This week I traveled to Whistler B.C. and participated in a conference put on by the Western Mountain Resort Alliance, known as WMRA. The panel was composed of a representative from Vail, CO, Jackson Hole, WY, Whistler B.C., and of course me from Park City, UT. The purpose of the panel was to discuss the current market and what has transpired during the past 12 months. Our secondary purpose was to look around Whistler and see how the preparation for the upcoming winter Olympics is going.
The markets in Vail, Jackson Hole and Park City were remarkably similar this past year. We all saw a dramatic downturn beginning last October 2008 which lasted until sometime between March-May depending on the resort. Park City seems to have been the first resort to emerge from the recession with our market turning around in March 2009. Vail and Jackson Hole did not really experience a turnaround until May 2009. All three resorts did not experience a booming summer in real estate but certainly saw sales increasing. All three resorts reported that while there have been some sales at the high end, the majority of buyers are looking at lower end properties and by lower end we generally mean under $2,000,000.
Whistler, B.C. has seen a slightly different market as a result of the upcoming Olympics winter games this coming February, 2010. Like all of the other resorts, their fourth quarter of 2008 and their first quarter of 2009 were depressing for real estate sales. But the second quarter of 2009 in Whistler, while still slow, was significantly better and their third quarter of 2009 was back to normal. They are expecting this fourth quarter to be equally as strong, but then as a result of the Olympic games the Whistler realtors expect that the 1st quarter of 2010 will again be very slow. Having experienced the Salt Lake Olympics and the affect that it had on Park City’s real estate, I explained to the Whistler realtors that while they really should not expect any real estate activity through the games March will pick up and most importantly real estate business in the subsequent years should be stronger.
When driving around Whistler evidence of the upcoming Olympics is everywhere. Streets are being widened, the finishing touches are going in on all the venues, and the town is alive with excitement. Interestingly, security appears to be even tighter than it was for the Salt Lake games. Last night we could only get within a half a mile of any of the venues. We attempted to go to the sliding track where the bobsled, luge, and skeleton events will be held but were turned away by security. The same was true for the cross country venue. As we saw in Park City in October 2001, the village center has an Olympic store and posters/ banners are everywhere welcoming guests to the 2010 Olympics. I learned recently that when the resort of Whistler was first proposed in the early 1970’s it was conceived with the intent of hosting the winter Olympics during the 1980’s. This did not occur, however the village was designed and built with idea of hosting an Olympics so it is very pedestrian friendly and beautifully laid out.
If you have ever thought of going to a winter Olympics the Vancouver/Whistler B.C. Olympics this upcoming February would be a great one to attend. Canada is very easy and friendly to U.S. visitors and the drive from Vancouver to Whistler is one of the most beautiful drives anywhere in the world.
Showing posts with label Resort Real Estate. Show all posts
Showing posts with label Resort Real Estate. Show all posts
Friday, October 23, 2009
Thursday, October 15, 2009
Interesting Times in Real Estate
Most real estate markets throughout the U.S. are struggling to reach some stability and the rocky mountain resorts including Park City are no exception. While the general trend in number of sales has been on an upward trend since March, getting in to specific sales I find the numbers are all over the place. If we compare September 2009 to September 2008 the number of accepted contracts written were up 21% from 105 in 2008 to 127 in 2009. However, the number of units that actually closed was down 7% from 121 units in 2008 to 112 in 2009. I suspect that there are several reasons for this, the first is that in August 2009 only 85 accepted contracts were written and the second is a reflection on the difficulty buyers are having obtaining financing. In the past, from time of acceptance to closing for a property subject financing 30 days was common. With the current lending climate the days needed to close a contract has increased to at least 45 days and can often take longer than that.
Another interesting part of the Park City Real Estate market is the “seller’s mentality.” While we have been in a declining market for at least the past 18 months, this past year has been more like a free fall. Depending on when a property was purchased, sellers are now finding themselves selling their properties for the amount they purchased it for or in some cases less than the original purchase price. After many years of a steady increase in selling price this has been a very bitter pill to swallow particularly knowing that Park City is a highly sought after resort. For the past year Park City real estate agents have been working very hard to educate their sellers on where the market is and to price their properties to sell rather than be in a “chasing a declining market” game. Then the issue becomes that even though we have convinced the seller to price their property correctly, buyers are still coming in and expecting the seller to come even further off of the price. So the education now switches towards the buyer to explain where the market is and the true value of their vacation home. As consumer confidence increases I expect that we will see the number of sales continuing to increase and will be significantly higher than last winter. This could increase the differences in the mind set between buyers and sellers. With all of this said… this winter should prove to be very interesting.
Next week I will be in Whistler B.C. participating in a panel discussion with agents from Vail, CO, Jackson Hole, WY, and Whistler, B.C. Check back next week for what should be a very informative report.
Another interesting part of the Park City Real Estate market is the “seller’s mentality.” While we have been in a declining market for at least the past 18 months, this past year has been more like a free fall. Depending on when a property was purchased, sellers are now finding themselves selling their properties for the amount they purchased it for or in some cases less than the original purchase price. After many years of a steady increase in selling price this has been a very bitter pill to swallow particularly knowing that Park City is a highly sought after resort. For the past year Park City real estate agents have been working very hard to educate their sellers on where the market is and to price their properties to sell rather than be in a “chasing a declining market” game. Then the issue becomes that even though we have convinced the seller to price their property correctly, buyers are still coming in and expecting the seller to come even further off of the price. So the education now switches towards the buyer to explain where the market is and the true value of their vacation home. As consumer confidence increases I expect that we will see the number of sales continuing to increase and will be significantly higher than last winter. This could increase the differences in the mind set between buyers and sellers. With all of this said… this winter should prove to be very interesting.
Next week I will be in Whistler B.C. participating in a panel discussion with agents from Vail, CO, Jackson Hole, WY, and Whistler, B.C. Check back next week for what should be a very informative report.
Wednesday, September 30, 2009
Snow, Snow, Snow
This September was the most beautiful that I have seen here in Park City. Every day was bright blue skies and warm balmy days. With some early cold weather that we had in August and all of the rain in June, the trees turned a little earlier than normal, but were particularly vibrant this year. Then today arrived, September 30, 2009 and we were reminded that we do live in the mountains. A very strong cold front arrived during the night with thunder, lightening and howling winds. We woke up this morning to rain which quickly changed to snow. It has been snowing all day here in Park City and while it is not sticking to the ground here in town the mountains are certainly white. The extended forecast is for more snow off and on for the next week. A certain reminder that winter is on its way and ski season is not far. While the resorts generally open in mid November, I have seen excellent skiing on Halloween…perhaps this will be one of those years.
In real estate news the real estate recovery seems to be continuing here in Park City. After a dismal start to the year the summer months were stronger than last year and the trend is continuing. For example, the number of properties under contract but not yet closed is down this year from last. There have been 750 homes pended this year and 912 in 2008. The number of pending sales increased for the month of August, 116 this year compared to 110 in 2008. Year to date, condos and land pending sales were down 16% and 42%. However during the month of August, condo sales were up 79% and while land sales were still down compared to last year they were down less than 30%. In numbers of actual closed listings year to date, we are off about 34%, 635 closed this year compared to 969 in 2008. The number of single family homes sold in the month of August was even last year and condo sales were off about 15%. The big drop in sales so far this year compared to last year is in vacant land, only 9 parcels closed this year compared to 22 in 2008. This reflects the caution of spec builders right now. With the lack of new home starts here in Park City and the likelihood that there will not be many for the next year to year and a half, newly completed homes are a rarity and are sought after if they are within the city limits. In the Deer Valley area there are less than a handful of newly completed homes for buyers to choose from. Everything else is either an existing older home or at best an older home that has been remodeled or updated. I expect that as a result of this new homes may be in demand this ski season. Scarcity has always been a significant driving factor in real estate.
With the new snow in the mountains as a backdrop for the bright gold’s and red’s, if there is any way to come out to the mountains this is the time to do it.
Thursday, September 17, 2009
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.
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.
Thursday, August 27, 2009
Fall?
In an earlier blog I mentioned that August in the western mountains tends to start cooling off unlike much of the U.S. which is still sweltering underneath the summer sun. This August in particular has been quite cool with an early snow already and several early mornings of frost. This past weekend the mountain oak tree’s started turning and we are just beginning to see hints of red leaves spotting the mountain sides, a sure sign that Fall is near.
This past weekend Deer Valley Resort was the host to the annual Park City Jazz Festival. This was three days of great music, food and too much wine. Deer Valley is a terrific host in that they allow patrons to bring in picnic baskets and their favorite beverage. The headline act this year was Al Jarreau. While he is certainly getting up there in years, he can still perform with the best.
Now on to Real Estate news. Fall through early winter is quite active here, unlike Spring when the town is quiet and interest in real estate drops off dramatically. Buyers are looking to purchase their ski condo early enough to start booking rental reservations for the upcoming ski season. Sellers understand this so they are now putting units on the market so there is an excellent selection of properties to choose from. While we are certainly still in a buyers market I am beginning to see the first hints of a change. Several sellers recently have felt that the market, if not having already turned, is about to and are prepared to stay closer to the original asking price. I think that this fall and winter season may be quite interesting as buyers will still have the mindset of a bottoming real estate market and sellers may be seeing the light at the end of the tunnel. Click here to read an article about the real estate "turnaround" or copy and paste this link into your browser: http://www.dailyfinance.com/2009/08/27/could-the-end-be-near-housing-guru-shiller-senses-home-price-re/
This past weekend Deer Valley Resort was the host to the annual Park City Jazz Festival. This was three days of great music, food and too much wine. Deer Valley is a terrific host in that they allow patrons to bring in picnic baskets and their favorite beverage. The headline act this year was Al Jarreau. While he is certainly getting up there in years, he can still perform with the best.
Now on to Real Estate news. Fall through early winter is quite active here, unlike Spring when the town is quiet and interest in real estate drops off dramatically. Buyers are looking to purchase their ski condo early enough to start booking rental reservations for the upcoming ski season. Sellers understand this so they are now putting units on the market so there is an excellent selection of properties to choose from. While we are certainly still in a buyers market I am beginning to see the first hints of a change. Several sellers recently have felt that the market, if not having already turned, is about to and are prepared to stay closer to the original asking price. I think that this fall and winter season may be quite interesting as buyers will still have the mindset of a bottoming real estate market and sellers may be seeing the light at the end of the tunnel. Click here to read an article about the real estate "turnaround" or copy and paste this link into your browser: http://www.dailyfinance.com/2009/08/27/could-the-end-be-near-housing-guru-shiller-senses-home-price-re/
Monday, August 17, 2009
New Developments
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In spite of the struggling but improving economy new developments at the ski resorts here in Park City continue to move forward. This past week Dakota Mountain Lodge at The Canyons opened for business. Dakota Mountain Lodge features a Golden Door Spa and is operated under the Waldorf Astoria flag. As one would expect with these marquis names, the rooms are spectacular. The spa is both beautiful and comfortable and the dining rooms/lounges boast beautiful views of The Canyons Resort. During the construction period of this property almost all of the units sold and are now closing. Since the grand opening last week the occupancy rate has been extremely high.
At Deer Valley Resort the St Regis hotel is nearing completion and is about 2/3 sold out. St Regis is built directly on a ski run in the Deer Crest area of Deer Valley and boasts stunning views of the Jordanelle Reservoir, Deer Valley Resort, and downtown Main Street in Park City. The St Regis is expected to open for business this December and early walk-through’s indicate that this hotel will easily live up to the St Regis standard. St Regis has raised the bar for prices with units selling for around $2000 per square foot.
In the Empire Pass area of Deer Valley there are two new projects under construction. Right in the heart of the village at Empire Pass is a project known as Flagstaff located directly on a ski run and across from the members Tower Club Lounge. The Flagstaff building should be completed and ready for occupancy sometime this ski season. Flagstaff is part of the Talisker Club offering both golf course amenities at Tuhaye and private restaurants on Deer Valley for the owner/members. Flagstaff had the unfortunate timing of coming on the market right as the resort market started slowing down followed by the economic meltdown last September. In spite of this, 7 out of the 24 units have sold and I expect that with the building completion scheduled this winter we will see more activity.
Also under construction and scheduled for completion for the 2010/11 ski season is the Montage condo hotel located at the base of the empire lift in Deer Valley. Montage is a boutique hotel/spa and is only the 3rd hotel built in this new emerging chain. Montage will feature about 30,000 square feet of spa and restaurant area with magnificent views of the empire pass ski runs. The condominium units at Montage have yet to be offered for sale and we eagerly await details on pricing, floor plans and finishes. Montage should easily rival the St Regis for quality and will have a superior location. Stay tuned for further updates on Montage.
It seems that this may be an early fall or a very short summer. This past weekend an unseasonably strong cold front came through Utah dropping daytime high temperatures into the mid 50’s. While it has warmed up very nicely this week, another cold front is expected to arrive tonight once again dropping temperatures into the 50’s or low 60’s tomorrow. After having lost summer weather in June which was the rainiest June on record, to now start loosing summer weather in August just does not seem right. Summers in the mountains are short enough to begin with! While summer may be quickly coming to an end we still have a couple of large events remaining. Next Thursday is the start of the Park City Jazz Festival under the stars at Deer Valley, and then we close out summer with Park City’s Miners Day celebrations (Labor Day for the rest of the country) in early September. The cooler but still warm days of September are a magical time of the year and would be a terrific time to visit us.
Thursday, July 23, 2009
The Future of Real Estate
During these uncertain times everyone wants to know what is going to happen with the real estate market and their investments in particular. My crystal ball has been very cloudy lately but I can confidently say that the resort real estate market will rebound and it will most likely be before the metropolitan markets. Now just what is it that I see that causes me to make such a statement? I am seeing several very positive signs that indicate a recovery in the real estate market, if not already occurring, it is not far off.
First is the stock market. The stock market tends to be an indicator of what will be expected six months from now rather than a single snapshot of the economy at the moment, so while the unemployment numbers are very high the market feels like the turnaround may be near.
Second, the number of new real estate contracts written in Park City has steadily increased each month beginning last March. It is true that the majority of these buyers are bargain hunters but the fact that they feel that we are close enough to the bottom or to get off the fence, is very encouraging. What is interesting to me is that the increase in activity covers all ranges of the market. Again, an indicator that confidence in our market has returned.
Third, for the past year I have shown property to many buyers who stated that “We are in no hurry and want to wait for the bottom of the market”. This waiting creates a lot of pent up demand. It is often said in a market that is moving downward that no one wants to be first but no one wants to be third either. So when the real estate market does start to rebound, as we are seeing, the pent up demand often causes a flurry of activity. Barring any new economic or political disasters, this initial flurry of activity can be the catalyst to a sustained increase in market activity.
While we are still in the middle of summer, oddly enough, buyers are thinking of the upcoming ski season and are thinking that now is the time to start looking for ski investments. As we get closer to the ski season there are more buyers looking and as a result of this sellers are feeling less pressure to accept drastic price cuts. Savvy buyers understand that the best deals are to be found from mid spring through mid summer.
Resort real estate is always speculative and subject to the whim of the economy but Park City is in a unique situation with its proximity to Salt Lake City. No other major ski resort destination in the west has the convenience of an international airport that is an easy 30 minute drive away. Another unique aspect of Park City is that unlike any other western resort Park City is not surrounded by national forest but rather land that was prospected for silver and privately owned. While other resorts have a scarcity of developable land witch puts upward pressure on prices we seem to have an over abundance of land, which helps suppress prices. The ski resorts certainly have their share of expensive properties but we are blessed with an inordinate amount of very affordable homes and condos (for ski resorts). This allows me to help buyers find a property that fits just about any budget and need.
So what does all of this mean? While nothing can ever be said for certain, my confidence is very high that Park City will come out of this downturn sooner than most and today’s buyers will be very pleased with their purchases.
First is the stock market. The stock market tends to be an indicator of what will be expected six months from now rather than a single snapshot of the economy at the moment, so while the unemployment numbers are very high the market feels like the turnaround may be near.
Second, the number of new real estate contracts written in Park City has steadily increased each month beginning last March. It is true that the majority of these buyers are bargain hunters but the fact that they feel that we are close enough to the bottom or to get off the fence, is very encouraging. What is interesting to me is that the increase in activity covers all ranges of the market. Again, an indicator that confidence in our market has returned.
Third, for the past year I have shown property to many buyers who stated that “We are in no hurry and want to wait for the bottom of the market”. This waiting creates a lot of pent up demand. It is often said in a market that is moving downward that no one wants to be first but no one wants to be third either. So when the real estate market does start to rebound, as we are seeing, the pent up demand often causes a flurry of activity. Barring any new economic or political disasters, this initial flurry of activity can be the catalyst to a sustained increase in market activity.
While we are still in the middle of summer, oddly enough, buyers are thinking of the upcoming ski season and are thinking that now is the time to start looking for ski investments. As we get closer to the ski season there are more buyers looking and as a result of this sellers are feeling less pressure to accept drastic price cuts. Savvy buyers understand that the best deals are to be found from mid spring through mid summer.
Resort real estate is always speculative and subject to the whim of the economy but Park City is in a unique situation with its proximity to Salt Lake City. No other major ski resort destination in the west has the convenience of an international airport that is an easy 30 minute drive away. Another unique aspect of Park City is that unlike any other western resort Park City is not surrounded by national forest but rather land that was prospected for silver and privately owned. While other resorts have a scarcity of developable land witch puts upward pressure on prices we seem to have an over abundance of land, which helps suppress prices. The ski resorts certainly have their share of expensive properties but we are blessed with an inordinate amount of very affordable homes and condos (for ski resorts). This allows me to help buyers find a property that fits just about any budget and need.
So what does all of this mean? While nothing can ever be said for certain, my confidence is very high that Park City will come out of this downturn sooner than most and today’s buyers will be very pleased with their purchases.
Friday, May 15, 2009
Spring, Finally!
Even though we still get some cold nights and occasional snow storms spring has arrived. The days are noticeably warmer and everyone is out and about. Driving around town I am seeing mountain bikers, road bikers, tennis courts are full and golf courses are busy. Afternoon BBQ’s are back in and people are out just generally enjoying the sunshine.
The economic news these days while still quite mixed seems to be more positive than negative. Every day we are hearing more stories and outlooks that reflect a positive attitude and a hint of recovery from the recession. I recently ran some numbers comparing January-April for the past 3 years and after steadily declining numbers this March actually showed an upturn for the first time. Click here to view graph http://www.flickr.com/photos/dhanlon532/3533334599/.
This is encouraging as it is the first time since 2006 that we have seen any increase. These numbers confirm what many brokers here in town have been feeling. The general consensus is that the signs are showing that we may be nearing the bottom of the market. Historically low interest rates combined with low home prices and an abundance of properties to choose from is giving the savvy buyer opportunities that rarely occur in the resort real estate market. In speaking with agents from the other western resorts of Colorado, Wyoming and Idaho they echo the same feelings.
With the summer calendar full of activities, great concerts and festivals, plan now to spend some time in the mountains. Come visit and experience the clean mountain air, cool nights and gorgeous scenery!
The economic news these days while still quite mixed seems to be more positive than negative. Every day we are hearing more stories and outlooks that reflect a positive attitude and a hint of recovery from the recession. I recently ran some numbers comparing January-April for the past 3 years and after steadily declining numbers this March actually showed an upturn for the first time. Click here to view graph http://www.flickr.com/photos/dhanlon532/3533334599/.
This is encouraging as it is the first time since 2006 that we have seen any increase. These numbers confirm what many brokers here in town have been feeling. The general consensus is that the signs are showing that we may be nearing the bottom of the market. Historically low interest rates combined with low home prices and an abundance of properties to choose from is giving the savvy buyer opportunities that rarely occur in the resort real estate market. In speaking with agents from the other western resorts of Colorado, Wyoming and Idaho they echo the same feelings.
With the summer calendar full of activities, great concerts and festivals, plan now to spend some time in the mountains. Come visit and experience the clean mountain air, cool nights and gorgeous scenery!
Tuesday, April 7, 2009
Is Now The Time To Buy???
As a long time REALTOR® in a destination resort, wherever I go around town residents and visitors always want to know what’s going on with the local real estate market. Residents are always interested to know if their property values are going up or down while visitors wonder if this is the right time to purchase. For this discussion let’s concentrate on the 2nd Home/Vacation Home buyer.
In a recent NAR survey of 2nd home buyers they reported that the number of 2nd homes/vacation homes purchased in the United States was down 30% for 2008. While this seems shocking at first it is not surprising. 2008, particularly the latter half, was a very stressful time for most Americans and a 2nd home/vacation home purchase was not a necessity. These purchases were put on the back burner. While not having seen any hard numbers for the first quarter of 2009, my observations are that the first quarter of 2009 numbers will be very similar to the numbers for the last quarter of 2008. During the first quarter of 2009 buyers were inquiring about vacation properties but were understandably nervous and not ready to pull the trigger. We have just begun the 2nd quarter and it appears that buyers are now feeling a little bit more confident and are once again purchasing. My guess is that a combination of the following factors has come in to play: Along with a drop in the number of home sales came a drop in home prices, interest rates are at an all time low and the stock market seems to be calming down.
While the stock market has certainly not settled on a particular direction the wild roller coaster fluctuations of last fall seem to have evened out. Lower prices combined with low interest rates seem to be attracting buyers who are fearful of loosing out on a terrific opportunity to invest in a resort vacation home. Many buyers remember 2003, which was the low point for the market after the 911 terrorist attacks and the Gulf Wars. Many buyers sat on the sidelines in 2003 not sure if it was the right time to purchase and then watched the markets escalate through 2006. Is this a repeat of 2003-2006? While no one can say for certain, I do feel confident in saying that this window of opportunity will end and there will be buyers looking from the wrong side of the window.
The past few weeks here in Park City I have seen a pronounced increase in interest and contracts written. What is very telling is that well priced properties are receiving multiple offers. This is telling in that buyers are out there and ready to purchase but only for homes they perceive to be an exceptional deal. This is not the time for sellers to test the market. If sellers are serious about selling, their property must be perceived as a “deal” not just competitively priced.
So, is this the right time to buy a resort vacation home? That is certainly an individual decision but the stars may be lining up to make now an opportunity that we may be wistfully looking back to.
In a recent NAR survey of 2nd home buyers they reported that the number of 2nd homes/vacation homes purchased in the United States was down 30% for 2008. While this seems shocking at first it is not surprising. 2008, particularly the latter half, was a very stressful time for most Americans and a 2nd home/vacation home purchase was not a necessity. These purchases were put on the back burner. While not having seen any hard numbers for the first quarter of 2009, my observations are that the first quarter of 2009 numbers will be very similar to the numbers for the last quarter of 2008. During the first quarter of 2009 buyers were inquiring about vacation properties but were understandably nervous and not ready to pull the trigger. We have just begun the 2nd quarter and it appears that buyers are now feeling a little bit more confident and are once again purchasing. My guess is that a combination of the following factors has come in to play: Along with a drop in the number of home sales came a drop in home prices, interest rates are at an all time low and the stock market seems to be calming down.
While the stock market has certainly not settled on a particular direction the wild roller coaster fluctuations of last fall seem to have evened out. Lower prices combined with low interest rates seem to be attracting buyers who are fearful of loosing out on a terrific opportunity to invest in a resort vacation home. Many buyers remember 2003, which was the low point for the market after the 911 terrorist attacks and the Gulf Wars. Many buyers sat on the sidelines in 2003 not sure if it was the right time to purchase and then watched the markets escalate through 2006. Is this a repeat of 2003-2006? While no one can say for certain, I do feel confident in saying that this window of opportunity will end and there will be buyers looking from the wrong side of the window.
The past few weeks here in Park City I have seen a pronounced increase in interest and contracts written. What is very telling is that well priced properties are receiving multiple offers. This is telling in that buyers are out there and ready to purchase but only for homes they perceive to be an exceptional deal. This is not the time for sellers to test the market. If sellers are serious about selling, their property must be perceived as a “deal” not just competitively priced.
So, is this the right time to buy a resort vacation home? That is certainly an individual decision but the stars may be lining up to make now an opportunity that we may be wistfully looking back to.
Wednesday, March 18, 2009
Spring Skiing in Park City
This is the time of the year that we change over from the cold winter snow conditions to spring skiing. The joys of spring skiing are skiing corn snow and spending the afternoons on “the beach” at Deer Valley. Click here for fun photos.
We are all familiar with the typical star-shaped snowflake that falls, for which Utah is so famous for. However, come spring the snow going through constant melt-freeze cycles and changes to what is referred to as “corn snow”. The snow crystal melts during the day, refreezes at night, melts again the next day and freezes once again. After several cycles of this, the snow has lost its crystal shape and resembles more that of a grain of corn. Very sought after skiing occurs just as the surface starts to soften and has about an inch or two of soft snow over a firm base. The skiing in these conditions is smooth, consistent and completely delightful. Experienced spring skiers know to go to the east or south exposures first thing in the morning where the snow softens first, and then work their way around to the west, and finally the north exposures as daytime heating progresses. All too often I talk to visitors who do not understand the sun and its effect on the snow and try to ski north or west exposures first thing in the morning, which can be rock hard and very unpleasant. When spring skiing, look for the sun first thing or follow the locals, who know where to go, and you will find your day extremely enjoyable.
In real estate news, a concern that everyone is hearing is the ability, or non-ability to obtain financing for vacation properties. While financing is certainly not as easy as it was a few years ago, financing is available. In the past few years stated income, non-verification loans where easy to obtain. And it is largely responsible for creating the financial mess that we are in right now. As is typical, the pendulum has now swung strongly the other direction where lenders require verification of everything. When financing a resort property, particularly a condo or condo-hotel, I feel that it is imperative to use a local lender. One who knows the property and knows how to package the loan in such a way that the underwriters will fund it. Too many times I have seen buyers search the internet for what they think is the best rate, or use a lender in their home town. Experience has taught me that these loans rarely go through. One of the first questions an out-of-state lender asks is, “What percentage of the condo development is non-owner occupied?” In a resort town, such as Park City, the answer is frequently, “Nearly 100% of the properties are non-owner occupied.” This will often kill any possibility of the lender funding the loan. Local lenders understand that these wholly owned condos are used by their owners for vacations and know how to package this so that the underwriter is comfortable with the loan. Frequently, experienced Realtors® will ask the buyer’s agent who the buyer is using for their loan. If the property being purchased is a condominium which is used for vacation rentals, it is not uncommon for the listing agent to require that the buyer submit a loan application with a local lender as well as their out of state lender. What we are trying to accomplish here is to increase the sellers confidence that the loan will go through. So my advice when purchasing resort real estate is to rely on your Realtor® for advice on financing. Our local lenders know how to work with out-of-state buyers and the peculiarities of resort property. This helps make the loan process as smooth and painless as possible.
We are all familiar with the typical star-shaped snowflake that falls, for which Utah is so famous for. However, come spring the snow going through constant melt-freeze cycles and changes to what is referred to as “corn snow”. The snow crystal melts during the day, refreezes at night, melts again the next day and freezes once again. After several cycles of this, the snow has lost its crystal shape and resembles more that of a grain of corn. Very sought after skiing occurs just as the surface starts to soften and has about an inch or two of soft snow over a firm base. The skiing in these conditions is smooth, consistent and completely delightful. Experienced spring skiers know to go to the east or south exposures first thing in the morning where the snow softens first, and then work their way around to the west, and finally the north exposures as daytime heating progresses. All too often I talk to visitors who do not understand the sun and its effect on the snow and try to ski north or west exposures first thing in the morning, which can be rock hard and very unpleasant. When spring skiing, look for the sun first thing or follow the locals, who know where to go, and you will find your day extremely enjoyable.
In real estate news, a concern that everyone is hearing is the ability, or non-ability to obtain financing for vacation properties. While financing is certainly not as easy as it was a few years ago, financing is available. In the past few years stated income, non-verification loans where easy to obtain. And it is largely responsible for creating the financial mess that we are in right now. As is typical, the pendulum has now swung strongly the other direction where lenders require verification of everything. When financing a resort property, particularly a condo or condo-hotel, I feel that it is imperative to use a local lender. One who knows the property and knows how to package the loan in such a way that the underwriters will fund it. Too many times I have seen buyers search the internet for what they think is the best rate, or use a lender in their home town. Experience has taught me that these loans rarely go through. One of the first questions an out-of-state lender asks is, “What percentage of the condo development is non-owner occupied?” In a resort town, such as Park City, the answer is frequently, “Nearly 100% of the properties are non-owner occupied.” This will often kill any possibility of the lender funding the loan. Local lenders understand that these wholly owned condos are used by their owners for vacations and know how to package this so that the underwriter is comfortable with the loan. Frequently, experienced Realtors® will ask the buyer’s agent who the buyer is using for their loan. If the property being purchased is a condominium which is used for vacation rentals, it is not uncommon for the listing agent to require that the buyer submit a loan application with a local lender as well as their out of state lender. What we are trying to accomplish here is to increase the sellers confidence that the loan will go through. So my advice when purchasing resort real estate is to rely on your Realtor® for advice on financing. Our local lenders know how to work with out-of-state buyers and the peculiarities of resort property. This helps make the loan process as smooth and painless as possible.
Friday, March 13, 2009
Questions a Buyer Should Ask
Very often when I am showing property to buyers who have never purchased in a resort community before, I am asked a very interesting question. “What questions should we (the buyers) be asking you, our agent?” This is a terrific question and one that should be asked of a buyer’s agent more often. This begins a dialogue between the buyers and myself. Questions that need to be brought up in the beginning are:
“If we are looking to rent this property when we are not using it, is the area that we are looking in suitable for that? Or should we be looking in other places?”
“Do the neighborhood covenants (CC&Rs) allow for vacation rentals? Or do they have restrictions as to the minimum number of days a rental has to be, such as 30, 60 or 90 days?”
“If I am not looking to rent my property, is the neighborhood that I’m looking in popular with vacation rentals, and possibly very noisy with groups who are here on vacation?”
I feel that these are the first and most important questions that need to be asked right away as they will dictate what areas or neighborhoods that I take my buyers to. In any resort community there are areas that are high in demand for rentals and other areas that are more suitable for primary residences.
Once this has been established, then we can get into more specifics. When we find an area or development that is of interest (assuming we are looking at a rental property) questions such as:
“What is the proximity of this property to the resort?”
“Can there be other developments nearby that could affect the views, resort access or rent ability of this project?”
These are really very important questions, as all too often a buyer purchases a home or condo with beautiful views of a ski resort or beach only to find that a new development goes in next to it, completely blocking their view! Other developments, such as new or planned commercial developments could have a negative effect on property values or, in some cases, may have a positive effect.
Another great question to ask is if the property you are interested in is not within walking distance of the resort:
“Is there public transportation?”
“How close is the transportation to your vacation home?” “Is there a fee for this transportation?”
And “What are the hours of operation?”
The availability of free or low- cost transportation can have a strong impact on the rent ability of your vacation property.
Now we start getting into more details:
“What size property is best for rental? A one bedroom, two bedroom or three or more bedrooms?”
“Should I be looking for a property with amenities, such as pool or tennis courts?”
“Should I be looking for a property with a private hot tub?” (This is a big plus in ski resort rentals.)
“Should I be looking for a property within walking distance of the resort or restaurants and shopping of the town?”
“In this particular resort are newer properties more desirable than older?”
The answer to many of these questions comes with a price tag. In almost all cases, the closer your vacation home is to the resort, whether be it the beach, mountain, lake or village, the higher the price is. More often newer properties also come with a higher price tag. So finding a balance between what price range your comfort zone is and what makes the most sense for rental income is a discussion that you and your REALTOR® should have early on in your search.
Asking these questions up front will save you a lot of time and frustration. The worse thing that can happen is to be looking for properties, find what you feel is absolutely perfect, only to discover that the CC&Rs will not allow you to rent, or that its location greatly limits your rental income potential. While you may not know the resort or what is available at what prices, you should know your objectives and make sure that you and your REALTOR® are on the same page. With these questions, your time with your REALTOR® will be productive and efficient and you will find a property that best fits your and your family’s requirements.
“If we are looking to rent this property when we are not using it, is the area that we are looking in suitable for that? Or should we be looking in other places?”
“Do the neighborhood covenants (CC&Rs) allow for vacation rentals? Or do they have restrictions as to the minimum number of days a rental has to be, such as 30, 60 or 90 days?”
“If I am not looking to rent my property, is the neighborhood that I’m looking in popular with vacation rentals, and possibly very noisy with groups who are here on vacation?”
I feel that these are the first and most important questions that need to be asked right away as they will dictate what areas or neighborhoods that I take my buyers to. In any resort community there are areas that are high in demand for rentals and other areas that are more suitable for primary residences.
Once this has been established, then we can get into more specifics. When we find an area or development that is of interest (assuming we are looking at a rental property) questions such as:
“What is the proximity of this property to the resort?”
“Can there be other developments nearby that could affect the views, resort access or rent ability of this project?”
These are really very important questions, as all too often a buyer purchases a home or condo with beautiful views of a ski resort or beach only to find that a new development goes in next to it, completely blocking their view! Other developments, such as new or planned commercial developments could have a negative effect on property values or, in some cases, may have a positive effect.
Another great question to ask is if the property you are interested in is not within walking distance of the resort:
“Is there public transportation?”
“How close is the transportation to your vacation home?” “Is there a fee for this transportation?”
And “What are the hours of operation?”
The availability of free or low- cost transportation can have a strong impact on the rent ability of your vacation property.
Now we start getting into more details:
“What size property is best for rental? A one bedroom, two bedroom or three or more bedrooms?”
“Should I be looking for a property with amenities, such as pool or tennis courts?”
“Should I be looking for a property with a private hot tub?” (This is a big plus in ski resort rentals.)
“Should I be looking for a property within walking distance of the resort or restaurants and shopping of the town?”
“In this particular resort are newer properties more desirable than older?”
The answer to many of these questions comes with a price tag. In almost all cases, the closer your vacation home is to the resort, whether be it the beach, mountain, lake or village, the higher the price is. More often newer properties also come with a higher price tag. So finding a balance between what price range your comfort zone is and what makes the most sense for rental income is a discussion that you and your REALTOR® should have early on in your search.
Asking these questions up front will save you a lot of time and frustration. The worse thing that can happen is to be looking for properties, find what you feel is absolutely perfect, only to discover that the CC&Rs will not allow you to rent, or that its location greatly limits your rental income potential. While you may not know the resort or what is available at what prices, you should know your objectives and make sure that you and your REALTOR® are on the same page. With these questions, your time with your REALTOR® will be productive and efficient and you will find a property that best fits your and your family’s requirements.
Thursday, February 26, 2009
Spring is in the Air
This last week of February has certainly felt like spring is just around the corner. Temperatures have been in the mid forties and grass is beginning to show on the more exposed areas of town. However, I have lived here long enough to know that the snow is not done. March tends to be a very snowy month, intermixed with warm sunny days. A perfect combination for great skiing.
Thoughts on the real estate market… These are very interesting times as prices are low, inventory is up and seller’s are looking to sell. One would think with these combinations that sales would be strong as buyers would take advantage of their strong position. However, just the opposite seems to be true in that everyone seems to be waiting. I definitely understand that there is a lot on uncertainty and nervousness, but there may never be a better opportunity to make money in resort real estate than there is right now. Interest rates are extremely low but everyone I speak to expects interest rates to start creeping up this summer. While the timing of this buyers market is certainly not the best for some buyers, for others it may present an opportunity that we may not see again for many years.
If nothing else, come and take advantage of great skiing with few crowds. Unheard of during the ski season, several Park City restaurants are offering two-for-one coupons for dinner and lodging companies are offering deals on accommodations. These are normally only found during the off months of May through October. And remember that you can ski free the day you arrive. Go to my website for details. http://www.dennishanlon.com/.
While I would refer to this as an average snow season, we still have a base of nearly 100 inches, most resorts in the country would refer to a season like we are having as epic. So come out, take advantage of the many deals that are being offered in town, and enjoy spring skiing at its finest.
Thoughts on the real estate market… These are very interesting times as prices are low, inventory is up and seller’s are looking to sell. One would think with these combinations that sales would be strong as buyers would take advantage of their strong position. However, just the opposite seems to be true in that everyone seems to be waiting. I definitely understand that there is a lot on uncertainty and nervousness, but there may never be a better opportunity to make money in resort real estate than there is right now. Interest rates are extremely low but everyone I speak to expects interest rates to start creeping up this summer. While the timing of this buyers market is certainly not the best for some buyers, for others it may present an opportunity that we may not see again for many years.
If nothing else, come and take advantage of great skiing with few crowds. Unheard of during the ski season, several Park City restaurants are offering two-for-one coupons for dinner and lodging companies are offering deals on accommodations. These are normally only found during the off months of May through October. And remember that you can ski free the day you arrive. Go to my website for details. http://www.dennishanlon.com/.
While I would refer to this as an average snow season, we still have a base of nearly 100 inches, most resorts in the country would refer to a season like we are having as epic. So come out, take advantage of the many deals that are being offered in town, and enjoy spring skiing at its finest.
Thursday, February 19, 2009
Presidents Week in Deer Valley
We are in the middle of Presidents Week in Deer Valley. And while busy, it feels a little slower than normal. Some of this may be attributed to the stormy weather that we have been receiving. We have received between 3-4 feet of snow since Saturday with a couple of sunny day breaks in between. Skiing is incredible. I went out both yesterday and today and when I came back yesterday I announced that it was “the best day of the year”. However, I was wrong. Today is the best day of the year. We woke up yesterday morning to a foot of new snow and then received another foot during the day yesterday and this morning. Some of the resorts here in the Wasatch received over 2 feet of snow yesterday for a storm total of over 3 feet. With 2-3 feet of new snow over the last 48 hours, you can only imagine what the skiing is like. The powder was knee deep here at Deer Valley today and as I classify it, “soft on soft”. What I mean by this is when new snow falls over freshly fallen snow you do not feet the harder snow down deep. All you are skiing on is soft, creamy powder.
As is expected, inquiries into real estate have picked up this week. But not as much as in past years. Buyers are here and they are looking. But no one seems to be in any hurry. Everyone is hoping that the efforts of our new President and government will install some confidence that things will turn around in the near future. Time will tell. In the meantime, come out and ski and enjoy an incredible time here in Park City. The long range forecast is for regular storms through the middle of March.
As is expected, inquiries into real estate have picked up this week. But not as much as in past years. Buyers are here and they are looking. But no one seems to be in any hurry. Everyone is hoping that the efforts of our new President and government will install some confidence that things will turn around in the near future. Time will tell. In the meantime, come out and ski and enjoy an incredible time here in Park City. The long range forecast is for regular storms through the middle of March.
Monday, February 9, 2009
Ski Free in Park City
Did you know that you can ski free at any of the three Park City resorts? The Park City Chamber and Visitors Bureau in partnership with our three resorts, Park City Resort, Deer Valley Resort and The Canyons Resort offer a free lift ticket for guests skiing the same day that they arrive. This is our way of showing just how easy it is to get to Park City and that from just about anywhere in the US, a visitor can leave their home in the morning and be on the slopes of any one of our three resorts that afternoon. To get the free ticket one needs to fill out a questionnaire, show their boarding pass or some other proof of flight arriving that same day, and an out of state drivers license or other ID. To see more details on this, (There are some black out dates) and to get the form to print out, go to my website, www.DennisHanlon.com, and click on the Ski Free button and follow the instructions from there. Utah and Park City are so easy to get to that we want to reward our visitors with this treat.
After nearly a week of beautiful sunny weather, snow has once again arrived. It has been snowing all day today and the forecast is for snow for much of the next 7 days. This is a perfect time to come out and experience Utah powder.
Not surprising, real estate has been slower than normal this ski season, but not dead. Properties are selling, Sellers are negotiating their price and Buyers are picking up excellent bargains on ski homes and condos that most certainly will increase in value over the next few years. If you have ever considered purchasing a vacation home in a ski town now is the time to do it. Mortgage interest rates are extremely low and real estate prices are similar to what they were in 2005. If you would like more information on what I consider to be excellent investments, please contact me by email at Dhanlon532@aol.com or by phone at 435-640-5851. I look forward to hearing from you, but most of all hope that you do visit Park City and take advantage of the fabulous skiing.
After nearly a week of beautiful sunny weather, snow has once again arrived. It has been snowing all day today and the forecast is for snow for much of the next 7 days. This is a perfect time to come out and experience Utah powder.
Not surprising, real estate has been slower than normal this ski season, but not dead. Properties are selling, Sellers are negotiating their price and Buyers are picking up excellent bargains on ski homes and condos that most certainly will increase in value over the next few years. If you have ever considered purchasing a vacation home in a ski town now is the time to do it. Mortgage interest rates are extremely low and real estate prices are similar to what they were in 2005. If you would like more information on what I consider to be excellent investments, please contact me by email at Dhanlon532@aol.com or by phone at 435-640-5851. I look forward to hearing from you, but most of all hope that you do visit Park City and take advantage of the fabulous skiing.
Monday, December 15, 2008
Winter has arrived.
This past Saturday, winter finally arrived in Park City. Snow, cold, and more snow. It has now been snowing pretty consistently for three days. And while we’ve only received about a foot of snow out of this, it is white and looking very much like Christmas around here. The cold weather, high temperatures only in the teens, has allowed the resorts to make incredible amounts of snow. Snowmaking is running around the clock and the resorts are opening up new runs everyday. With Christmas week starting Friday, the snow and cold come just in time.
Last week I attended a panel discussion with several developers from Vail and Lake Tahoe. An interesting point from the developers in Vail was that when the Ritz-Carlton opened is doors in Beaver Creek they saw an immediate change in the type of visitor. The Ritz-Carlton brought a higher level of visitor that Vail had not seen before and they also experienced a sudden increase in real estate and a jump in prices. The point of this story is that we have two very high end hotels in the process of construction-the St. Regis and The Montage. The St. Regis is anticipating opening in 2009 and The Montage in 2010. The experience of these developers from Vail indicates that we will also experience a new type of visitor to Park City and, very likely, an increase in real estate prices. Factor into the mix lower real estate prices and a difficult economy and buyers of real estate in Park City this year could be feeling pretty smug in a year or two.
While the Christmas holidays are rapidly approaching, different property management companies tell me that there are still vacancies so make your plans and come visit Park City this Christmas.
Last week I attended a panel discussion with several developers from Vail and Lake Tahoe. An interesting point from the developers in Vail was that when the Ritz-Carlton opened is doors in Beaver Creek they saw an immediate change in the type of visitor. The Ritz-Carlton brought a higher level of visitor that Vail had not seen before and they also experienced a sudden increase in real estate and a jump in prices. The point of this story is that we have two very high end hotels in the process of construction-the St. Regis and The Montage. The St. Regis is anticipating opening in 2009 and The Montage in 2010. The experience of these developers from Vail indicates that we will also experience a new type of visitor to Park City and, very likely, an increase in real estate prices. Factor into the mix lower real estate prices and a difficult economy and buyers of real estate in Park City this year could be feeling pretty smug in a year or two.
While the Christmas holidays are rapidly approaching, different property management companies tell me that there are still vacancies so make your plans and come visit Park City this Christmas.
Thursday, December 11, 2008
Snow is on the way
Deer Valley Ski resort opened last weekend with a limited amount of ski runs open. The good news is WE ARE SKIING! Even better news is that a major pattern change in the weather is forecast for this Saturday. It appears that winter will finally arrive as storms are stacked up in the Pacific and are aimed at Utah. If the forecast holds true I expect that by the weekend of the 19th all of the resorts should be near to 100% open...just in time for Christmas.Alta and Snowbird are about 70% open with terrific skiing. I expect to make the trip over to Alta this weekend to experience for myself the new snow. It looks like we may get several feet of snow over the weekend. And I will report on this next Monday.
In real estate news, while sales are certainly sluggish, they are not dead. Buyers are here and many are finding excellent bargains and are realizing that this is a great time to pick up a ski property. I
nstead of losing another ski season, without having a 2nd home here, deriving excellent income and enjoying the use of it, this really is a unique time and opportunity to invest in Park City/Deer Valley.With Christmas rapidly approaching the town will be busy and the condos full. So plan a vacation in January when the skiing is fabulous and no one is here. The first two weeks right after Christmas is historically a very quiet time as everyone is recovering from the Christmas holidays. The last 10 days of January the Sundance Film Fesitval comes to town. While the town is crowded, the ski slopes are empty. The end of January is the perfect opportunity to have the mountains to yourself and be able to take in some of the Sundance films. Start planning your trip now and come see why Utah’s motto is “The greatest snow on earth”.
Tuesday, November 4, 2008
Snowy Election Day
It is Election Day here in Park City and snowing very hard. Looking out my window I see several inches of snow on the rooftops and the mountains are white. Forecast is for 1-2 feet by tomorrow afternoon and more snow this weekend and again next week. The resorts have all begun snowmaking, and with this cold storm they should be able to put down a good base in the next couple of weeks. Park City and The Canyons resorts are scheduled to open November 21st and Deer Valley resort December 6th. We seem to have settled into a good stormy pattern after a very warm and dry October. This all bodes well for a great opening to the ski season.
It is Election Day in America, and it appears that the world economy is cautiously optimistic about a change in administration. The US stock market is up strongly again today, which seems to imply that the large investors feel that, whoever wins, it will be a positive change from the current administration.
From talking with a variety of property managers here in town I have the feely that while everyone remains optimistic, there is a certain amount of nervousness. The holiday seasons are solidly booked, but the question remains how well the slower parts of the year will bear. The Deer Valley Ski School has been sold out of lessons for Christmastime and President’s Week for about a month. I suspect that the amount of snow we get, particularly early snow, will have a greater impact on visitor days than in the past years. I anticipate that many visitors will be taking shorter stays and will be booking closer to their scheduled vacation to see who has the best snow and conditions. Fortunately, Utah consistently receives excellent snow. Many writers in the ski magazines have said that “a poor snow year in Utah would be a banner year for most resorts.”
Last spring Delta Airlines, which has a hub in Salt Lake City, started a direct flight from Salt Lake City to Paris, France. This flight has been so successful that Delta is now considering a direct Salt Lake City to Tokyo flight as well. These should do wonders for our visitor days and increase profits for our property owners. As Utah is further west than Colorado and further east than California, both European and Asian skiers have traditionally not made the extra effort to get here. With the Paris, and hopefully Tokyo routes, we are anticipating a new market of European and Asian visitors, particularly with the strong Euro.
The snow is here, looks like more is on the way, and we are off to a great start to the ski season. I hope to see you here this winter. Meanwhile, click here to enjoy photos of beautiful Park City, Utah.
It is Election Day in America, and it appears that the world economy is cautiously optimistic about a change in administration. The US stock market is up strongly again today, which seems to imply that the large investors feel that, whoever wins, it will be a positive change from the current administration.
From talking with a variety of property managers here in town I have the feely that while everyone remains optimistic, there is a certain amount of nervousness. The holiday seasons are solidly booked, but the question remains how well the slower parts of the year will bear. The Deer Valley Ski School has been sold out of lessons for Christmastime and President’s Week for about a month. I suspect that the amount of snow we get, particularly early snow, will have a greater impact on visitor days than in the past years. I anticipate that many visitors will be taking shorter stays and will be booking closer to their scheduled vacation to see who has the best snow and conditions. Fortunately, Utah consistently receives excellent snow. Many writers in the ski magazines have said that “a poor snow year in Utah would be a banner year for most resorts.”
Last spring Delta Airlines, which has a hub in Salt Lake City, started a direct flight from Salt Lake City to Paris, France. This flight has been so successful that Delta is now considering a direct Salt Lake City to Tokyo flight as well. These should do wonders for our visitor days and increase profits for our property owners. As Utah is further west than Colorado and further east than California, both European and Asian skiers have traditionally not made the extra effort to get here. With the Paris, and hopefully Tokyo routes, we are anticipating a new market of European and Asian visitors, particularly with the strong Euro.
The snow is here, looks like more is on the way, and we are off to a great start to the ski season. I hope to see you here this winter. Meanwhile, click here to enjoy photos of beautiful Park City, Utah.
Wednesday, October 29, 2008
End of Fall?
September and October are typically two of the prettiest months in the mountains. And this October has been exceptionally beautiful. The past couple of weeks have been spectacular with days in the lower 60s, and cold nights. The perfect weather for hiking, biking and even late season golf. It seems like the entire town has been outside taking advantage of these days, as we know that long winter is about to arrive. The NWS forecast is for the weather to turn this Friday, with rain turning to snow over the weekend and continuing well into next week.
With the world financial market continuing to be in disarray, our local real estate market also continues to be vulnerable to market uncertainty. While there have been buyers surfacing to take advantage of tremendous deals, others have seen their net worth diminish significantly and are having to pull back from second home purchases. For those who understand the real estate market, and that it will turn around and prove to be a terrific investment, there are tremendous opportunities right now. Here are links to three different articles that have been written in national publications on the opportunities to invest in vacation properties.
5 Timely Reasons to Invest in Vacation Property;
Wallstreet a Faceplant for Skiers?;
Talking Points: Second Homes
Even amidst all the turmoil, construction on new ski properties in Deer Valley continues. The St. Regis Hotel, in the Deer Crest area of Deer Valley, is moving right along. The St. Regis is a little over 50% sold out and is expected to open for next year’s ski season. Nakoma is an 18 unit subdivision of ski-in/ski-out homes in the Empire Pass area of Deer Valley. Of the nine homes in the first release, five are sold, and most of these should be completed and closed this ski season. These homes are around 5,500 square feet, have spectacular views of the new Lady Morgan Lift, and have prices starting at $5,600,000. The Montage Hotel is also moving forward with construction, with an expected completion date sometime in 2010. While there has not been any release of the number of units, the layout or prices, a waiting list for purchasing is growing.
All three local ski areas are wrapping up their summer projects, have tested their snow making systems, and are ready to make snow as soon as the temperatures drop low enough. While advanced reservations are running slightly behind this time last year, we feel that once the snow arrives, bookings will increase. History has shown us that skiers are making their reservations closer and closer to the actual dates of their trip so as to see where the best snow is and who has it. Fortunately, Utah is geographically situated to receive dependably abundant amounts of snow. This year in particular we feel that the ease of getting to the Utah ski resorts will make us even more attractive to the destination skier. We expect to see more long weekends, and less week or longer stays. For visitors coming for only a three or four day stay, the fact that they can fly direct to Salt Lake City from almost anywhere in the country, and be here in about 4 hours, gives us a unique advantage over the other Rocky Mountain ski resorts.
With the world financial market continuing to be in disarray, our local real estate market also continues to be vulnerable to market uncertainty. While there have been buyers surfacing to take advantage of tremendous deals, others have seen their net worth diminish significantly and are having to pull back from second home purchases. For those who understand the real estate market, and that it will turn around and prove to be a terrific investment, there are tremendous opportunities right now. Here are links to three different articles that have been written in national publications on the opportunities to invest in vacation properties.
5 Timely Reasons to Invest in Vacation Property;
Wallstreet a Faceplant for Skiers?;
Talking Points: Second Homes
Even amidst all the turmoil, construction on new ski properties in Deer Valley continues. The St. Regis Hotel, in the Deer Crest area of Deer Valley, is moving right along. The St. Regis is a little over 50% sold out and is expected to open for next year’s ski season. Nakoma is an 18 unit subdivision of ski-in/ski-out homes in the Empire Pass area of Deer Valley. Of the nine homes in the first release, five are sold, and most of these should be completed and closed this ski season. These homes are around 5,500 square feet, have spectacular views of the new Lady Morgan Lift, and have prices starting at $5,600,000. The Montage Hotel is also moving forward with construction, with an expected completion date sometime in 2010. While there has not been any release of the number of units, the layout or prices, a waiting list for purchasing is growing.
All three local ski areas are wrapping up their summer projects, have tested their snow making systems, and are ready to make snow as soon as the temperatures drop low enough. While advanced reservations are running slightly behind this time last year, we feel that once the snow arrives, bookings will increase. History has shown us that skiers are making their reservations closer and closer to the actual dates of their trip so as to see where the best snow is and who has it. Fortunately, Utah is geographically situated to receive dependably abundant amounts of snow. This year in particular we feel that the ease of getting to the Utah ski resorts will make us even more attractive to the destination skier. We expect to see more long weekends, and less week or longer stays. For visitors coming for only a three or four day stay, the fact that they can fly direct to Salt Lake City from almost anywhere in the country, and be here in about 4 hours, gives us a unique advantage over the other Rocky Mountain ski resorts.
Monday, October 20, 2008
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.
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.
Tuesday, October 14, 2008
Winter...an impatient season in Park City
These photos were taken on October 12, 2008. Click here to view.
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