Thanksgiving has come and gone and we are ready for the ski season. All we need now is snow. November started very strong with several feet of snow, but for the most part it has been warm and sunny since. The good news is that, for the most part, nights have been cold enough to make snow. All of the resorts have been making snow every chance they can get, which allowed Park City Resort to open last Friday and will allow Deer Valley Resort to open this Saturday.
Snowmaking itself is quite an art and the Park City resorts have it down pat. There are two basic types of snowmaking systems, one is an air and water system and the other is an airless system. The air and water system has two hoses, each connected to an outlet. One outlet pumping water and the other highly compressed air. The two hoses are then connected to a “gun” which is really just a mixing chamber with a nozzle at the opening. Highly compressed air is pumped into the chamber and water is injected into this. This is then forced out of the nozzle at very high speeds, which breaks the water into a super fine mist that freezes on contact with cold air and falls as snow. The airless system uses a long tube with a fan blade at the bottom end and a ring of water injection nozzles at the far end or opening. The fan pushes a large column of air through the tube and water is injected into this column at the opening. The airless system can produce large amounts of snow in very cold temperatures and has an advantage of being much quieter than the air/water system. Here in Park City we see the ski areas using the airless systems in areas around homes and condos. The air/water system has an advantage in that it can be used at much warmer temperatures than the airless systems. In the air/water system air is forced through a small nozzle at very high pressure. As the air leaves the nozzle it rapidly expands which causes a cooling effect. Thus, in marginal conditions this cooling effect creates an effective temperature lower than the actual air temperature. The drawbacks to the air/water system are that it is very loud and does not produce as much snow as the airless system. Another expense to the air/water system is that is requires huge air compressors to force the air up the mountain under high pressure and also requires cooling units as air is heated when it is compressed. So in an air/water system the amount of piping throughout the mountain is doubled (one pipe for air, one pipe for water) and air compressors and cooling units have to be added. All of which greatly increases the installation and operating costs. Snowmaking systems such as we run here in Park City can pump 5,000-10,000 gallons of water per minute and costs several thousand dollars per hour to operate. While extremely expensive, snowmaking guarantees skiing when Mother Nature is fickle.
Both Snowbird and Alta ski resorts have been open since early November. As these resorts are higher in elevation, with a base of 8,000 feet and a summit of around 11,000 feet the temperatures are colder, and because of their unique geographical location in the Wasatch Range, they both receive much more snow than the Park City side. Unique to Utah is the Great Salt Lake and its effect on snowfall. Particularly this time of year, the lake is fairly warm. As cold, low pressure systems sweep down from the northwest and pass over the Great Salt Lake, large amounts of moisture move from the warm lake water to these cold storms. (Most everyone has heard about the “lake effect” storms coming off the Great Lakes-most notably Lake Erie-and hitting Buffalo, New York.) These cold storms, having picked up moisture across the Great Salt Lake, continue moving southeast and are forced into the ever narrowing Big and Little Cottonwood canyons. As the moisture laden clouds are pushed into the canyons they are also pushed upward until, at the end of the canyon, they hit the wall of the mountains. At this point the clouds are pushed upward dramatically and can no longer hold the moisture. As a result, heavy amounts of snow fall from these clouds as they linger over the crest of the Wasatch.
As the storms roll over the crest of the Wasatch to the Park City Mountains, the air drops down the back side of the mountains, warms up and can hold more moisture. Another unique feature to Utah’s weather is the basin and range. Between the Wasatch Mountains of Utah and the Sierra Nevada mountains of California are a series of relatively small north-south running mountain ranges. As low pressure systems move in from the north they are preceded by strong south winds. These south winds are funneled between these north-south running mountain ranges and sweep across the desert basins. As these winds move across the desert they kick up large amounts of sand and dust which, combined with the clouds, create additional mechanisms for snow to form. This is nature’s version of cloud seeding and is unique to Utah. Because of all of these unique geographic features, Utah receives more snow than would be expected in a desert State, with Snowbird and Alta receiving the majority of it. One other point is that as these storms roll across the western desert, they tend to dry out, creating the “Utah fluff” that we are so famous for.
Now that you know why Utah receives so much snow and why it is so light and dry, makes plans to experience it for yourself. To paraphrase the great ski film producer, Warren Miller, “If you don’t ski Utah this season, you’ll just be one year older when you finally do.”
Monday, December 1, 2008
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.
Monday, October 6, 2008
Fall Colors
It is that magical time of year when the mountains appear to be on fire from the brilliant fall colors. The aspens are at about their peak, brilliant gold and reds cover the mountainsides. This is one of the most beautiful times of the year in the mountains and we all make sure to take advantage of these days by either driving through or going hiking. This past weekend we also had our first significant snow of the year. So to see the brilliant colors contrasted with white mountain tops is something to behold. Click here for photos. http://www.flickr.com/photos/31150024@N03/show/
This past week’s economic news has sure made for interesting times in resort real estate. While people still are looking for a ski property for this winter, many are either nervous or are cautious, waiting to see what will happen. This is all very understandable as many investors have seen their portfolios drop in value. Real estate however, continues to hold its value and in many cases is a far more stable and safer investment. This past week we have seen stocks in companies such as AIG, Lehman Brothers, etc. drop 80 – 90%. During the same time the real estate headlines throughout the country shout that some markets have dropped by as much as 20%. As a result, we are seeing a number of investors moving from the stock market to real estate as a hedge for their money.
Over the weekend there was an AP article in a San Jose newspaper talking about the stability of the resort real estate markets and that the latest edition of Forbes Magazine listed Aspen, Colorado and Coeur D’Alene, Idaho among the best places to invest right now. Here is a link to the article. http://www.mercurynews.com/markets/ci_10630080
Over the past couple of weeks I have had several interviews with our local radio, TV stations and newspapers, all wanting to know how the real estate markets in the western resorts are fairing. The simple answer is that we are holding our own. While the number of sales is currently off (40 – 45% for most of the resorts) the actual sold prices are holding up. Prices in the resorts are flat to slightly up for the first half of the year. This reinforces my belief in resort real estate as a safer investment during turbulent times. We saw this in 2001 right after the September 11 attacks on the World Trade Center, where the stock markets dropped considerably and were extremely volatile. At that time we had just come off of a very strong real estate run and had just witnessed the dot.com bubble burst. Once again, through all the turmoil, resort real estate held its own and by 2003 was rebounding. It will be very interesting to see what happens this time.
This past week’s economic news has sure made for interesting times in resort real estate. While people still are looking for a ski property for this winter, many are either nervous or are cautious, waiting to see what will happen. This is all very understandable as many investors have seen their portfolios drop in value. Real estate however, continues to hold its value and in many cases is a far more stable and safer investment. This past week we have seen stocks in companies such as AIG, Lehman Brothers, etc. drop 80 – 90%. During the same time the real estate headlines throughout the country shout that some markets have dropped by as much as 20%. As a result, we are seeing a number of investors moving from the stock market to real estate as a hedge for their money.
Over the weekend there was an AP article in a San Jose newspaper talking about the stability of the resort real estate markets and that the latest edition of Forbes Magazine listed Aspen, Colorado and Coeur D’Alene, Idaho among the best places to invest right now. Here is a link to the article. http://www.mercurynews.com/markets/ci_10630080
Over the past couple of weeks I have had several interviews with our local radio, TV stations and newspapers, all wanting to know how the real estate markets in the western resorts are fairing. The simple answer is that we are holding our own. While the number of sales is currently off (40 – 45% for most of the resorts) the actual sold prices are holding up. Prices in the resorts are flat to slightly up for the first half of the year. This reinforces my belief in resort real estate as a safer investment during turbulent times. We saw this in 2001 right after the September 11 attacks on the World Trade Center, where the stock markets dropped considerably and were extremely volatile. At that time we had just come off of a very strong real estate run and had just witnessed the dot.com bubble burst. Once again, through all the turmoil, resort real estate held its own and by 2003 was rebounding. It will be very interesting to see what happens this time.
Friday, October 3, 2008
KPCW Radio Interview
On September 18 I had an interview with KPCW, our local Park City station, and was asked to speak about the Rocky Montain Resorts. Click on the link below to listen to this interview.
http://www.pcboardofrealtors.com/FilesGeneralMembers/Statistics/RMRA/Dennis%20Hanlon%20Presentation/dennis_hanlon_9-18.mp3
http://www.pcboardofrealtors.com/FilesGeneralMembers/Statistics/RMRA/Dennis%20Hanlon%20Presentation/dennis_hanlon_9-18.mp3
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