Spring is in the Air!

It's that wonderful time of the year when the days are noticeably longer and when it is clear we definitely know that spring is near. We received about two feet of snow on the weekend and sunshine is forecast for the remainder of the week. Alta has received over 500 inches of snow so far this year which is only the fourth time in the last 27 years that it has reached this mark before the end of February. Deer Valley is reporting a base of over 11 feet which may also be a record for this time of year. Needless to say, the skiing is the best it has been for many years.

Here are some pictures of a wind vane in my backyard from a month ago:




And from today:






This is the wind vane you can see in the top photo. There's not much of him left now!


In real estate news, other agents that I speak with all report that while they are not writing a lot of contracts, they are showing property to a lot of people. It seems that while everyone is interested in purchasing here the economic news headlines are making people cautious. Many agents feel the same that I do, that we are going to see an increase in activity this spring through mid summer. In spite of the dour headlines, we remain optimistic. My feeling is that five years from now we will all be wishing for prices like we have today. If this is true and I believe that it is, this is an excellent time to purchase, with low interest rates, an excellent variety of inventory, and sellers willing to negotiate their prices. Many buyers worry about purchasing during a flat market. However, that is the best time to purchase, rather than when the market is hot, inventory is low, and sellers do not negotiate. A good client of mine has told me that "he never sells at the top of the market, he never buys at the bottom of the market, and he makes a lot of money." I think that this is very sound advice, rather than trying to pick the peaks and valleys, take the opportunities as they come.

Presidents' Week in Park City

It is Presidents' Week in Deer Valley; the town is full and the skiing is terrific. After what seems like months of snowfall every day, we had five days of sunshine which brought smiles to everyone. The sunny days definitely make us feel like spring is coming. The Beach at Deer Valley was full of visitors basking in the sun, with perfectly groomed runs to delight the skiers.

The big news in real estate is the drop in interest rates by the federal government and even more importantly, the Fed is looking at increasing the conforming loan amount, possibly up to over $700,000. If this does occur, it could have a tremendous effect on real estate as many of the lower Deer Valley condos are and most condos near the Park City resort would now qualify for conforming loans rather than jumbo loans. This could mean up to a one percent decrease in interest rate that borrowers would be paying for condos here which would have two effects: it would allow buyers to qualify for a higher priced and nicer condo as well as reducing their monthly payments Stay tuned for further posts on this as I will keep you updated as more information comes out. For now, come out and visit us, as this is the best ski year that I can remember since the 80’s.

World Cup at Deer Valley

This past weekend the Freestyle World Cup came to Deer Valley with the best skiers in the world competing in aerials, Skiercross, and dual moguls. The Skiercross Saturday afternoon was extremely exciting. A good description of skiercross is the ski race Super G meets Roller Derby. Four skiers at a time on a twisting turning course with jumps and first on to the bottom wins. Saturday night featured the dual mogul competition under the lights. This is always a great party and about 10,000 people turned out for the competition. The US team did very well in the Skiercross and moguls. This has become an annual event in Deer Valley and one that we look forward to every year.

In real estate news, January 2008 saw real estate sales slightly slower than the same period last year. While visitors in town are looking, the feeling that we get is that everybody is a little cautious and not in a hurry. With the real estate news around the country, buyers are looking for bargains however sellers for the most part are holding fairly tight on their prices. While this is frustrating for many buyers everyone has to understand that the resort markets in the west are not the same as the national real estate market. We do not deal with sub-prime buyers and we are finding that visitors do want a vacation property, see the value in Park City real estate, and do have the means to purchase. Sellers, on the other hand, are generally not in a position where they have to sell, and are comfortable knowing that they have a great place to come visit and will wait for the market to turn if they have to. For resort real estate, this is the perfect time to purchase as the market is slower, there are more choices, and prices are somewhat more negotiable than in a hot market. In real estate, the time to purchase is during a downturn. Interest rates are lower than they have been for many years, and prices are not rising rapidly.

With the incredible snow that we are having this year, the town is full, lodging companies are expecting February to be 9-11% above last year for visitors and that should continue into march. This is a great time to come ski Utah, discover how wonderful the snow is and how easy it is to get here.

Luxury Homes, Recession-Proof So Far

February 2008

February begins the real ski season in Park City. After the Christmas rush, January tends to be fairly quiet (other than during Sundance) and from the first of February through the end of the season we are very busy. This year it seems that is has been snowing at least five days every week which makes for incredible skiing and very happy guests. It seems like at least twice a week we hear the comment that “This is the best day of the year.”

The Presidents Week holiday, starting in the middle of the month is at least as busy or busier than Christmas. From then on, with school holidays continuing through March, the areas are busy and the town is full. Condo owners in town will be thrilled with the revenue that they are receiving this year. The word is out that Utah has the best snow in the country and the best snow that we have had in many years and visitors are booking vacations here. With three out of the last four years being excellent ski years Utah has the reputation that one can book a vacation here and be confident of excellent skiing. This translates to excellent rental revenues for owners and sellers find that their properties are in demand and therefore prices stay strong.

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.

Snow, Snow, and MORE Snow!

It has been snowing here in Park City every day for the past week and a half. And the skiing is the best I have ever seen. It seems that each day we receive about a foot of the famous Utah powder. Since December 1, Snowbird has received about 16 feet of snow. All of the resorts of course are thrilled with all of the lifts and terrain open. Deer Valley’s new Lady Morgan Express lift offers some exceptional advanced skiing here at Deer Valley.

Typically, the two weeks after New Year’s are quiet and slow in town. However this year, with the epic skiing conditions, the town has not slowed down as much as usual. The word is out on how much snow we have received and skiers are taking advantage of the snow and the availability of places to stay. These first two weeks of January very often is the best skiing of the year. The snow is cold, and without a lot of skiers, the snow stays soft. If you have never skied Utah, this the year to come out and discover for yourself Utah powder.

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.”