Park City & Deer Valley

How Do You Mountain?

Uphill Capacity to Increase 47 Percent

Talisker will be "re-creating" its Park City resort over the next 15 months. Changes to be ready for opening day include new branding, new gondolas, new lifts and a new village center.

Branding

The Canyons Resort is now to be called just "Canyons."

Paul Boardman from New York was recently hired as the company's new director of brand, strategy and development and explained that "Canyons" is more appealing at a Thursday press conference.

He also said he will be pressing the question, "How do you mountain?"

People have an emotional connection to mountains and Talisker wants to tap into that, he said.

"What are people's expectations, desires and emotions with the mountain?" he asked rhetorically. "Here people have some of the most strong, most passionate connections as with any terrain in the world."

A new series of video ads features people explaining what spending time at Canyons means to them.

Transportation

In addition to introducing its new campaign, the press conference also unveiled three new ways to get up the slopes.

The base of the Flight of The Canyons Gondola is moving to directly across the village center from Cabriolet Lift, dramatically shortening the walking distance for people parked below the resort.

The direct-connect gondola will still transport guests from the village center to the Red Pine Lodge. The gondola cabins will also be upgraded.

Where the gondola base had been will feature the resort's new high-speed quad lift that Talisker is calling "orange bubbled" and "state-of-the-art."

As guests sit down on the padded and heated seats they will pull down an orange, bubble-like enclosure. Managing Director Mike Goar said the color is visually striking from the outside, and makes colors "pop" from the inside like a pair of giant ski goggles.

Goar said he believes there may be none like it in North America; the inspiration came from Austria.

The new lift will take guests to just south of Sun Peak Lift in nine minutes and will increase uphill capacity by 47 percent.

Skiing/Snowboarding

Iron Mountain to the very south of the resort will see 300 aces of new, northwest-facing skiable terrain. This will include 10 new runs including intermediate to expert, and glade tree skiing, bringing the total at the resort to 176 runs. The construction will include a new detachable quad lift. Timberline Lift will also give guests access to the area.

According to resort spokesperson Elizabeth Dowd, "The new lift will enhance the ease of skiing both north and south off of Lookout Peak and guests will be able to ski directly to the Red Pine area. The south end of the resort is accessible via Timberline Lift which you can ride in both directions. It has stations at the bottom of Tombstone and the bottom of the new Iron Mountain Lift."

Goar said many of the complaints guests have had since Talisker bought the resort two years ago can be addressed through improved snowmaking so Canyons is constructing a 20-million-gallon reservoir. The water and other infrastructure investments will more than double the resort's snow-making capabilities and provide a more reliable early-season experience, he said.

He also anticipates this development to significantly improve the resort's rankings in SKI Magazine's annual survey.

Village Center

Boardman said something the resort is lacking is a way for guests to relax between runs. That's why changes to the village center are also planned including a "ski beach."

Located between the bases of the new gondola and new quad lift, guests on the beach can order food and beverages from breakfast to après ski. It will also make an appropriate venue for events, according to a press release.

Boardman said these changes are part of why Smokies Bar and Grill was torn down.

"All you saw was the back of a bar. Now you're looking at the slopes," he explained.

Ready by Winter

Goar said these changes will be ready by opening day. More are coming before opening day 2011. Everything Talisker has envisioned for the resort's "re-creation" will likely be completed within five to seven years.

An increase in ticket prices will be required to help fund the projects, but Goar said it won't be more than guests might anticipate or be comfortable with.

He also expected the resort to employ 100 additional people this year.

Goar said he believes these changes are the most significant improvements any resort is making in North America this year. They may be the most significant improvements made in years, he added.

Furthermore, he anticipates the first phase of construction to attract attention and raise the profile of Utah skiing.

"The strength of this business in the long term is the synergy that exists with the other resorts," he said.

"Our investment here is part of the larger thesis of Utah skiing," Boardman added.

Boardman said in a new video spot that his experience with the mountains began on hikes with his father in the White Mountains of New Hampshire. He said in the press conference he is a newcomer to the ski industry, but is an expert in helping people make an emotional connection to a brand.

For More Information on Park City and Deer Valley Contact:
Michael Lapay
Prudential Utah Real Estate
Mobile: 435-640-5700
Toll Free: 888-410-7653

mlapay@pureparkcityrealestate.com

by Andrew Kirk OF THE RECORD STAFF : The Park Record

Second Quarter Report Shows Major Improvement Over 2009

About one quarter of all real estate transactions in Park City involve distressed properties.

That's not bad, said Deanna Devey of the Utah Association of Realtors. It's average for the state if not slightly better.

Foreclosure activity is definitely improving, said Park City Board of Realtors president Mark Seltenrich.

"They appear to be trending down, but remain historically high," according to the second quarter report summary from the board released July 22.

Devey said short sales account for 13 percent of all sales in Salt Lake, Utah, Davis, Weber and Tooele counties. They are only 10 percent of sales in Summit and Wasatch counties.

"Comparatively, Summit County isn't doing too bad," she said via email.

Statistics that sound negative but are actually good news was a theme for the mid-year report from the board of Realtors.

For example, sales prices are way down all over Summit and Wasatch counties. That has increased both sales volume and dollar sales volume by more than 60 percent compared to the second quarter of 2009.

The title of the report summary was "Park City real estate sales continue to thaw."

With $543 million in real estate sold, board president Mark Seltenrich said 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, he said.

Since 2005 was when the boom began, an argument could be made that the 2010 mid-year numbers show the area returning to "normal," he said.

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, he said, 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, he said. 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," he 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.

For More Information on Park City and Deer Valley Homes Contact:
Michael Lapay
Prudential Utah Real Estate
Mobile: 435-640-5700
Toll Free: 888-410-7653

mlapay@pureparkcityrealestate.com

by Andrew Kirk OF THE RECORD STAFF : The Park Record

Point 5: Looking Forward

As reported after the first quarter of 2010, continued buyer activity appears likely as prices will continue to remain low for the foreseeable future. Interest rates are the lowest they have been in 50 years, so area property is more affordable than it has been for a number of years. Foreclosure activity will continue, although probably at lower rates than what we have recently seen. For the near term, inventory levels will remain stable and buyers will continue to have many choices.

For sellers, pricing is still the most importantaspectof getting their property sold. Correctly priced properties have a good chance of selling, while properties that are priced just a little high for the market will sit. In fact, properties that are very well priced may recieve multiple offers.

Projections at the end of the first quarter put total sales dollar volume over $1 billion by the end of the year and the number of sales should top 1300. Through the end of the first half of the year these projections still appear to be accurate. Both of these numbers would be about a 15+ percent improvement over 2009, and should be in line with 2008 figures. In addition, there wa s projection that prices could rise in the low single digit range, and that prediction also still looks accurate.

For More Information on Park City and Deer Valley Homes Contact:
Michael Lapay
Prudential Utah Real Estate
Mobile: 435-640-5700
Toll Free: 888-410-7653

mlapay@pureparkcityrealestate.com



*This information is subject to change without notice. Buyer is responsible to verify the accuracy of all information to the Buyers own satisfaction.

Point 4: Where We Stand Now

The Park City Board of Realtors reported a strong second half of 2009 compared to the first half of that year and the end of 2008. The first half of 2010 continues that trend with an increased closed sales dollar volume and continued steady numbers of sales.

One of the reasons for continued activity in our market is prices. Prices today are on average about 20-30% lower than they were at their peak, which was in late 2007 and early 2008. As previously reported, it should be noted that prices on individual properties or in specific neighborhoods may not be off by as much as the numbers above, while at the same time prices for some properties and for some areas are now much lower than the 30% decline mentioned above. Part of this decrease in pricing is due to distressed properties, such as foreclosures and short sales.

Foreclosures continue to be a significant part of our market, and although in Summit County the number of Notices of Default (NODs) may have peaked in the third quarter of 2009, and the number of Trustee's Sales may have peaked in the fourth quarter of 2009, the numbers of both remain historically high through the first and second quarters of 2010.

In a review of sales in the second quarter of 2010, approximatly 25 percent of all properties sold were either foreclosures of short sales. Conversely, the other 75 percent were market sales.

In Wasatch County, the number of Notices of Default peaked in the first quarter of 2009, but stayed fairly high throughout that year. However, it appears that those numbers have headed down in the first half of 2010 and are now closer to the levels we saw in 2008.

For More Information on Park City and Deer Valley Homes Contact:
Michael Lapay
Prudential Utah Real Estate
Mobile: 435-640-5700
Toll Free: 888-410-7653

mlapay@pureparkcityrealestate.com

*This information is subject to change without notice. Buyer is responsible to verify the accuracy of all information to the Buyers own satisfaction.

Point 3: Points of Interest for Our Market

We have had four straight quarters of improved sales.

If we add up the total sales volume for the last four quarters, since July 1st, 2009, over $1 billion in real estate has changed hands in the Park City area. Although, this number is still down compared to 2005 thru 2007, that is very close to the total for 2008, and well above all of the years prior to 2005.

Median sales price for the first half of 2010 for all property types except for vacant land are similar to and have actually risen slightly from what they were for the first half of 2009. The one exception is that land prices were sharply off from where they were a year ago, down nearly 50% compared to the first six months of 2009.

However, when we take a longer view and compare median prices over the last year against prices in the previous year, we are generally seeing slight declines other than vacant land, which is off 20% comparing year over year. But, when looking at the same year over year view, the number of sales and the dollar volume of sales are up significantly. Number of sales has increased from 26 to 50 percent, and dollar volumes from 19 to 108 percent.

Inventory levels are up from where they were in the first quarter of 2010, but are still below the levels at the same time last year. In 2009 there were about 3500 properties on the market, and as of the end of the first half of 2010 there were about 3050 properties on the market (this excludes commercial properties). At the end of the first quarter 2010 inventory levels were closer to about 2800 units.

A point of interest is the reemergence of vacant lot sales, and the prices those lots are selling at. Compared to the first half of 2009, lot sales have increased by 140% but median prices have dropped by almost 50%. Buyers are recognizing the values that are being presented, and are taking advantage of those values. But even with increased land sales, it still is only making up 10 percent of the dollar volume, and about 13 percent of the total sales.

Although median prices are similar to what they were a year ago, there are a few select areas where prices are quite different than they were a year ago. Most notably this would be home prices inside the city limits, where prices are off about 47% compared to the first half of 2009, and condo prices which are up about 58% compared to the first half of 2009. In both cases, this is more a case of what is selling than a case of a significant change in price.

For homes, owners of less expensive homes finally became realistic as to the value of their property, and thus many more homes priced under $1 million have sold this year than last. This is good news for those that want to live and own inside the city but could not afford the higher prices of the last few years. It is also good news for those sellers in that even though prices have come down, they are still much higher than they were prior to 2005. For example, the median price of a home in Park Meadows for the first half of 2010 was $925,000. The median price for the same area and time of year in 2004 was $668,000.

For condos, it appeared the opposite happened in the first half of 2010. The median price for that time period was much higher than for the same time period in 2009. However, this is because there were many more sales of condos priced over $1 million in the first half of the year. The reason that these higher priced condos sold is because these prices represented a discount of 30-40% below what their list price was just a year ago.

If we take a longer view, which is much more meaningful, these wild price swings are much less evident. For example, if we look at just six months the median sales price for a Single Family Home in Park City was down that 47% mentioned above. However, if we look at a full year, for the year ending on June 30th, 2010 the median price of a home inside the Park City limits was $1,125,000 which is 19% down from year end 2009 ($1,385,000).

Median sales price for a Single Family Home in the Snyderville Basin for the year ending on June 30th, 2010 is $650,000, which is virtually the same as at the end of the first quarter and down about 7% from the previous year figure of $700,000 for the year ending on June 30th, 2009.

The Heber Valley median home price was $289,500 for the year ending June 30th, 2010, slightly down from the first quarter and down about 12% from the $330,000 for the previous year total.

The Kamas Valley also saw a decrease for the year ending on June 30th, 2010 with a median home price of $272,200, again slightly down from the first quarter and down about 30% from the year end June 30th 2009 price of $387,500.

As mentioned above, the median price of a condo inside the Park City limits for the year ending June 30th, 2010 was $940,00, up from the end of the first quarter and up about 29% from $665,000 for the year ending June 30th, 2009. This increase is mostly due to a high number of sales in the Empire Pass area and closings at the St Regis.

The median price for a condo in the Snyderville Basin for the year ending June 30th, 2010 is $325,000, again slightly down from the first quarter and down 14% from $380,000 for the year ending June 30th, 2009.

For More Information on Park City and Deer Valley Homes Contact:
Michael Lapay
Prudential Utah Real Estate
Mobile: 435-640-5700
Toll Free: 888-410-7653

mlapay@pureparkcityrealestate.com