Winter, winter, go away, come back in October! Woke up with another 4" of snow on the back barbecue and it has been snowing hard all day, probably close to a foot of new snow. As was said this morning, if you are surprised by this morning's snow then you are new to Park City. The big problem yet to come is going to be when it does finally warm up (and it will) and all of the snow comes down quickly. The year 1983 saw a spring like this and it resulted in severe flooding in Salt Lake City. So much so that people were canoeing on State Street (one of the main thoroughfares through Salt Lake City). In late April, the snowpack should be diminishing with warm sunny days, but instead it is at worst staying even and lately been increasing. As I said earlier, it will warm up and when it does there will be a lot of snow coming down the mountain. A week ago, the mountain snowpack was at 140% of normal. This week it has risen to 197% of normal. On Tuesday, Snowbird eclipsed it's previous season record snowfall and has now recorded over 690" of snowfall, with much more to come!
Thursday, April 28, 2011
Thursday, April 21, 2011
Year In Review
This past Sunday was closing day for Park City Mountain Resort and Canyons Resort, leaving only Snowbird, Alta and Brighton resorts still open. Both Alta and Brighton will be closing in the next couple of weeks and Snowbird will stay open through June and possibly into July. If it will stop snowing here in Park City, perhaps the local golf courses can dry out and we can move on to golf season. This is the 'ugly' time of year for the mountain resorts, no skiing, golf, hiking or mountain biking. Time to head South to warm beaches!
As I've been talking about for the last couple of weeks the first quarter stats have come out and are quite interesting. Before I get into the details, here is a little background info.The Park City Board of Realtors Multiple Listing System (MLS) divides our area into 24 separate areas in and the immediate vicinity of Park City. There are more areas which include the outlying communities but for what I'm talking about these are not important. Furthermore, for this report I am only looking at areas 1-10, which includes all areas within Park City's city limits including Park City Mountain Resort and Deer Valley Resort and also includes the Canyons Resort which lies just outside the city limits.
As I've been talking about for the last couple of weeks the first quarter stats have come out and are quite interesting. Before I get into the details, here is a little background info.The Park City Board of Realtors Multiple Listing System (MLS) divides our area into 24 separate areas in and the immediate vicinity of Park City. There are more areas which include the outlying communities but for what I'm talking about these are not important. Furthermore, for this report I am only looking at areas 1-10, which includes all areas within Park City's city limits including Park City Mountain Resort and Deer Valley Resort and also includes the Canyons Resort which lies just outside the city limits.
Tuesday, April 12, 2011
Closing Weekend at Deer Valley Resort
Wow! What a closing weekend it was with 27 inches of new snow over the weekend, nobody here, and the most incredible ski conditions. Woke up Friday morning with 15 inches of new snow, then Sunday (closing day), 4 inches of classic Utah "cold smoke." For those of you who are not familiar with this term, it's when snow is so light and dry that you don't even feel it. It's like having smoke on the mountain. That is what Utah is known and famous for: the lightest and driest powder in the country.
Wednesday, April 6, 2011
Final Week
This is the final week for Deer Valley's ski season, although Park City and Canyons have extended their season one more week to April 17th.
To get the most enjoyment from spring skiing, one has to plan their day carefully. First of all, come springtime, not all days are worth even skiing. If it doesn't freeze overnight and it is warm and humid during the day you're better off finding another activity, such as snowshoeing, biking, or even going to work. However when it does freeze overnight, you wait a little bit for the snow to soften then head for the east and southerly-facing slopes where you can find good corn snow. Then, as those slopes become too soft and sticky, look for the north-facing slopes and as the afternoon progresses, move to the western slopes. By doing this, you are trying to find each aspect at the perfect time for softness. And there may be times that you just have to quit, have lunch, and call it a day. Spring skiing is for relaxing, enjoying the sunshine, and recapping a great winter.
Closing week this year looks to be very, very good as we received a foot of snow Sunday, it is supposed to snow again tonight, and it looks like more snow Thursday, Friday, and Saturday. If the forecast holds true, it will be a great way to finish the year and we will close with a base of over 120" and powder skiing. It is time for thoughts to turn to white sand beaches and warm Caribbean water. Everyone in ski towns are ready to thaw out and relax.
It's been a pleasant surprise that as we wind down the ski season real estate sales have continued to stay strong. In looking across what has sold in the last couple of weeks, I have seen several multi-million-dollar homes and condos sold including two ski-in/ski-out condos in Deer Valley priced at over $6,000,000 and another ski-in/ski-out home in The Colony at Canyons Resort also priced well over $6,000,000. On the 15th of April I will be able to get the stats for the ski season and will put together an analysis of how this season's activity was and how it compared to the previous winter. So stay tuned for that and until then, enjoy spring and plan your summer vacation to the mountains.
To get the most enjoyment from spring skiing, one has to plan their day carefully. First of all, come springtime, not all days are worth even skiing. If it doesn't freeze overnight and it is warm and humid during the day you're better off finding another activity, such as snowshoeing, biking, or even going to work. However when it does freeze overnight, you wait a little bit for the snow to soften then head for the east and southerly-facing slopes where you can find good corn snow. Then, as those slopes become too soft and sticky, look for the north-facing slopes and as the afternoon progresses, move to the western slopes. By doing this, you are trying to find each aspect at the perfect time for softness. And there may be times that you just have to quit, have lunch, and call it a day. Spring skiing is for relaxing, enjoying the sunshine, and recapping a great winter.
Closing week this year looks to be very, very good as we received a foot of snow Sunday, it is supposed to snow again tonight, and it looks like more snow Thursday, Friday, and Saturday. If the forecast holds true, it will be a great way to finish the year and we will close with a base of over 120" and powder skiing. It is time for thoughts to turn to white sand beaches and warm Caribbean water. Everyone in ski towns are ready to thaw out and relax.
It's been a pleasant surprise that as we wind down the ski season real estate sales have continued to stay strong. In looking across what has sold in the last couple of weeks, I have seen several multi-million-dollar homes and condos sold including two ski-in/ski-out condos in Deer Valley priced at over $6,000,000 and another ski-in/ski-out home in The Colony at Canyons Resort also priced well over $6,000,000. On the 15th of April I will be able to get the stats for the ski season and will put together an analysis of how this season's activity was and how it compared to the previous winter. So stay tuned for that and until then, enjoy spring and plan your summer vacation to the mountains.
Tuesday, March 29, 2011
Spring Skiing
Spring skiing in the Rockies takes on many shapes and forms. When we talk about spring skiing typically the thoughts turn to warm sunny days and soft or even slushy snow. But here in the Rockies, March and April can be very, very snowy, and it seems that the last few years some of the best powder skiing has been at the end of the season with this year being no exception. This is me skiing Deer Valley on Sunday!
It has been a crazy week with snow just about every day since last week Monday and the skiing just can not get any better. Deer Valley is now reporting a 118-inch base and it is snowing hard today with another foot of snow expected. But then the best news is, is that we are expecting warm sunny days starting Wednesday for classic spring skiing, at least until the weekend when more snow is forecast. This is a perfect time to come out and visit your favorite ski resort in the Rockies as the skiing is the best it’s been all year, crowds are down, and you can get great deals on lodging.
In real estate news, real estate sales continue to be quite strong (I’ll be doing an end of the season wrap up in mid April), but all indications are that this ski season's real estate sales are going to be substantially higher than last year. Of particular interest, to me, is the new montage hotel in Deer Valley. This is a high-end boutique luxury hotel located at the base of the Empire Lift with fabulous amenities and of course ski-in/ski-out access. The hotel opened for business December 9th of this year and prior to opening there were three pre-sales of the condos. The condos first went on sale at the end of last ski season. There have been five new sales this ski season with a penthouse for $6,000,000 just being sold last week. In addition there have been a couple of sales in the St. Regis, also located ski-in/ski-out in Deer Valley's Deer Crest area. After the 2009/2010 season with no new sales in St Regis, it is refreshing to see the high end buyer returning to the resort market. In looking at what is selling each day, I am seeing more sales over $2 mil than I have for quite some time. Is this a sign that the resort market is beginning to turn? Before jumping to any conclusions, let's see what the summer brings for sales, but this is certainly good news for resort real estate here in Park City/Deer Valley.
So stay tuned in a couple of weeks for the end of the year wrap-up which I think will be very interesting and until then come out and enjoy the fabulous spring skiing.
It has been a crazy week with snow just about every day since last week Monday and the skiing just can not get any better. Deer Valley is now reporting a 118-inch base and it is snowing hard today with another foot of snow expected. But then the best news is, is that we are expecting warm sunny days starting Wednesday for classic spring skiing, at least until the weekend when more snow is forecast. This is a perfect time to come out and visit your favorite ski resort in the Rockies as the skiing is the best it’s been all year, crowds are down, and you can get great deals on lodging.
In real estate news, real estate sales continue to be quite strong (I’ll be doing an end of the season wrap up in mid April), but all indications are that this ski season's real estate sales are going to be substantially higher than last year. Of particular interest, to me, is the new montage hotel in Deer Valley. This is a high-end boutique luxury hotel located at the base of the Empire Lift with fabulous amenities and of course ski-in/ski-out access. The hotel opened for business December 9th of this year and prior to opening there were three pre-sales of the condos. The condos first went on sale at the end of last ski season. There have been five new sales this ski season with a penthouse for $6,000,000 just being sold last week. In addition there have been a couple of sales in the St. Regis, also located ski-in/ski-out in Deer Valley's Deer Crest area. After the 2009/2010 season with no new sales in St Regis, it is refreshing to see the high end buyer returning to the resort market. In looking at what is selling each day, I am seeing more sales over $2 mil than I have for quite some time. Is this a sign that the resort market is beginning to turn? Before jumping to any conclusions, let's see what the summer brings for sales, but this is certainly good news for resort real estate here in Park City/Deer Valley.
So stay tuned in a couple of weeks for the end of the year wrap-up which I think will be very interesting and until then come out and enjoy the fabulous spring skiing.
Thursday, March 24, 2011
Finding the Perfect Vacation Home
This is the time of the year when many of our visitors, after having a thoroughly enjoyable ski week, consider purchasing a vacation home here in the mountains. When they come to my office asking about vacation properties there are several questions that I ask that help both me and the prospective buyer narrow down just what it is they actually are looking for.
The first question that needs to be asked is: Are you intending to rent the property during the times you are not using it? The importance of this question is that not all properties are zoned for vacation rentals, so if this is an important criterion I immediately eliminate the areas that are not zoned for this or in some cases, though zoned for vacation rentals, may not be practical.
The second question concerns location: Is ski-in/ski-out important? Is being close to the center of town important? Or, is getting in the car to go skiing or into town acceptable? As we spoke of in the previous post, ski-in/ski-out properties, like ocean-front properties, tend to be quite expensive. So if you are willing to put up with the inconvenience of taking a car or public transportation to the resorts, you can find a similar property for considerably less, or a much larger property for the same price.
Now we get into the nuts and bolts questions: How many bedrooms are needed? Would you prefer a townhouse-style condo over an apartment-style condo? And of course, price range. Here in Park City, we are blessed with having an abundance of developable land throughout the area which gives us a wide variety of size and price of vacation properties. We can find one-bedroom condos outside the core area under $100,000 while a one-bedroom near the resorts can easily be $300,000 or higher.
One thing that most people don’t actually think about until we start looking at property is views. Not only are views important aesthetically but also very important for resale. In purchasing in a resort, people are looking for the view as that is why they came here in the first place. This is where a local Realtor becomes invaluable. If you are just looking on the internet at properties and are focused on size and price, proximity to the resorts and the views may be confusing or even misleading. A photo from the deck of a condo may show fabulous views to the resort, when in fact those views could be blocked by a new development going in near by, or perhaps the view is taken from an angle that you wouldn’t normally see. Having local knowledge of upcoming developments, preferred views or preferred locations is information that is best obtained by your Realtor.
So when considering purchasing in a resort, in order to ensure that your Realtor is focusing on the properties that are right for you and your family, there needs to be a discussion on just what it is you’re looking for, what your use will be, and of course, a price range that you’re comfortable with. It is important to have this discussion when you first sit down with your Realtor. Your Realtor will be able to put together a selection of properties that best fit your needs, rather than showing you every property with the right number of bedrooms and right price. You are here on vacation and our goal, while wanting to find you the perfect vacation home, is also to maximize your vacation time and spend time looking at properties to just what works for your family.Hopefully your Realtor will have this discussion with you on your first meeting or very early on, but if not, know the answers to these questions yourself and make your Realtor aware of your needs.
It’s springtime in the Rockies, which means that we’re getting lots of snow. It seems that the last few years some of the best skiing has been at the end of the season and this year is no exception. Strong snowstorms with great powder skiing followed by bright, sunny days. So come experience spring skiing in Park City, bring your sunscreen, warm clothes, as well as spring wear, and be prepared for anything.
The first question that needs to be asked is: Are you intending to rent the property during the times you are not using it? The importance of this question is that not all properties are zoned for vacation rentals, so if this is an important criterion I immediately eliminate the areas that are not zoned for this or in some cases, though zoned for vacation rentals, may not be practical.
The second question concerns location: Is ski-in/ski-out important? Is being close to the center of town important? Or, is getting in the car to go skiing or into town acceptable? As we spoke of in the previous post, ski-in/ski-out properties, like ocean-front properties, tend to be quite expensive. So if you are willing to put up with the inconvenience of taking a car or public transportation to the resorts, you can find a similar property for considerably less, or a much larger property for the same price.
Now we get into the nuts and bolts questions: How many bedrooms are needed? Would you prefer a townhouse-style condo over an apartment-style condo? And of course, price range. Here in Park City, we are blessed with having an abundance of developable land throughout the area which gives us a wide variety of size and price of vacation properties. We can find one-bedroom condos outside the core area under $100,000 while a one-bedroom near the resorts can easily be $300,000 or higher.
One thing that most people don’t actually think about until we start looking at property is views. Not only are views important aesthetically but also very important for resale. In purchasing in a resort, people are looking for the view as that is why they came here in the first place. This is where a local Realtor becomes invaluable. If you are just looking on the internet at properties and are focused on size and price, proximity to the resorts and the views may be confusing or even misleading. A photo from the deck of a condo may show fabulous views to the resort, when in fact those views could be blocked by a new development going in near by, or perhaps the view is taken from an angle that you wouldn’t normally see. Having local knowledge of upcoming developments, preferred views or preferred locations is information that is best obtained by your Realtor.
So when considering purchasing in a resort, in order to ensure that your Realtor is focusing on the properties that are right for you and your family, there needs to be a discussion on just what it is you’re looking for, what your use will be, and of course, a price range that you’re comfortable with. It is important to have this discussion when you first sit down with your Realtor. Your Realtor will be able to put together a selection of properties that best fit your needs, rather than showing you every property with the right number of bedrooms and right price. You are here on vacation and our goal, while wanting to find you the perfect vacation home, is also to maximize your vacation time and spend time looking at properties to just what works for your family.Hopefully your Realtor will have this discussion with you on your first meeting or very early on, but if not, know the answers to these questions yourself and make your Realtor aware of your needs.
It’s springtime in the Rockies, which means that we’re getting lots of snow. It seems that the last few years some of the best skiing has been at the end of the season and this year is no exception. Strong snowstorms with great powder skiing followed by bright, sunny days. So come experience spring skiing in Park City, bring your sunscreen, warm clothes, as well as spring wear, and be prepared for anything.
Tuesday, March 15, 2011
Resort Real Estate Musings
In today’s blog I’d like to talk about two topics that are very relevant to today’s real estate market. First will be financing resort real estate and the second will be an interesting observation about the current market.
In my travels around Park City this winter, whether it be riding with someone on a chairlift, meeting somebody in a restaurant or talking to a prospective buyer on the phone, one of the first questions always asked of me is “Is it possible to get a loan these days?” Contrary to what you hear in the media and popular rumor, financing for resort properties is not only possible but not all that difficult. I believe that a lot of the misconception about financing is coming from a change in lenders’ attitudes. For several years preceding the financial meltdown in 2008, pretty much anybody who was breathing could get a loan on a property without regard to their actual ability to pay it back. Those were the days of the “liar loans,” where lenders would make a loan based on what the buyers stated their income was without the need to verify.
In today’s lending climate, lenders are once again requiring verification of employment, income, and assets, and are looking at the borrower’s debt to income ratio. This is really not much different from when I was selling real estate in the 1990s where buyers had to show they actually had the ability to repay the loan. What a concept! Now with all of the foreclosures that have occurred in the last two years, lenders are looking much harder at buyers documents and are often verifying employment and income several times during the loan process and almost always just prior to funding of the loan.
Another area that has become more difficult but not impossible as a result of all the foreclosures in the resorts is condo financing. Both Fannie Mae and Freddie Mac, who underwrite the majority of all loans, have tightened their requirements for underwriting. Much to the detriment of the resort markets, is the stipulation that condo developments that are used for vacation rentals are not eligible for Fannie Mae and Freddie Mac financing. On the surface this would seem to eliminate almost all resort condo projects from the ability to obtain financing because vacation rentals is what we do. This certainly was the case in 2009 and into 2010 when we saw the condo markets take a dramatic downturn in number of sales which then forced the prices down.
As with any new government regulation, it just took some time for mortgage brokers to understand the laws, understand what was being asked for, and then packaging the loan to meet the requirements. So while it certainly is more difficult to obtain financing in the resorts and particularly for condos, it is certainly not impossible.
But I do want to stress (and I cannot stress this enough) that in today’s lending climate it is absolutely crucial to use a local lender who understands the resort market, understands the various projects and how to package the loan to meet Fannie Mae and Freddie Mac guidelines. The days of searching for the internet lender with the best rates is over as far more often than not, despite their promises, they just will not be able to fund the loan and close on the contract. This is where your local realtor will add even more value to your purchase by recommending a good local lender who can get a purchase closed. While the loan process is hateful, time-consuming and annoying, remember that it does come to an end and you will have your property to enjoy.
The second thing I wanted to talk about today is an observation about today’s market. A telling aspect is the number of buyers who are purchasing multiple properties right now. When I say multiple, I’m not talking about two or three, but dozens. These buyers/investors are seeking developments that they feel are under-valued and have a strong up tick on appreciation. When they find one, are purchasing 15, 20, or more properties in a single development. This can be a newly constructed condo, a golf-course property, or a new subdivision. In some of these projects prices have dropped to 1/3 or sometimes even less of the original purchase price. These investors are feeling that purchasing at these prices will give them a strong profit margin if they hold on for a couple of years. With the economy improving and interest rates slowly creeping upward the feeling is that this opportunity may not exist much longer.
It is springtime in the Rockies, which means long sunny days interspersed with frequent snowstorms. Yesterday everybody was outside on the decks enjoying lunch in the sun and today it is snowing, so come out and enjoy springtime in the mountains.
In my travels around Park City this winter, whether it be riding with someone on a chairlift, meeting somebody in a restaurant or talking to a prospective buyer on the phone, one of the first questions always asked of me is “Is it possible to get a loan these days?” Contrary to what you hear in the media and popular rumor, financing for resort properties is not only possible but not all that difficult. I believe that a lot of the misconception about financing is coming from a change in lenders’ attitudes. For several years preceding the financial meltdown in 2008, pretty much anybody who was breathing could get a loan on a property without regard to their actual ability to pay it back. Those were the days of the “liar loans,” where lenders would make a loan based on what the buyers stated their income was without the need to verify.
In today’s lending climate, lenders are once again requiring verification of employment, income, and assets, and are looking at the borrower’s debt to income ratio. This is really not much different from when I was selling real estate in the 1990s where buyers had to show they actually had the ability to repay the loan. What a concept! Now with all of the foreclosures that have occurred in the last two years, lenders are looking much harder at buyers documents and are often verifying employment and income several times during the loan process and almost always just prior to funding of the loan.
Another area that has become more difficult but not impossible as a result of all the foreclosures in the resorts is condo financing. Both Fannie Mae and Freddie Mac, who underwrite the majority of all loans, have tightened their requirements for underwriting. Much to the detriment of the resort markets, is the stipulation that condo developments that are used for vacation rentals are not eligible for Fannie Mae and Freddie Mac financing. On the surface this would seem to eliminate almost all resort condo projects from the ability to obtain financing because vacation rentals is what we do. This certainly was the case in 2009 and into 2010 when we saw the condo markets take a dramatic downturn in number of sales which then forced the prices down.
As with any new government regulation, it just took some time for mortgage brokers to understand the laws, understand what was being asked for, and then packaging the loan to meet the requirements. So while it certainly is more difficult to obtain financing in the resorts and particularly for condos, it is certainly not impossible.
But I do want to stress (and I cannot stress this enough) that in today’s lending climate it is absolutely crucial to use a local lender who understands the resort market, understands the various projects and how to package the loan to meet Fannie Mae and Freddie Mac guidelines. The days of searching for the internet lender with the best rates is over as far more often than not, despite their promises, they just will not be able to fund the loan and close on the contract. This is where your local realtor will add even more value to your purchase by recommending a good local lender who can get a purchase closed. While the loan process is hateful, time-consuming and annoying, remember that it does come to an end and you will have your property to enjoy.
The second thing I wanted to talk about today is an observation about today’s market. A telling aspect is the number of buyers who are purchasing multiple properties right now. When I say multiple, I’m not talking about two or three, but dozens. These buyers/investors are seeking developments that they feel are under-valued and have a strong up tick on appreciation. When they find one, are purchasing 15, 20, or more properties in a single development. This can be a newly constructed condo, a golf-course property, or a new subdivision. In some of these projects prices have dropped to 1/3 or sometimes even less of the original purchase price. These investors are feeling that purchasing at these prices will give them a strong profit margin if they hold on for a couple of years. With the economy improving and interest rates slowly creeping upward the feeling is that this opportunity may not exist much longer.
It is springtime in the Rockies, which means long sunny days interspersed with frequent snowstorms. Yesterday everybody was outside on the decks enjoying lunch in the sun and today it is snowing, so come out and enjoy springtime in the mountains.
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