Still #1

While it has not hit the newsstands yet we have heard that the next issue of Ski Magazine will show Deer Valley Resort as the #1 rated ski resort in North America for the 3rd year in a row. The rankings are the result of a survey that Ski Magazine sends to its readers each year. Readers are asked to rate the resorts that they have visited on the quality of their experience in a number of key areas. The survey asks readers to rank their experience in areas such as; customer service, snow quality, variety of terrain, run’s, on mountain food service, and proximity to night life and other amenities as well as their overall experience. For the 3rd year in a row the readers of Ski Magazine have rated Deer Valley as their #1 favorite resort in North America. Given the number and quality of western ski resorts, this is quite an accomplishment and Deer Valley is justifiably proud that its commitment to their guests is acknowledged and appreciated. While I have not seen the rest of the survey, Park City and The Canyons Resorts are usually ranked in or near the top 10.

In looking at real estate pended sales for each month the trend that I noted that began in March continued through August and has strengthened. Each month since March the number of pended sales has increased from the previous month and is now similar to where we were in September 2007.

There is still much debate as to whether the economic recovery that we are seeing is real and sustainable. On one side, the feeling is that the continued high unemployment rate remains to be a detriment to the recovery and that as a result the economy is destined to grow weakly. The feeling is that until more Americans are employed consumer spending will continue to be slow. While there will certainly be spikes in spending brought on by stimulus programs such as “Cash for Clunkers”, these are temporary spikes and not sustainable.

On the other hand, optimists say that the rebound will help kick start a self- sustaining recovery where improved confidence leads to consumers and business’s starting to spending more. Time will tell which of these scenarios will come true, or will it be somewhere in between?
What I have seen in Park City is that in many areas the number of sales from January 1st through August 31st comparing 2008 to 2009 there were more sales in this time frame in 2009. However, the average sold price was generally down in 2009 compared to the same time frame in 2008. This reinforces my statements several weeks ago that the bargain hunter buyers have moved from a “wait and see” to a “buy” position. It is certainly true that if a property is not perceived as a bargain, buyers are rarely interested in it right now.

I do believe that as the bargain properties are removed from the market we will see a slow and gradual return of prices. I am already seeing some signs of this as sellers are beginning to not give away quite as much as they were a month ago. Fall is typically a transition month for sales where we start to see more investors and 2nd home buyers looking to pick up a ski property for the upcoming ski season. I think that the next two months are going to be very telling whether the recovery of the market in Park City is real or is just a temporary correction.
September has been particularly spectacular with warm days, cool nights, and right now the mountains are full of red oak and maple trees. Most everyone feels that this is the best month of the year so come out and visit us and experience fall in the Rocky Mountains.