Todd Anderson
Oct 02, 2009
Buy It for All the Right Reasons
I recently had someone walk into the office asking questions based on what seems to be the most common theme right now: "What is the best deal in town?" This gentleman then went on to tell me he'd be flying in from Texas to use the home or condominium and reiterated that he was looking for a bargain.
I probed for some more background: Do you think you will be using it more in the summer or winter? Are you a skier, golfer, hiker, biker, fisherman, horseman, shopper? Will your family be coming with you? How many bedrooms would you like? Will you be renting it when you aren't using it yourself? Do you picture this as a retreat of sorts or an access point to recreation? Do you envision possibly living in the home full time at some point in the future? How familiar are you with the Park City area? Have you vacationed here in the past?
Almost all of the responses were at best vague and ended with "I'm just looking for a good deal". I went on to try and explain that there are great values in just about every neighborhood within Park City. Pricing has retreated back to pre 2005 levels and inventories are high, there is no contesting the fact that we are in a Buyers market.
"So what is the best deal in town under $1.5M?" the gentleman asked as he grabbed flyers ranging from a fractional interest condominium to a slope-side home to a horse ranch with 20+ acres and everything in between -asking "what about this area?" for each flyer.
During the flyer barrage he mentioned a home he'd seen yesterday and that he was working with another REALTOR® and planning to write an offer - what did I think of X as an offer price (about 35% off the asking price for what most that have been in the home would consider a very well priced Park City home already)? I offered the same advice that I give to my own clients.
Take some time and figure out how you will use the Park City or Deer Valley property you wish to purchase. Will it become home, a family vacation get-away, an income producing property, an investment flip or whatever? There are strong values and even some outright "steals" in our market, but many of the values should not be measured by a pure monetary value. What value can you put on the memories, lifestyle and pure enjoyment that owning Park City can bring?
While the end result of your purchase in Park City may well prove to be a good investment financially when you decide to sell, the rewards you receive while you own here are truly the right reason to buy Park City real estate.
Tags: Buyer, condominium, deal, Deer Valley, home, lifestyle, market, Park City real estate, property, realtor, value
Posted in buyers, Park City Golfing, Park City Real Estate Notes, Park City Skiing |
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By Todd Anderson
Jul 07, 2009
The Park Record, Park City Utah's local twice weekly news source, ran an article over the weekend titled "Optimism for Park City economy might be justified - Statewide economy expected to get worse this year". The title of the article seems to be in conflict with itself as much as most of the rest of the article. Within the article, there are quotes from the Park City Board of Realtors President stating that national indicators often drive the Park City real estate market and that the current trends in GDP and stock market have had positive effects on consumer confidence ‘which will prompt many buyers to make the home purchase they've been contemplating for months.' This is a great positive spin for Park City and Deer Valley real estate. The article writer then reverses direction with the following statement:
‘But the frozen credit markets are still hurting Park City's real estate market, he said. And the employment situation is still a concern because if someone has lost their job, or fears losing it, they're less likely to come to Park City for a vacation and/or think about purchasing a home here.'
The Park Record then quotes another prominent local Park City real estate agent whose predictions are cautiously positive noting an incremental recovery locally and predictions for a national recovery in 2010. The newspaper and local real estate agent then go on to note that local tourism reports predict summer travel to mountain destinations to be down 15% from last year. And a six month forecast expecting occupancy to be down by 20% with room rates down by 10%.
It seems that for every negative indicator there is a positive real estate note to go along with it and vice-versa. A look back at last winter can show that during the tough economic and political climate people still came out to ski and enjoy Park City. While they may not have bought local real estate, they did still come (albeit spending a bit less while they were here). I'm sure that soon local real estate agents will point to "pent up demand" from those people that didn't buy last year as the reason for optimism.
Summer is here and this past weekend with its many markets, festivals, and celebrations showed Park City and Deer Valley in their best light. There's no doubt that many visitors had a thought that they should move to or buy a vacation home in Park City.
Tags: Deer Valley, demand, market, optimism, Park City, Real Estate, realtor, recovery, Ski, summer, tourism
Posted in Park City Economy, Park City Real Estate Notes |
0 Responses to "Mixed signals for the Park City and Deer Valley real estate markets."
By Todd Anderson
Apr 15, 2009
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
Tags: condominiums, Deer Valley, homes, owners, Park City, Real Estate, realtor, realty, residents, sales, single family, statistics, transactin, Utah, vacant land
Posted in buyers, Park City Economy, sellers |
0 Responses to "Park City Utah Real Estate Statistics 1st Quarter 2009"
By Todd Anderson
Mar 07, 2009
Working as a REALTOR® in the Park City and Deer Valley Utah area puts me in a place to get a lot of questions from visitors. This is especially true while I am out enjoying the things that make Park City such a great place to live or vacation; skiing, biking, playing golf, etc. People are always curious about the prices of homes and condominiums in the area; whether or not they have any interest in purchasing Park City or Deer Valley property.
When I tell people the asking price or recent sales price of one of the homes or condominiums in the area, they commonly translate the price into a per square foot price in an effort to make a comparison to their home town. With it currently being ski season, the questions are often related to slope-side homes and condominiums with ski-in, ski-out access and projects currently under construction like the St. Regis, Montage Hotel, and Flagstaff Condominiums. Quick math puts the prices of most of these developments in the $1200 to $2000 per square foot. "Wow" and "Maybe you can sell me a spot to stand" are common responses once the math has been done.
One quick comment regarding the scarcity of true ski-in, ski-out property in the Deer Valley area, and for that matter, in the world often times puts a better perspective on the prices in Park City, Utah. These are also new homes and condominiums for sale with top grade custom finishes and upper end if not professional grade appliances. I remind people that the prices change dramatically as you move away from the slopes.
It is not unlike homes with views versus those without, or homes that are ocean front versus those that are a few blocks inland. On a recent trip to San Diego, I pulled a few for sale flyers from ocean front homes; after doing the math, I found that small homes (under 1000 sq. ft.) built 20 years ago or more are commanding prices well over $2500 per square foot.
Waterfront homes share a similar scarcity to slope-side homes; similarly resort towns all have a common scarcity in whatever makes them a great place to vacation usually makes them a very desirable place to live; if not for employment opportunities, definitely for lifestyle and quality of life reasons.
Whatever quality makes a resort town desirable and the proximity to that attraction, whether it is the ski slopes, golf course, ocean, or bay; the closer you are, the more scarce and more costly the property.
Deer Valley, not unlike other luxury resort towns, puts a premium on its amenity adjacent properties. But don't let those properties scare you away from Park City as a whole; there is a wide array of ownership opportunities available for the vacationer as well as someone wanting to call Park City, UT home. The YouInParkCity.com Group can help you find anything from a premium ski-in, ski-out property to one just minutes away at a discounted price. You'll have to make the decision of the mountains versus the beach.
Tags: beach, condominiums, Deer Valley, homes, Park City, prices, realtor, Skiing, values
Posted in buyers, Park City Real Estate Notes |
0 Responses to "Deer Valley vs. The Beach"
By Todd Anderson
Oct 20, 2008
I was speaking with a fellow REALTOR® here in Park City last week and she stated that she was surprised that prices here in Park City and Deer Valley hadn't fallen as much as she had expected. While news articles from around the country show home values dropping as much as 30%, Park City hasn't seen very dramatic price changes. Many people ask "why?" Here are some of the contributing factors.
The reasons vary somewhat according to the property involved; primary residences and second or vacation properties. In this article we'll focus on the latter. Second homes and vacation properties are a luxury item and they are bought by people that can afford them. As much as 70% of Park City and Deer Valley area property can be attributed to second homes and vacation property. The majority of these property owners have relatively small or no mortgages on these properties and most have an "if it doesn't sell at this price, I'll just hold onto it" attitude. Few of the second home owners have a true need to sell. In the sellers mind, the property is worth ‘x' and in time it probably will be. Sellers here in Park City have "staying power" and while overall sales volumes are currently down 45%, prices are holding somewhat steady. Sellers are willing to wait, and Buyers are not necessarily willing to jump at prices that have held steady which leads to more property on the market. This Seller's resistance to drop their prices and ability to wait is a major reason that prices in resort towns don't fall as much as national averages in a down market.
A driving force behind the national market downturn was the sub-prime and "risky" mortgages. Park City saw relatively few of these mortgages. It may seem odd from the outside, but few of the second homes with values over $1M have any mortgage debt at all. Historically, fifty percent of real estate purchases in Park City and Deer Valley are cash. In general even with as easy as credit was recently, it was still tougher to mortgage secondary homes as creditors know that if there is trouble, these are the first thing debtors walk away from. That is not to say that sub-prime mortgages in our market don't exist or that there are no property owners that are in financial trouble, only that this number is smaller in relation to the Nation's trouble spots.
Another reason that Park City second home and vacation property values have stayed strong is that things the have not changed much here. People still want to be here, whether it is to vacation or to live. Park City is a beautiful, easily accessible. The city offers endless recreational opportunities and a great climate. Park City's economy has not been greatly impacted by the national "crisis". In addition, the Utah economy has been touted as one of the best in the country. Finally, there is scarcity built into Park City. There are only so many places in the world that are like our city, and much of the town is truly "built out".
These are some of the reasons that Park City has not seen a dramatic change in its prices as compared with other spots in the Country. That is not to say that prices in Deer Valley and Park City have not fallen; they have. As noted earlier, pricing remains fairly steady, but many of the properties that have sold were priced aggressively and represent pricing similar to 2005. There are good values and realty opportunities in Park City, and the situation for each seller is unique. Just don't expect to see rows of homes for sale with foreclosure signs in every other window as you search for a place to live or vacation in Park City.
For more detailed information about recent price trends in Park City, Utah and Deer Valley, UT go to: http://www.youinparkcity.com/. Price trends, highs and lows, averages and days on market information is available for each Park City neighborhood.
Tags: Buyer, change, home, homes, Park City, price, prices, Real Estate, realtor, realty, second, seller, UT, Utah, vacation
Posted in buyers, Park City Economy, sellers |
0 Responses to "Why Park City Prices Remain Strong"
Jenny Clark