The big news in Park City this week is that it appears that Talisker is set to purchase the Canyons Resort from American Ski Corp. This past year has seen a hotly-contested fight between Talisker Corp, a Toronto-based real estate developer, and Vail Resorts, for the rights to purchase the Canyons Resort. With recent court rulings and the dropping of objections from other land owners, Talisker is now in line to close on the purchase. While the sale of the Canyons to either Vail or Talisker was good news for the struggling resort, Talisker brings to the table the financial backing to finally bring the resort up to its potential. The first thing that we should see is increased snowmaking, better foodservice in the restaurants and more attention to customer service.
As the ski season enters its final month of operation, we are seeing several developments on the mountain offering terrific incentives to buyers to purchase this year rather than waiting. These incentives are often a combination of discounted price and attractive financing opportunities. At the same time, owners of resale properties are often more motivated on their price and willing to look at and negotiate offers. All of this adds up to spring being a terrific time to look at and purchase a ski property.
This winter continues to be terrific in terms of snowfall and visitors to town. Even though it is March, we continue to receive a fresh coating of snow every few days. The surface conditions on the resorts are much more like winter conditions than the wet spring snow that often occurs in March. With the longer days and warmer weather and excellent skiing conditions, this is a great time to come visit and see what Utah skiing is all about.
Wednesday, March 5, 2008
March 2008
What a terrific season this has been! From looking at the snowbanks around town it seems like it snowed every day in December, January, and February. The companies that shovel roofs have been extremely busy keeping up with the daily snowfall. This is the first year that I have ever had to have my roof shoveled, as the snow was over five feet deep on the rooftop. All around town it is a winter wonderland with many streets reduced to one lane. At the ski resorts we’re able to ski tree shots in places we have not been able to ski in years, as even on the south-facing slopes the snow is deeper than it has been for many years. Deer Valley reached a base of over 100 inches by mid-February, which is very rare. While the snow is terrific for the water table and the reservoirs, we’re not sure when we’ll see the golf courses. Last year on closing day, I skied in the morning and played golf on the Park City course in the afternoon. This year, if the course is open in mid-May we’ll be lucky.
In real estate news, the dour news from the stock market, economy, and housing market from around the country has definitely had an effect on us. While we are not seeing prices dropping below last year’s prices, we are seeing an increase in inventory and buyers being more cautious and slower to act than they have in the past. This translates to an excellent time to buy, as we know that all cycles run their course. Because development in the mountain towns is constrained by the topography our available building space is limited. This is particularly true at the resorts, where buildable land is scarce. Buyers looking for bargains should be looking now when they have choices and are in a much stronger position than they will most likely be in a few years when the market has turned around again. Too often buyers make the mistake of feeling that the market will continue to go down and miss opportunities.
In real estate news, the dour news from the stock market, economy, and housing market from around the country has definitely had an effect on us. While we are not seeing prices dropping below last year’s prices, we are seeing an increase in inventory and buyers being more cautious and slower to act than they have in the past. This translates to an excellent time to buy, as we know that all cycles run their course. Because development in the mountain towns is constrained by the topography our available building space is limited. This is particularly true at the resorts, where buildable land is scarce. Buyers looking for bargains should be looking now when they have choices and are in a much stronger position than they will most likely be in a few years when the market has turned around again. Too often buyers make the mistake of feeling that the market will continue to go down and miss opportunities.
Wednesday, February 27, 2008
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:
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And from today:
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This is the wind vane you can see in the top photo. There's not much of him left now!
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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.
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.
Thursday, February 21, 2008
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.
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.
Thursday, February 7, 2008
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
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.
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.
Monday, January 21, 2008
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.
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.
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