While the Memorial Day weekend is the traditional start of summer throughout the country, Park City and other Rocky Mountain Ski Resorts have some time yet before summer really begins. Summer really begins in the mountains around the middle of June at which time we rarely see anymore snow, until fall. As is very typical more Park City residents left town over the weekend for warmer locations than visitors arrived.
Much of the Memorial weekend was cool and rainy (no snow!) but Memorial Day turned out to be quite pleasant. This week temperatures are near 70 degrees with only a few puffy clouds around, a great time to get outdoors and enjoy the mountains. While temperatures in the upper 60’s to low 70’s does not sound particularly warm at an elevation of 7000 feet and thin air the intensity of the sun is much more than at sea level. In June and July, when temperatures are consistently in the 80’s and even approaching 90, the intensity of the sun makes it surprisingly hot. Fortunately, even during these “hot” months the nighttime temperatures drop into the 50’s to make sleeping very pleasant. No air conditioners needed.
Summer concerts and other outdoor events will start about the middle of June and that is our official start of summer. By the middle of June all of our local restaurants have reopened and the town is bustling with visitors and activities. This is the perfect time to visit the mountains.
On the economic side while our country is certainly not out of the woods yet, each day I hear some positive news. This was not the case 2 months ago when everything from the news emphasized how bad the economy was and little hope for a quick recovery. Whether or not you agree with the approach that President Obama has taken, his aggressive action appears to be turning the tide, at least in the short term. This appears to have translated to buyer confidence which has translated to an increase in purchase contracts being written. This morning’s news was that home sales across the country increased in April 2009. This is the first time that home sales have shown an increase for quite a long time. Many real estate analysts are coming out and saying that while there will still be area’s that are slow to recover, the U.S. Real Estate market may have bottomed out. Time will tell but it sure feels like that here in Park City.
Thursday, May 28, 2009
Wednesday, May 20, 2009
The Bell is Ringing
For the past couple of months I have been talking about how this is the time to be purchasing resort real estate (you are probably getting tired of hearing this from me). However, for those of you who are waiting for a bell to ring to signal the right time, the bell is ringing loud and clear. Now just what makes me say this??? Springtime in the mountain resorts is typically a very slow time of the year. But for the last few weeks I have seen the number of sales increasing each week, which is contrary to the spring buying season. I have observed that the bargain hunters have moved from a “watch and wait” position to a “buy” position. This past week was particularly striking as the sales numbers for our office for the past week totaled over $21,000,000 in sales. This is reminiscent of the good ole’ days of 2005 and 2006. When investors and bargain hunters move to a buy position they are sending a strong signal that if we are not at the bottom of the market we are so close that now is the time. Copy and paste this link in your web browser to view the number of pended sales in Park City from July 2008-April 2009: http://www.flickr.com/photos/dhanlon532/3548952415/.
Last weekend was the warmest weekend of the year so far with temperatures approaching 80 degrees. All of the outdoor enthusiasts were outside biking, hiking and playing golf. With the first warm weather of the spring the aspens suddenly leap out with their bright green and fresh leaves, it is a truly a magical time of year to watch the hills go from brown to green in just two days. Right now the aspens have leaped out to an elevation of 8000 feet with the higher elevation aspens still covered in snow. It will be another few weeks for these higher elevation aspens to leap out.
This weekend is the memorial holiday and all of the local pools open and it will be a time when parkites fire up the bbq’s and enjoy the warm days of spring. Happy Memorial Weekend!
Last weekend was the warmest weekend of the year so far with temperatures approaching 80 degrees. All of the outdoor enthusiasts were outside biking, hiking and playing golf. With the first warm weather of the spring the aspens suddenly leap out with their bright green and fresh leaves, it is a truly a magical time of year to watch the hills go from brown to green in just two days. Right now the aspens have leaped out to an elevation of 8000 feet with the higher elevation aspens still covered in snow. It will be another few weeks for these higher elevation aspens to leap out.
This weekend is the memorial holiday and all of the local pools open and it will be a time when parkites fire up the bbq’s and enjoy the warm days of spring. Happy Memorial Weekend!
Friday, May 15, 2009
Spring, Finally!
Even though we still get some cold nights and occasional snow storms spring has arrived. The days are noticeably warmer and everyone is out and about. Driving around town I am seeing mountain bikers, road bikers, tennis courts are full and golf courses are busy. Afternoon BBQ’s are back in and people are out just generally enjoying the sunshine.
The economic news these days while still quite mixed seems to be more positive than negative. Every day we are hearing more stories and outlooks that reflect a positive attitude and a hint of recovery from the recession. I recently ran some numbers comparing January-April for the past 3 years and after steadily declining numbers this March actually showed an upturn for the first time. Click here to view graph http://www.flickr.com/photos/dhanlon532/3533334599/.
This is encouraging as it is the first time since 2006 that we have seen any increase. These numbers confirm what many brokers here in town have been feeling. The general consensus is that the signs are showing that we may be nearing the bottom of the market. Historically low interest rates combined with low home prices and an abundance of properties to choose from is giving the savvy buyer opportunities that rarely occur in the resort real estate market. In speaking with agents from the other western resorts of Colorado, Wyoming and Idaho they echo the same feelings.
With the summer calendar full of activities, great concerts and festivals, plan now to spend some time in the mountains. Come visit and experience the clean mountain air, cool nights and gorgeous scenery!
The economic news these days while still quite mixed seems to be more positive than negative. Every day we are hearing more stories and outlooks that reflect a positive attitude and a hint of recovery from the recession. I recently ran some numbers comparing January-April for the past 3 years and after steadily declining numbers this March actually showed an upturn for the first time. Click here to view graph http://www.flickr.com/photos/dhanlon532/3533334599/.
This is encouraging as it is the first time since 2006 that we have seen any increase. These numbers confirm what many brokers here in town have been feeling. The general consensus is that the signs are showing that we may be nearing the bottom of the market. Historically low interest rates combined with low home prices and an abundance of properties to choose from is giving the savvy buyer opportunities that rarely occur in the resort real estate market. In speaking with agents from the other western resorts of Colorado, Wyoming and Idaho they echo the same feelings.
With the summer calendar full of activities, great concerts and festivals, plan now to spend some time in the mountains. Come visit and experience the clean mountain air, cool nights and gorgeous scenery!
Friday, May 8, 2009
QTR
Last week I attended a presentation where the topic was “Quality Time Remaining”. The thought behind this is that all too often we put off doing something or purchasing something that we really want and suddenly it becomes too late to enjoy it. This is particularly true in real estate and even more so in resort real estate. As our families grow and our children go on with their own lives, we often think about that vacation property where our families can gather and enjoy each other’s company again. However, it is so easy to say, “Now is just not the right time” or perhaps, “prices will be lower next year” or “the perfect property will come along in the next few years”. While we wait for that perfect opportunity or perfect property to come along we have lost the time with our family and loved ones that can never be recaptured. We all know that we only have so much time to really enjoy our lives and what value can we place on this?
Many of my clients have come to realize just how important this is as they spend more and more time enjoying their vacation home in park city with family and friends. Frequently my clients tell me that while they had only intended to use their vacation property occasionally during the ski season they end up spending quite a lot of time during the summer months as well. When deciding if now is the right time for you to purchase your vacation home or even go on a vacation, remember QTR and take advantage of it.
Many of my clients have come to realize just how important this is as they spend more and more time enjoying their vacation home in park city with family and friends. Frequently my clients tell me that while they had only intended to use their vacation property occasionally during the ski season they end up spending quite a lot of time during the summer months as well. When deciding if now is the right time for you to purchase your vacation home or even go on a vacation, remember QTR and take advantage of it.
Friday, May 1, 2009
Shoulder Season in the Mountains
April and May are the shoulder season months in the mountain resorts where one day you are playing golf in shorts & tee shirt and the next day it is snowing. This is the time of the year when locals leave to head for warmer climates and several of the local restaurants and business’s close for several weeks to give the employee’s time off to re-cooperate from the busy winter.
Yesterday I brought in REALTOR® representatives from the ski resorts of Vail, CO, Jackson Hole, WY and North Lake Tahoe, CA to talk to the members of the Park City Board of Realtors about what the real estate market has been like this past year in our neighboring resorts. The panel discussion was attended by 200 members of the Park City Board of Realtors. The questions that we asked the panel members were: Compare the first quarter of 2009 to the first quarter or 2008? What are the strongest and weakest parts of your market? What is the average price per square foot of homes and condos in your resort? What is the price per square foot for new developments and are they selling? And finally, what is your outlook going into the summer?
As far as year to year comparison all 3 resorts were quite similar. Numbers on average were down about 20-30% over the same period from last year. The difference between each resort was the average price per square foot of properties. Lake Tahoe reported that the average price of their high end homes (which are located on the lake) run around $800 a square foot and condominiums located at the base of Squaw Valley run around $300 per square foot. In Jackson Hole the price per square foot of homes near Teton resort range from $1000 per square foot for an older home without ski access to nearly $2000 per square foot for a newer home on the mountain. Condominium’s located in the village run anywhere from $1000-$1200 per square foot. Vail reports that resort condominium’s run from $1600-$1800 per square foot and homes run around $1000 per square foot.
Regarding new condominium developments Lake Tahoe reported that they are essentially built out and have been for quite some time, so other than a couple of newer developments around the base of Squaw Valley they really do not have new condominium projects. In Jackson Hole a couple of new developments, such as The Four Seasons, were selling briskly until this past year at over $1000 per square foot. Vail has several new condominium developments that have just completed or are near completion. These projects are priced anywhere from $1800-$2500 per square foot and as expected, sales have been slow this season.
All three resorts felt that the high end of the market was quite strong but the middle market (homes priced between $1 and $2 million) was one of the weakest areas. The reasoning behind this is that the middle range market homes are not in a particularly good area and tend to be older with only mid range finishes. There is nothing to make this type of home stand out in the minds of buyers looking for exceptional value and location.
Regarding the future outlook, all three panelists were cautiously optimistic going into the summer months. They all reported an increase in activity and interest at the end of this ski season and feel that this will carry into the next few months.
If you would like a more in depth discussion on our neighboring resorts feel free to call me at (435) 640-5851 or email me at DHanlon532@aol.com. In the meantime I am waiting for the next sunny day to break out the golf clubs!
Yesterday I brought in REALTOR® representatives from the ski resorts of Vail, CO, Jackson Hole, WY and North Lake Tahoe, CA to talk to the members of the Park City Board of Realtors about what the real estate market has been like this past year in our neighboring resorts. The panel discussion was attended by 200 members of the Park City Board of Realtors. The questions that we asked the panel members were: Compare the first quarter of 2009 to the first quarter or 2008? What are the strongest and weakest parts of your market? What is the average price per square foot of homes and condos in your resort? What is the price per square foot for new developments and are they selling? And finally, what is your outlook going into the summer?
As far as year to year comparison all 3 resorts were quite similar. Numbers on average were down about 20-30% over the same period from last year. The difference between each resort was the average price per square foot of properties. Lake Tahoe reported that the average price of their high end homes (which are located on the lake) run around $800 a square foot and condominiums located at the base of Squaw Valley run around $300 per square foot. In Jackson Hole the price per square foot of homes near Teton resort range from $1000 per square foot for an older home without ski access to nearly $2000 per square foot for a newer home on the mountain. Condominium’s located in the village run anywhere from $1000-$1200 per square foot. Vail reports that resort condominium’s run from $1600-$1800 per square foot and homes run around $1000 per square foot.
Regarding new condominium developments Lake Tahoe reported that they are essentially built out and have been for quite some time, so other than a couple of newer developments around the base of Squaw Valley they really do not have new condominium projects. In Jackson Hole a couple of new developments, such as The Four Seasons, were selling briskly until this past year at over $1000 per square foot. Vail has several new condominium developments that have just completed or are near completion. These projects are priced anywhere from $1800-$2500 per square foot and as expected, sales have been slow this season.
All three resorts felt that the high end of the market was quite strong but the middle market (homes priced between $1 and $2 million) was one of the weakest areas. The reasoning behind this is that the middle range market homes are not in a particularly good area and tend to be older with only mid range finishes. There is nothing to make this type of home stand out in the minds of buyers looking for exceptional value and location.
Regarding the future outlook, all three panelists were cautiously optimistic going into the summer months. They all reported an increase in activity and interest at the end of this ski season and feel that this will carry into the next few months.
If you would like a more in depth discussion on our neighboring resorts feel free to call me at (435) 640-5851 or email me at DHanlon532@aol.com. In the meantime I am waiting for the next sunny day to break out the golf clubs!
Tuesday, April 14, 2009
End of Season
Now that another ski season has ended it is a good time to reflect back on the past 4 months, and what an interesting time it was! Let’s first start with the easy part, the ski season. November was warm and dry. Everyone was quite nervous as December approached and there was very little snow on the ground. The early part of December wasn’t much better but at least it turned cold and snow makers were able to work their magic and the resorts opened on time.
Fortunately, about a week before the start of the Christmas holidays it started snowing and we were able to open up most of the mountain with excellent ski conditions. As seems to be the norm for the past few years, the Christmas Holidays saw a continuous stream of storms roll through, the strongest on Christmas Day when 2 feet of snow fell. Needless to say, the skiing for the Christmas-New Years week was fantastic, with visitors enjoying all the new snow and a few sunny days. January, February and March were a nice mix of warm sunny dry spells and snowy periods. The last two weeks of March and beginning of April seemed like one continuous snow storm with over 8 feet of snow here at Deer Valley.
With the economic melt down in the U.S., the excellent ski conditions saved the season. While final numbers have yet to be tallied, preliminary reports from Deer Valley are that they will end up with similar numbers to the 2006/2007 ski season. The property management companies (who definitely struggled this past year) are also saying that their numbers are similar to the Deer Valleys skier days. While property management companies are reporting about a 30% decrease in revenue from last year, the actual number of visitors staying in their properties was only down 8% and up 8% from the previous year. One result of the lagging economy was that while visitors still came to Park City, they tended to stay fewer days and spend less money while they were here. Restaurants in town are reporting similar numbers to the lodging companies, which is their revenue is down 20 to 30% from the last year. Taken as a whole, I look at these numbers in a very positive light. I spoke to a lot of skiers who were here for the first time, and were very impressed with what we have to offer, and said that they would definitely return. Along with the new visitors, our past guests continue to come back although they were more frugal this year. If we can show these kinds of numbers during a strong recession I feel that the future of Park City/Deer Valley is very bright.
Now for the tough part….the real estate market. From late fall through late winter it seemed that anyone who had an interest in purchasing real estate all said the same thing, “I’m in no hurry and I think the market is going lower, ill just wait”. Around the middle of March it seemed like we may have come close to the bottom of the market and buyers started buying again. Beginning in the middle of March and continuing through today, everyone has noticed an increase in activity and contracts written. Properties are being purchased all across the board from the very low end to multi-million dollar ski homes. Looking through our rose colored glasses we are seeing signs that consumer confidence is returning and that investors are feeling that this is the right time to buy. Interestingly, this morning I saw an interview with Donald Trump who could not stop saying that this was the best time to be buying real estate in the U.S. and that he was buying as much as he could. Over and over again he stressed that for anybody that could “Now is the time to buy real estate.” Other investors that I speak with have echoed the same sentiment.
Now that the ski areas are closed, this is a great time to take a deep breath and get ready for what we hope to be a busy summer!
Fortunately, about a week before the start of the Christmas holidays it started snowing and we were able to open up most of the mountain with excellent ski conditions. As seems to be the norm for the past few years, the Christmas Holidays saw a continuous stream of storms roll through, the strongest on Christmas Day when 2 feet of snow fell. Needless to say, the skiing for the Christmas-New Years week was fantastic, with visitors enjoying all the new snow and a few sunny days. January, February and March were a nice mix of warm sunny dry spells and snowy periods. The last two weeks of March and beginning of April seemed like one continuous snow storm with over 8 feet of snow here at Deer Valley.
With the economic melt down in the U.S., the excellent ski conditions saved the season. While final numbers have yet to be tallied, preliminary reports from Deer Valley are that they will end up with similar numbers to the 2006/2007 ski season. The property management companies (who definitely struggled this past year) are also saying that their numbers are similar to the Deer Valleys skier days. While property management companies are reporting about a 30% decrease in revenue from last year, the actual number of visitors staying in their properties was only down 8% and up 8% from the previous year. One result of the lagging economy was that while visitors still came to Park City, they tended to stay fewer days and spend less money while they were here. Restaurants in town are reporting similar numbers to the lodging companies, which is their revenue is down 20 to 30% from the last year. Taken as a whole, I look at these numbers in a very positive light. I spoke to a lot of skiers who were here for the first time, and were very impressed with what we have to offer, and said that they would definitely return. Along with the new visitors, our past guests continue to come back although they were more frugal this year. If we can show these kinds of numbers during a strong recession I feel that the future of Park City/Deer Valley is very bright.
Now for the tough part….the real estate market. From late fall through late winter it seemed that anyone who had an interest in purchasing real estate all said the same thing, “I’m in no hurry and I think the market is going lower, ill just wait”. Around the middle of March it seemed like we may have come close to the bottom of the market and buyers started buying again. Beginning in the middle of March and continuing through today, everyone has noticed an increase in activity and contracts written. Properties are being purchased all across the board from the very low end to multi-million dollar ski homes. Looking through our rose colored glasses we are seeing signs that consumer confidence is returning and that investors are feeling that this is the right time to buy. Interestingly, this morning I saw an interview with Donald Trump who could not stop saying that this was the best time to be buying real estate in the U.S. and that he was buying as much as he could. Over and over again he stressed that for anybody that could “Now is the time to buy real estate.” Other investors that I speak with have echoed the same sentiment.
Now that the ski areas are closed, this is a great time to take a deep breath and get ready for what we hope to be a busy summer!
Tuesday, April 7, 2009
Is Now The Time To Buy???
As a long time REALTOR® in a destination resort, wherever I go around town residents and visitors always want to know what’s going on with the local real estate market. Residents are always interested to know if their property values are going up or down while visitors wonder if this is the right time to purchase. For this discussion let’s concentrate on the 2nd Home/Vacation Home buyer.
In a recent NAR survey of 2nd home buyers they reported that the number of 2nd homes/vacation homes purchased in the United States was down 30% for 2008. While this seems shocking at first it is not surprising. 2008, particularly the latter half, was a very stressful time for most Americans and a 2nd home/vacation home purchase was not a necessity. These purchases were put on the back burner. While not having seen any hard numbers for the first quarter of 2009, my observations are that the first quarter of 2009 numbers will be very similar to the numbers for the last quarter of 2008. During the first quarter of 2009 buyers were inquiring about vacation properties but were understandably nervous and not ready to pull the trigger. We have just begun the 2nd quarter and it appears that buyers are now feeling a little bit more confident and are once again purchasing. My guess is that a combination of the following factors has come in to play: Along with a drop in the number of home sales came a drop in home prices, interest rates are at an all time low and the stock market seems to be calming down.
While the stock market has certainly not settled on a particular direction the wild roller coaster fluctuations of last fall seem to have evened out. Lower prices combined with low interest rates seem to be attracting buyers who are fearful of loosing out on a terrific opportunity to invest in a resort vacation home. Many buyers remember 2003, which was the low point for the market after the 911 terrorist attacks and the Gulf Wars. Many buyers sat on the sidelines in 2003 not sure if it was the right time to purchase and then watched the markets escalate through 2006. Is this a repeat of 2003-2006? While no one can say for certain, I do feel confident in saying that this window of opportunity will end and there will be buyers looking from the wrong side of the window.
The past few weeks here in Park City I have seen a pronounced increase in interest and contracts written. What is very telling is that well priced properties are receiving multiple offers. This is telling in that buyers are out there and ready to purchase but only for homes they perceive to be an exceptional deal. This is not the time for sellers to test the market. If sellers are serious about selling, their property must be perceived as a “deal” not just competitively priced.
So, is this the right time to buy a resort vacation home? That is certainly an individual decision but the stars may be lining up to make now an opportunity that we may be wistfully looking back to.
In a recent NAR survey of 2nd home buyers they reported that the number of 2nd homes/vacation homes purchased in the United States was down 30% for 2008. While this seems shocking at first it is not surprising. 2008, particularly the latter half, was a very stressful time for most Americans and a 2nd home/vacation home purchase was not a necessity. These purchases were put on the back burner. While not having seen any hard numbers for the first quarter of 2009, my observations are that the first quarter of 2009 numbers will be very similar to the numbers for the last quarter of 2008. During the first quarter of 2009 buyers were inquiring about vacation properties but were understandably nervous and not ready to pull the trigger. We have just begun the 2nd quarter and it appears that buyers are now feeling a little bit more confident and are once again purchasing. My guess is that a combination of the following factors has come in to play: Along with a drop in the number of home sales came a drop in home prices, interest rates are at an all time low and the stock market seems to be calming down.
While the stock market has certainly not settled on a particular direction the wild roller coaster fluctuations of last fall seem to have evened out. Lower prices combined with low interest rates seem to be attracting buyers who are fearful of loosing out on a terrific opportunity to invest in a resort vacation home. Many buyers remember 2003, which was the low point for the market after the 911 terrorist attacks and the Gulf Wars. Many buyers sat on the sidelines in 2003 not sure if it was the right time to purchase and then watched the markets escalate through 2006. Is this a repeat of 2003-2006? While no one can say for certain, I do feel confident in saying that this window of opportunity will end and there will be buyers looking from the wrong side of the window.
The past few weeks here in Park City I have seen a pronounced increase in interest and contracts written. What is very telling is that well priced properties are receiving multiple offers. This is telling in that buyers are out there and ready to purchase but only for homes they perceive to be an exceptional deal. This is not the time for sellers to test the market. If sellers are serious about selling, their property must be perceived as a “deal” not just competitively priced.
So, is this the right time to buy a resort vacation home? That is certainly an individual decision but the stars may be lining up to make now an opportunity that we may be wistfully looking back to.
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