Feb
20
admin on February 20th, 2011
End of year report: prices down, sales up
Despite troubling stats, Park City real estate remains highly desirable
Quarterly reports from the Park City Board of Realtors tend to emphasize the positive, and the 2010 End-of-Year Report released last week is no different even though people wishing for a quick market recovery will find it sobering.That’s because, said past-president Mark Seltenrich and new president Patrick Giblin, no matter how bad it is, Park City is faring better than the Utah average, which is faring better than the national average. In other words, no matter how bad the news, it’s still good news in comparison. The bad news “The outlook for 2011 is more of the same as what was seen in 2010,” Seltenrich wrote in the report summary. “The market will continue to be very price sensitive it will continue to be a buyer’s market .” Median prices for all property types are down three percent from one year ago; mean average sale prices are down over seven percent, the summary said. Median prices for vacant land fell 50 to 60 percent in some areas, and 43 percent overall. Sales of foreclosures account for more than one-third of all sales. “Foreclosures will remain a major factor in the Park City market in 2011,” the summary said. In an interview Monday, Seltenrich said the mean average is down so low because high-end homes either aren’t selling, or are selling for less. An example of this is the King Road Estates auction last week at which no one bid higher than the value of the note on the home even though that amount was less than half the original asking price. Giblin said the number of foreclosures in the market has been a “huge wake up call.” “It was hard to predict,” he added. “We thought we were an island, a bubble in the sky.” Regarding vacant land prices, Seltenrich said “we must go through some pain to get to where we want to be.” Condominium sales are likely not better because financing continues to be a struggle, he said. The total number of units sold is up from last year, but except for the past two years, there has not been so few units sold in over a decade even though there is more inventory in Summit and Wasatch counties now. Lastly, the Heber Valley continues to experience the steepest sale-price declines and may not have bottomed out yet, they said. Overall, Seltenrich said the area’s real estate is, in many ways, still “bumping along the bottom of the market.” “We’ll be seeing a little appreciation this year, but it will be small,” he said. Good in comparison The board is not trying to hide or spin these facts, the two said, because much of it is good news when compared to the larger picture. “The board tries to put that positive spin on things, and obviously there are a lot of negatives, but if we keep our noses to the grindstone and work together, the story in 2011 will be about pulling out and looking at the bright light at the end of the tunnel,” Giblin said at the end of the interview. According to the summary, total dollar volume in sales surpassed $1 billion because a large number of units sold for reasonable prices. That has only occurred six other times in history and is a 16-percent improvement over last year. Unit sales were up 20 percent over 2009. Vacant-land sales were up 60 percent. Condo sales were up 22 percent. Single-family home sales were up over 26 percent and comprised 46 percent of all sales and 54 percent of total dollar volume, the summary said. Property values in many neighborhoods appear to have bottomed out and are improving. There is reason to be optimistic about 2011, especially for single-family home prices, Seltenrich added. Foreclosures and short sales continue to depress values, but the fact that they only comprise one-third of the market means sellers have adjusted to the new reality an important step to clear out inventory and to allow appreciation to begin again, Giblin explained. What happened in the Park City real estate market in 2010 is simplified this way: prices came down and people are buying, they said. That’s good news, Seltenrich and Giblin said, because it speaks to the desirability of Park City real estate. According to the National Association of Realtors, the number of sales in the West at the end of the year was down 1.5 percent. According to Utah’s Economy, a publication of Commerce Real Estate Solutions by Jim Wood at the University of Utah’s Bureau of Economic and Business Research, the recession has so shaken Utah families that there is little appetite for homes. “The lowest inflation and mortgage rates in 60 years, combined with 15 to 20 percent declines in home prices have done little to stimulate demand for housing,” the newsletter said. “The current weakness is due primarily to a loss of demand.” Continued foreclosure rates in Utah which RealtyTrac.com has called some of the highest in the nation are only making it worse, it said. But when the price is right, people are jumping on Park City real estate, Seltenrich and Giblin said. “Prices are down, but not down that much,” Seltenrich said. Looking at graphs tracking the past 10 years, he would compare current sale price averages with the end of 2006 and early 2007 near the peak. It also appears that the number of foreclosures in Summit County is in decline, the summary said. Almost 400 more properties would need to sell in 2011 than in 2010 to get out of the units-sold slump, but the record set in 2005 was an anomaly and unsustainable, Seltenrich said. Historically, Park City real estate appreciates at a five-to-seven-percent annual rate. There was a major dip around the time of the 2002 Winter Olympics; there was a steep increase in the middle of the decade, and then a sharp decline the last two years. But where Park City was in 2010 is really close to where it should be excluding the extreme peaks and troughs, he said. “We’re going in the right direction,” he added. Years from now, Seltenrich predicts, people will not look back on 2010 and 2011 as a dark period, but years of opportunity when they should have taken advantage of low prices and low interest rates.
Feb
7
admin on February 7th, 2011
Below is an article from the Park Record. It looks like the construction industry here in Park City is still slow. When you take into account that we built about 15 years worth of inventory in 4 years, one would expect the industry to be slow….as is the same with Park City’s real estate market. While we are seeing an increase in real estate activity (transactions), the prices are still down. Look for this trend to continue in 2011, with the majority of the properties moving being distressed or motivated sellers.
Park City’s construction industry in January bested the dollar figures recorded in the same month the year before, but the month was a lackluster start to 2011 nonetheless.
The Park City Building Department reported issuing $849,700 in permits in January, up from the $680,326 worth of permits that were issued in the same month the year before.
The department in January, however, did not issue any permits for new structures. Alterations and additions to residential buildings or commercial buildings accounted for nearly all of the permit value in January, the Building Department said. There was a handful of permits issued in other categories the Building Department tracks, such as signs.
Thirty-eight building permits were issued in January, four fewer than the figure in the previous January and 10 fewer than were issued in December. The number of electrical, plumbing and mechanical permits issued in January was mixed compared to December and the previous January.
Meanwhile, the Building Department’s inspection load, an average of 172.2 each day, fell slightly from December. The average was well off the pace of January 2010, when the department averaged 375.6 inspections each day.
The construction industry continues to suffer amid the economic conditions, and the industry inside Park City is not expected to make a significant comeback in 2011.
There are a dwindling number of major private-sector development sites within Park City, leading to the expectation that it might be some time before the industry matches the record-setting years prior to the onset of the recession.
Tags: deer valley, deer valley real estate, empire pass, park city real estate, park city realty
Interesting survey results from Park City:
PRESS RELEASE
FOR MORE INFORMATION CONTACT:
Jonathan Weidenhamer
Economic Development Manager
435-615-5069 office
435-640-3723 mobile
Treasure Hill Open Houses Receive Heavy Participation
Park City, Utah – August 5, 2010
The Sweeney Family and Park City Municipal co-hosted two public open houses on July
6 and July 13, 2010. The open houses were designed to provide project history,
information about the current proposal as well as to gauge public sentiment on a range
of options up to and including a “no density” option. Approximately 200 people
attended. We received 206 surveys on the options provided (68 in-person and 138
online).
There was a good mix of community participation at the open houses. Preliminary
results indicate that the majority of survey responses are from Old Town (40%) and
Park Meadows (23%). The majority of respondents (76%) selected the “no density”
option. Comments on many of the surveys indicate that respondents would be willing to
consider development with reduced height and more aesthetically pleasing buildings
that fit the Park City atmosphere. Comments indicated that many of the respondents
chose the “no density” option because they did not like the design of any of the other
options presented. Lastly the majority of survey respondents indicated they would
“definitely” or “most likely”, be willing to support a property tax increase to remove
density from the site. Experience on other bond initiatives has shown the level of
support may be affected by the proposed bond amount and financial impact on the
home or business owner.
The surveys do not represent a statistically valid sample and should be considered
information only. A complete summary of the survey responses and comments is
available at www.parkcity.org under the “News” tab.
Moving forward Park City and the Sweeney family will continue to explore development
design alternatives in addition to options for potential purchase, transfer, and/or sale of
density. The City Council will continue to refine the City’s position and will solicit public
input and opinions as it does so.
11 Park City Luxury Estates Up For Auction
An auction of 11 luxury homes located throughout Park City, Utah is scheduled for August 27th. Accelerated Marketing Partners is holding the nation’s largest residential sealed-bid auction with a total of nearly $80 million in property up for grabs. Published minimum reserves for the homes range from $1.495 million to $15.875 million and represent an up to 54 percent reduction in price.These are lavish estates, several have ski-in/ski-out access and overlook resort communities or are located in golf communities. The estates are being sold by motivated individuals who are ready to commit to the highest bidder.
“As the nation’s largest sealed-bid, published reserve auction, this watershed event offers a once-in-a-lifetime opportunity for prospective buyers around the country to purchase preeminent mountain homes at unbeatable prices,” said Ken Stevens, west coast CEO and co-founder of Accelerated Marketing Partners. “As we have seen through our previous highly successful Park City sales, Lookout at Deer Valley and Silver Strike Lodge at Empire Pass, savvy buyers are out there, waiting for an opportunity to purchase luxury estates at price points they are comfortable with, and they determine.”
The property shown above is DeerField Estate, a 15,000-square-foot estate developed by builder Eustace W. Mita of Achristavest, LLC. It was previously the highest listed property in all of Deer Crest and the fourth highest in all of Deer Valley when it was taken off the market a year ago at $28.975 million. The estate has seven suites, a private gondola for ski-in/ski-out access, indoor swimming pool, billiards, theater, family room with open truss cathedral ceilings and a wine room with 18th Century French cast-iron doors. The published reserve for DeerField Estate is $15.875 million, 54 percent less than the previous asking.
Deer Crest is on the Jordenelle view-side of Deer Valley Resort. This 9,657-square-foot estate is on 0.66 acres and has six bedrooms. There are multiple dining areas, radiant heated floors, and the estate is fully landscaped with terraces, patios and decks. Deer Crest has a published reserve of $6.985 million, an 18 percent slash in price from the previous asking of $8.495 million.
The Colony is tucked in among aspen trees along the ski slopes of The Canyons Resort. The 7,000-square-foot estate on 6.24 acres is located within the gated community, The Colony. The home has six bedrooms, an open kitchen, five stone fireplaces, a wine cellar, a state-of-the-art theater system and three-car garage. The Colony has a published reserve price of $4.7 million, 32 percent lower than the previous asking price of $6.95 million.
Located in the gated golf community of Promontory, this 8,224-square-foot estate on 2.5 acres has six bedrooms, a home theater with a trestle wood ceiling, a wine closet with custom mahogany racks and a separate upper level apartment for guests that is complete with kitchen, sleeping quarters and bath. It has a published reserve of $3.38 million, a 31 percent reduction from the previous asking of $4.9 million.
This newly built 4,400-square-foot estate is situated in the heart of Park City’s historic district, near Main Street and the Town Lift. The four-bedroom home has four custom stone fireplaces, a master suite with a home office area, a private elevator to service the living spaces and an oversized three-car garage. The published reserve for this estate is $3.495 million, 33 percent less than the previous asking of $5.19 million.
Tuhaye is on 1.88 acres of hillside land surrounded by open space and scrub oak with views of the Jordanelle reservoir, Deer Valley Resort, Mt. Timpanogos and O’Meara golf course. The 7,000-square-foot estate has six bedrooms, seven fireplaces, a media room, wet bar and a gourmet kitchen with a wine room. Tuhaye has a published reserve of $3.49 million, 22 percent less than the previous asking of $4.5 million.
Knoll Estate is part of Park City Knoll Estates, a gated community located in Upper Deer Valley. This 7,218-square-foot estate has six bedrooms, five fireplaces, gourmet kitchen, ski prep room, fitness room with sauna and hot tub, attached two-car garage, and heated walkways and driveway. Knoll Estate has a published reserve of $3.4 million,30 percent less than the previous asking of $4.85 million.
The Lookout is a new 5,866-square-foot estate at upper Deer Valley Resort. There are five bedrooms, a gourmet kitchen, stone fireplaces, vaulted beam ceilings, oversized decks, and a spacious two-car garage. The Lookout has a published reserve of $2.55 million, 54 percent less than the previous asking price of $5.595 million.
A short walk from Park City’s Main Street and the Park City Mountain Resort lift is this 3,100-square-foot home with three bedrooms, a gourmet kitchen, two fireplaces, a home theater and a private outdoor hot tub overlooking Park City. This Old Town Park City home has a published reserve of $1.695 million, a 23 percent slash in price from the previous asking of $2.195 million.
A few minutes beyond Park City in Midway is this 7,500-square-foot estate with 360-degree views of Herber Valley, mountains, lakes, hot springs and golf course. The home has 23-foot vaulted ceilings, three bedrooms, five rock wall fireplaces, two gourmet kitchens and an attached guest suite and three-car garage. Midway has a published reserve of $1.495 million, a 53 percent slash in price from the previous asking of $3.2 million.
Stag Lodge is a 3,397-square-foot condominium with private Deer Valley Resort ski-in/ski-out access. The four-bedroom, five-bath home is furnished and has four fireplaces, fitness room and outdoor pool, as well as clubhouse shuttle service. Stag Lodge has a published reserve of $2.9 million,24 percent lower than the previous asking of $3.79 million.
From the Park Recrod
Lower prices, but more sales in Park City…With $543 million in real estate sold, this year compares almost exactly with 2008 as the market was coming off the peak and beginning its slow decline. But perhaps a better comparison might be 2003 or 2004.
Since 2005 was when the boom began, an argument could be made that the 2010 mid-year numbers show the area returning to “normal,”.
So far this year, 669 units have been sold. That’s up from 415 for the same time last year and roughly compares to 2008.
The fact that lower prices are spurring activity in the Park City area is great news, because homes won’t move in a depressed market regardless of price and that’s happening in other parts of the country.
With fewer speculation buyers shopping, the Park City area is continuing its decade-long trend of becoming more of a year-round community. People are recognizing the convenience of traveling in and out and are choosing to make it their permanent residence. That brings stability to the market.
“It’s really unique that people live here who aren’t related to the resort industry. That means if the resorts do poorly, the housing market can still be strong,” PC Board of Realtors President Mark Seltenrich explained.
Seltenrich said part of the level of controversy over the Sweeney family’s Treasure Hill development is evidence of that. When people make a mountain town their permanent home, they tend to be more involved in development decisions their city or county make.
Lower prices resulted in a 36 percent increase in sales of single-family homes during the first half of the year. Homes priced under $1 million are selling the fastest. Inventory levels are down about 450 units from the same time last year. That’s still too many for the homebuilding industry, but it is progress, he said.
The median sale price for a home in Park City proper is now $1,125,000 down 37 percent. That’s average for 64 homes sold almost twice as many as the same time in 2009.
The median sale price in the Basin is $650,000, which is down 7 percent for 105 units sold. Last year 66 were sold by mid-year.
Heber Valley home prices are down 12 percent to an average sale price of $289,500. Kamas is down 30 percent to $272,200. Seltenrich said the housing markets to the east and south of Park City and the Basin rely on the health of the latter to succeed. The farther away from Park City a community is, the more susceptible to market fluctuations it tends to be, he said.
Condominium sales saw the most improvement, Seltenrich said.
He thinks it is because prices came down on high-end units in Empire Pass. Also, St. Regis Deer Crest this year was successful at closing many of the deals made during the boom something not every development has been able to do.
Because more expensive units sold, the median sale price is up 29 percent from the same period in 2009. Sales volume is up 93 percent.
Even at $1.5 million, many condos were sold at 30 percent below original asking price and that was considered a bargain by those kinds of buyers, he said. Increasing sales also had the effect of bolstering confidence in the market.
Condos in the Snyderville Basin did not fare as well. The median sale price for the first two quarters is $325,000 down 14 percent.
Most of those sales were made outside The Canyons, he said. The developments near the ski resort saw buyers who put deposits down during the boom years but were reliant on bank financing that didn’t come after the recession started.
The area has also seen the worst cases of foreclosure because people bought overvalued property and went “underwater” on the mortgages quickly, he said.
This kind of unwise buying was widespread because Park City real estate was so hot that people bought property simply because they could.
“At the very height of the market, the value of a property was that it was for sale people wanted to get in at all costs,” he said.
The rebranding of the Dakota Mountain Lodge to Waldorf Astoria Park City was a wise move, Seltenrich added.
“If it was a Waldorf from day one it might have seen a different mix of buyers,” he said.
Sellers of vacant lots are also lowering prices and saw a 13-percent increase in total sales. Lots still only make up 10 percent of all real estate sold during the first six months of the year, but that’s a major improvement, Seltenrich said.
