Park City's Real Estate Market Remains Strong... Here's Why

The state of the Park City Real Estate market is strong, with few, if any signs of weakening. Prices are at record highs. Park City, along with a handful of other internationally recognized resorts, is cushioned by global demand for it's type of lifestyle. There are many reasons for continued strong growth, and here are some national and regional trends that are impacting the Park City area. National Trends • Baby Boomer Wealth; An estimated $41Trillion is expected to transfer to the Baby Boomers from the previous generation. In addition to retirement incomes, this generation will be secure enough in making their second/vacation homes their primary homes.

• Interest rates; Interest rates are at historical lows and are projected to remain close to current levels

• Stock Market; New records are being set on the Dow (even with our latest correction).

• Fall in the Dollar: U.S. Properties are now trading at a larger discount from a European perspective.

• Technology and Footloose Economy; Advances in information technology, communications, and emergence of the service economy and the aging demographics has created a "footloose economy". People now move wherever they want and jobs follow to these desirable areas.

• New Global Wealth; There has been a huge increase in global and U.S. wealth accumulation. Russia, India and China are some international examples.

• High End Real Estate Resilience; Upper-end real estate markets tend to hold their own even when the rest of the housing market slows, however, all real estate is local and does not necessarily reflect a nationwide trend. Wealthy buyers tend to be buffered by market volatility. • Trophy Properties; Trophy properties are being purchased everywhere for unbelievable prices. Regional Trends

• Fastest Growing Region; The Rocky Mountain region (Utah, Idaho, Montana, Colorado and Wyoming) is the fastest growing area in the country for the classic baby boomers. The next generation, children of baby boomers, are also the next largest segment moving to this area which demographers refer to as the "third coast"

• Boomers Retire and Head West; There is a huge, newly retired, population migration. These are people in good health, with high education and income levels.

• Public Lands are a Magnet; People are flocking to areas surrounded by public land. "Open Space", dominated by recreation and tourism, has become the equivalent of prime waterfront property.

• Exurbia; There is a huge migration to "exurbia", those semi-rural areas where affluent Americans are moving in growing numbers; these areas offer some excellent amenities and generally have a population of less than 50,000.

• Controlled Growth Fuels Real Estate Wealth; The limited land availability and controlled growth restrictions has become a key economic asset for the community.

The Park City market is significantly impacted by all of the trends identified above and is one of the most favorably priced Rocky Mountain resorts when compared to Aspen, Vail, Telluride, Whistler, or Sun Valley. If you would like additional information on the Park City Real Estate market, please contact us at www.jimandbillie.com.