Before we get started with today's news in Park City, let's get to the really important thing: today is my birthday! I'd like to say sweet 16 but I couldn't even reverse the numbers and be accurate. Today is supposed to be a beautiful day, so I'm going to relax and enjoy the town. What I'm very tempted to do today is drive up to Empire Pass and ski Deer Valley. Having never done this on my birthday I think it would be very fun. And yes, there is still plenty of snow. If I do this look for a picture!
What I really enjoy this time of year is watching the aspens leafing out and the green line creeping up the mountain. Currently the aspens have leaved out to about 8,000 feet. The town of Park City is 7,000 feet and the tops of the peaks are 10,000 feet. Each day creeps up higher and higher, but high-elevation trees will probably not leaf out for another week or two. This year the highest trees will probably not leaf out until almost July and will start to lose their leaves late September, a very short growing season. You have to really want to be a tree to live at 10,000 feet.
In real estate news, our market continues to improve with strong sales through all aspects of the market. The numbers of sales for the first four months of 2011 in the greater Park City area are up 20% over 2010 with average sales price being for the most part flat. Like most real estate markets there are many subset markets, with each one being very unique and different. For example, the average sales price for single-family homes in Park Meadows is up slightly over 2010, condos in upper Deer Valley are pretty flat while condos at the Canyons Resort do not appear to have hit bottom yet. This year, 51% of all transactions in the greater Park City area were cash; not surprisingly, 88% of land sales were cash transactions. I say not surprisingly because of the difficulty and expense of financing land. 29% of the sales this year have been distressed sales with the golf course community of Promontory accounting for 25% of all of the distressed sales. Notices of default have been steadily decreasing since the first of the year and the number of listings across the board are down 14% for the same period last year. I see this as all pretty positive news for the resort real estate market as we are once again bucking the national trends.
Comparing what's going on in Park City to the national trends nationwide, numbers of sales are down about 30% nationwide from last year. Resort markets seem to be hit quickly when the economy takes a downturn but historically have recovered much faster than residential markets. Even during a downturn in the economy we hear from our visitors that they want to own their vacation properties but are nervous about the timing and perhaps their financial situation. As consumer confidence rebounds buyers tend to look at a vacation home purchase as a good financial investment rather than just pure enjoyment. Right now vacation home buyers appear to be feeling much more confident that the resort real estate market is near the bottom and that with low prices and dwindling inventory, now is the time to act. As I mentioned in last week's article the importance of having a local, knowledgeable and experienced agent working for you can not be overstressed. While prices in Park City are down to about where they were in 2006, offering some excellent investment opportunities, there are certainly specific areas where the savvy investor can find extremely attractive purchases.
Summer will eventually arrive, I promise. So come out and enjoy spectacular summer weather in the high country and of course when you do, be sure to stop in my office or give me a call to find out what's happening around town, the best restaurants, what events are a "don't miss," and where the best real estate buys are.
