Interesting Times

The wild fluctuations in the stock market in recent weeks have created a lot of uncertainty in the real estate market. While I hear too common phrases among potential buyers, “The money that I expected to use for a real estate purchase has gone with the drop in the stock market” and “I want to wait for things to calm down before I make a move”.
Last week Warren Buffet wrote an interesting article on why he is investing his personal money in the stock market and I feel that his thoughts also relate to real estate as an investment. Mr. Buffet had a great comment last week, stating that “When others are greedy, be fearful. And when others are fearful, be greedy.” To paraphrase Mr. Buffet on another comment, “I cannot tell you where the real estate market will be next month, in six months, or even next year. But what I can tell you is that this will pass and real estate prices will once again increase.”
Right now savvy real estate investors are purchasing. Today’s buyers are looking to purchase at rock bottom prices and while not every seller is willing to discount severely, enough are. The real estate investor understands that this is an excellent time to purchase real estate as long as they are comfortable holding on to it through this temporary down turn. While we have seen many individual stocks loose 50% or even more of their value, we see real estate values holding strong. If real estate prices drop 15% in a given market it is usually headline news. So the conventional wisdom of purchasing in troubled economic times certainly holds true for resort real estate.
On a lighter note, we continue to enjoy a spectacular autumn here in Park City. Sunny days, beautiful fall colors and snow on the higher peaks have brought many of the locals out for hiking and mountain biking. I spent the weekend hiking the local mountain trails and can attest to the beauty.
The resorts are quickly putting the finishing touches on their summer projects in anticipation of another great ski season. Make your plans for this winter to come and visit Park City and experience all that we have to offer.