Deer Valley Homes: Ski Access Preserves Value
November 16th, 2008 Categories: Deer Valley®, Real Estate, Statistics & Trends
As real estate markets around the country have deteriorated along with the global equities markets, there is a bit of good news for some resort property owners…
Do Deer Valley Home Owners With Ski-In/Ski-Out Access Have Down-side Protection?
This chart demonstrates the importance of ski access to property values in Deer Valley, Utah.
The average sales price of all homes in Deer Valley fell 18.05% to $3,245,576 from 2007 to 2008 (through 10/31/08).
The average sales price of ski-in/ski-out homes increased 12.48% to $6,235,958 during the same period.
You can see this divergence on the chart from 2007-2008.
It could be worse for homes without ski-in/ski-out access.
Since the inclusion of ski-in/ski-out homes in the “All Deer Valley Areas” category boosts the average sales price, the market for homes without ski access may have softened even more than the chart displays.
Based on this chart, now could be an excellent time to hunt for deals in Lower Deer Valley, but don’t expect to see substantial declines in Upper Deer Valley Homes or Homes in Empire Pass.
Related Articles:
Deer Valley Homes: Market Sales Stats
Bald Eagle Club: Deer Valley’s Gold Coast
Land Your Private Jet in Heber City
The Halo Effect of Branded Hotels in Park City & Deer Valley
Park City and Deer Valley’s Best Cash Flow Condos are…
The Best Cash-Flow Condos in Deer Valley (Part II)
Deer Valley Is Not the Only Smart Money Bet in Town (Part III)
St. Regis Resort and Residences, Deer Crest
Dakota Mountain Lodge and Waldorf=Astoria Announcement
Deer Valley Montage Hotel
| Currently 2 Comments »
How To Buy Park City & Deer Valley Real Estate in Your IRA
November 11th, 2008 Categories: Real Estate, Statistics & Trends, Utah Facts and Fiction
Wild Stock Market Preventing You From Building Wealth in Your Retirement Account?
If so, you may want to join the growing number of people who are investing their retirement funds in real estate.
There’s real long-term investment growth potential in using tax-deferred funds to purchase property.
The Problem With Most IRA’s
Most IRA Custodians–like brokerage companies and banks–limit your investment options to instruments that benefit them!
They offer you a menu of choices that include cash, CD’s, stocks, bonds, mutual funds, ETF’s, etc…
But Wait…You Have Other Options!
In reality, the IRS code does allow retirement plans to invest in a much broader selection of investments like:
- Real Estate (land, condos, commercial property, etc…)
- Leases
- Trust Deeds
- Tax Lien Certificates
- Commodities
- Limited Partnerships
- Mortgage Notes
- Secured & Unsecured Loans
- And More…
To successfully navigate the IRS Code, you must find a professional firm who is experienced with this process.
Real Estate IRA Step #1: Find a Competent “Custodian”
The first step is to find an IRA Custodian that is experienced at handling the details of this process.
This has become a popular niche in recent years, and it shouldn’t be too hard to find a competent custodian. Ask your CPA or tax attorney if they handle “Self-Directed Retirement Plans” or who they would recommend. We just did a quick search on Google, and you’ll find lots of specialists promoting their services online.
You can’t serve as “Custodian” of your own account, and the “Custodian” is the firm who actually holds title to the real estate. Do your homework, and understand the process.
Real Estate IRA Step #2: Find a Suitable Property
You’ll probably want to enlist the help of a competent local real estate broker to find a suitable property. They’ll also help you manage all the little transaction details.
This is your retirement fund we’re talking about, so let the experts help you navigate the process and avoid surprises!
In addition to domestic homes, condos, land, and commercial properties, some custodians may permit you to purchase foreign property.
Real Estate IRA Step #3: Assembling Your Funds & Closing
Sometimes purchasing a property may require more funds than you currently have available in your IRA account.
Don’t despair! You can purchase an interest in the property in conjunction with other individuals.
What about your spouse, a business associate, or a friend–are their retirement plans declining in value from over-exposure to the stock market too?
Borrowing funds is possible, but the loan must be a non-recourse loan.
A non-recourse loan is secured by a pledge of collateral–typically real property–but for which the borrower is not personally liable. If the borrower defaults, the lender/issuer can seize the collateral, but the lender’s recovery is limited to that collateral.
Non-recourse loans are still available, even in today’s risk-averse lending environment.
Expect lower loan-to-value ratios than with conventional financing, and you’ll often need to have 30-40% of the purchase price as a down payment.
A title/escrow company will prepare the closing documents, along with your custodian. At closing, the title to your newly-acquired property will reflect the name of your IRA Custodian for your benefit
Real Estate IRA Step #4: Operating Your Property
All expenses, including taxes, insurance, and repairs, must be paid from funds in your IRA.
You’ll need extra liquid funds available to pay these expenses. These funds can come from the deposit of rental income from the property into your IRA acct, or making annual contributions as the law allows.
Real Estate IRA Step #5: Selling Properties Held By Your IRA
It is possible to sell properties while they are held by your IRA, provided that the purchaser is not a family member.
After your sale closes, your IRA account now holds the cash proceeds, and you’re free shop for new investments!
Intrigued? Here’s Your Next Step…
If you would like to learn more about how you can invest some of your hard-earned retirement savings in Park City & Deer Valley real estate, please complete this short form:
Our Privacy Policy: It’s simple. We will not share your contact info with anybody for any reason. Period.
PS: The process may sound a bit intimidating…but with the right experts helping you every step of the way, you’ll be surprised how quickly and easily you’ll be on your way to making your retirement dollars really work effectively for you.
*A Few Important Notes:
The IRS will not let you occupy your IRA-Owned property as a primary residence.
Furthermore, you cannot place real estate that you already own into your own IRA.
* This article is a highly simplified overview of a technical and specialized process. You should consult with an attorney, your CPA, and a qualified Custodian to complete an IRA real estate investment.
Related Articles:
Waldorf Astoria Collection Dakota Mountain Lodge
| Currently 1 Comment »
Park City MLS Sales Volume
April 11th, 2008 Categories: Statistics & Trends
We just received this question from one of our blog readers:
“How does the total volume of PCMLS sales in 1st quarter ’08 compare with ’06 and ’07″
So we did a little research…Here are the results:
Park City Real Estate Sales Volume By Quarter 2002-2008
Park City MLS Areas 1-37
Sales Volume Includes Homes, Condos, Land, Commercial, Fractional
First Quarter Comparison
Quarter 1 2008 $318,529,716
Quarter 1 2007 $993,535,986
Quarter 1 2006 $1,074,994,736
Quarter 1 2005 $958,984,808
Quarter 1 2004 $482,420,515
Quarter 1 2003 $327,833,715
Quarter 1 2002 $301,966,270
*Statistics Courtesy of the Park City Board of Realtors
Second Quarter Comparison
Quarter 2 2007 $1,000,657,355
Quarter 2 2006 $939,598,086
Quarter 2 2005 $1,137,881,194
Quarter 2 2004 $637,795,946
Quarter 2 2003 $386,152,732
Quarter 2 2002 $365,544,559
Third Quarter Comparison
Quarter 3 2007 $526,424,478
Quarter 3 2006 $426,187,590
Quarter 3 2005 $589,895,046
Quarter 3 2004 $354,901,545
Quarter 3 2003 $211,802,454
Quarter 3 2002 $197,293,163
Fourth Quarter Comparison
Quarter 4 2007 $450,409,188
Quarter 4 2006 $397,002,139
Quarter 4 2005 $570,381,959
Quarter 4 2004 $397,685,997
Quarter 4 2003 $225,219,318
Quarter 4 2002 $187,481,680
*Statistics Courtesy of the Park City Board of Realtors
To explore the market momentum of homes, condos, and land in the Park City marketplace, check out the following posts:
Park City Condo Sales Statistics
| Currently 2 Comments »
Park City Condo Sales Stats
April 4th, 2008 Categories: Statistics & Trends
Park City Utah Condo Prices Still Rising
We’re not kidding!
So much for the real estate doom and gloom we read about every day in the national media.
Check out this chart…
It shows average and median sales prices for Condos in Old Town (MLS area #1) Park City, Utah over the past 10 years.
Not quite what you expected to see, particularly in the 2007 and 2008 years?
How can this be?
*Statistics Courtesy of the Park City Board of Realtors
Every Regional Real Estate Market has its Own Local “‘DNA.”
We know genetics professors in the crowd will cringe at the analogy, but it’s not a crazy way to look at real estate markets.
Each local real estate market around the country has a two main driving forces–Supply and Demand.
The relative amounts of each of these factors will create a different expression of prices and price momentum.
Areas with massive over-supply might see”foreclosure bus tours” but it doesn’t mean every market in the USA is spiraling downward. Properties with scarce supply and high demand will prices climbing higher and higher.
That’s why properties like the Waldorf=Astoria Dakota Mountain Lodge and Golden Door Spa at The Canyons has sold more than 30 residences YTD in 2008, at average prices that continue to increase rapidly.
”What’s The Story Behind The Extraordinary Appreciation rates in Park City, Utah?”
Simply put, it’s not reasonable to assume that the value of every property in the Park City market has appreciated at the rates in the Table here.
New Construction Is Booming in Park City.
It’s a fact that the type and quality of condos available today are totally different from what was available in the late 1990′s.
There was nothing like the Silver Star development at the base of Park City Mountain Resort.
What’s the story with the big drop in Old Town Park City Condo appreciation in the year 2003?
*Statistics Courtesy of the Park City Board of Realtors
Park City Real Estate DNA
Sometimes local events that have big impacts locally, and cause local market conditions to operate on a totally different curve than what’s happening nationally.
Remember that little-known event Utah hosted in February of 2002–The Winter Olympic games?
The years leading up to the Olympics were a time of enthusiastic speculation by local builders. Supply exceeded demand, and so prices dropped correspondingly.
Old Town Park City Condo Sales Table
What about the Broad Real Estate Market stats in Park City? Read the following posts for the rest of the story:
Park City Total Sales Volume 2002-2008
What Will Happen to Prices in Park City for the Rest of 2008?
We look forward to your comments below!
| Currently 2 Comments »
Park City Home Loan Limits Increase
March 16th, 2008 Categories: Real Estate, Statistics & Trends, Utah Facts and Fiction
Park City Home Buyers Rejoice…
The Economic Stimulus Act of 2008 Makes Borrowing Less Expensive! Because the Park City, Utah area qualifies as a “high-cost” area, it received the maximum allowable increase under the new stimulus plan.
The New “Conforming” Loan Limits Expire December 31st
Between April 1st and December 31st, 2008 FHA, Fannie Mae and Freddie Mac “Conforming” loan limits in Summit County will be raised to $729,750. In nearby Wasatch County, the “Conforming” limits were raised to $431,250.
This should open the door for Park City Home buyers to purchase or refinance their properties at “Conforming” loan rates, as opposed to paying “jumbo” loan rates. In recent weeks, jumbo loans have carried about a one point premium in rates over conforming loan products.
This is good news for buyers, as the “Mortgage Crisis” has made real estate financing more difficult and more expensive in recent months. Here are the new FHA Mortgage Limits for every county in the USA.
| Currently 1 Comment »
Park City MLS | Deer Valley MLS
January 27th, 2008 Categories: Real Estate, Statistics & Trends
Quick & Easy Park City MLS Research for Buyers
Researching possible real estate investments in Utah has never been so easy.
Thanks to the internet, it’s now possible to preview properties from the comfort of your own home or anywhere you have an internet connection by using one of the public MLS (Multiple Listing Service) portals…they’re the same real estate search engines that real estate agents use.
To Search for properties in Park City & Deer Valley Utah, use the Park City Utah MLS.
The public side of the Park City MLS (PCMLS) allows you to search for “Active” listings–properties that are currently listed for sale through a Park City real estate brokerage.
Unless you are a licensed Utah real estate agent with a paid-current subscription to the Park City MLS, you will not have access to historical “closed” or “pending” sales data from the MLS.
If you need this type of statistical reporting, we can run a quick query and email you the historical sales data you need in just a few minutes, or you can struggle for hours trying to find it yourself. But…
If you have enough time on your hands and if you know your way around a courthouse or county website, you can pull the recorded sales prices yourself, right?
Wrong–Utah is a Non-Disclosure State.
What does “non-disclosure” mean with regards to property sales records? In short, in a non-disclosure state, transaction sale prices are not reflected in the public records.
How can that be? In Utah, the sales document that is recorded at the County Recorder’s office is typically a Deed of Trust. The Deed of Trust usually only shows how much money was borrowed against a particular property, NOT the sales Price.
Is Zillow Useful in Utah?
Not really. The popular online real estate site Zillow relies on public county records as their primary data sourcethat drives their ”Zestimate” algorithms. Since sales prices are not reflected in the county records of counties in Utah, most Utah “Zestimates” are incorrect because of lack of data.
This lack of public data is a big challenge for data aggregators like Zillow and Trulia in the following non-disclosure states: Alaska, Idaho, Kansas, Louisiana, Mississippi, Missouri (some counties), Montana, New Mexico, North Dakota, Texas, Wyoming, and Utah. So, if you can’t use the Park City MLS or Zillow…
Find Out What Your Park City Property is Worth…Click Here!
| Currently No Comments »
Park City Home Prices Defy National Trends
January 25th, 2008 Categories: Park City, Real Estate, Statistics & Trends
Park City’s niche as a spectacular year round resort destination with easy access from an international airport has insulated us from many of the problems facing other real estate markets.
One challenge we face as realtors in Park City, Utah is helping our buyers who live in other states understand that our mar
ket has not slowed down the way many markets across the nation have. Buyers can find good values, but prices remain strong in all areas of our market.
Owners of luxury second (or third or more) homes have not been affected by the ‘mortgage crisis’ so there is not an urgency to sell. Out of state buyers who see desperate sellers and foreclosures on the rise in their home states assume they can get a mountain home for a bargain.
We have had clients who have based their offers on the ‘doom and gloom statistics’ from their home states, and have been quite suprised (and disappointed) when the home they want sells for 97% of the listing price, over and over again.
The state of Utah continues to see very low unemployment and massive growth in both population and industry.
Park City is one of Utah’s most desirable places to live not only because of it’s natural beauty and wealth of activities and ameneties, but also because of it’ s proximity to the capital, Salt Lake City.
Comparing illustrates what I have been saying. The number of residential units sold is down marginally from ’06 to ’07,
However, the average sales price of single family homes rose 15% while condos rose 45%!
| Currently No Comments »
Are Deer Valley Condo Prices Holding?
January 20th, 2008 Categories: Deer Valley®, Statistics & Trends
I just received this question from a potential vacation-home shopper in Southern California, wondering how Deer Valley real estate prices are faring amid the turbulent national real estate market.
A Warning About Deer Valley Real Estate Prices…
The numbers are not what you expect in light of the real estate “news” from around the USA. 
Deer Valley condo prices have not only held–they have actually increased!
Why are Deer Valley Prices increasing while prices across the country are falling? At the most basic level, it’s simple supply and demand in action.
Ski-in/Ski-out Deer Valley Real Estate Is Scarce
People have successfully invested in Deer Valley real estate because of the relative scarcity of prime Deer Valley properties. Deer Valley’s “safe-haven”positioning as a second-home and resort community has provided critical insulation from downward national trends.
Deer Valley Owners Have “Staying Power”
With so many cash buyers (about 50% of our clients’ transactions in 2007), we’re also not seeing a surge in foreclosures and “distress” sales. In truth, most sellers don’t “need” to sell their Deer Valley property, like sellers in “primary” home communities.
| CONDOMINIUMS: Pending Sales as of 1-20-2008 (Upper & Lower Deer Valley, Deer Crest, Empire Pass) | ||||
|
|
High |
Low |
Average |
Median |
|
List Price Summary: |
$8,916,550 |
$550,00 |
$3,064,998 |
$2,775,450 |
| CONDOMINIUMS: Summary Statistics Jan-Dec 2007 (Upper & Lower Deer Valley, Deer Crest, Empire Pass) | ||||
|
High |
Low |
Average |
Median |
|
|
List Price: |
$4,395,000 |
$595,000 |
$1,955,381 |
$1,897,000 |
|
Sales Price: |
$4,100,000 |
$570,000 |
$1,904,781 |
$1,886,400 |
| CONDOMINIUMS: Summary Statistics Jan-Dec 2006 (Upper & Lower Deer Valley, Deer Crest, Empire Pass) | ||||
|
|
High |
Low |
Average |
Median |
|
List Price: |
$4,195,000 |
$399,900 |
$1,437,404 |
$1,225,000 |
|
Sales Price: |
$3,775,259 |
$399,900 |
$1,388,741 |
$1,155,000 |
|
Avg Days on Market: 286 |
120 Condos Sold |
Average List price= |
|
Average Sales price= |
The Story Behind the Deer Valley Sales Numbers
One critical component is the weight of “New Construction” in the Deer Valley Condo sales summary. To be fair, many of the pending sales, and sold comps in 2007 were actually sales that pended in 2005 and 2006 when the national market was on fire. Some of these ultra high end ski-in/ski-out condo lodge buildings take 18-36 months to build.
Days On Market Might Not Be What You Think
When you see the days on market stats increase from 286 DOM to 357 DOM from 2006 to 2007, it’s counting from the date the condos are listed for sale until the sale closes (ie when construction is complete). What you’re actually seeing is a long “under-contract” period, and not necessarily properties sitting on the market forever. Does that make sense?
Deer Valley Quality Gets Better Every Year
There’s also been a difference in the quality and location of inventory over the years. The new construction that’s available today is certainly more expensive to build (land, labor, materials) than the “new” construction that was available in 2005. The trend has certainly been towards higher quality materials and construction as developers push to raise their prices with successive projects, much to the delight of “early” buyers who watch their property values rise with each successive release of new inventory.
| Currently No Comments »
