Christmas In Park City

This is the start of the Christmas Holiday and the Park City resorts are ready. After a week of bitter cold, followed by a two day blizzard, this week has been quite warm with temperatures in the upper 30’s. Fortunately it is colder up on the mountain so the resorts have been able to make snow non-stop, even this week. Park City and Deer valley have been able to open new runs and lifts daily and as of today over half of the mountain is open. I expect both resorts to open new runs throughout the next couple of weeks.

The town is festive and decorated to bring out the holiday spirit in everyone. One of the great fun things in Park City is how all the condominium projects and private homes light up the trees. A nighttime drive around town with snow still in the tree branches and Christmas lights twinkling is really quite magical. Along with skiing we have many other activities such as sleigh rides and snowmobiling in the back country of Utah. Christmas is a special time of year and to spend it with family and friends in a place like Park City is simply the best.
I wish everyone the happiest of holidays and a prosperous 2010.

Good Old Fashion Utah Snow Storm

After a week of bone chilling cold this weekend saw a good old fashion Utah snow storm. From Saturday morning to Sunday evening the Utah ski resorts received 3 to 4 ft of new snow just in time for the Christmas holidays. I skied at Deer Valley yesterday with knee deep powder and new runs were opening up as the day progressed. With continued cold weather and snow making as well as more snow forecast for later in the week, most of the mountain should be open later this week. If you have been waiting to see what the conditions would be like before booking your vacation to park city, wait no longer! The conditions are excellent and the skiing is fabulous so come on out!

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.

Big News In Park City

This past week the new St. Regis Hotel at Deer Valley opened to rave reviews. The bar, lounge and restaurant are spectacularly decorated and many people felt that it looked just like the St. Regis in Manhattan. Owners have begun closing on their units and with prices approaching $2000 per square foot; a new standard has been set in Deer Valley. What is very telling is that the first buyers wrote contracts 4 years ago and even after the economic downturn of the last 2 years, only two buyers are attempting to get out of their contracts. This is very telling about the quality and perceived value of the St. Regis. From speaking with the listing agent they expect to have closed on 20 units prior to the Christmas vacation at which time all of the available units will be rented out.

The second piece of big news this week is that Deer Valley will be opening Saturday December 5th.This fall we have only seen about half of our normal snow fall but fortunately it has been cold so Deer Valley will have a decent opening of man made snow. Even better is the forecast for snow…beginning this Saturday and continuing at least through next Wednesday. This is much needed and should get the mountain ready for the Christmas holidays. Part of the opening ski weekend tradition at Deer Valley is a two day celebrity ski race. This is always a fun event with many Hollywood celebrities running around mid-mountain Deer Valley.

In real estate news our real estate market continues to move along and is showing some signs of strengthening. While we are still definitely in a buyers market and I see many price reductions on properties every day I am beginning to see a few price increases. Is this a sign of things to come? While I do not think that we are out of the woods, the light at the end of the tunnel just might be a bit brighter.

The first couple of weeks in December and again the first couple of weeks in January are relatively quiet times here in park City and are an excellent time to visit and enjoy less crowded ski slopes and restaurants. Whether it is during these more quiet times or later in the year, make your plans to come visit Park City and experience for yourself why this has been my home for the last 25 years.

Culinary Adventures In Park City-Part Two

This is Thanksgiving weekend and the official start of the ski season. Park City Mountain resort and Snowbird opened up last Saturday. Alta and Snowbasin opened today and the Canyons will open tomorrow, Thanksgiving Day. Deer Valley Resort always opens the first Saturday in December, which this year falls on December 5th.

With the upcoming ski season it is always fun to review the new restaurants in town. As I travel around to different resorts, when I mention that I live in Park City a frequent reply is how good the restaurants are in Park City compared to other resorts. This year we have four new restaurants in town, Spruce at the Canyons Resort, High West Distillery on Park Ave, Talisker on Main Street and a restaurant in the new St. Regis Hotel at Deer Crest.

Spruce is a very high end restaurant located at Dakota Mountain Lodge just below the base area at the Canyons Resort. Dakota Mountain Lodge features a Golden Door Spa and is operated under the Waldorf Astoria brand. As one would expect from Waldorf Astoria Hotel, the décor is exquisite and quite contemporary. The bar overlooks the hotel swimming pool and is very comfortable. The restaurant itself is beautiful and the menu is delightful with a variety of fresh seafood’s along with unique presentations. I highly recommend this restaurant for a romantic experience during your stay here.

For a fun and informal dining experience, the High West Distillery on Park Ave is a must visit. The restaurant is a restored historic building on Park Ave and only seats around 40 people. Built in 1907 by E.J. Beggs, the broad wooden building started out as the Beggs & Buckley Livery. When the horseless carriage was replaced with the automobile, Beggs and Buckley began servicing cars and changed the name to National Garage. The High West Distillery menu is a more casual “mountain” cuisine and along with sampling their local whiskey’s they will also be offering a variety of wine flights. For more information on the historic building and the distillery visit highwestdistillery.com.

Talisker on Main Street is scheduled to open early January and will feature a small dining room with a maximum of 40 guests. The chef, John Murko is preparing the menu which will be excellent judging from the other Talisker restaurants. This restaurant will be open to the public however Talisker club members will have preferred reservations, for more information visit talisker.com.

The St. Regis will offer, as expected, a five star dining experience. I will have an opportunity to experience a sampling from the menu in about two weeks and will give a review at that time.

While these new restaurants are certain to be worth visiting, I cannot leave out my long time favorites. Always consistent and excellent on my list of recommended restaurants are Riverhorse on Main, Chimayo (an interesting take of southwestern cuisine), Wahso (Asian/Pacific Rim), The Seafood Buffett @ Deer Valley (a must for families and groups) and the Fireside Dining in Empire Lodge at Deer Valley. For an intimate and romantic dining experience, the Mariposa at Deer Valley is not to be missed. For more casual or family style dinners, Windy Ridge and the Wasatch Brew Pub located on Main Street are my favorites.

While these are a good sample of restaurants to visit, Park City offers many more restaurants and when you are in town give me a call and I will be happy to recommend other restaurants that I really like.

With the ski season upon us start planning your trip to Park City now. You can always call me for the current ski conditions or restaurant/ lodging recommendations. I hope to see you this winter!

Is This the Right Time to Buy?

If you have been following this blog for the past few months you have most likely noticed a reoccurring theme that I feel that this is the time to buy resort real estate. As I have been showing buyers property over the last few weeks and talking to other buyers on the phone, they are asking me why I feel this is the time to buy. Another great question that somebody asked is, what do I tell people who purchased at the height of the market two or three years ago? These are both excellent questions and I would like to address them in this blog.

First, what do I say to people that purchased during the height of the market and have seen their property values decline over the past 2 years? As would be expected, I have several clients in this situation and I have talked with them at length about this. The first response is that while yes the property value has declined, they have had a wonderful vacation home to enjoy with their family and friends. It is impossible to put a value on the quality time that a family is able to spend together. Time spent reconnecting with children and a grandchildren who may have scattered around the country is priceless. Second, I frequently hear my clients say that had they not purchased their vacation home and instead invested that money in the stock market they would have lost more money than the value of their real estate has declined. While not overly pleased that the values have declined, everyone understands that it is a function of the global economy and are comfortable with their decision to have purchased. As long as the intent of the purchase was to actually use the property and not just flip it for a quick profit, my buyers are generally pleased with their decision.

So, why do I think now is the time to buy? After watching real estate values decline over the last 18 months I am beginning to see some sign of stabilization. However to best answer this question I need to ask two questions, first, “do you think real estate prices in a resort such as park city will increase in the next 3 to 5 years?” Second, “do you believe that interest rates, which are at historic lows, are going to go up in the near future?” If you answered yes to both of these questions, as I did, then combined with low real estate prices, strong inventory, and sellers willing to negotiate you can see why I feel that this is the right time to purchase.

It fascinates me to observe that in a “buyers market” as we are currently experiencing, buyers are reluctant to buy. However when the market is hot, as we saw in 2006, everyone wants to jump in and purchase property, even though the sellers have the advantage.

Are we at the bottom of the real estate market? Maybe… maybe not, I don’t know of anyone who can predict the bottom; however we are most likely close enough to the bottom that it makes sense to act on the desire to own a ski vacation home. This is exactly what I have been seeing for the past few months. The savvy investors who are looking for bargains have moved from the “wait and watch” to “buy”. This is now drawing the buyers who have wanted a ski home in to the market. With the stock market having regained most of its value, from the low point last March, and now seeming to fluctuate around the 10,000 mark there is widespread feeling that we may be coming out of this recession. The segment that still needs to come around is the employment market. With unemployment running around 10% it is hard for the American consumer to fully regain their confidence and to feel comfortable making a large purchase such as a vacation home. Not “if” but “when” lenders open up their credit and start lending on new construction we should see a decrease in unemployment and renewed confidence by the consumer. Whether this begins to turn around this year or next year, we will most likely see more buyers returning to our market which usually causes sellers to become less negotiable. So for these reasons I feel that there is an opportunity to purchase resort real estate at prices that we may not see again for some time, yes I feel prices will be going up in the next few years, yes I feel that interest rates will be going up and yes I feel that institutional lenders will start freeing up money.

However if you have been looking for a vacation home lets go back to the first point that I brought up and that is having a gathering spot for your family and friends to spend quality time together and to reconnect is the biggest benefit that you will receive.

NAR Real Estate Convention In San Diego

This week the National Association of Realtor's (NAR) is holding their annual convention in San Diego, which I am attending. This annual event is attended by over 20,000 realtors from all over the world. The convention is a source of education featuring top real estate speakers from around the country and is a terrific opportunity to meet and network with agent's who deal in a wide variety of markets, not just resorts, which I typically work with. I feel that this is an opportunity to get a better feel for shat is happening nationally in the real estate market. Of course, I still spend quite a bit of time talking to my fellow realtors from the western resorts.

This morning we had our Fall meeting for the Western Mountain Resort Alliance, of which I am the founder and president where we discussed along with business issues what was happening in our respective resorts. The consensus was that while this past year has been the worst that anyone has seen there is some optimism that the markets are turning, or beginning to turn, and that this ski season may see buyers re-entering the market. To give you an idea of what happened to our market last year, see the graph attached. As you can see from this graph, most of 2006 was the high point of the market, with a slight decline in 2007 and 2008. This year we saw a drastic drop in number of sales as well as dollar volume. This has been reflected in home prices in our resort as well as the length of time properties are listed before selling.

As a result of lower home prices which are being perceived as, “bargains”, everyone is seeing buyers getting back into the game. One of things that we have seen over the last year and a half with the slow down of the market was that buyers were still out there and still wanted that vacation ski home but were reluctant to act on their wishes as the U.S economy was spiraling downward. Now that the economy appears to be stabilizing, or hopefully recovering, there is a pent up demand of buyers once again looking for resort real estate.

The Good News Is That It Is Snowing Here In Park City! It started snowing last night, turned very cold and more snow is expected tonight and tomorrow. The resorts have all resumed their snowmaking operations and with a forecast of rainy and snowy cold weather for next week, it is looking very positive for thanksgiving skiing!

Come back next week! I will have further updates on what I have learned here in San Diego and further updates on the resort openings. Also upcoming will be my annual restaurant review of what’s new in Park City.