Park City & Deer Valley

Are you looking for a second home, a holiday destination or a new place to live? Then Park City real estate can really fit the bill. The New York Times rated Park City as No. 9 in their "2011 41 places to go in the world."

In North America for 2010 to 2011, the #1 ranked ski resort is Deer Valley, a Park City neighborhood. Deer Valley is sixth in Barron's Magazine's "Top Second Home Communities" list for the fourth year in a row. And for any portfolio, Park City real estate is a definite must.

There will be four new hotels, a golf event, and extended fields of ski resorts all opening up soon to give residents and visitors better access to discover the mountain. Deer Valley Montage launched a 220-room mid-Craftsman style mountain lodge in December 2010. It offers ski-in ski-out access, gas fireplaces in every room, and spa. Other establishments that have opened are the St. Regis Deer Crest, Park City Waldorf Astoria and the Hyatt Lodge Escala.

300 acres of new ski and snowboarding terrain includes 10 new tracks ranging from short to intermediate located in the Canyons resort. They are also introducing what is appointed as the first heated chairlift in North America. There will also be the opening of an after-ski "beach." It is a place where people meet to enjoy the Beach style outdoor chairs, food from the stations, cocktail, and astonishing views of the mountain. This is definitely where the best ski resorts in the country are.

Park City is now better than ever as its tourism grows because of its prime location. Park City is 32 miles east of Salt Lake City and 40 minutes from the airport in Salt Lake. The picturesque mountains, majestic Wasatch of Utah, the counties of Summit and Wasatch, have hidden a place as amazing as this.

More facts: Park City, Utah cradled the Winter Olympics 2002. It is also home to the Sundance Film Festival and the "Greatest Snow on Earth."

There are a number of outdoor attractions in Park City, Utah:

• Snowboarding
• Skiing
• Hiking
• Fishing
• Biking 300 miles trail
• Golf Courses (20 minutes from the Park City)
• Great Restaurants
• Great Shopping Malls

If you are a fan of the snowy outdoors, Park City real estate really has all that you're looking for.

Other Western Mountain Ski Resorts are Experiencing a Market Similar to Ours

Representatives from the Park City Board of REALTORS® attended the annual winter meeting of the Western Mountain Resort Alliance (WMRA) in January which was held in VAile Colorado. The meeting, as always, was interesting and informative. The main take-away from the meeting is that other Western Mountain Ski Resorts are experiencing a market similar to what we are experiencing in Park City. Other than Whistler, all resorts reported an increase in the number of sales in 2010 compared to the number of sales in 2009. In general, this corresponded to an increase in dollar volume (Summit County Colorado was flat) but the percentage increase in number of sales surpassed the percentage increase in dollar volume, meaning that average prices were lower. The two exceptions for this were Whistler and Vail, where average prices actually increased. However, Vail's increase was from the closing of a number of new high-end developments where the units were contracted in the better markets of 2006 thru early 2008, and finally closed last year.

2011 WMRA Winter Meeting in Vail, Colorado

#1 Compare 2010 Sales to 2009 Sales:

Tahoe/Truckee Up 28% in dollar volume and up 33% in number of transactions

Sun Valley** Up 20% in dollar volume and up 24% in number of transactions

Park City** Up 16% in dollar volume and up 26% in number of transactions

Whistler** Up 6% in dollar volume and up 6% in number of transactions

McCall** Up 3% in dollar volume and up 24% in number of transactions

Big Sky Up 21% in dollar volume and up 42% in number of transactions

Crested Butte Down 5% in dollar volume and up 7.5% in number of transactions

Summit County, CO Flat in dollar volume and up 6% in number of transactions

Vail Up 67% in dollar volume and up 33% in number of transactions

Steamboat Up 17% in dollar volume and up 18% in number of transactions

(**) Disclosure: Undisclosed sales are reported at 95% of list price

#2 Distressed Sales in 2010 vs 2009:

Tahoe/Truckee Number increased in 2010: 27% of all Single Family Home sales distressed, 36% of all condo sales distressed

Sun Valley 30+% in Haiely and Belleview, 5% or less in Sun Valley and Ketchum

Park City Numbers increased in 2010: Approximately 30+% of all sales distressed in 2010

Whistler Numbers increased in 2010: Although still only about 5% of the market

McCall Nearly half of all transactions (48%) were of distressed properties

Big Sky 15% of 2010 transactions were of distressed properties. Cannot compare to 2009 due to lack of data available

Crested Butte Numbers increased in 2010: With about 25% of all sales being of distressed properties (mostly foreclosures with just a few short sales)

Summit County, CO Numbers increased for 2010 but percentage of sales not indicated

Vail Numbers increased in 2010 but percentages of sales not indicated

Steamboat 22% of transactions in 2010 were of distressed properties, numbers not tracked in 2009 for comparison

#3 Prices Stable, Declining, Increasing:

Tahoe/Truckee Prices declining: Median price down 12% comparing 2010 to 2009

Sun Valley 2010 saw prices declining although signs there may be stabilization in certain areas

Park City Prices declining: Median price down 2.9% comparing 2010 to 2009. Signs are that some areas and some markets may be stabilizing or even increasing

Whistler Prices increasing with average price up 13% in 2010 compared to 2009

McCall Prices appear to be stabilizing

Big Sky Prices still declining although perhaps approaching bottom

Crested Butte Prices still declining

Vail Prices still declining slightly

Steamboat Prices declined 1% per month per 2010. Prices still declining with prices being driven by distressed properties

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

mlapay@pureparkcityrealestate.com

How Does Our Local Market Compare with

What's Happening Nationally?

Looking at the country as a whole, the economy grew 2.6% in the third quarter of 2010 and 3.2% in the final quarter of the year, the highest rate since the prerecession peak at the end of 2007. Statistically speaking, the US economy is now back to 2007 levels of growth.

National Association of Realtors® (NAR) reported a 1.2% increase nationally in the number of sales in existing homes at the end of 2010. In the greater Park City area (local areas 1-23), the number of sales of existing homes in 2010 rose 34% over 2009 and 17% over 2008. The data indicates a greater stability in the local Park City market, as well as a swifter recovery than is happening on a national scale.

Also referring to national-level statistics, NAR reported December 2010 as the fifth month of improvement in pending home sales in the previous six months. "Pended sales are a forward-looking indicator of demand," explains Rick Klein, a Park City-based lender with Wells Fargo. "These figures can give us a very good picture of what's to come." In the greater Park City area, 2010 pended sales volume rose 40% from 2009 and 44% from 2008. "Clearly, there is a lot of movement in the local market," says Klein.

*All statistics and graphs from Rick Klein, Wells Fargo / 435-647-9055

Greater Park City Barameter Annual

Pended & Closed Sales

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

mlapay@pureparkcityrealestate.com

2010 A Year in Review A Year in Review

The Park City market is not on the move. Now that 2010 has drawn to a close, statistics show an upward trend across the board for almost all property types. In fact, real estate sales surpassed the billion dollar mark, marking 2010 as one of only six years where the local market hit that benchmark. "Buyer's are recognizing value, which is creating a flurry of activity and an increase in the number of units sold." says president of the Park City Board of Realtors®. Here's how 2010 stacks up in terms of sales volume:

2010 Sales Volume

(Park City MLS figures)

• Sales dollar volume totaled at $1,009,582,720 up 16% from 2009

• 1,421 total closed sales, up 25% from 2009 and 6% from 2008

• Vacant Land units sold up 60% from 2009

• Single Family Home units up over 26% from 2009

The National Association of Realtors® reported a regional drop of 1.5% in sales volume of existing homes in 2010, further evidence that Park City's market continues to outpace the West and the nation as a whole. At the same time, Park City has seen almost no uptick in real estate prices, except in the case of single family homes, which increased 3.5% over 2009. On the whole, though, the Park City market saw median prices fall 3% off last years.

Of course, the question on everyone's mind is have we hit bottom? "This question is actually a complex one," says the 2010 president of the Park City Board of Realtors®. The following "peak to trough" statistics compare the highest market peaks of the past with the more recent market lows to try to answer this universal query.

Peak to Trough Median Pricing

With the exception of vacant land, which has experienced a strong price correction, the average drop in price was 28%, far less than most markets across the country. "The thinking is that our market hits its low point in terms of sales volume nearly two years ago, and we believe we have not hit our bottom in terms of prices," explains former president of the Park City Board of Realtors®. "This is a great time to buy; prices will begin to climb again."

"This is a great time

to buy; prices will

begin to climb again."

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

mlapay@pureparkcityrealestate.com

The January total Beat Last Year's, but It Was Not a Strong Showing

Park City's construction industry in January bested the dollar figures recorded in the same month the year before, but the month was a lackluster start to 2011 nonetheless.

The Park City Building Department reported issuing $849,700 in permits in January, up from the $680,326 worth of permits that were issued in the same month the year before.

The department in January, however, did not issue any permits for new structures. Alterations and additions to residential buildings or commercial buildings accounted for nearly all of the permit value in January, the Building Department said. There was a handful of permits issued in other categories the Building Department tracks, such as signs.

Thirty-eight building permits were issued in January, four fewer than the figure in the previous January and 10 fewer than were issued in December. The number of electrical, plumbing and mechanical permits issued in January was mixed compared to December and the previous January.

Meanwhile, the Building Department's inspection load, an average of 172.2 each day, fell slightly from December. The average was well off the pace of January 2010, when the department averaged 375.6 inspections each day.

The construction industry continues to suffer amid the economic conditions, and the industry inside Park City is not expected to make a significant comeback in 2011.

There are a dwindling number of major private-sector development sites within Park City, leading to the expectation that it might be some time before the industry matches the record-setting years prior to the onset of the recession.

by Jay Hamburger OF THE RECORD STAFF : The Park Record

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