Rocky Mountain Resort Alliance

This past weekend representatives of the Rocky Mountain Resort Alliance were in Park City for our spring meeting and education seminars. We had representatives from Sun Valley, ID, Jackson Hole, WY, Steamboat Springs, Breckenridge, Vail, and Telluride from Colorado, and Park City, UT. The purpose of the meetings was twofold: to share statistical and market information from the various resorts, as well as to participate in some presentations from national speakers. We were fortunate to have Doctor Lawrence Yun, the National Association of Realtors Chief Economist and Senior Vice President, speak to us. We had around 200 realtors in the audience, and Dr. Yun gave a very interesting presentation on the real estate economy with an emphasis on the western resorts.

Merging together Dr. Yun’s presentation and what we have heard from the media over the past year, brought some interesting clarifications. The media has pointed out on numerous occasions that the national foreclosure rate this year is double what it has been over the past years. This is an alarming statistic, that while true, we need to understand that the foreclosure rate has gone from 1% of mortgage holders to 2% of mortgage holders. So once again we see that the media in its effort to sell more papers and newscasts has sensationalized a truth that would otherwise be meaningless. Another point that Dr. Yun brought out is that the majority of this 2% of foreclosures is in the subprime market and many of those were investors who purchased with little or no money down, and just wanted to flip the property for a quick profit. If your goal is to flip a property for a profit, and you have little or no money invested in the property, it is pretty easy to just walk away if it doesn’t turn out the way you want. So in this light, the current economic condition that is discouraging the quick flipper is not bad news. Dr. Yun was very clear feeling that anyone who purchases investment property in any of the western resorts will likely see a 30% appreciation in the next 5 years. As I have been saying for quite some time now, this is an excellent time to purchase as prices are low, inventory is strong, and sellers are negotiating.

During the weekend, representatives from the various resorts gave a short presentation on their particular market and issues facing their resorts. We also had several social networking opportunities which allowed me to speak informally with each of the various resort representatives. The overwhelming conclusion was that while all of our markets had slowed, they were not dead. People continue to want their vacation property, but are tending to negotiate harder, and be more particular when they purchase. This is certainly true here in Park City.

Other than this, it is still snowing here in Park City and is supposed to snow again this week. We are eagerly awaiting summer.