Prudential Utah Real Estate - ParkCity Real Estate Report
January 2010
Introduction:
These are unprecedented times. The nation, and the world, has just gone through an economic shift which has now created almost the perfect scenario for Buyers of real estate as we enter 2010. Prices have adjusted in almost every market in the United States. Interest rates for mortgages are at 35 year lows. The mood of the nation is improving, and snow is falling in Park City.
Looking Back:
Prudential Real Estate has been here in Park City since 1976, and after weathering at least five recessions, we find it helpful to look back at the overall market since we began keeping meaningful records. As we track the history of Single Family Home sales, Condominium Sales, and Lot Sales, it is helpful to review the years since 1984.
The data is from the Park City Multiple Listing Service and while it shows a surge in the number of sales in 2005, it also shows a quick stabilizing number of Single Family Home sales already through November of this year, since last year’s correction. Park City has remained relatively insulated over the years, and the scarcity of real estate product in our small community is a strong underpinning against volatility.
Today:
What does the Park City Real Estate Market look like today? We look around at other resort markets in the West. Through the help of our friends within the Rocky Mountain Resort Association, we share information to help us better understand how Park City fits into the major resort markets.
The chart shows how Park City real estate activity with homes, condos, and lots remains very active compared to our neighboring resort markets this year. It is another indicator of the consistency and stability of our market as compared to the finest resort communities in the West.
A year ago, the global financial crisis had begun just as we entered into the winter season, and almost every financial decision was placed on hold as the nation watched the situation unfold. This year is a very different story, as now the U.S. is beginning a real recovery as this winter season begins. Proof of this is exemplified by the numerous closings of the sales and the opening of the St. Regis Hotel and Condominiums. Most of these transactions were contracted almost 3 years ago, and those owners are now closing those transactions noting their expectations having been exceeded.
In other words, there is a very good mood in Park City this year, and that includes our many owners who are now planning on their ski vacations with their families.
Looking Ahead:
There is a good bit of analysis going into the crystal ball observers in every corner of the globe these days. Park City has undergone tremendous growth since 1971, when the modern era began. We continue to track the average prices for homes, condominiums, and homesites, and the trends of each.
There has been steady overall appreciation of value in the Park City real estate market, even through several economic cycles, and we predict that will continue.
As history showed us through the Olympic buildup of 2001, the Olympic year of 2002, and the post Olympic year of 2003, there was the market slow down that we predicted, but it normalized by 2004 and we were back on the same track as we have generally enjoyed since 1984.
The graph of average sales prices for all three property types is illustrative of the resilience of our market, but also
a road map for what will occur as we
exit this downturn as well. Why? The answer is…Scarcity.
Park City nears its final build out as we move into 2010. With the exception of the two main parking lots and base areas of all three Resorts, the core area is essentially built out. The physical constraints in our small valley make for a very limited amount of future development. Inventories of listings in the basin are diminishing again and continued low interest rates and incentives are expected to last until Spring. After that we anticipate a period of more inflationary times ahead, and interest rates starting an upward climb. That is what makes buying now such an unusual opportunity. Many of us remember the two recessions when interest rates were over 17%, simultaneous with an economic downturn. These are unusual times, and many buyers now have that opportunity they have always wished for….to wind back the clock on prices.
What Makes it all Worth It:
Living the good life in Park City has never been more vivid, and available. During the past four decades there has been a steady and increasing effort to improve the lifestyles of every resident and every visitor here. Families have been the focus. There is something here for everyone. Not just recreation; not just the most accessible airport connection in the U.S.; not just shopping, spas, culture, and hiking; not just extreme sports, amazing golf courses, fishing, and biking; not just bluebird days to ski and après ski; not just the finest of dining and entertainment. Moreover, this all comes with the best part… the other “connections;” the rekindled romances, the relationships with nature and other humans with shared concerns….appreciating what an amazing community in a beautiful place can mean to us.
Making it Happen:
An important element of this point in time is that it humbles almost everyone. It also helps us refocus on what is important. If you already have established a beach head here in Park City, we hope you can take this winter to visit, and remember what brought you here in the first place. For those of us who live here, this is the winter do that same thing. There may never be a better time to own a piece of what you’ve always wanted. Whether is for the first time, or to see it all again, we are here to show you around….
