NEIGHBORING RESORTS

This past week, I had the opportunity to travel to Sun Valley, ID to meet with their agents as well as representatives from Jackson Hole, WY and Steamboat Springs, CO. This gatherings are always extremely informative as we exchange information on our respective markets and resort issues.

Sun Valley is going through some interesting times as they are finally looking to grow and build hotels near the resort in Ketchum. While I was there, their city council approved the first new hotel and are considering another three applications. This will be a major boost for their economy as Sun Valley is lacking in high quality accommodations. they are also looking at building a new airport 'down valley'. While this will allow for more reliable air transportation and allow for larger planes to fly in, it is being fought as the airport will be about 30 miles from the resort. Many fear that this will be just too far away for visitors.

Jackson Hole has developed the village at Teton, the base of the ski resort. they now have three spa resorts, including a Four Seasons. they have also just completed a new 9 hole golf course with home sites beginning to sell. After coming off of record years of real estate sales from 2005-2007, this year has started slow and they are down about 45% in number of transactions. This is pretty much the story that I am hearing from all of the resorts in the Western stats. However, the actual sold prices seem to be holding pretty steady.

The Steamboat Springs resort had been owned by American Ski Corporation, the same owners of The Canyons resort in Park City. ASC sold Steamboat two years ago to Intra West and this has been a positive move. Intra West has built new condos at the base of the resort as well as in the downtown area. As with many resorts, Steamboat is struggling with balancing growth with preserving open space and quality of life.

Going into the ski season, everyone is cautiously optimistic about real estate sales. Particularly here in Park City, we have seen an increase in interest and sales for the past six weeks. It appears that many buyers are looking to pick up a ski property prior to the upcoming ski season, and feel that with the slower market, this may be the right time to purchase. While I have not seen many "fire sales", sellers are certainly looking at offers and are coming off of their asking prices. This is an excellent time to take advantage of a slower market going into the ski season.