I'm Back!

After some time off from my regular blog I am back and will be blogging on Park City, what's happening in Park City and real estate on a weekly basis again.

First, let's talk about what's been happening in Park City this winter. It's been a very busy winter, first with very early snow beginning in November, and heavy and regular snowstorms right through Christmas. This gave ski resorts one of the best openings that we've seen in many years and great skiing for the Christmas holiday.

January was unusually dry but no one seemed to mind skiing with sunny, bright blue sky conditions. The Sundance Film Festival came at the end of January and from all accounts Sundance visitors were once again spending. Restaurants and Main Street shops all reported that their business was up significantly over 2010's Sundance Film Festival.

Earlier this month, Deer Valley and Park City hosted the Freestyle World Championships. A fabulous weekend starting with the Parade of Athletes down Main Street and three days of competition ending with the dual mogul event under the lights of Deer Valley. As is typical for Park City (which is ready to party at the drop of a hat) the whole town turned out for the events, particularly the mogul event Saturday night. One of the great things about living in a world-class resort town like Park City is the opportunity to see the best athletes in the world competing in international events. Throughout the remainder of
the winter there will be many more competitions here in town: skiing, snowboarding, bobsled, luge and jumping events taking place now through spring.

Onto the world of real estate. 2010 saw a return to better times. While prices are still low and have not yet begun to rise, the number of sales in 2010 was up about 30% over the number of sales in 2009. This increase occurred mostly in the second half of the year and particularly from early fall through Christmas. What we observed was a change in buyers' thinking. In 2009, the prevailing thought was "if I see something I like, it will still be here when I come back (and probably at a better price)." In the last half of 2010 the thought process changed to "if I see something I like and it's priced correctly, I need to put in an offer now because it will not be here when I come back." Buyers seem to be saying that they feel we are either at the bottom of the market or so close to it that they do not want to miss out on this opportunity.

From my observations and in talking with other agents in Park City, this same sentiment is holding true for the first 5 weeks of the new year. Another interesting aspect we're seeing is the number of active listings available to purchase has decreased significantly from 2009. Conventional thinking would tell us that when demand increases and product availability is decreasing, prices are soon to rise. However, I think we still have enough downward pressure on prices from distressed sales that this may not happen for a while yet. On the other hand, we are beginning to see multiple offers on some select properties. It will be very interesting to see just where this ski season ends up with sales numbers and prices. Check back frequently for more updates on this.

But for now, come out and ski! The skiing is terrific and we are entering the warmer months.

Park City Real Estate Year In Review

While today I want to talk about the 2009 real estate year lets first talk about what is really important, IT’S SNOWING! This season has been one of the driest on record but we received about 18 inches in the last couple days, it is currently snowing, and the forecast is for snow for the remainder of the week.


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.

Early January In Park City

While the eastern half of the U.S. is locked in a deep freeze, we in the Rockies are basking in warm sunshine. Even at 8000 feet today’s temperature is approaching 30 degrees. While the warmth certainly feels good, and it’s nice not having to clear the driveway every day, we would all be much happier with more snow. I would call the skiing “adequate”, but then I am a fanatic skier also. While for us we would refer to the current ski conditions as marginal, most resorts would be thrilled with our current conditions. All of the resorts have around 95%, or more, of the mountain open. And anywhere that the resorts make snow has very good coverage. So while we certainly are not showing off our Sunday best dress, the skiing is quite good and the weather is spectacular. The great thing about January is with a low sun angle, even on warm days such as today, the snow stays cold and crisp. Plus, the slopes are nearly empty. The first two weeks of January are traditionally the slowest time of the season, following Christmas break, and then here in Park City, the Sundance film festival is the last 10 days of the month. During Sundance the traffic is bad, restaurants are full, and the ski slopes are empty. If you are willing put up with a busy town it is a great time to ski.


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!!!

January Skiing

January is typically my favorite month of the year for skiing. Cold, dry snow and no crowds make for ideal conditions. This past January we have seen a mix of weather and snow conditions. The month started out cold and snowy, then turned warm and spring like, and now has returned to a cold, snowy pattern. The Sundance Film Festival, which is a showcase of independant film producers has been in town for the past week and a half. While the town is crazy full of people (pedestrians, stars, cars)…the ski slopes are almost empty. This year during the Sundance Festival we enjoyed unseasonably warm weather, gorgeous blue skies and excellent skiing. Then, just as Sundance came to an end this past weekend, the snow started falling again. Park City and Deer Valley received nearly three feet of snow over the weekend, making yesterday one of the best days of the year. For most of our visitors coming right after the Christmas break, it is difficult to get away again in January. However, if there is anyway that you can, it is one of the best times of the year to go skiing.

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. Instead 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”.

Real Estate Update

The summer months are busy times for developers in the Park City area. This is the time of the year to get developments going and closed in before the winter snows arrive. There are several new developments of interest this year.

Saint Regis in Deer Crest at Deer Valley is showing good progress with about 7 of the 11 stories completed. Saint Regis is a high-end ski-in, ski-out hotel located directly on the ski runs of Deer Valley. As of today, the Saint Regis is about 50% sold out with prices ranging from about $1,800 – $2,000 per square foot. The first 7 floors are hotel units which will come fully furnished and owners are required to put those in the Saint Regis rental pool. Floors 8-10 will be apartments where owner’s will pick and design their own furnishings and there is no requirement for rentals. The entire 11th floor was purchased by one individual for his personal and corporate use. Along with direct ski-in, ski out access, the Saint Regis will feature a slope side ski-to pool and all of the spa amenities Saint Regis is so famous for.

Another resort hotel in Upper Dear Valley next to Empire Lodge is the Montage. The Montage is a very high-end boutique hotel which will feature a 30,000 square foot spa area. Currently the Montage is operating a hotel in Laguna Beach, California and has another hotel under construction in Malibu, California, as well as the one in Deer Valley. No units or floor plans have been released yet, but we are anticipating a release of the first phase later this fall or early winter. We expect that prices for these units will be in the $2,500 per square foot range. The Montage is located at the base of the Empire Pass Lift and is in the heart of the best skiing in Deer Valley. This is a project to keep an eye on as early investors should do well.

Other developments at Empire Pass include Red Cloud, which is a 30 lot subdivision at the top of the Northside and Red Cloud lifts. There are currently 4 homes under construction of which one is a spec home that will be offered for sale this winter. In the Village at Empire Pass the new Flagstaff condominium building is well under construction and is about 25% sold out. At the Talisker Tower, which is a members-only Club House (featuring a lounge, weight room, outdoor pool and spa) they are completing the plans for about 20 luxurious condominiums. All of the residences at the Village at Empire Pass offer direct ski-in, ski-out access to the Silver Strike Lift and membership in the Talisker Club, which includes both the on-mountain amenities as well as the golf course at Tuhaye.

At the base of the Park City Resort, the Silver Star project is nearing completion. Silver Star offers condominium apartments, townhouses and single family homes all with direct ski access from a new lift put in specifically for Silver Star. Silver Star is located on an old mining site and the developers were careful to retain not only the mining flavor but also to restore many of the old mine buildings. Several of the restored mine buildings will be used as an Artist Colony and will become the headquarters for the Sundance Film Festival. An interesting feature at Silver Star is an old mine tunnel that in the early days of Park City Resort was used to transport skiers to the upper lifts of the mountain. To do this, skiers got on an old mine train, went through the mountain and then took a hoist up to the base of what is now the Thaynes Lift. Silver Star will be restoring parts of this and using it as a museum.

At the base of the existing resort center is a new development called the Lowell. The owner’s of the Lowell purchased an existing condominium building, gutted it and have replaced it with about a dozen very contemporary condos. This is the first new development at the Resort Center in many years, and has been well received. There are only six units left.

At The Canyons Resort the big news is that Talisker Corporation, who is the developer of the new Empire Pass Area at Deer Valley as well as the Tuhaye Golf Course just outside of town, has closed on the purchase of the resort. While Talisker is still putting together their plans for development, we expect that the first improvements we will see will be in snowmaking and food service. Both of these areas were in dire need of improvement and unfortunately the previous owner, American Ski Corp. was in financial trouble and just did not have the means to develop the resort to its true potential. There are several new condominium developments under construction both at the base of the resort and further down valley. A new access lift is currently under construction to access these new developments.

The Colony, which is a very high-end ski-in, ski-out residential development is also in the process of installing a new access lift to enable skiers to return from the southernmost part of the resort back to the main area quickly and directly. The Colony is a spectacular home site development offering home sites of 5–100 acres. Covered with aspen forest and spectacular panoramic views, The Colony is probably the most beautiful of the residential developments in this area.

As you can see, Park City/Deer Valley continues to develop new properties with buyers from around the country purchasing many of the developments before they are completed. If it has been a while since you have visited Park City/Deer Valley, or have never looked at it from a real estate perspective, summer is a terrific time to look around and see what all the activity is about.

Sundance and More

The Sundance Film Festival started January 17th and runs through the 27th. Sundance is the largest independent film festival and attracts filmmakers, producers, celebrities and onlookers from all over the world. During the festival, the town is full of filmmakers trying to sell their films, celebrities following the party scene, and visitors looking for the next hit film. It is a very exciting and busy time in our mountain town. Over the years, many films have come out of Sundance to become successful hits with national distribution.

This past weekend I was in Telluride, Colorado for a conference of resort Realtors from the Rocky Mountain west. Everyone is reporting that their market is strong, sales prices are continuing to rise, and dollar volume sold will be equal to or greater than last year. This is very different from what everyone is hearing in the national press about the housing slump. While the resort real estate markets are certainly not immune to the national market trends, we do seem to be somewhat insulated. Everyone is seeing that buyers, while cautious, are still looking for vacation property and have the means to purchase. We are fortunate in that our buyers are not subprime buyers and while the mortgage issues do make it more difficult, they are able to qualify for loans and purchase. Consistent throughout the resorts was activity through the Christmas holiday. Everyone felt that this Christmas was busier than usual with visitors looking at properties. While this did not translate to many sales, that is not unusual. We all find that our buyers who look over Christmas return later in the season or during the summer months to purchase. The entire US is having a great ski season and this translates to all of the ski areas doing well. I expect that the 2007-2008 ski season will end up a record one for Park City as well as the other western resorts. With a record number of visitors in town we are all hoping that this equates to more buyers and more sales.

It has snowed here in Park City 29 of the last 36 days and is snowing hard again this morning. If you have not visited Park City in the past this is the year to see what Utah snow and skiing is all about.

January 2008

Now that the Christmas holidays have ended I can step back and reflect on this year’s holiday season. This Christmas was the busiest that I have seen for real estate. With the exceptional snow, the town was completely full and guests experienced the best possible conditions on the mountains. I talked to numerous guests who were here for the first time and couldn’t stop commenting on what a fabulous place this is. The ease of getting here, the wonderful town and its restaurants, and so much variety in skiing that they wondered why they hadn’t been here before and that they really needed to own a place here. I also talked to many guests who have been coming here for several years and have decided that it’s really time to buy. Many guests felt that with the slightly slower market that this is the right time to purchase when they have choices and sellers have more negotiable than during times of the hot market.

The first couple weeks of January are typically very slow and an excellent time to come out and visit. January 17th starts the Sundance Film Festival for 10 days where the town will be hopping with independent filmmakers trying to sell their new films, celebrities looking to be seen in the hot spots around town and visitors looking to catch a glimpse of the celebrities. During the Sundance Film Festival the town and the restaurants may be packed but the ski slopes are empty as everyone is attending films. Many of my clients are now realizing this and while it may be difficult getting dinner reservations, it is a fabulous time to ski with the best snow and no crowds. Come out, take a look around, and see why Utah is known for “the greatest powder on Earth.”