The first 7 weeks of this year have been quite active for real estate sales. Particularly in Empire Pass at Deer Valley. This is largely due to developer's slashing their prices and offering incentives to encourage buyers to buy now. In the development called Silver Strike, there were 19 units available January 1st. At the end of January the developer auctioned off 8 units with prices averaging around $760 per square foot down from $1200 per square foot at the original listing price. The auction was extremely successful with all 8 units selling in about a half hour and as a result the developer lowered the price on the remaining 11 units to slightly above the auction pricing. Since that time 6 more units have sold leaving only 5 units out of the original 19 left unsold.
Showing posts with label Silver Strike. Show all posts
Showing posts with label Silver Strike. Show all posts
Monday, March 1, 2010
Wednesday, January 20, 2010
Park City Real Estate Year In Review
This week also begins the annual Sundance Film Festival. The Sundance Film Festival is the largest festival for independent film producers and always draws a huge crowd. The opening weekend is always the busiest with Main Street in Park City turned into a snowy version of Hollywood complete with star sightings. The Sundance Film Festival parties are the hottest ticket in town with locals using every connection they have to gain entry. Other than the traffic and that the restaurants are full, this is a great time to ski as the slopes are quiet and this year the snow is great.
I think that everyone here in Park City, real estate agents, merchants and lodging companies are thrilled that 2009 is over and that they survived. While 2009 was a very poor year for real estate sales the final numbers are not as bad as it felt. For instance, if we look at single family homes in all areas of our MLS the # of sales were up 2.2% and the average sales price was only down 3.7%. However, home sales in town and near the resorts are a different story. Old Town homes and in the vicinity of the Park City Resort showed a 30% increase in the # of homes sold in 2009 from 30 compared to 23 in 2008. But, the average sold price for a home in old town was down 12.8% for the year. Homes in lower Deer Valley saw a 57% decrease in the # of sales, 6 homes sold in 2009 compared to 14 in 2008, but a 29% increase in the average sold price. Deer Crest, a high end ski-in/ski-out community attached to Deer Valley saw 4 homes sold in 2009 compared to 1 in 2008 or a 300% increase but also saw the average sales price drop 43% to just under $3,500,000. Deer Crest is a newer community with spec homes still being built and it appears that several spec home builders just wanted out and lowered their prices to a point where the deal was just too good to pass up. In upper Deer Valley 9 homes sold in 2009 compared to 4 in 2008 for an increase of 125% and once again we saw a decrease in the average sold price of 28.7%. Other area’s around town were similarly mixed for example, Park Meadows, a mostly residential community saw prices drop 12.8% and the # of sales drop 21.7% but near the Canyons Resort, again a mostly ski-in/ski-out community of 2nd home owners, saw sales increase 25% and the average sold price increase to 45%.
Condominium sales for 2009 were generally hit harder than single family homes. For all condominium sales across all areas of the Park City board the # of sales dropped just over 18% and the average sales price dropped 6.6%. However, as we saw with single family homes, to get a true picture we have to look at specific areas and in some cases the reasons for the change. Old Town and the Park City Resort saw the # of sales for condominiums drop 55% last year and the average sales price drop over 33%. I think that this shows that our buyer is now looking for a newer, more modern and updated condo and is willing to buy further from the center of town to get more square footage for their buying dollar. I suspect that we will see this trend continuing for some time. If we look at condominium sales in Deer Crest we see that the average sold price increased over 64%. At first glance this seems very strange as condo sales prices throughout the rest of Deer Valley was significantly down but we have to remember that the St. Regis Hotel started closing it’s condo’s in November so this number reflects the beginning of very high end sales of condominiums in Deer Crest and is not a true reflection of the market. In upper Deer Valley while the # of sales was down 10.5% of 17 sales in 2009 compared to 19 in 2008 the average sold price dropped 28.1% in upper Deer Valley. In the newest area of Deer Valley, Empire Canyon, the number of sales dropped 38.5% which is easy to understand as in 2008 a large condo project was completed and closing. Where in 2009 the condo projects that were completed did not have the advantage of the pre-sales that occurred in the earlier strong part of the market. Also in Empire Canyon, the average sold price dropped 28.8% as investors who purchased earlier with idea of flipping their property and never occupying it were forced to lower their prices in many cases to below where they purchased it in order to get property sold.
Last Sunday was the much anticipated auction of the 8 Silver Strike condominiums in Empire Pass. I attended the auction and was pleased to see that all 8 units offered sold in about 30 minutes of bidding. The 8 units generally sold for 15 to 20% above the minimum bid and averaged $760 per square foot. In addition to the 8 units that sold during the auction a 9th unit was sold just after the auction was concluded. The developer has another 10 units in the project to sell and I am hearing that he is going to price these remaining units in the neighborhood of $760 per square foot. This will make Silver Strike the least expensive condo project in Empire Pass with direct ski-in/ski-out access and full Talisker club membership.
As with all real estate markets the numbers alone do not tell the entire story and the importance of a long time knowledgeable agent is dramatically illustrated.
This weekend I am traveling to Crested Butte, CO to meet with other resort real estate agents from the western ski resorts. Come back next week for a recap of resort real estate from resorts in California, Idaho, Wyoming, Colorado, Utah and British Columbia Canada. I expect that our discussions will be lively, interesting and very revealing.
Monday, January 18, 2010
This Week In Park City
Last week I had the pleasure of visiting a new restaurant in Park City, Talisker on Main. This restaurant is operated by the Talisker Club which has the club facilities at Deer Valley Resort and the golf club facilities just outside of town. The restaurant is very small and offers an intimate dining experience for Talisker members and the general public. The restaurant is designed to showcase Talisker’s award winning chef, John Murcko, and the amenities that Talisker offers. The menu offers a pleasant variety and the meal was absolutely delicious. I was there with several clients and everyone agreed that it was one of the finest meals we have had in Park City. This should be must visit restaurant on your next trip here.
Last weekend was the Visa Freestyle World Cup at Deer Valley. This event featured the best men and women freestyle skiers in the world in aerials and mogul competitions. This was a great preview for the upcoming Olympics in Vancouver BC next month. Thursday, the weekend kicked off with a band and street dance on lower Main Street. Friday, under the lights was the men’s/women’s aerial finals. This is truly amazing to watch as these young kids soar 60 to 70 feet straight up in the air while performing numerous back-flips combined with twisting rotations. And then trying to land on a steep snow covered slope. Saturday night featured the men and women duel mogul contests. This event is skier vs. skier in a head to head single elimination run down a steep mogul field with two jumps interspersed on the hill. The skiers are judged on speed, form, and their turning technique on the bumps. As speed is one of the major criteria in selection the winner of each run, by the time of the quarter finals, the skiers are almost straight running the bumps. This is quite a spectacle and the crowd really get’s into it! The events both Friday & Saturday nights drew large crowds from visitors and locals and has become one of the “must attend” parties of the winter season.
In Real Estate News this Sunday is the much anticipated and talked about auction of 8 Silver Strike condominiums in the Empire Pass area of Deer Valley. For the last few weeks the upcoming auction has been the talk of the town and almost everyone I meet on the ski-lift has heard about it. It is going to be very interesting to see what happens. I expect that all 8 of the auction units will be sold, but at what price remains to be seen? Come back next week for an update on the Silver Strike auction!
In other Real Estate News the St. Regis Hotel in Deer Valley continues to close on its units. Prior to opening the doors in early December there were 59 units sold which represent about 2/3rds of the entire development. So far 23 of the units have actually sold with a remaining 36 anticipated to close within the next 4 to 6 weeks. The St. Regis at Deer Valley has been the most successful condo/hotel project in the US for 2009. The fact that the buyers, many who have had their unit under contract for 5 years, are closing at record high prices approaching $2000 per square foot is a testimonial to the quality of the St. Regis and a renewed confidence by the consumer in the Park City real estate market.
Next week I will have the final numbers for real estate sales in 2009 and will provide a re-cap of the year. I expect that this will be very interesting and probably a little bit of a surprise to see what our final numbers are.
The 2009-2010 ski seasons have been the driest season since 1976. The fact that the skiing at Deer Valley is actually quite good is a tribute to the snowmakers and grooming crew. Without their efforts and expertise we would not be skiing yet this year. My hat is off in congratulations on a job well done to the Deer Valley snowmaking crew! The one benefit to a low snow year like this is lots of sunshine so if you are in the frigid east come west and replenish your spirits in the beautiful rocky mountain sunshine.
Friday, January 8, 2010
Early January In Park City
In real estate news the two weeks of the Christmas holidays were pleasantly busy. People were stopping in at open houses and the questions they asked were indicative of serious buyers. It was enjoyable to have my phone ringing with agents wanting to show my listings. We are certainly still in a buyers market but I see signs of a change. As the great deals get picked up and inventory dwindles, we will start to see sellers holding much more firm to their prices than they have in the past. Right now the hot commodity is as expected, properties on or very near the slopes. Almost everyone who has an interest in Park City real estate has heard about the upcoming auction of the Silver Strike condo’s in Empire Pass. This auction is the talk of the town and around 200 people have already registered. Interestingly enough, we are now starting to see serious buyers who realize that the odds of getting one of these auction properties is slim, so they are taking advantage of some terrific opportunities in other ski developments. For example, a new condo project called Flagstaff, also in Empire Pass, is discounting their list price 30% for the next 3 to 4 buyers. The Grand Lodge located at the base of the Northside lift at Deer Valley Resort has only one developer unit left, a beautiful 5 bed penthouse unit looking straight up the mountain. This unit is listed for $3,800,000 and I suspect that the developer is willing to make a great deal on this to get the last condo off his books. While there are great deals like this all over town and in every price range, you have to know where they are and which ones truly are good deals. This is where working with a local and experienced real estate agent is so important.
Come out, take advantage of empty ski slopes and great weather. If you are in the market for a ski home be sure to call me….and send the eastern snow to the west!!!
Friday, December 11, 2009
Latest Happenings In Deer Valley
While there has been a lot happening in real estate here in the last week or two, let’s start by talking about just how cold it is. Yesterday morning it was -9 and warmed up to a balmy 15 degrees. This was actually quite pleasant as earlier in the week the high temperatures stayed in the single digits. This has been one of the coldest December’s that I have seen in a long time, and it feels much more like January than December. While everyone has been running around complaining about the cold and many of the people in the older historic Park City homes are dealing with frozen water pipes, the ski resort snow makers are having a field day making snow. Last weekend before it got really cold I spoke with Bob Wheaton (president of Deer Valley) who said that Deer Valley is pumping 7000 gallons of water per minute in snow making. That was before it got really really cold, so that number has increased this week. The snow making has been so good that Deer Valley is opening up new runs and lifts every day. Even without natural snow, we will have the majority of the mountain open for the Christmas Holiday. HOWEVER, the forecast is for 2 to 3 ft of snow this weekend! The skies are already starting to cloud up and the south winds are blowing strong, indicating a major change in weather. If the forecast holds true, we should have almost all of the mountain open by next weekend…just in time for Christmas!
Now back to real estate. As I mentioned last week the St. Regis hotel in the Deer Crest area of Deer Valley has opened. I took a tour of the hotel last Wednesday. Riding the funicular to the St. Regis was just the start of an incredible tour. The bar, lounges, restaurant’s and lobby’s are all spacious and beautifully decorated with spectacular views from every window. The highlights are the ski out patio, which will be the new “beach” for the Deer Valley après ski scene and the outdoor pool which even without the setting of the ski run’s and the mountain back drop is beautiful. But no visit to the St. Regis would be complete without a visit to the spa. The massage rooms invite you to relax and unwind but what will be most enjoyable is the couples massage room with private whirlpool. The waiting room for the spa has a stream flowing through it with river rocks for the bed. A must visit on any trip to Deer Valley will be the St. Regis, either for lunch or après ski, or for a romantic dinner in a beautiful setting.
The St. Regis has now closed on 10 units with a low price $1,040,000 for a 991 sq foot for a 1 bed/1 bath unit to a high of $5,454,000 for a 2947 sq ft 4 bed/5 bath unit. Along with this there are 49 units under contract and getting ready to close. These range in price from a low $1,540,000 for a 1502 sq ft 2 bed/2 bath to a high of $8,916,550 for 6229 sq ft 6 bed/7bath unit.
Another new development in the Empire Pass area of Deer Valley is a condominium project called The Flagstaff. This building has just been completed, as was the St. Regis, and they have just started closing on units. Flagstaff had pre-sold 8 units prior to completion and 5 of those have closed. These range from a low of $1,902,000 for a 2140 sq ft 3 bed/4 bath condo to a high of $2,322,000 for a 2140 sq ft 3 bed/4 bath unit. There are 3 units with contracts waiting to close and range from a low of $2,710,000 for a 1749 sq ft 2 bed/3 bath to a high of $3, 020,000 for a 2324 sq ft 3 bed/4 bath condo. The Flagstaff development is at Empire Pass and is part of the Talisker Club with direct ski in/ski out access and in the common area features a children’s game room, an adult pub and a wonderful outdoor fire-pit.
Another condominium building that was completed a year ago, called Silver Strike in Empire Pass, is trying a novel approach to jumpstart the market. 15 out of 34 units have closed to date, but there has only been one sale in the last 18 months. In order to generate interest the developer of Silver Strike is going to auction 8 of the best units in January. The units will have a minimum bid which will be more than 50% off of the current list price. The developer is hoping that there will be sufficient interest so that the bidding will increase prices from the minimum. It will be very interesting to see how this transpires and at what price the condos will actually sell for. This could be an interesting venture and be aware that all condo’s will come with the full Talisker Club membership. Should you have an interest in registering for the auction, you will have to be pre-registered so contact me and I will set you up. It could possibly be a way to pick up a brand new ski-in/ski-out condo in Empire Pass at a significantly reduced price.
As you can see there is a lot going here in real estate and it is very exciting. I skied this morning and despite the lack of natural snow the skiing is quite good so come out to Park City, enjoy some terrific skiing and let’s go look at some fabulous real estate opportunities.
Friday, May 9, 2008
Spring Market Update
Spring has arrived and the snow is (very) slowly giving way to green grass and warmer days. May is an excellent time to reflect on the past real estate season and the outlook for the remainder of the year.
Market Analysis
This past winter was one of the most interesting that I have seen in my 19 years of real estate. Record snowfall brought incredible ski conditions, a record number of visitors to town, and the fewest number of real estate sales in over 5 years. It’s not that visitors did not want to own real estate here, but the constant barrage of negative press made buyers nervous, cautious, and wanting to wait to see what’s going to happen. Comparing the ski season, December 1, April 30 of this year to last year, here are some numbers: Number of Transactions for Single Family Homes is down 45%, and 44% for condos. Interestingly enough, during the same period the average sales price of a home went up 46% and the average sales price of condos rose 22%. In looking at the other destination ski resorts throughout the Rockies, I see that the same trend has occurred at the other resorts. This tells me that people continue to want vacation property and that our prices are still perceived as a good value. Whistler, in British Columbia, is the only resort in the west which reported an increase in number of condo sales (up 8%) and a 100% increase in sold price. This is understandable as Whistler is reaping the benefits of the upcoming 2010 Winter Olympics and the favorable exchange rate between the US dollar and the Canadian dollar.
Some specific areas of interest here in Park City are:
Old Town (including the Park City resort):
Single Family Homes were down 47% in number of sales (8 this year compared to 15 last year) and the average sales price was down 20 % ($1,376,000 compared to $1,712,000).
Lower Deer Valley:
Single Family Homes were down 71% (2 compared to 7) but up 7% in average sales price ($2,375,000 compared to $2,218,000).
Upper Deer Valley (Silver Lake):
The number of sales were off 43% (4 compared to 7) and the average sales price was down 2% ($5,411,000 compared to $5,507,000).
All of the areas within the city limits:
The number of home sales was off 26% (34 compared to 60) and the average sold price was down 3% ($2,419,000 compared to $2,500,000). This small decrease in sold price is reflective of resort markets where sellers generally do not have to sell, have the means to wait out a slowdown, and thus are not willing to drop their prices significantly.
For condominium sales:
Old Town (including Park City resort):
The number of sales was down 26% (54 compared to 73), but the average sold price was up 38% ($1,130,000 compared to $818,000). This is in large part due to the new Silver Strike project which was completed this winter.
Lower Deer Valley condos:
Number of sales were down 28% (13 compared to 18), and up 1% in average sales price ($1,195,000 to $1,188,000).
Upper Deer Valley:
Even in number of sales (11 compared to 12 last year), but average sales price was up 20% ($2,660,000 compared to $2,216,000).
For all areas within the city limits:
Condo sales were down 40% (108 compared to 180) and average sales price was up 24% ($1,331,000 compared to $1,075,000).
I frequently attend national real estate meetings where I make a point of speaking with agents from around the country. From my conversations, it appears that the resort real estate market is holding much stronger than many of the residential markets. Agents from the metropolitan non-resort areas for the most part are describing markets where the number of sales are down even more significantly than ours and sold prices are also significantly down.
From visitors that I spoke with and showed around this past winter it is very clear that they still want to buy here, will buy here, but are just looking for an increase in their comfort level. We saw this in 2001 and 2002 where terrorist attacks and wars created uncertain times, where buyers were also nervous and cautious about purchasing. In 2004 and 2005, confidence level returned and there was a pent-up demand for vacation properties throughout the West. At that time, all of the resorts experienced a frenzy of buying where properties were selling as fast as they came on the market, often with multiple offers. While no one can say when, I expect we will see something similar in the next couple of years. In 2007, many buyers that I had been working with for some time said to me, “Why didn’t you make me buy in 2005?!” In the next three years I expect that I will be hearing similar statements and that people who purchased during this downturn will be feeling very smug.
News on New Developments
Empire Pass at Deer Valley is moving forward. Last summer the second Arrowleaf building in Empire Pass was completed with all but one unit sold prior to completion. The Silver Strike condominium building is well under way and is expected to be completed early this summer. Last summer, the new Flagstaff condominium building broke ground and should be completed for the 2009/2010 ski season. The ski-in/ski-out homesites being built by Christopher Homes are under construction with two of the 18 homes pre-selling prior to completion. In addition nine lots in Red Cloud at the top of the mountain were released this winter and there were two sales in the Red Cloud subdivision, both well over $4 million.
Montage is a new luxury resort spa hotel under construction at the base of the Empire lift at Deer Valley. Completion is expected for sometime during the 2010/2011 ski season and we expect the first relase of condominiums to be late this summer or early this winter. The Montage will feature a 30,000 square foot spa, restaurants, and lounges. While no specifics have been announced as far as prices, floorplans, or sizes of units, we are expecting the first release to come out between $2,200 and $2,500 per foot. The Montage will certainly have the premier location of any of the resort hotel spas in Deer Valley and Park City. Watch for further updates as information becomes available.
The St. Regis Hotel in Deer Crest at Deer Valley is steadily progressing and about 65% sold out. Two units just sold this past week. The St. Regis will feature a spectacular slopeside pool, deck, and lounge area with ski access from the Deer Hollow ski run. There are only 25 units left with completion expected in early summer 2009.
Silver Star is a new development at the base of the Park City Resort, is ski-in/ski-out, and is a combination of condominium apartments, townhouses, and single family homes. The project is about 70% completed and was completely sold out prior to breaking ground. In addition to the residential community in Silver Star the developers have painstakingly chosen to preserve the mining heritage and have converted many of the original mine buildings into an artist colony which will be the home of next year’s Sundance Film Festival.
The big news at The Canyons is that earlier this winter, American Ski Corporation, the owner, dissolved, paving the way for the sale of the resort. There was a fierce battle between Vail Resorts and Talisker Corporation for the resort. Talisker is the developer of Empire Pass at Deer Valley and the Tuhaye golf community just outside of town. After several heated court battles, the courts have ruled that Talisker’s offer to purchase was legitimate and above board. This has paved the way for Talisker to purchase the resort and it is expected that they will close on the purchase as early as the end of May 2008. This is very good news for the Canyons, as it will bring a much-needed infusion of money, and energy back to the resort. In anticipation of this purchase, we saw good activity in an area called The Colony, a ski-in/ski-out home development adjoining the Canyons where six lots sold and two homes, one being a home listed for over $14,000,000 sold. When Talikser has completed the purchase of the Canyons and the news is released, I expect that there will be a flurry of activity for lots and homes in the Colony as well as the new condominium developments at the base of the Canyons Resort.
Very exciting news at the Canyons is that a new condominium project called Dakota has aligned itself with Golden Door Spas and the Waldorf-Astoria hotel chain. Bringing these two nationally known hospitality giants to the Canyons Resort speaks volumes about their confidence and where they see the future of the resort.
The Promontory golf club and home development is going through some rough times. Promontory opened up its second signature golf course last summer, a Jack Nicholas-designed championship course, but its two major creditors, Credit Suisse and Wells Fargo bank have forced the developer into a chapter 11 restructuring situation. It is felt that Promontory will emerge from this, be back in business, but most likely with a new owner and management team. In the meantime construction on their third championship golf course is on hold.
The Tuhaye golf course and community was quite active this winter in both lot sales and homes. Tuhaye has benefited from being a part of a unique club concept called the Talisker Club. The Talisker Club has combined golf amenities with ski amenities at Deer Valley, fishing, boating, and horseback riding. This club concept is the first of its kind which allows members the luxury of year-round activities, whereas clubs that have amenities just on a ski area or golf course only provide activities for a small part of the year. This is a very successful idea and from the number of inquiries I received last winter, it has been well received.
There is nothing that Park City loves more than real estate gossip. And the latest news here is that Jim Lewis has sold his company, Lewis, Wolcott & Dornbush Real Estate and the new owner has joined us with Sotheby’s International. Our new name is Summit Sotheby’s International Realty. While this of course does not change me or my relationship with any of my clients, it does bring the power of the Sotheby’s name to our marketing. The Sotheby’s International connections should bring quite a lot of marketing power and exposure to my sellers’ properties that LWD as an independent company could never afford to do. Combine the Sotheby’s name, direct flights from Paris to Salt Lake on Delta, a very favorable exchange rate between the euro and the dollar, I am anticipating an increase in foreign visitors and buyers, particularly from western Europe.
As we slowly move towards summer, it seems like winter will not let go. We are cautiously optimistic for real estate sales this summer and we have seen a flurry of activity this spring. We are all hoping that the economy rights itself and consumer confidence once again reemerges. In the meantime owners of property here in Park City are enjoying the use of their home or condo, both during the ski season as well as during the summer months.
Market Analysis
This past winter was one of the most interesting that I have seen in my 19 years of real estate. Record snowfall brought incredible ski conditions, a record number of visitors to town, and the fewest number of real estate sales in over 5 years. It’s not that visitors did not want to own real estate here, but the constant barrage of negative press made buyers nervous, cautious, and wanting to wait to see what’s going to happen. Comparing the ski season, December 1, April 30 of this year to last year, here are some numbers: Number of Transactions for Single Family Homes is down 45%, and 44% for condos. Interestingly enough, during the same period the average sales price of a home went up 46% and the average sales price of condos rose 22%. In looking at the other destination ski resorts throughout the Rockies, I see that the same trend has occurred at the other resorts. This tells me that people continue to want vacation property and that our prices are still perceived as a good value. Whistler, in British Columbia, is the only resort in the west which reported an increase in number of condo sales (up 8%) and a 100% increase in sold price. This is understandable as Whistler is reaping the benefits of the upcoming 2010 Winter Olympics and the favorable exchange rate between the US dollar and the Canadian dollar.
Some specific areas of interest here in Park City are:
Old Town (including the Park City resort):
Single Family Homes were down 47% in number of sales (8 this year compared to 15 last year) and the average sales price was down 20 % ($1,376,000 compared to $1,712,000).
Lower Deer Valley:
Single Family Homes were down 71% (2 compared to 7) but up 7% in average sales price ($2,375,000 compared to $2,218,000).
Upper Deer Valley (Silver Lake):
The number of sales were off 43% (4 compared to 7) and the average sales price was down 2% ($5,411,000 compared to $5,507,000).
All of the areas within the city limits:
The number of home sales was off 26% (34 compared to 60) and the average sold price was down 3% ($2,419,000 compared to $2,500,000). This small decrease in sold price is reflective of resort markets where sellers generally do not have to sell, have the means to wait out a slowdown, and thus are not willing to drop their prices significantly.
For condominium sales:
Old Town (including Park City resort):
The number of sales was down 26% (54 compared to 73), but the average sold price was up 38% ($1,130,000 compared to $818,000). This is in large part due to the new Silver Strike project which was completed this winter.
Lower Deer Valley condos:
Number of sales were down 28% (13 compared to 18), and up 1% in average sales price ($1,195,000 to $1,188,000).
Upper Deer Valley:
Even in number of sales (11 compared to 12 last year), but average sales price was up 20% ($2,660,000 compared to $2,216,000).
For all areas within the city limits:
Condo sales were down 40% (108 compared to 180) and average sales price was up 24% ($1,331,000 compared to $1,075,000).
I frequently attend national real estate meetings where I make a point of speaking with agents from around the country. From my conversations, it appears that the resort real estate market is holding much stronger than many of the residential markets. Agents from the metropolitan non-resort areas for the most part are describing markets where the number of sales are down even more significantly than ours and sold prices are also significantly down.
From visitors that I spoke with and showed around this past winter it is very clear that they still want to buy here, will buy here, but are just looking for an increase in their comfort level. We saw this in 2001 and 2002 where terrorist attacks and wars created uncertain times, where buyers were also nervous and cautious about purchasing. In 2004 and 2005, confidence level returned and there was a pent-up demand for vacation properties throughout the West. At that time, all of the resorts experienced a frenzy of buying where properties were selling as fast as they came on the market, often with multiple offers. While no one can say when, I expect we will see something similar in the next couple of years. In 2007, many buyers that I had been working with for some time said to me, “Why didn’t you make me buy in 2005?!” In the next three years I expect that I will be hearing similar statements and that people who purchased during this downturn will be feeling very smug.
News on New Developments
Empire Pass at Deer Valley is moving forward. Last summer the second Arrowleaf building in Empire Pass was completed with all but one unit sold prior to completion. The Silver Strike condominium building is well under way and is expected to be completed early this summer. Last summer, the new Flagstaff condominium building broke ground and should be completed for the 2009/2010 ski season. The ski-in/ski-out homesites being built by Christopher Homes are under construction with two of the 18 homes pre-selling prior to completion. In addition nine lots in Red Cloud at the top of the mountain were released this winter and there were two sales in the Red Cloud subdivision, both well over $4 million.
Montage is a new luxury resort spa hotel under construction at the base of the Empire lift at Deer Valley. Completion is expected for sometime during the 2010/2011 ski season and we expect the first relase of condominiums to be late this summer or early this winter. The Montage will feature a 30,000 square foot spa, restaurants, and lounges. While no specifics have been announced as far as prices, floorplans, or sizes of units, we are expecting the first release to come out between $2,200 and $2,500 per foot. The Montage will certainly have the premier location of any of the resort hotel spas in Deer Valley and Park City. Watch for further updates as information becomes available.
The St. Regis Hotel in Deer Crest at Deer Valley is steadily progressing and about 65% sold out. Two units just sold this past week. The St. Regis will feature a spectacular slopeside pool, deck, and lounge area with ski access from the Deer Hollow ski run. There are only 25 units left with completion expected in early summer 2009.
Silver Star is a new development at the base of the Park City Resort, is ski-in/ski-out, and is a combination of condominium apartments, townhouses, and single family homes. The project is about 70% completed and was completely sold out prior to breaking ground. In addition to the residential community in Silver Star the developers have painstakingly chosen to preserve the mining heritage and have converted many of the original mine buildings into an artist colony which will be the home of next year’s Sundance Film Festival.
The big news at The Canyons is that earlier this winter, American Ski Corporation, the owner, dissolved, paving the way for the sale of the resort. There was a fierce battle between Vail Resorts and Talisker Corporation for the resort. Talisker is the developer of Empire Pass at Deer Valley and the Tuhaye golf community just outside of town. After several heated court battles, the courts have ruled that Talisker’s offer to purchase was legitimate and above board. This has paved the way for Talisker to purchase the resort and it is expected that they will close on the purchase as early as the end of May 2008. This is very good news for the Canyons, as it will bring a much-needed infusion of money, and energy back to the resort. In anticipation of this purchase, we saw good activity in an area called The Colony, a ski-in/ski-out home development adjoining the Canyons where six lots sold and two homes, one being a home listed for over $14,000,000 sold. When Talikser has completed the purchase of the Canyons and the news is released, I expect that there will be a flurry of activity for lots and homes in the Colony as well as the new condominium developments at the base of the Canyons Resort.
Very exciting news at the Canyons is that a new condominium project called Dakota has aligned itself with Golden Door Spas and the Waldorf-Astoria hotel chain. Bringing these two nationally known hospitality giants to the Canyons Resort speaks volumes about their confidence and where they see the future of the resort.
The Promontory golf club and home development is going through some rough times. Promontory opened up its second signature golf course last summer, a Jack Nicholas-designed championship course, but its two major creditors, Credit Suisse and Wells Fargo bank have forced the developer into a chapter 11 restructuring situation. It is felt that Promontory will emerge from this, be back in business, but most likely with a new owner and management team. In the meantime construction on their third championship golf course is on hold.
The Tuhaye golf course and community was quite active this winter in both lot sales and homes. Tuhaye has benefited from being a part of a unique club concept called the Talisker Club. The Talisker Club has combined golf amenities with ski amenities at Deer Valley, fishing, boating, and horseback riding. This club concept is the first of its kind which allows members the luxury of year-round activities, whereas clubs that have amenities just on a ski area or golf course only provide activities for a small part of the year. This is a very successful idea and from the number of inquiries I received last winter, it has been well received.
There is nothing that Park City loves more than real estate gossip. And the latest news here is that Jim Lewis has sold his company, Lewis, Wolcott & Dornbush Real Estate and the new owner has joined us with Sotheby’s International. Our new name is Summit Sotheby’s International Realty. While this of course does not change me or my relationship with any of my clients, it does bring the power of the Sotheby’s name to our marketing. The Sotheby’s International connections should bring quite a lot of marketing power and exposure to my sellers’ properties that LWD as an independent company could never afford to do. Combine the Sotheby’s name, direct flights from Paris to Salt Lake on Delta, a very favorable exchange rate between the euro and the dollar, I am anticipating an increase in foreign visitors and buyers, particularly from western Europe.
As we slowly move towards summer, it seems like winter will not let go. We are cautiously optimistic for real estate sales this summer and we have seen a flurry of activity this spring. We are all hoping that the economy rights itself and consumer confidence once again reemerges. In the meantime owners of property here in Park City are enjoying the use of their home or condo, both during the ski season as well as during the summer months.
Monday, December 3, 2007
It's Snowing!
IT’S SNOWING IN PARK CITY! We received about a foot of snow over the weekend and the forecast is for continued snow with up to six feet in the next two weeks. Park City and the Canyons are both open with limited terrain and Deer Valley opens Saturday, December 8. With continued snow and cold weather, the resorts will be opening new terrain almost daily. Click on the ski resorts button the left side of this page for the most current and accurate conditions, or call me and I will give you a first-hand report on what is happening.
In real estate news, I attended a presentation for the new Flagstaff condominium project in Empire Pass. Flagstaff is the latest of the East West Partners developments at the base of the Silver Strike lift in Deer Valley. Flagstaff will consist of 37 two-, three-, and four-bedroom condominiums with over 5,000 square feet of gathering spaces for its guests. The gathering spaces will include a pub, the first in Empire Pass, a children’s center, and a gathering and relaxing room for adults. Prices start at $2,310,000 for a two-bedroom, $2,860,000 for a three-bedroom, and $5,000,000 for a four-bedroom plus loft. Reservations for this project will start on the 19th of December and East West is offering a 7% discount to the first seven buyers. If you would like more information on this development, any of the other new developments at the ski resorts, or excellent opportunities in the resale market, give me a call or stop by my office when you’re in town.
In real estate news, I attended a presentation for the new Flagstaff condominium project in Empire Pass. Flagstaff is the latest of the East West Partners developments at the base of the Silver Strike lift in Deer Valley. Flagstaff will consist of 37 two-, three-, and four-bedroom condominiums with over 5,000 square feet of gathering spaces for its guests. The gathering spaces will include a pub, the first in Empire Pass, a children’s center, and a gathering and relaxing room for adults. Prices start at $2,310,000 for a two-bedroom, $2,860,000 for a three-bedroom, and $5,000,000 for a four-bedroom plus loft. Reservations for this project will start on the 19th of December and East West is offering a 7% discount to the first seven buyers. If you would like more information on this development, any of the other new developments at the ski resorts, or excellent opportunities in the resale market, give me a call or stop by my office when you’re in town.
Monday, October 1, 2007
Fall Colors
What a weekend! Snow all day Saturday gave way to crystal blue skies on Sunday. The combination of dark blue sky, white mountaintops, the gold aspens and red maples made Sunday one of the prettiest days of the year. It seemed that the whole town was out hiking or biking on the trails. We have been receiving regular snowstorms this fall with more snow forecast for tonight and later this week. The high peaks are very white, and it looks like the snow is here for the year. This is creating a lot of excitement in town, and an added urgency for the ski resorts to finish up their projects. The new Lady Morgan Express Lift at Deer Valley is taking shape and looks like it will offer some excellent intermediate and advanced skiing. Everyone is talking about the new terrain and we are all eager to get up and explore it.
In real estate news, the new Empire Pass development at Deer Valley continues to be the shining star. The Grand Lodge at the base of the Northside Lift is completed and the wait was worthwhile as it is a beautiful building with the best ski access. There are a couple of resale opportunities in the Grand Lodge on the ski slope level with views up the mountain. New at the base of the Empire Lift, work is underway at a feverish pace for the new Montage Resort Spa. This is going to be a very high-end boutique hotel with over 30,000 square feet of spa area. While it is currently under construction, we do not anticipate that sales of the units to begin until the hotel is nearer to completion, in about two years.
In the Village at Empire, the Silver Strike building is nearing completion with about 12 units available. The new Flagstaff condominium building has just started construction with expected release of units in December. Construction has also begun on the new pool at the Talisker Tower Club.
Along with the spectacular colors and early season snows, there is a lot of excitement going on at the resorts and this is a wonderful time of year to come and see what’s going on!
In real estate news, the new Empire Pass development at Deer Valley continues to be the shining star. The Grand Lodge at the base of the Northside Lift is completed and the wait was worthwhile as it is a beautiful building with the best ski access. There are a couple of resale opportunities in the Grand Lodge on the ski slope level with views up the mountain. New at the base of the Empire Lift, work is underway at a feverish pace for the new Montage Resort Spa. This is going to be a very high-end boutique hotel with over 30,000 square feet of spa area. While it is currently under construction, we do not anticipate that sales of the units to begin until the hotel is nearer to completion, in about two years.
In the Village at Empire, the Silver Strike building is nearing completion with about 12 units available. The new Flagstaff condominium building has just started construction with expected release of units in December. Construction has also begun on the new pool at the Talisker Tower Club.
Along with the spectacular colors and early season snows, there is a lot of excitement going on at the resorts and this is a wonderful time of year to come and see what’s going on!
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