Canyons Park City UT

Last week I attended a real estate conference where the keynote speaker reviewed the national real estate market. Traditionally, real estate has appreciated about 4% per year over the last 50 years. Based on that trajectory, the median price for a home should have been $219,000 in 2011, but the price was $166,000. That means real estate is undervalued right now. Statistically, there is only a 5% chance prices will go down further.

Currently, our market is experiencing record low interest rates. The Federal Funds rate is at zero. It can’t go any lower. We are at the bottom of interest rates (see my previous blog).

According to our speaker, the luxury market is rebounding. This is because the world’s richest people are expanding their wealth. Five percent of all people in the world account for 37% of consumer spending. The world’s wealthiest people invest approximately 19% of their portfolio in real estate. International buyers are making up a more significant portion of the luxury market. Wealthy people from China, Brazil, Russia, Canada and India are looking for a stable currency and stable economy to park their investment dollars. Some of these individuals are also looking to the US as a safe place to raise their families.

Similar to the stock market, real estate prices are based on “perception”. Currently, the interest rates are at record lows, property is undervalued and yet because of unemployment and perceived instability in our economy, buyers hesitate to pull the trigger. Perhaps we should look to the luxury market and note that the world’s wealthiest individuals are currently BUYING real estate.

30-Year Fixed Mortgage Trends

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I have to tell you about my new listing that is not yet on the MLS. Priced like a bank owned condo, my seller’s loss could be your gain. I know people who have monthly AMX bills larger than the price of this condo, which is rented for $1100/month! It’s a 1-bedroom, 2-bath unit located at the Lodge at Stillwater. Just 5 minutes to the Deer Valley gondola or the Jordanelle, year-round play is easily accessible. The Lodge at Stillwater has a front desk, restaurant, pool, hot tub, fitness center, lobby, ski storage and underground parking. The unit can be rented long term or nightly. Sold furnished with a few exceptions.

This can’t last too long, so call me if you want the details or to see it before it is posted on the MLS.

Looking at the numbers above, when is the best time to buy property in Park City?

I’ve been writing about how today is a great time to buy property because prices are down and interest rates are at record lows.  These numbers tell a great story.  I chose Jeremy Ranch (84098) and Park Meadows (84060) because they are both large, popular neighborhoods within their respective zip codes.  The story is the same in every Park City neighborhood.

Sales and prices hit their peak in Park City in 2007.  Prices and sales started to fall in 2008.  The bottom fell out of the market in 2009.  It is interesting that there were still 39 sales in Jeremy Ranch.  Most  Park City neighborhoods saw sales drop by 50-70% in 2009.

Prices are trending down.  What does that mean for you?  If you are a buyer, your costs of ownership are going to be extremely low, given the combination of low prices and interest rates (30-year fixed rate at under 4%!)  Even if prices trend down further, your monthly cost may still be at an all-time low if you can lock in the incredible interest rates now available.  If you are a seller, you may be able to yield a higher price today than tomorrow.

“I don’t have to sell. I can hold this house as long as it takes to sell it.”

That is something I often hear as a Park City real estate professional. We live in a place where most sellers are not desperate or distressed. But is holding on to a property a wise strategy in today’s real estate market?

If a house was overpriced in 2008, it might have taken twice as long to sell. If a house is overpriced in today’s Park City real estate market, it could take four times longer to sell….and the cost may be more than just time. The data shows that this group of sellers may actually net less for their home by “chasing the market down.” Let’s face it. When a buyer sees 245 days on market for a home, he or she may wonder if something is wrong with the home. Clothes that don’t sell get marked down and go on sale. Homes that don’t sell become “stale” listings and also get marked down. Take a look at these statistics:

# Units sold in 4th Quarter of 2008 with 1+ price change: 68
Average sold price to original price: 78.5%
Average days on market with 1+ price change: 188

# Units sold 4th quarter of 2011 with 1+ price change: 95
Average sold price to original price: 80.7%
Average days on market with 1+ price change: 245

In contrast, the average days on market in the 4th quarter of 2011 for properties with no price change was 64.

What is the risk of under pricing? Multiple offers and buyers who bid the price up to market value. The risks of over pricing are far greater.

After a day of skiing at one of Park City’s 3 ski resorts, Nordic skiing or snow shoeing, you have earned that great evening of food. Here are some of my favorite dining spots to indulge:

Glitretind Restaurant at Stein Eriksen Lodge,Upper Deer Valley. Serving breakfast, lunch, dinner, and après ski, this restaurant never disappoints. It is one of the few restaurants in Utah to receive both the AAA Four Diamond and the Forbes Four Star award. It has also been recognized by Wine Spectator and Zagat. In fact, Wine Spectator called Glitretind “arguably home to Park City’s most refined food-and-wine experience”. While there are newer and hipper places “to be seen”, if you want to enjoy a quality evening with friends or a romantic dinner, Glitretind consistently delivers.

J&G Grill at the St. Regis is a fun place just to get to. You enter the hotel in Lower Deer Valley and ride the funicular to the restaurant. Chef Jean-Georges Vongerichten opened in the St. Regis when the hotel opened in 2009. He is the first “celebrity chef” to open a restaurant in Park City. The dining room is beautifully decorated with lovely views of the Deer Valley slopes. There is also an adjacent bar for more casual dining. Dinner could include a grilled Niman Ranch pork chop heaped with intense wild mushrooms and finished with a Pecorino sauce, or roasted halibut paired with Malaysian chile sauce and Thai basil. Service is uneven at J&G Grill. If you have an open mind and are going just for the experience, you won’t be disappointed. The ginger margarita is one of my favorite drinks on the planet. Ask your bartender to explain how it’s made. This is one drink you will not be making at home.

The Riverhorse and 350 Main. Both of these restaurants are located on Park City’s historic Main St. The Riverhorse recently reopened after a $1M remodel. We sat at the new bar while we waited for our friends to join us and it was a bit of a “mini scene”. While dining, we ran into no less than 3 other parties of people we know. Even though the Riverhorse has been around for many years, it consistently offers excellent food. A bonus is the entertainment. The last time we were there, “Mister Sister” played. “Joy and Eric” are also regulars and they too are terrific. I can’t eat at 350 Main without ordering the Ahi Tower as an appetizer. It melts in the mouth. My husband orders the Steak Frite every time we eat there. He says it is so good that he can’t bring himself to order anything else. 350 Main is located just a few doors down from The Egyptian Theater, so it’s a great place to eat either before or after a show. The seats near the window allow for great people watching and the bar is home to some of Park City’s best bartenders.

The Farm at Canyons Resort Village and Slopes at Waldorf Astoria Park City are two of my favorites. Each has its own personality, but they share the same executive Chef, John Murcko, of Canyons & Talisker. The Farm specializes in locally sourced food prepared to enhance the natural flavors. To access The Farm, either ski in from Canyons resort village or valet park at The Grand Summit Hotel. Slopes is easier to get to. Just valet at the Waldorf Astoria Park City. The dining room at Slopes can be described as “Mountain|Minimalist|Modern”. The menu changes frequently and is always interesting.

Maxwell’s. If you just want to eat someplace casual or go to a high energy bar to watch a basketball game, look no further than Maxwell’s. Home to “Fat Boy” pizza, this is the thin crusted, cheesy pizza I ate growing up. While lighter fare and salads are also offered, you go to Maxwell’s to eat the pizza.

What are some of your favorite Park City restaurants after dark? Please write in the comments.

Whistler|Park City|Steamboat|Sun Valley|Vail|Big Sky|Tahoe|Jackson
These are the resort areas that make up the Western Mountain Resort Alliance.

Number of Active Listings. All 8 resort areas reported the number of active listings decreased in 2011. Big Sky had the largest decrease in listings at 22%. Park City had 13% fewer listings in 2011 versus 2010. Steamboat, Sun Valley and Tahoe had single digit decreases in listings.

Number of Units Sold. Every resort reported higher units sold in 2011. Park City had the highest number of units sold at 1603, an increase of 18%. Tahoe had 1459 units sold, a 5% increase. Big Sky had 219 units sold, which represented a 31% increase.

Total Volume Sold. Whistler, Park City, Steamboat, and Big Sky reported higher sales volume. Park City’s sales volume was just over $1 Billion. Sun Valley, Vail, Tahoe and Jackson all reported a decrease in sales volume. Sales volume in Vail was almost identical to Park City, but that represented a 19% decrease from the year before.

Median Sale Price. Median sale price decreased in every resort market. The median sale price in Park City was $547,000. All other resorts reported a median sale price lower than Park City’s, except Whistler, Big Sky, and Jackson.

Conclusions. Just as in traditional real estate markets, the resort markets are seeing lower inventory, an increase in sales, and stable or decreasing prices. Buyers sensing a window of opportunity are negotiating their best possible deal for resort properties that seemed out of financial reach a few years ago. Park City continues to enjoy higher sales and sales volume over other mountain resort towns because of its proximity to the Salt Lake City International Airport and the variety of properties listed for sale. There is literally “something for everyone” in Park City to purchase. We have $150,000 condominiums to multi-million dollar, ski in/out properties available. This variety of inventory helps stabilize our real estate market.

Contact me to learn more about Park City’s available best buys.

Impressions ● Innovation ● Engagement

Those are the words which describe the Sotheby’s International Realty 2012 marketing strategy. The object is to create impressions worldwide. It’s about creating global connections and establishing true consumer engagement. It’s about leveraging exposure, innovation and international impact to showcase our listings.

To create a true global impact that is primed to deliver 506 million impressions, Sotheby’s International Realty has developed relationships with the world’s most pre-eminent media powerhouses in both the print and online arenas.

Take a closer look at some of these unique partners, many of which include exclusivity for the Sotheby’s International Realty brand, to see how your home can benefit from truly global exposure. The digital editions of these media giants utilize video tours and slide shows to engage consumers and bring distinctive properties to life.

• NYTimes.com (Digital New York Times)
• NYTimes.com/sothebysrealty [extraordinary living microsite]
• New technology that integrates our listings with NY Times articles in rotating sections of NYTimes.com
• WSJ.com (Digital Wall Street Journal) Incredible banner ads and widgets
• WSJ.com/sothebysrealty microsite
• BBC.com (British Broadcasting Corp)

The median price paid by repeat buyers in the survey was 2.1 percent higher than in the 2010 study, but their income was 11.0 percent greater, despite lower interest rates. First-time buyers paid 1.9 percent more, but their income was 4.2 percent higher.

WHAT THIS MEANS FOR YOU—Increased down payment requirements make homes less affordable even though interest rates are at historic lows. For example, if a buyer has $200,000 in cash to use as a down payment, but is required to put 25% down instead of 20%, the buyer will be limited to an $800,000 home versus a home priced at $1M.