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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 Fries 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)
Recent home buyers are making higher down payments than buyers in the previous years due to stricter credit requirements, according to the 2011  National Association of Realtors® Profile of Home Buyers and Sellers. This annual survey by the NAR evaluates demographics, preferences, marketing and experiences of recent home buyers and sellers. The median down payment for all home buyers was 11 percent, ranging from 5 percent for first-time buyers to 15 percent for repeat buyers. The down payment size for both repeat buyers and first-time buyers was a full percentage point higher than in the 2010 study.
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.
Whenever our family travels and stays in a beautiful place with lots of fun activities, my kids always ask, “Can we live here?” At the Montage Residences Deer Valley, the answer would be an enthusiastic “yes”. The Montage Deer Valley is a hotel located in the most pristine section of Empire Canyon at Deer Valley Resort. Situated above the hotel rooms are two to four bedroom residences, some over 4,000 square feet. These lovely residences are truly liveable, with well equipped kitchens, dining rooms large enough to accommodate extended family for a holiday dinner, and ensuite bedrooms. You can choose views of the Park City lights, the sunny ski slopes or opt for a larger residence with views in both directions. 
Living at the Montage Deer Valley for a ski vacation, summer retreat, or full time (as one family) is like living in your favorite resort and country club combined. The highly skilled concierge staff is available to fulfill your recreational and entertainment desires. The 7,000 square foot Compass Sports activities center is ground zero for year-round, on-mountain adventures. Staff will fit and store your ski equipment and once you are ready to go, the best of the Deer Valley slopes are literally right out the door. There is the exquisite Spa Montage and Kim Vō Salon, along with a year round outdoor heated pool and deck.
Sometimes kids and parents have different activity needs. It doesn’t feel like a vacation when one parent must stay behind to “watch” the kids. Paintbox, the activities-based program for children ages 5-12, solves that issue, ensuring everyone in the family gets a “real” vacation.
There are several dining options on site. As I walked by Buzz, the gourmet café, I was overcome by the incredibly delicious smell of fresh baked croissants. I’ve been told they have the best hot chocolate anywhere. Daly’s Pub is truly remarkable. My husband and I were able to have an adult conversation, while my kids bowled and played arcade games to their heart’s content.
For adults who work 24/7 and/or travel extensively for business, time spent with their children and spouse is precious. These carefully planned chunks of time should be spent in a place of beauty, where each family member can pursue the leisure activity they enjoy most, whether that means a spa day, a ski day, reading a book by the pool or enjoying a perfectly prepared meal. Wouldn’t it be great to “come home” to such a residence whenever you wanted? The Montage Residences Deer Valley offers the perfect milieu to create memories that will last forever.
If you are interested in learning more details about the Montage Deer Valley, please contact me at nancytallman@gmail.com.
The graph above shows the average price/square foot of homes listed for sale (red) and homes sold (green) in the Park City market. Notice the gap between the listed and sold price has increased. This graph demonstrates a gap between what sellers believe their property is worth and what buyers are willing to pay.
This same statistic has been reported in real estate markets all over the United States. The good news is that sales are up nationwide and many people are successfully buying and selling property in today’s real estate market. The interest rate for a 30-year fixed rate conforming loan is below 4%, providing buyers with more spending power.
If you need to sell a property in order to relocate or move up, here are some sales strategies used by successful sellers:
1. Price your property based on very recent comparable sales. Once a home is priced properly, the average list/sale price is 93% in the Park City market. There is no relationship between overpricing and overpaying. Buyers are looking at the same comparable sales as you are and are less likely to “fall in love” and overpay in today’s market.
2. Stage your home to sell. Staging is not the same as decorating. Staging means decluttering and depersonalizing as well as repairing anything that gives the buyer the impression of deferred maintenance. A clutter-free, clean home will sell faster and for a higher price than a home that looks as though it has been neglected.
3. Negotiate every offer. It costs nothing, except time, to negotiate and you never know how high buyers will go unless you engage them in negotiation.
4. Look at all the terms, not just price. Cash is king. A quick closing that avoids an appraisal has a value. Perhaps you need a lease-back, extra time to move out, or some other accommodation. Evaluate each offer based on all the terms and the financial strength of the buyer, not just the price.
5. Pick a listing agent who is a full-time professional. You want to work with someone who is responsive, hard working, and has closed plenty of recent transactions. Today’s market dynamics are much different than the “heyday” of fast sales and high returns. Transactions are much more complex and emotions can easily become frayed. You want the agent who is going to get you to the finish line so you can achieve your goal.
I closed 17 transactions in 2011, and represented sellers in over half of those transactions. I can help you navigate today’s real estate market dynamics.
Reposted with permission from Warburgrealty.com
Written by Frederick Peters
This is a very well written and researched blog about the New York City real estate market. Believe it or not, Park City’s real estate market has much in common with the Manhattan market. Many of our second home and full-time residents earn their income in the financial markets. Mr. Peters’ comments on presentation and pricing are spot on and a must-read for anyone thinking of selling a home in Park City. His comments on the higher end of the market are also applicable, as the highest end of our market, The Montage Residences, are doing quite well. I would love hear thoughts from my Park City readers…..
Fred’s View of Manhattan Real Estate
2012: Will It Be A Very Good Year?
Sunday, January 1st, 2012
Recently I got a request from The Real Deal Magazine to articulate my predictions for the New York market in 2012. I have done this for them every year for the last three or four, and it is always fun to compare what I said to the realities as the year winds down. So far my educated guesses have been pretty good; let’s see if I can keep my record up for 2012. My overall belief is that 2012 will in many significant respects resemble 2011. I expect the Manhattan market to continue to demonstrate the same highly stratified and uncertain behavior which defined last year. More specifically:
* We should anticipate big swings in confidence and therefore in sales and rental activity. I believe that the economy will continue to show gradual signs of improvement, but that volatility in the markets will increase in the months leading up to the election.
* We will see continuing capital flight from the BRIC (Brazil, Russia, India, China) countries. These ultra wealthy buyers will bolster the mid and upper ends of the condo market. There is already heavy demand for the new Extell building opposite Carnegie Hall, One FiftySeven, with many prices hovering around the $10,000 per foot mark. And those prices are going up!
* There will be continued emphasis on turnkey condition to bring in top prices. During 2011 most of the really big prices, on a per square foot basis, were paid for either newly constructed property or that which had been completely redone. Most buyers simply don’t want to add the uncertainty of renovation to the considerable list of uncertainties we already face in the current environment.
* The top end of the market will continue to be active in 2012. We can anticipate a steady stream of deals in the $10 million-and-up category, encompassing town house, co-op and condo transactions. And don’t expect all the purchasers to come from the finance and hedge fund industries! As in 2011, most bankers are receiving a lot of non-cash, future-oriented compensation, and many of the hedge funds did not weather the recent economic storm so easily. Look for lawyers, real estate investors, and entrepreneurs from all over the country, as well as the world, to be staking a claim to the Big Apple.
* It seems certain that many apartments, especially in the older condos and in co-ops, will continue to linger for months on the market as their sellers try to find an appropriate price. The current environment is filled with mixed signals, which sellers AND brokers can easily misread. Conservative pricing is any seller’s surest way to quick action, but sellers are usually reluctant to price conservatively because they fear leaving money on the table. Hard scrutiny of the comps, and of the assets and deficits of the subject property, will be critical to sales success in 2012.
* I don’t see the rental market loosening up much in the new year. Everything for rent is expensive and vacancy rates remain at their lowest level in years. Perhaps the ongoing constriction in the rental market will lead to an uptick in the sales of smaller units, which seem increasingly attractive on an after tax monthly payment basis as rents continue to rise. Of course, this brings first time buyers and their families up against the increasingly demanding co-op and condo Boards, which may demand six months, a year, even five years of maintenance in escrow for neophyte purchasers. A choice between Scylla and Charybdis…
So that, in a nutshell, is my overview on how I think our market will play out over the next six to twelve months. I am going to tuck this away and see how close I was when December of 2012 comes around!
Posted in Fred’s View of Manhattan Real Estate, Frederick Peters, President |
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Nancy Tallman
Park City,
UT
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Summit Sotheby's International Realty
Address: 1750 Park Avenue, Park City, UT, 84008
Office Phone: (435) 901-0659
Cell Phone: (435) 901-0659
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