From the Deseret News:
PARK CITY — In Utah, this resort community has long been considered the ritzy town with big homes that cost big bucks. But even after the housing bubble burst, Summit County’s most famous hamlet seems to be holding its own in the state’s tenuous housing market.
Data from the Park City Board of Realtors indicated that year over year home sales in the greater Park City area were up 18 percent for the third quarter of 2011 compared to the same period last year.
“We’re up 86 percent from 2009, which was our low point,” said Mark Seltenrich, PCBR board member. “(And) this year, we’re up 30 percent from 2008.”
He said sales volume has rebounded recently, but the number of properties sold is still down about 28 percent from 2007.
The median sales price for properties in the entire market area was $548,750 — up 9 percent from the same period in 2010. However, Seltenrich noted that median prices rose to more than $970,000 during the peak in 2007 and 2008.
He mentioned that while home prices are climbing, sales prices for condominiums and lots are still falling.
Because of its unique location and high-end tourist economy, the Park City housing market has always had a significant portion of second homes included in its inventory. Currently, the proportion of primary and secondary residences is about equal, Seltenrich said.
That niche has enabled the Park City area to maintain a stable economic environment even during the housing turmoil.
Speaking to an audience of Park City area Realtors at the Canyons Resort, Gov. Gary Herbert said Thursday that Park City has one of the fastest-growing real estate markets in the state. Sales activity is strong, he said, which is a direct result of the positive economic conditions that exist in Utah.
The strength of the tourism and resort industries has drawn real estate investment for primary and secondary residents, he said.
“Park City and Summit County have found a niche in the marketplace that has allowed them to have some vitality and continued economic growth and expansion,” he said. “Every community (in Utah) can take a page from Park City’s book and ask, ‘What can we do to grow?’”
Herbert said the “cure for all that ails us” is a healthy economy — “to grow the economy (and) create wealth and jobs.”
He said bolstering economic development would have a far-reaching “ripple effect” of putting more people to work and increasing revenues to state government “to pay their bills.”
“Rather than raising taxes, let’s raise revenues by expanding and growing the economy,” Herbert said.
Groundbreaking Takes Place for Unique Amenity
15 July 2011—
Promontory, the family-friendly, luxury real estate development in Park City, Utah, celebrated its 10th anniversary with the announcement of its latest creative amenity. Bolstered by a flurry of sales activity, Phoenix-based developer Pivotal Group broke ground on the construction of a 15,000 square foot family activity center dubbed “The Shed.”
With its whimsical title, the upscale Shed will be a ‘kick-back’ place, located at the western edge of Promontory’s Ranch Club Compound, the hub of community activity. The Shed will offer yet another dimension to the 7,500 acre award-winning private community. It will act as the Promontory Club’s “unofficial headquarters” for casual fare and fun, including:
- Relaxed family dining with a soda fountain
- Billiards and game arcade
- A 50-seat movie theater
- Two lanes of bowling
- Gymnasium for indoor sports
- Arts & crafts studio
- Outdoor amphitheatre with seating for 500
- View deck with panoramic views of Deer Valley and Park City ski areas
- Private dining
Francis Najafi, CEO of Pivotal Group noted, “From the beginning, Promontory was designed to offer an array of amenities unrivalled by any other recreational community in the nation. We look forward to completing The Shed in time for a Grand Opening next summer. The Shed will complete our Ranch Club Compound and add dramatic new energy and variety for our members and buyers who seek a well-rounded club lifestyle.”
In a time when the real estate market is recovering from the jitters, the sheer volume of sales at Promontory is an indication that smart buyers are active and focused on quality investments. Year-to-date at Promontory there are already over 100 closed and pending transactions, representing nearly 20% of all sales in the entire Park City and surrounding area.* Park City has been one of the nation’s strongest mountain resort real estate markets this year, with the highest number of Q1 2011 sales, significantly more than Vail or Tahoe.**
This market rebound indicates the success of Promontory’s strategy, adhered to over the last three years: be a responsible market maker, don’t undercut the resale market, and focus on attracting those buyers who will become new and active members of our community. As a result, the total number of Promontory resale properties on the market has dropped dramatically in the past year while prices stabilize and continue to gain ground.
“With just the right mix of on-site recreational amenities, golf, equestrian, trail sports, fishing, swimming, tennis, fitness and now The Shed, Promontory is the right community for today’s family-focused second-home owner,” said Rich Sonntag, Promontory’s managing director. “Since its inception, we have worked hard to make Promontory a complement to the natural amenities of the Park City area and Utah’s Rocky Mountains. We pride ourselves on being careful stewards of our 10-square-mile community as a private park and conservancy and we stand for excellence in design in our amenities and in the homes built here.”
From the Park Record:
Halfway through 2011, signs of growth in the Park City real estate market are clear. The single-family home market is strong; prices for condos and lots, however, are still falling.That’s according to the Park City Board of Realtors’ 2nd Quarter Report Summary released last week. The three clearest signs of improvement are changes in single-family home prices and foreclosure rates and a steady decline in inventory.
Single-family homes strong Single-family home sales are up 24 percent over last year. They accounted for 44 percent of all sales and 55 percent of total dollar volume. The median price for Summit and Wasatch counties is also up one percent, with greater increases in some neighborhoods. On average, houses are also selling at about five percent off the final list price, which is close to the historical norm, the report said.
Foreclosures down Distressed properties are still driving the average sale price of condominiums and vacant lots down below 2010 levels, but foreclosure sales are now only 27 percent of the total (down from 35 percent one year ago) and the properties only represent seven percent of all those on the market, the report said.
Inventory down There are now about 2,700 units on the market. That inventory level is below the 3,060 in 2010. Brisk sales, if continued, are predicted to improve that further. However, when comparing the second quarter of 2011 with that of 2010, it is clear the market is still soft.
Prices still down Low prices caused by the distressed properties on the market are still resulting in a high number of transactions. The period examined in the report saw the greatest number of sales since the fourth quarter of 2007. That’s good for buyers, Realtors and people needing to sell. The number of sales overall is up 24 percent over last year. Condominium sales are up eight percent and lot sales are up 55 percent. Condo sales prices are down from a year ago. They have fallen 32 percent in the Canyons area and 23 percent at Kimball Junction. Condo prices are actually up in certain neighborhoods, but the average sales price is down for the entire area.
Vacant lots selling Vacant-lot sales were the slowest, weakest part of the market during much of the recession. With prices down, buyers are perceiving bargains, the report said. Promontory alone accounted for 42 percent of all lots sold, the remainder being scattered throughout the area. Promontory prices now are actually on the rise, suggesting prices have “bottomed out” there, the report said.
Reason for optimism Perhaps the most optimistic data in the report came from comparing the second quarter of 2011 to the first. While not much has changed since 2010, there is significant improvement since the beginning of the year, especially in the average sale price of single-family homes. Mark Seltenrich, one of the report’s authors, said single-family homes have always been the strongest segment in the market. In part, that’s because Park City continues to attract people who want to make it their primary residence. The profile of primary residence shoppers is very similar to vacation home shoppers, said broker Jess Reid. And affordability is “off-the-charts good,” said Prudential head Steve Roney. Low prices have spurred activity and, as inventory goes down, the area is beginning to experience the results of decreased supply and increased demand, Roney added.
Foreclosures still a factor Wells Fargo mortgage broker Rick Klein said fewer single-family homes are in distressed sales – 23.5 percent of homes for sale versus over 29 percent of condos for sale. Klein added that there’s an old adage that condos “are the first to fall and the last to rise,” although he isn’t sure why that is. Seltenrich said Canyons and Kimball Junction condos have likely been so hard hit because they were the last be built before the recession and were bought at the peak of the market. Those condos finished since the start of the economic downturn appear to be faring better, he said. Klein said over half of the condo sales in lower Deer Valley, Canyons area and Kimball Junction were distressed. He also predicted it will be another six to nine months before distressed sales stop impacting market prices.
Lending up Seltenrich, Reid, Roney and Klein all agree bank financing for qualified buyers is getting easier, but about half of all transactions are still paid with cash. That was common before the recession as well, Roney said. The best news to come out of all of this, Roney added, is that buyers have recognized the market’s bottom has been hit and they’re now off the fence. The results of this are beginning to be seen. “The evidence with lot sales is really, really good; it means recovery. It means people are thinking about building,” he said. “You only think of building when you can’t find what you want in the inventory, or if you’re a speculative home builder and think there’s not enough inventory.”
Recovery slow, but steady Seltenrich and Reid don’t disagree, but believe a full recovery is months away. “Consumer confidence is still way below where we were several years back,” Seltenrich said. “With real estate, I don’t see a quick increase in prices or sales volumes.” “It’s soft and going frustratingly slow,” Reid said. “The Board’s report is certainly a legitimate positive spin but we’re in a soft recovery for a couple of years.” Reid said the recovery is “looking good, but not feeling so good.” But that is how most Park City businesses are feeling, he added. The quarterly reports used to include a breakdown of average sale prices for each neighborhood. With so many factors impacting each development, averages would not be helpful, the report said. People are encouraged to contact a local Realtor for an opinion on a particular property or neighborhood.
Here are some mid-year numbers compared to how the Park City real estate market is fairing this year compared to 2010:
-sales are up in 2011 compared to 2010
-prices are down about 10%
-home prices are holding steady an up a little
-condos are down over 15%
Every Buyer is looking for a deal. One place that people are not looking is the Trustee’s Sales. I have been to numerous Trustee’s Sales in Park City and most of the time nobody shows up. This is an untapped market for the cash buyer. Please let me know if you are interested in learning more about what properties are coming to auction. These properties can make great income producing assets.
Tags: park city real estate
Park City talks real estate
Recent news from Aspen, Colo., indicated that its economy is in recovery mode. However, Seltenrich clarified, “our high-end homes just aren’t as expensive as Aspen,” he said. In Aspen, a number of high-endsales of property worth more than $10 million happened within the last five months, he explained.In 2010 the number of land sales was 222 throughout the year. Seltenrich explained that this year, that number is already outpacing that figure, with 72 lots sold in the first quarter. “The real estate market is like the weather right now. You think it’s never going to change, but each month it goes along eventually it will change,” Seltenrich said. Rick Klein of Wells Fargo Bank tracks notices of default in the Park City area, “Foreclosures remain elevated, but for future homeowners and those who are in trouble, that number is improving,” Klein said. A notice of default is the first step in the foreclosure of a home. Notices of default are down 13.6 percent from the fourth quarter of 2010. However, Klein remains realistic about the influence of foreclosures, “Park City will continue to feel the impact of foreclosures for a least the next two quarters,” Klein explained. The owner and CEO of Prudential Utah Real Estate, Steve Roney, projects that the number of distressed properties will be the same as last year. “The lack of significant success in loan modification programs has contributed to the high level of distressed sales,” Roney said. The market is seeing an increased percentage of sales that reach closing, which Roney sees as recovery. “Absent external influences beyond our ability to predict or control, I’d expect continued improvement in real estate activity for the balance of 2011,” Roney said.