Midyear report on the outlying areas/developments of Park City

As we look at the mid-year activity in the outlying areas in Park City, we see a 50% decrease in activity but prices have increased. The area in discussion is everything past the White Barn except Jeremy and Pinebrook….so it covers Promontory, Glenwild, Old Ranch Rd, Canyons, Bear Hollow, Redstone, Tuhaye, and the Jordanelle.

SINGLE FAMILY HOMES:

2007 1/1/07 – 7/14/07

Ave sales price $1.295m

Ave ppsf sold $332psf

Ave days on market 175

2008 YTD (through 7/14/08)

Ave sales price $1.325m

Ave ppsf sold $303psf

Ave days on market 210

Condos

2007 1/1/07 – 7/14/08

Ave sales price $476,422

Ave ppsf sold $421psf

Ave days on market 357

2008 YTD (through 7/14/08)

Ave sales price $570,000

Ave ppsf sold $408psf

Ave days on market 420

Vacant Land

2007

Ave sales price $716,000

Ave days on market 111

2008

Ave sales price $802,000

Ave days on market 253

So we see that the properties have taken longer to sell, but once sold, they fetch a higher price than the ones sold in 2007 in the same time period. This goes along pretty well with what we saw in yesterday’s analysis of the ‘in town” properties. However, the one difference is that the 2008 outlying properties in today’s post did not get as close to the asking price as their in-town counter parts.

Our market has slowed, however when compared to the rest of the nation I believe we are still holding our head above water. This can be attributed to the fact that our market is more insulated than the sub-prime markets, and there are still good deals in the area when compared to other Rocky Mountain Resort areas.

Interesting mid-year report from Park City "proper"

While the number of sales has fallen off 39% in Park City proper (in-town), the other vital statistics have not changed much and we have seen an increase/appreciation in condo and lot #s:

SINGLE FAMILY HOMES:

2007 stats from 1/1/07 to 7/14/07
-Ave Sales price $2,376,000
-Ave PPSF sold $496psf
-Ave Days On Market 185

2008 stats YTD (though 7/14/08)
-Ave Sales price $2,349,000
-Ave PPSF sold $478psf
-Ave Days On Market 187

CONDOS:
2007 stats from 1/1/07 to 7/14/07
-Ave Sales price $1,183,000
-Ave PPSF sold $590psf
-Ave Days On Market 203

2008 stats YTD (though 7/14/08)-
-Ave Sales price $1,348,000
-Ave PPSF sold $603psf
-Ave Days On Market 215

VACANT LAND:
2007 stats from 1/1/07 to 7/14/08
-Ave Sales price $1,306,000
-Ave Days On Market 193

2008 stats YTD (though 7/14/08)
-Ave Sales price $1,728,000
-Ave Days On Market 112

So we have seen the number of sales fall off about 40%, but the other numbers are still holding strong. The percentage off of asking price that a property sells for has not change much either, it is still in the 3% to 7% range. Our market has slowed, however when compared to the rest of the nation I believe we are still holding our head above water. This can be attributed to the fact that our market is more insulated than the sub-prime markets, and there are still good deals in the area when compared to other Rocky Mountain Resort areas.

This is just for Park City “proper”, which is all of Deer Valley, Old Town, Aerie, Park Meadows, Thanyes, and Prospector. Tomorrow we will look at the outlying areas like the Canyons, Old Ranch Rd, Kimball, Promontory, Glenwild, and Tuhaye.

Some news and notes before the weekend

Affordable housing seems to be one of the main topics around town this week. The Planning Commission approved Talisker’s project for affordable housing on the 100 block of Marsac Ave this week, and commended the developer for their efforts…I am not sure why Talisker would get a pat on the back for being 3 years late, but hey – just get it done already, right?
While on the topic of the county….The Summit County Commission is poised to move forward this year with more aggressive legislation to create affordable housing. The proposed incentives would allow builders to construct denser neighborhoods in exchange for constructing affordable units. By agreeing to provide about half the overall number of units in their subdivisions as work force housing, builders could substantially increase the value of their projects by obtaining more density. We’ll see how things work out.

Here are some great things to take part in if you are in Park City in the near future:

-Every Wednesday this summer is part of the free concert series at Deer Valley. Just bring your blanket/chair, favorite food and beverage, and sit back and enjoy the music and great scenery.

-Every Friday the Sundance Institute is putting on “Six Degrees of Sundance” where they will play a movie from past festivals in the City Park off of Park Avenue in Park City. The movies start around 9:30pm, and you can bring your coolers here too!

-This weekend is the Park City Wine and Food Festival. It kicked off last night and goes through the weekend. My favorite event is at the Canyons on Saturday. All the restaurant are cooking up food and the wineries are giving out there product too….for 5 hours of eating great and drinking good wine it is inexpensive. Check out http://www.parkcityfoodandwineclassic.com/ for more info.

Last but not least is a market update.

Since Tuesday we have seen 42 units come on the market, 13 go under contract, and 24 close. Of note are:

ACTIVE:

-Little Belle in Upper Deer Valley at $1.795m; 3bd/5ba, 2792 sq ft, $643 psf…this is the best deal in Upper Deer Valley and the seller seems to be distressed!

-Aerie home at $1.3m; 4bd/4ba, 3500 sq ft, $371psf…could be a good one.

-April Mtn town home at $1.575m; 5bd/4ba, 3420 sq ft, $460psf….a little high, but I am sure that they would play ball.

PENDING:

-2 Red Ledges lots for $535,000 and $570,000

CLOSED:

-12 Red Ledges lots from $495,000 to $745,000

The market is heating up a bit and Promontory news

Just before the long weekend, the bankruptcy court approved dip financing that will continue operations at Promontory through January 2009. Pivotal (the current developer of Promontory, who was forced into Bankruptcy in March) provided the financing from one of their other Pivotal company…the judge ruled that the two companies, Pivotal Promontory and the other Pivotal company that provided this financing, were separate enough where this is not a conflict….hmmm??? Got me there.

This is good news for the membership, and should give everyone enough time to reorganize. There are a number of hypothesis’s and rumors flying around about how it will shake out, but a large consensus believes that it will shake out like the Credit Suisse/Highland Capital deal at Lake Las Vegas.

Most everyone beleives that Promontory will emerge stronger after the bankruptcy black eye wears off in a year or so….there are some good deals there know and they are starting to get snatched up. See the market report below…

Since the long weekend we have seen 43 properties come on the market, 26 close, and 24 go under contract! Busy weekend!!! Of note are:

ACTIVE:

-Calednian unit on Main St at $875,000; 1175 sq ft, 1bd/2ba, $744psf is not a bad deal for a ski in/ski out on Main…..with 1175 sq ft, I wonder if you could make a 2nd bedroom somewhere. We’ll have to go check it out.

-Glenwild home at $3,850,000; 5bd/7ba, 7282 sq ft, $529psf…the price is right at Glenwild folks.

PRICE CHANGE:

-6 Glenwild lots dropping their prices

-3 Tuhaye home dropping in price

-2 Promontory home dropping their price.

PENDING:

-Promontory home at $1.699m; 4bd/5ba, 4628 sq ft, $367 psf…some activity out there is noce to see

-Promontory lot at $800,000

-2 April Mountain units at $1.649m and $1.35m; both 5bd/3ba, and 3420 sq ft….those great townhomes were starting to pile up on the market.

-2 lots at Red Ledges for $640,000 and $740,000

-Tuhaye lot at $650,000

-Victory Ranch cabin at $1.82m; 3bd/4ba, 2605 sq ft, $699psf…that is a good deal considering their lease back options. This is one of my new favorite areas.

-Snow Flower unit that is ski in/ski out at Park City Mt Resort for $749,000; 2bd/2ba, 1195 sq ft, $626psf…these always move well and rent great too!

-Lodges at Bear Hollow at $349,990; 3bd/2ba, 1330 sq ft, $263psf…this area is a locals favorite, rents well, and offers great amenities

CLOSED:

-12 Red Ledges lots ranging from $465,000 to $750,000

-Mountain Ranch Estates home at $1.195m; 4bd/4ba, 3673 sq ft, $325psf for these views is a good deal in my book.

Happy 4th and a little market update.

So as we prepare for the Forth of July, and all the festivities Park City has to offer on one of the greatest days to be a Parkite….here is a little market update:

We have seen 39 properties come on the market this week so far, 23 close, and 24 pending. The high notes are:

ACTIVE:

-Portico unit on Deer Valley Loop for $699,000; 3bd/3ba, 1600 sq ft…this units are super cool and close to everything
–Glenwild home at $4.2m; 4bd/6ba, 6454 sq ft, $651 psf….let’s see another sell in Glenwild!
-2 lots in Promontory, both at $1.4m

PRICE CHANGE:

–Jordanelle home for $1.395m; 5bd/6ba, 6200 sq ft, $225 psf is a good deal!
-Oaks in Deer Valley lot for $899,000….there are only a hand full of these that are available each year.

PENDING:

-Aerie home at $1.895m; 5bd/5ba, 4399 sq ft, $431 psf…this one went quick.
-Empire Pass home (by Christopher Homes) at $6.312m; 5bd/7ba, 5780 sq ft, $1092 psf…Empire Pass continue to plug along.
-Promontory lot for $399,000…still some activity out there.

CLOSED:

-2 Tuhaye lots at $415,000 and $695,000.
-2 Silver Star units at $1.2m each for about 1900 sq ft, around $600 psf

Have a happy 4th! We will be enjoying a great Park City parade, golf, concerts in the park, fireworks, BBQ’n, and family….hope you have a good one!

Also, please let us know if there is something you would like to see us research/blog about in the future. THANKS!

Canyons finally closes!!!

Talisker just closed on the Caynons deal. The Toronto-based developer, also developing Empire Pass, announced its intentions to purchase The Canyons from Park City-based American Skiing Company last July. Talisker completed the sale June 30 by paying ASC $123 million, a document filed Monday with the Securities and Exchange Commission states. The proceeds were received in the form of $51 million in cash and $71 million “in secured senior notes,” the SEC document states. Talisker has tried to close the sale since 2007. American Skiing Co. intends to use proceeds from the sale “in accordance with its plan of dissolution, which was approved on June 20, 2007,” according to the SEC report. But land at The Canyons is still controlled by Wolf Mountain Resorts, which will be Talisker Canyons Finance Company’s landlord at the resort….this should be interesting! I would like to think that Talisker will do a good job operating the ski resort, as all of there operations in Park City have been first class so far. The Canyons might actually realize its full potential!!!

Empire Pass is rolling along and no real news from the Talsiker/Canyons deal

Yet again Talisker failed to close on the Canyons. They did put up an additional $5m, to bring their total non-refundable deposit to $25m. Talisker officials were “unavailable” for comment…we’ll keep our ear to the ground to see what is going on behind the scene…stay tuned.

Here is an Empire Pass at Deer Valley year to date update:

Single Family homes

-7 are on the market at an average price of $6.7m; 5531 sq ft and averaging out at $1,255psf
-2 homes have sold for and average of $5.975m; 4525 sq ft and $1320psf
-7 homes are pending for an average of $6.46m; 6044 sq ft and average of $1054psf

Condos

-76 are on the market for an average of $3.167m and $1436psf. Of the 76 unit, 28 are in the new Flagstaff launch. That leaves us with 48 on the market not in Flagstaff and the majority of those are resales, and there are good deals to be had in comparison with what else is selling.
-19 have closed at an average of $3.177m, and $1208psf….some of the resales I spoke of are under $1050psf.
-11 condos are pending sale at an average of $2.96m, and $1384psf!

Vacant Land

-5 lots are on the market, which average about an acre for $4.115m! These are for the deep pockets!
-2 have closed for an average of $4.8m
-2 are pending at an average of $4.55m

As you can see, Empire Pass at Deer Valley is pulling very strong numbers even in the midst of this slow down. There are still some good deals that the flippers must sell quick. Give us a call or email to find out more 435.729.0022 or robalday@yahoo.com

Market update

Well since Tuesday we have seen 60 properties come on the market, 15 go under contract, and 13 close. The high notes are:

ACTIVE:
-Glenwld lot for $895,000….I would imagine they have some wiggle room here on the price!
-Fox Point at Redstone condo for $420,000; 2bd/3ba, 1302 sq ft, $322 psf seems a little high…there are some great deals at Kimball Junction if you are looking to buy.
-Park Meadows home for $12.9m; 6bd/11ba (2 bathrooms for everyoneJ), 11,000 sq ft, $1173psf is ridiculous for Park Meadows! This home will take a special buyer for sure….it is on 7 acres for whatever that’s worth (not $12m). I must say though I have not been through this home yet, so maybe it will be spectacular.

PRICE CHANGE:
-April Mtn home down to $2.995m;4bd/6ba, 5290 sq ft, $566psf….maybe they are getting more realistic.
-Empire Ave home in Old Town Park City from $1.9m to $1.575m; 4bd/5ba, 2400 sq ft, $656psf is a good deal in Old Town…all along Empire and Lowell they are having trouble selling. Nice time to pick up a deal there.

PENDING:
-Sky Lodge fractional for $269,900, 2bd/2ba, 1260 sq ft, and 8 weeks of use right on Main St is not too bad if you are into the fractional thing.
-Ranch Place home at $949,500; 5bd/4ba, 3666 sq ft, $259psf.
-Commercial building in Prospector for $1.25m

CLOSED:
-Fox Point at Redstone for $363,000; 3bd/2ba, 1258 sq ft, $289psf…that’s a little more like it! Take note buyers of what the one the one above was just listed for and what it should sell for.
-Glenwild home $2m; 3bd/5ba, 4017 sq ft, $498psf is a good deal at Glenwild…..where things in the home market are still hot!

Rocky Mtn Resort outlook

A little over a week ago we held the Rocky Mountain Resort Association annual meeting here in Park City. Professionals from Aspen, Vail, Jackson, Winter Park, Steamboat, and Sun Valley just to name a few. The best and most informative part was a 3-hour session put on by NAR chief economist, Dr. Lawrence Yun. Here are the high notes that we covered in the session titled “After the Clean Up”:

-Historically the US foreclosure rate is 1%. In 2008 the rate is 2%, but in the Rocky Mtn states the foreclosure rate is still under 1%.

-Areas with little sub prime exposure (i.e. Park City) are still seeing relatively good markets.

-Utah never saw the huge boom that Las Vegas, Phoenix, Miami, etc…saw. Prices here are still affordable and the job market is still strong.

-Utah is not seeing the drastic decline in prices, just in number of homes sold.

-Additional rate cuts by the Fed would be counter productive.

-Throughout the nation, home sales are at a 10-year low. There is a lot of pent up demand and fence sitters.

-There are buyers, but 80% of buyers must sell a property of theirs first.

-Builders have cut back on building, so obviously new home sales have declined. This cut back will help stabilize the market. 1.6m new homes must be built a year to keep up with the population growth. During the boom, they were building 2.1m & now they are down to 1m per year!

-Back in the early 90s a slow decline in price hurt the economy for a while. However, this bust was a rapid decline, which allows us to reach equilibrium quicker.

-The Case-Schiller price index was misleading by being too positive going into the boom, and now they are probably too negative coming out of it. These are the same valuations that Bear Sterns relied on.

-99% of all markets will see higher home values in the next 5 years.

-The purposed home buyer tax bill would get fence sitters off the fence and back into the market. While this would not have much effect on the Park City market directly, we would see the trickle down effect in the next year or so.

-All Rocky Mtn states are positive in national migration, and the long-term prospect is bright.

-Dr. Yun likes Texas, Utah, and Colorado as top performers in the coming year(s), and predicts that in the next 5 years we (Park City) will see 30% to 50% in appreciation.

Personally I agree with most of what Dr. Yun presented. However, we might not see the bottom as soon as he predicts….but here in Park City I think we will continue to see exactly what is happening now….which is a total mixed bag. Some people do not have to sell at all and they will keep their price where it is, and other need to liquidate now & are willing to take a loss. The number of sales has slowed, but it had too as we could not keep up at the pace of a few years ago. Our market is healthy, especially when compared to the rest of the nation, and the second half of 2008 will be a good time to pick up some property from a distressed speculator, or maybe just some guy that watches the news too much and is fearful…

…”…be fearful when others are greedy, and greedy when others are fearful” -Warren Buffet

Market activity and no news from Promontory….yet

Promontory has its next scheduled court date next Monday, June 23. So while there is no news yet, next Monday afternoon should be interesting. Other than that, there are some good deals in the development, and the golf season in cranking up & running beautifully.

Just in the past day we have seen some decent activity in the market 36 properties came on the market, 10 closed, and 8 went under contract. The high points being:

NEW:
-Promontory lot in the Painted Sky neighborhood at $769,000. I would let this one sit and see how desperate they are. It is priced well, but let it marinate.
-Promontory home at $2.35m; 3bd/5ba, 5030 sq ft, $467 psf, and they are offering Seller Financing…contact me for those details 435.729.0022 or robalday@yahoo.com
-April Mountain townhouse at $1.375m; 4bd/4ba, 2925 sq ft, $470 psf….there are quit a few of these on the market, and I love this area….you are in the middle of town, but still secluded.
–Chatham Hills home for $1.499m; 6bd/4ba, 4162 sq ft, $360 psf is a bit high…again I like this area for the same reasons as above.
-Deer Crest home ar $5.935m; 5bd/7ba, 6707 sq ft, $885 psf…a bit high, but Deer Crest is one of the premiere neighborhood in Deer Valley
-A development parcel at the “gateway” to Heber for $16m; Beautiful 40.39 acres located on the SW corner of HWY 40 and River Rd. in Heber. Close to the Provo River & nature preserve. Land had entitlements for 244 eru’s & 120,000 sq ft of commercial space. Current owner has a conceptual mixed use village plan with country approvals. Upside potential for investment or J.V. partner. I have looked at this so give me a call/email if you have questions….It could be a money maker!

CLOSED:
-2 Red Ledges lots at $525,000 and $425,000.
-Lot in Lower Deer Valley’s Hidden Meadows neighborhood for $1.25m.

PENDING:
-Residence at the Chateaux in Deer Valley’s Silver Lake Village for $520,000; 4bd/5ba, 2800 sq ft, and a one-sixth interest
-Pinnacle unit in Lower Deer Valley at $960,000; 4bd/4ba, 3511 sq ft, $274 psf it a steal for these units….They rent like wildfire!