Mid-Year Golf Course Wrap-Up

Unfortunately I have to start this week's blog with some very sad news. A local park city skier, "Speedy" Jaret Peterson tragically took his life on Monday. Speedy grew up in Park City, won a silver medal at the Vancouver Olympics in freestyle and like so many others, lost his battle with alcoholism and depression. Speedy will be missed by all and hopefully there is a lesson to be learned here.

On a much brighter note, the town is absolutely bustling with activity. Walking around Main Street, the shops are full, the restaurants are full and everyone seems to be in a good mood. Could there be a correlation between the oppressive heat wave the rest of the country is seeing and our beautiful mountain weather? IF you're reading this while living anywhere in the Midwest or Eastern US, my full intent is to make you jealous by telling you our daytime temps are in the high 70s to low 80s, with nighttime temps in the 50s and 60s. Visitors might think that we live here for the winters and skiing, but it's really the summers. They are so beautiful!



It has been an interesting year for real estate sales in our private golf courses, of which we have five (Promontory, Glenwild, Tuhaye, Victory Ranch and Red Ledges). Of these, the most active has been Promontory. In 2010, 16 homes sold in the first half of the year compared to 22 in 2011, or a 37.5% increase in number of sales. Following the trend throughout Park City the average sales price dropped 8.5% from $1,291,000 to $1,181,000. Lot sales in Promontory is where all the activity really was. In the first half of 2010, 19 lots sold, compared to 56 in 2011, for an increase in 195%.(this number is somewhat scewed by one buyer having now purchased over 20 lots) Average sales price also increased 15.5% from $132,000 to $153,000. Glenwild and Tuhaye saw far fewer sales; combined saw 6 home sales in the first half of 2010 and 5 home sales in 2011. Average sales price for homes in Tuhaye was $1,192,000 in 2010 and $1,499,000 for 2011. In Glenwild the average sold price of a home in 2010 was $1,450,000 and $3,397,000 for the first half of 2011. For lot sales, there were 8 lots sold in Tuhaye and Glenwild in the first half of 2010 compared to only 2 in 2011.

In trying to analyze why there was so much activity in Promontory compared to the other golf course communities, I feel there are several factors contributing to this. When Promontory first opened it was the second course to open after the very successful sellout of Glenwild, and everybody wanted to get in on the golf course action. As a result, builders started snapping up lots as well as speculators. It is very difficult for a community to remain viable when the majority of purchases were for speculation as opposed to end users. And as a result, prices dropped dramatically in Promontory. Lots are selling for about a third of their original purchase price or less and finished homes can be purchased for significantly less than what it costs to build the home. Combine this with the terrific amenity package that Promontory has: beautiful clubhouse, separate fitness centers and pool, separate children's center, two golf courses, and now The Shed (which is a rec center). While Glenwild has a stunning clubhouse, Tuhaye has the Tower Club on the mountain of Deer Valley and a fitness center and small restaurant at the Golf Course, none of these come close to comparing to what Promontory has to offer. Fortunately, Tuhaye and Red Ledges golf course communities came into existence long enough after Promontory that speculators did not overbuy. We are fortunate enough to have enough diversity in golf course communities with each having its own unique amenity package that I can find the perfect combination of real estate price and amenities for each buyer.

As I alluded to above, if you are sweltering in this summer's heat wave, come out and discover just how delightful summers in the mountains are. And of course when you do, either stop by my office or give me a call for the insider's tips on the best restaurants, what activities are must do, and naturally for the best real estate buys in town.