See an interesting article from Barron’s below. Some items of note:
-The percentage Park City has fallen compared to the other destinations is somewhat shocking…while there numbers might not be 100% correct. Even if the numbers are 15% off, it is still a huge discrepancy.
-I don’t really agree that we are seeing a “come-back” in the luxury real estate market….It seems like more of a sense of just having a pulse return.
-The Park City real estate market “might” have reached the bottom, but that does not mean we will see a “V-shaped” recovery…as mentioned previously on this blog, we will probably bounce along the bottom until the inventory gets reduced to a reasonable level…probably 2 more years.
-Still Park City is rated the #4 place to own a second home….great accolades for the place many of us view as a true paradise.
Here is the article:
AT LONG LAST, THE MARKET FOR LUXURY REAL estate is coming back to life.
Prices for primary residences, which plunged at least 20% from the peak in 2007, appear to have bottomed. In some of the snappiest locations, scattered bidding wars are breaking out and prices are turning upward.
In Greenwich, Conn., realty brokers say, the final months of 2009 were almost record-setters for sales volume, as two years of pent-up demand was unleashed. Even the megadeal is back. In Beverly Hills, film producer Jeffrey Katzenberg just plunked down $35 million for an 8,700-square-foot home on six acres.
There’s nothing like a stabilized economy and a huge rebound in stocks to send folks looking for the perfect manse. The return of hefty Wall Street bonuses hasn’t hurt, either.
With all that in mind, and with summer just around the corner, Barron’s sized up the market for upscale second homes, one of the greatest luxuries of all. We scoped out dozens of deluxe enclaves across the country, speaking with brokers, homeowners and others. Our conclusion: Now could be an excellent time to buy.
Prices are way down — 40% off the peak in some locations. Seemingly at or near bottom, they are starting to attract the first wave of bargain hunters — and not just families in need of R&R. Hard-nosed investors also are on the prowl, says Jan Reuter, head of residential real estate at U.S. Trust Bank of America Private Wealth Management: “We’ve seen an uptick in buying in just the last couple of months.”
More Penta Articles
To help you in the hunt, Barron’s has selected the 10 best places in America for second homes. These alluring locales have it all: gorgeous houses, spectacular views, world-class golf, fishing and skiing, fine dining and great shopping. You’ll find the complete range of lifestyles, from peaceful and easy to vigorously social.
Some warnings: 1) Our selections are every bit as subjective as tastes in homes themselves. 2) The prices cited are based mainly on conversations with locals, because hard data isn’t available. 3) Your plush new retreat may take some time to rise in value. Serious appreciation will require a better economy and, quite possibly, another big rally in stocks.
But hey, you could do worse than marking time in paradise.
Mary Sloan
1. Maui Consistently rated the “Best Island in the World” by travel experts, this Hawaiian beauty underwent a growth spurt during the past decade that some critics bemoaned as excessive. But the southern coast, anchored by the hamlet of Wailea, has weathered it all well. One of the first master-planned resort communities in the nation, it’s a balanced blend of understated gated communities, luxury resort hotels, three excellent golf courses, a tennis center and, of course, several crescent sandy beaches. Wailea has 500 single-family homes, and their views are stunning: lush, verdant hills, brilliantly blue ocean and, after the steamy sun showers, rainbows over the horizon.
Median Price: $1.5 million
Drop From Peak: 27%
Neighbor: Oprah Winfrey
2. Kiawah Island, S.C. Languid elegance defines South Carolina’s coast, and Kiawah, just off Charleston, may be its ideal expression. The island has one developer, Kiawah Development Partners, and an architectural review board that protects the 4,500 or so properties from the excesses often seen when wealth meets water. It has 10 miles of hard-sand beaches and abundant wildlife: bobcats, gray foxes, loggerhead turtles and more. Its Ocean Course has long been favorite of golfers; it hosted the 2007 Senior PGA Championship. Want to tee up some culture? Charleston is just 45 minutes away.
Median Price: $1.4 million
Drop From Peak: 21%
Neighbor: Dan Marino
David Dietrich, Corcoran
3. The Hamptons Long the favored retreat of high-powered New Yorkers, the Hamptons are a just now experiencing a fresh jump in home sales, realty brokers say. Credit the revival in Wall Street bonuses. Southampton, bastion of old money, is known for its grand estates, but lovely homes can be found in what not long ago were potato fields. In chic East Hampton, the choicest real estate is on Georgica Pond. Alas, most of the area’s finest properties never come to market. Once you own a home in the Hamptons, you own it forever.
Median Price: $1.5 million
Drop from Peak: 30%
Neighbor: Steven Spielberg
4. Park City, Utah Skiers love Park City for its powdery winters, but homeowners relish the summers, too. The crowds thin out, life slows down and the tall aspens lining the nearby Wasatch range shimmer in the breeze. The one-street Old West downtown is dotted with classic Victorian houses, while Deer Valley, an understated year-round resort community, sits on the eastern edge. Its namesake ski hill has been crowned by readers of Ski Magazine as North America’s top ski resort for three years running. For $100,000, you can join the nearby Talisker Club, with links designed by PGA Tour Champion Mark O’Meara. Bonus: Salt Lake City International Airport, a Delta Air Lines hub, has direct flights to the East and West Coasts.
Median Price: $1 million
Drop From Peak: 45%
Neighbor: Robert Redford
BJ Adams and Co. Real Estate
5. Aspen, Colo. Aspen isn’t just a year-round playground; it’s also a cultural oasis, the home to the Aspen Institute think tank, a world-class symphony, and dance and art festivals. The four major ski hills speak for the themselves. The Maroon Creek Club includes a challenging golf course designed by Tom Fazio. The city’s West End has a mix of 19th-century Victorians and modern abodes not far from the “beachfront” — downtown neighborhoods within walking distance of the lift. The posh shopping is so good that some folks never find their way up to the trails.
Median Price: $5.6 million
Drop From Peak: 6%
Neighbor: Jack Nicholson
6. Pebble Beach, Calif. Golfer Jack Nicklaus once said that if he had one last round to play before he died, it would be at Pebble Beach. The site of four U.S. Opens, The Links are rated the No. 1 public course in America by Golf Digest for 2009-10. There are several other public and private golf courses within the guarded gates of the verdant Del Monte Forest, which surrounds the community of Pebble Beach. Stunning estates not far from the first tee offer sweeping views of Monterey Bay. Duffers who buy in can play the Golden Bear’s dream course every day.
Median Price: $1.1 million
Drop Since Peak: 20%
Neighbor: Clint Eastwood.
7. Palm Beach This Florida island hovers above reality, and at $30 million-plus, so do its finest pads. Oodles of socialites and tycoons wouldn’t have it any other way. Neither would Jimmy Buffett, Rush Limbaugh and too many other boldface names to mention. In addition to the never-ending social whirl, residents like the shopping on Worth Avenue and the beauty of Addison Mizner’s Mediterranean-style architecture. Mortals can enjoy the town by buying “over the moat” — in Jupiter, North Palm Beach, Palm Beach Gardens and Delray Beach.
Median Price: $3.5 million
Drop From Peak: 11%
Neighbor: Henry Kravis
Sotheby’s Intl Realty
8. Captiva/Sanibel Island, Fla. Sitting off the coast of Fort Myers, a nerve center of America’s foreclosure crisis, the barrier islands of Captiva and Sanibel are the very picture of laid-back living. Linked by a bridge at Sanibel’s northern point, the islands are renowned for their pristine beaches and abundant seashells. Then there are the hiking trails; half the island is a nature preserve. The late Robert Rauschenberg is, even in death, one of the largest landowners. His 35-acre spread, complete with studio, is intact on Captiva’s northern end.
Barron’s Penta inaugural list of second-home communities from the Hamptons to Hawaii.
Median Price: $3.5 million
Drop From Peak: 40%
Neighbor: Ted Koppel
9. Asheville, N.C. Nestled in the mountains of North Carolina, Asheville offers a four-seasons lifestyle with just enough culture and good restaurants to keep urban-withdrawal pangs at bay. Some homebuyers come from the Northeast, and many come from Florida to beat the heat. The locals call them “halfbacks,” since Asheville is halfway up the East Coast. The town has a university and a thriving art scene. We like the 1920s-vintage Tudor homes in the Biltmore Forest district, once part of the adjacent Biltmore Estate. The funky Grove Park neighborhood is also worth a look.
Median Price: $700,000
Drop From Peak: 38%
Neighbor: Andie McDowell
Gasparilla Properties
10. Gasparilla Island, Fla. Katherine Hepburn used to rent a beach house here, and it’s easy to see why. The small island off Florida’s southwest coast has been lovingly preserved: The Gasparilla Act, a state law passed in 1980, put a tight lid on population density, building heights and commercial development. Golf carts — some customized to resemble ‘57 Chevys — are the favored mode of transportation. The historic downtown has gracious homes, and the waters around the island are renowned for tarpon fishing. To check it out, check into the plush Gasparilla Inn.
Median Price: $1.8 million.
Drop From Peak: 18%
Neighbor: Harrison Ford, frequent visitor.
It can also be viewed on http://online.barrons.com/article/SB126783139173756813.html
Tags: deer valley, deer valley real estate, empire pass, glenwild, glenwild real estate, park city, park city real estate, park city realty, park city wire, promontory, promontory real estate, red ledges, silver star, talisker, talisker club, tuhaye, upper deer valley, victory ranch real estate
As we roar into March, the Park City real estate market is seeing some nice activity (relatively speaking) and our tourism numbers seem to be stabilizing.
When compared with 2009 the quantity of sales is up a little more than 15%; however, the average sales price is down about 30%…I think we can deduce that our market is extremely over-saturated and Seller’s better get real if they really want to sell.
Another interesting observation, no units at the Montage Deer Valley have gone under contract in the 3 weeks they have been available. Here is another look at the skinny for the “First Track Buyer’s Program” at Montage Deer Valley:
As for the current activity in the Park City real estate market, we are seeing an average of 10 new properrties come to the marketplace on a daily basis, 10 go under contract daily, 4 transactions close, and another 6 go under contract. some highlights:
ACTIVE:
-Deer Lake Village townhome in Deer Valley at $875,000; 4bd/4ba; 1898 sq ft; $461psf…seems high.
-Deer Crest home in Deer Valley at $3.9m; 5bd/7ba; 5808 sq ft; $689 psf…not too bad for ski in/ski out.
-Stag Lodge unit in Upper Deer Valley at $3.79m; 4bd/5ba; 3397 sq ft; $1116 psf…reaching a bit on this price!
-Glenwild lot at $399,000….not a bad deal
-9 Promontory lots! Ranging from $169,000 to $444,000…as soon as they clear inventory at Promontory, more seems to stack up. (On a side note, Promontory is seeing a lot of sales activity…not at great prices though)
PRICE CHANGE:
-Sky Lodge fractional unit (one-eighth ownership) at $189,000…down from $300k
-Thaynes Canyon home (short sale) down $24,000 to $675,000; 4bd/3ba.
-Lookout at Deer Valley townhome down $500,000 to $2.495m…looks like Seller’s are dropping prices in preparation for the auction.
-Promontory home down $700,000 to $2.5m; 6bd/8ba…nice home and a short sale.
PENDING:
-Old Town Park City home at $975,000; 3bd/4ba; 1959 sq ft; $498psf…great deal on a new home across from City Park.
-Deer Lake Village unit in Deer Valley at $790,000; 4ba/4bd; 2021 sq ft; $390 psf.
-2 Flagstaff units in Deer Valley’s Empire Pass…these units are offering major discounts (see below, under CLOSED) as a ripple effect from the auction at Silver Strike…looks like the developers are listening to what the market said at the auctions.
-April Mountain townhome $1,089,000; 4bd/4ba; 2948 sq ft; $370psf…great deal on this one.
-2 Promontory lots at $125,000 and $95,000…whoa!
-Red Ledges lot at $595,000
CLOSED:
-Lofts on Deer Valley Drive townhome at $910,000; 3bd/5ba; 3203 sq ft; $284 psf…screamin’ deal!
-Bellearbor home in Silver Lake at Deer Valley at $3.05m; 5bd/6ba; 5100 sq ft; $598psf.
-Flagstaff unit at Deer valley’s Empire Pass at $1.386m; 2bd/3ba; 1757 sq ft; $788psf….they were asking $2.31m and it closed right at the number the auction at Silver Strike set as the going rate….almost 40% off asking price!
The most recent report from the Mountain Travel Research Program (MTRiP) said at “halftime” for the ski season many resort towns are reporting numbers slightly behind last year and occupancy down one percent for the first half of the winter. The good news is reservations for the next six months are up almost 10 percent, it said.
Media covering tourism has recently reported that traveler confidence is rising. A survey conducted by the symposium revealed that 41 percent of respondents say their business is below what it was this time last year, but over 64 percent believe they’re meeting or exceeding expectations for this point in the season.
About 78 percent believe the season will end at the same or better levels than last year and almost half expect the economy to improve in 2010.
It feels like this winter is a little less crowded, but Sundance was the only time that seemed really off….other than that it is more the mid-week where we seem to be seeing lulls…people seem to be coming to Park City and Deer Valley for long weekends instead of full week vacations.
Tags: deer valley, deer valley real estate, empire pass, glenwild, glenwild real estate, park city, park city real estate, park city realty, park city wire, promontory, promontory real estate, red ledges, silver star, talisker, talisker club, tuhaye, upper deer valley, victory ranch real estate
It looks like the auction that took place in Deer Valley’s Empire Pass Silver Strike Lodge opened the eyes of a few developers around town. In the Silver Strike auction the developer sold the 8 units that were available for auction, set the market price at roughly $750 per sq ft, cleared half the inventory in the development, and then saw a few more units go pending in the weeks after the auction. Just this past week these developments announced they are going
-Lookout at Deer Valley auctioning 7 homes built in 2008-2009. The starting point is $1.65m; 5752 sq ft; 5bd/6ba; $287 per sq ft!!! Talk about a screamin’ deal! These are first class homes, just around the corner from Deer Valley’s Silver Lake Village…which you don’t even have to walk to, because the development has shuttle service to the mountain. Although it is just a 5 minute walk….not to mention the rentals on a 5 bedroom home in Silver Lake tend to average well above $1000/night….not a bad pick up!
Here is an inventory list:
Auction will take place on Sunday March 27, 2010 at the Stein Eriksen Lodge. Registered Bidders are requested to arrive at 4:00PM to check-in. The Auction will begin promptly at 5:00PM. Registration is required.
Financing: A variety of current market rate financing programs are available through Preferred Lenders for all qualified participants. For complete details on financing requirements and conditions for your home purchase, please refer to Lookout at Deer Valley purchase agreement documents.
A Lender consultant from the Seller’s preferred lender(s) will be available via email, phone and on site to meet with bidders to assist with financing.
Amenities:Massive timbers, native stone and weathered copper combine to create a rustic mountain style home. Interiors are warm and inviting with vaulted beam ceilings, wood paneled doorways and massive stone fireplaces. Elaborate gourmet kitchen with custom cabinetry, timeless granite counters and state of the art appliances are found in every home. For more elegant affairs, the dining room with designer chandelier and alpine vistas provide a festive setting. Master Baths are well appointed with double vanities of granite, heated travertine stone flooring and oversized jetted spa tubs.
The Great Room and Family Room offer breathtaking views and more space to relax and enjoy. Private elevators (in most homes), oversized decks and spacious garages enhance the luxury living of Lookout.
The clubhouse provides a relaxing setting for entertaining friends and family outside your home with private owner’s lounge, patio grill and fireplace as well as the lookout tower observatory with its’ spectacular 360 degree views. On-site personal concierge service and private owner’s shuttle are available to enhance this extraordinary style of living.
Contact us for addition information and registration. 435.729.0022 or rob.alday@abodeparkcity.com
-Another development slated for auction is the new 488-unit project at the Canyons, The Lodge at Westgate Park City Resort & Spa…which includes 24-hour concierge service and personal valet service to and from the The Canyons lifts, as well as a full-service, on-site ski and bike shop with private storage lockers and lounge area. The resort also has three pools, including an adults-only indoor relaxation pool and Utah’s largest indoor/outdoor resort pool. The Serenity Spa by Westgate has an indoor grotto, lounges and 17 private treatment rooms; indoor/outdoor pool with sauna, steam room and Jacuzzi; fitness center with dance studio, and basketball and tennis courts. The development also has a business and conference center, library and laundry room and dining at the Westgate bar and restaurant, and on-site marketplace and deli. There is also the Westgate Kid’s Club providing daily activities for children supervised by a professional staff, video arcade and a playground.
The units in the auction include 11 studio homes ranging in size from 360 square feet to 635 square feet, with minimum bids ranging from $149,000 to $249,000. There are 14 one-bedroom homes ranging in size from 775 square feet to 895 square feet, with minimum bids ranging from $295,000 to $339,000. The 14 two-bedroom, two bath homes range in size from 1,126 square feet to 1,135 square feet and have with minimum bids of $449,000. The largest homes are five four-bedroom homes ranging in size from 1,652 square feet to 2,150 square feet, with minimum bids ranging from $795,000 to $995,000. All residences are fully furnished and have balconies or decks with panoramic views of the Wasatch Mountain range.
The event will be held on March 28, 2010 and minimum bids for the homes will range from $149,000 to $995,000, up to 56 percent below last asking prices. Advance registration for the auction is required and on-site conventional financing is available. There are no hidden reserves or buyer’s premiums.
Again, feel free to contact us with questions or inquiries about registration. 435.729.0022 or rob.alday@abodeparkcity.com
Looks like the last weekend in March will be a busy one! It will also be very interesting to gauge the actual health of the market…stay tuned.
Tags: bankruptcy, canyons real estate, canyons real estate auction, canyons ski resorts, deer valley, deer valley auction, deer valley real estate, deer valley realty, empire pass, lookout at deer valley auction, park city, park city real estate, park city realty, park city wire, silver lake deer valley auction, silver strike, talisker, talisker club, the canyons, upper deer valley, utah
While traffic from President’s Day weekend around Park City begins to disperse, we have not heard of any of the Montage Deer Valley inventory going under contract yet….I would have thought at least a few people would have been waiting to jump on this release…We see what happens over the next few weeks.
From the looks of it local business faired well over the holiday weekend….Deer Valley sold out of lift tickets, restaurants were crowded, and lodging seemed to be pretty well filled up…all good news!
The most real estate activity occurred in Old Town Park City and Park Meadows, with 3 properties going under contract in each area over the weekend…we also 2 units in Empire Pass at the Flagstaff development go pending (which include a Talisker Club membership)…not a bad weekend.
We are still seeing numerous Seller having to adjust pricing to lower levels on a daily basis…we still have a boat-load of inventory to move!
Looks like we have snow moving in for the next few days, which will hopefully freshen up the tree skiing…as we have pretty much been relegated to the groomers the past week or 10 days.
As we are now a month and a half into 2010, there have been some significant items to come across our desk lately. Here is the run down:
-The high anticipated Montage, located in Deer Valley’s Empire Pass, brought their product to market. On the first release of this uber-luxury condo-hotel units range from 1bd/1ba; 1233 sq ft; $2.04m to 4bd/5ba; 4367 sq ft; $7.86m…looks like they are trying to come in between $1,500 and $1,800 per sq ft on this pre-completion release. This is around the same price per square foot that a good bit of the St Regis units (also located in Deer Valley, but in the Deer Crest area) closed at….should be interesting to see how these units fair with the holiday ski week coming up. We’ll keep you posted.
-The Montage at Deer Valley is also offering incentives for Buyer’s who get it purchase on this first release of 15 units. Here is the skinny for the “First Track Buyer’s Program”:
-As reported in the Park Record, Park City’s construction industry, accustomed to the $100 million-plus years it has enjoyed in the last decade, tanked in 2009, with the value of permit-authorized construction falling to one of its lowest levels since the middle of the 1990s. The Park City Building Department reported that the industry posted $68.5 million in construction last year. The dollar amount was less than half of what was recorded the previous year. It was the lowest year-end figure since 2003, when $59.2 million was posted, and the third-lowest total since 1997, according to the Building Department. The dollar value the department assigns to construction is generally one-third of the market value of the buildings that received permits. The scariest part is the year-end figure of $68.5 million relied heavily on a permit issued early in the year for work at the Montage in Empire Pass. That permit was valued at nearly $26.9 million. The Montage permit accounted for 39 percent of the year-end total. It is rare for one permit to prop up the numbers in a similar fashion….the good news is that not much new is coming to this over-saturated market…the bad news is we seemed to have over-built more than people realize or will admit.
-As the Sundance number’s start to roll in, it seems like they a going to coming in on about the same level as the market in general…just so-so. The ticket sales seem to be great as well as numbers from a few local business, but as a whole things are just okay….but hey, there were some good movies and I think everyone that came to town enjoyed it! Kudos to the folks at the Sundance Institute (www.sundance.org) who put on the festival!
-Here is a nice article from USA Today with tips that could save you a little cash while visiting Park City:
http://www.usatoday.com/travel/destinations/affordableamerica/2010-02-11-ski-resort-deals_N.htm
If you are looking for the discount accommodations as mentioned in the link above, contact abode, llc at 435.729.0022.
As far as the Park City Real Estate market goes, we still continue to flounder along an area which seems to be the bottom….my prediction (as it has been since October of 2008…check the old posts!) is that we will continue to sputter along well into 2012. When you look at the glut of inventory and several other key market facts, all signs point to a prolonged buyer’s market. They key for Buyer’s is to be actively looking and ready to make a move when the specific type of property you are looking for comes across your plate.
See below for current market activity in the past 10 days:
We have seen a daily average of 13 properties come to the marketplace, 14 have a change in price on a daily basis, 4 close escrow, and an average of 4 go under contract daily….this is about the norm we are seeing for the season. Some high points:
NEWLY ACTIVE:
-Old Town lot at $350k…not too bad of a deal.
-Home in Old Town at $925k; 3bd/3ba; 2061 sq ft; $449psf….legit price.
-15 Montage residences as discussed above.
-Promontory home at $1.2m; 5bd/6ba, 7509 sq ft, $159 psf….best deal of the week!!! There is a lot of activity at Promontory, but there is also a slew of property on the market.
PRICE CHANGES:
-Deer Valley Dr townhouse down $650k to $1.6m; 4bd/5ba…not a bad deal for a potential rental property…walk to Main St & close to Deer Valley resort!
-Lodges at Deer Valley condo down $50k to $749k; 2bd/3ba.
-Black Bear Lodge unit in Deer Valley’s Silver Lake Village down $120k to $659,900; 2bd/3ba…this is a great deal too! Walk to skiing & 6 minutes from Main St.
PENDING:
-Silver Star ski in/ski out unit at Park City Mountain Resort at $975,000; 3bd/4ba; 1986 sq ft; $490psf…not a bad deal here.
-Little Belle in Deer Valley’s Silver Lake area at $1.5m; 4bd/5ba; 2812 sq ft; $533psf…there are Buyer’s out there getting their money’s worth!
-Ski in/ski out Silver Strike unit at Deer Valley’s Empire Pass at $1.65m; 4bd/5ba; 2255 sq ft; $731psf…that is the price point that the auction at Silver Strike gave us….the market spoke!
-Arrowleaf ski in/ski out condo also in Empire Pass at $1.56m; 3bd/4ba; 1973 sq ft; $790psf.
-3 Promontroy lots went under contract…all under $150k…whoa!
CLOSED:
-Portico unit at $399k; 3bd/3ba; 1608 sq ft; $248psf…sweet deal!
-St Regis at Deer Crest residence in Deer Valley at $6.01m; 4bd/5ba; 3615 sq ft; $1662psf…great project that continues to close units at great numbers!
-Grand Lodge condo in Deer Valley at $3.295m; 5bd/6ba; 3243 sq ft; $1015 sq ft….nice sale for the Seller.
-Tuhaye lot at $375,000.
-Promontory home at $3.05m; 5bd/7ba; 7850 sq ft; $388psf….another good number put up by a Seller in this market!
We’ll be back on Monday with another update….have a good holiday weekend!
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