Sunday, July 19, 2009

Mid Summer News and thoughts...

Today Marks 28 years since I moved to Park City in July 1981 to be the tennis pro at the Park City Racquet Club! Played a televised exhibition match that summer against Bobby Riggs and Pancho Segura! Thanks to my good friend, Paul Kirwin, for umpiring... I still have the score card and we both still live here and love it!

Flash forward to 2009 and Real Estate thoughts and facts!

The high end of the Park City market continues at an interesting pace. Since my last post, 30 days ago, we've had Five closed sales over $3M. Most notably, the "Ninety Nine Ninety Lodge" (as I call it)... a 33,000 square foot ski castle at The Canyons, closed escrow this week from a list price of $23M! It is undisclosed, but my guess is a sales price of about $16M... That is some heavy hitting!

Also, a new home closed this month in the Eagle Pointe neighborhood of Park Meadows at a disclosed price of $5M! Other closed sales were in Quarry Mountain Ranch, Deer Crest, and Bald Eagle. Three additional homes in this $3M+ range were pended (offers accepted, but not yet closed) in various areas this month.

The number of new pended sales of $1M+ properties was down to 10 in the last 30 days. This is always an interesting stat to track in various 30 day periods. Normal range is about 20 in any 30 day period. June 1 through July 1 was in fact 20, while same period '08 was 17.

Looking at the entire Park City market area, all prices, we are back to 2008 sales levels and above for new pending contracts... From a dismal average of 50 new sales/month last winter, to 83 in April, 124 in May, and another 125 in June!

All good signs.... What about a bottom? OK maybe now, perhaps a bit later. It depends on the area and location. Current sales levels are in general not yet cleaning out inventory or driving prices back up. There are still 85 homes and 93 lots for sale in Promontory alone! (Pick your bargain... Distress, Short Sale, Bank Owned...)

Another area of great homes at great prices... Lower Deer Valley! Currently 32 homes available in the Lower Deer Valley area... priced from $1.5M to $4.5M! Of these, only one (a short sale offering) is currently pending sale. A few of these are bargain priced (ask me!)
Interesting that lower Deer Valley condos have seen more action.... especially Pinnacle and Daystar, with several pending and closed sales in the last 30 days.

In my view, the Park City market is in many instances (of course, depends on the property) greatly undervalued. Looking at a bargain priced high value property, one asks: "What will this thing be worth in 5 years?" We are seeing interest and sales now... so when the greater economic picture rebounds, the pent up demand for Park City and Deer Valley, will drive up prices quicker than most markets.... Why? Everyone still wants to be in Park City/Deer Valley, (I won't bore with the obvious reasons) but current fear paralysis prevails. Certain values are stellar, when compared with prices of only two years ago, and especially compared with other 5 star Rocky Mountain Resorts... Vail, Aspen, Telluride, Sun Valley, etc.

Call (877) 505-2002 or email me at bigal@parkcitydeervalley.com any time 24/7 for a chat, more facts, or thoughts about Buying or Selling in today's interesting market

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