Deer Valley Condo Sales - Feast or Famine?
December 10th, 2009 Categories: Deer Valley®, Hotels & Lodging, Real Estate
Those of you who have been watching the Deer Valley condo market for years will probably agree…
This has without a doubt been one of the most interesting weeks we have ever experienced in Deer Valley.
Here’s why…
Silver Strike Deer Valley Condo Auction
On Tuesday, the developers of Silver Strike Lodge announced that they will be auctioning off 8 ski-in/ski-out condos in the Village at Empire Pass.
This is the most significant auction of Deer Valley real estate in about 20 years.
When you saw this headline, did you jump to the conclusion that the real estate market conditions in Deer Valley can’t be that much different than Detroit?
Au contraire, mon Frère!
St. Regis Deer Valley Condo Sales
St Regis Deer Valley
Today, 9 units at the St. Regis Resort & Residences, Deer Crest were published across the Park City MLS as closed.
Another 50 units are under contract, and are expected to close within the next 30 days, totaling over $100 million.
And get this…each of the properties sold for 100% of list price ranging from $1044 to $1768 per square foot.
In fact, the 4 bedroom Residence at the St. Regis was the most expensive condo per square foot to have sold in Deer Valley–EVER!
How do you reconcile these two contradictory expressions of the Deer Valley market conditions?
Related Articles:
Get Silver Strike Auction Details Here!
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Deer Valley Home Sales: Market Update
August 9th, 2009 Categories: Deer Valley®, Statistics & Trends
Homes In Deer Valley, Utah Still Selling!
Deer Valley homes are still selling, in spite of the challenging economy.
What’s interesting is that the demand in the marketplace for ultra-exclusive Ski-in/ski-out homes has remained strong, while homes with less convenient access are sitting on the market for long periods of time with relatively few sales.
Deer Valley Home Sales Prices Increasing–What’s the Catch?
If you look at average sales prices of homes sold in Deer Valley 2009 year to date, you might be surprised to see that the average sales price actually increased in 2009.
So far, 15 homes have sold 2009 YTD.
In a surprising statistic, 12 of the 15 were ski-in/ski-out properties!
Buyers of these properties are apparently much less impacted by the difficulty of the current lending environment.
The market for homes in Lower Deer Valley with no ski access has been minimal–only three such properties have sold so far.
Here’s the good news about Deer Valley Homes…
There are some Deer Valley home sellers who NEED to sell.
They’re past the point of waiting until they can get their optimal price. We’re even beginning to see a few foreclosures and short sales.
…But how do you know which ones are the best deals?
It’s easy–just ask us!!!
If you have been waiting for a great deal on a Deer Valley home, now is the time to start throwing out some low offers to see who bites!
Please help us understand what type of home you’re looking for, and we’ll let you know as soon as any homes that meet your criteria hit the market.
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Deer Valley Condos: Current Sales Stats
August 9th, 2009 Categories: Deer Valley®, Dining & Entertainment, Jordanelle, Local Services, Real Estate, Statistics & Trends
We just received a great question from one of our subscribers, who asked…
“How does current inventory and list prices of Deer Valley condos compare to the last 5 years?”
Quick answer: Inventory is increasing, and average sales prices are dropping. Not surprising, based on national real estate trends.
It’s interesting to note that prices of ski-in/ski-out condos are holding their value better than Deer Valley condos with less convenient ski access.
Average sales prices of ski-in/ski-out condos have re-traced back to 2006 levels, whereas Deer Valley condos without ski-in/ski-out access have dropped back to 2004-05 levels.
Why do we see this divergence in the sales numbers?
Are Deer Valley Condos with Ski Access Better Investments?
Time will tell…
Lending probably plays a big role. Cautions lenders have reduced maximum loan amounts, increased documentation requirements, and have generally made condo financing more difficult and more expensive than it was during the real estate boom of 2004-2007 in Park City & Deer Valley.
Today’s purchasers of new luxury condo in Empire Pass, Grand Lodge, Flagstaff, Silver Strike Lodge, Ironwood, and others may still have the resources to pay cash for their purchases.
Buyers of less-expensive resale condos in Lower Deer Valley may be more reliant upon financing for a portion of the purchase price.
Deer Valley Condo Market: The Influence of Financing Changes
As it has become more difficult and more expensive to obtain financing, fewer investors who qualify for loans are active in the current market.
This has caused an increase in inventory, decrease in prices, and we’re seeing fewer condos sold.
Don’t jump to the wrong conclusion when you see the YTD 2009 numbers.
We’ll have to revisit these stats at the year-end, after the long awaited St. Regis Resort & Residences condos close in October/November! That should contribute another 60 condo sales by year end, not to mention whatever other sales transpire between now and Jan 1st.
This is the Time to Get a Great Deal On A Condo In Deer Valley!
One big change in the recent statistics is the change in the list price to closed price ratio. For the first time in 8 years, the ratio dropped below 90%!
True, there’s less new construction reflected in the 2009 sales numbers. Over the past few years, it wasn’t uncommon for sales prices to be 100% of list price for new construction properties.
But still, there’s no denying that there are plenty of motivated sellers in today’s marketplace.
Are you serious about finding a great deal and taking advantage of a motivated seller in today’s market? We can help! Let us know what you’re looking for:
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Red Ledges Succeeds in Spite of Tough Economy
July 25th, 2009 Categories: Golf, Neighborhoods, The Heber Valley
It’s no secret that the market for vacant land has been harder hit than the markets for homes and condos in the greater Park City, Utah area.
But one luxury golf neighborhood is experiencing more sales activity than the others…Red Ledges.
According to the Park City MLS, 7 lots have closed so far this calendar year at Red Ledges, with another 7 Red Ledges parcels currently pending sale.
This chart reveals that sales at Red Ledges have surpassed sales at Park City’s other private golf communities, including Tuhaye, Promontory, Glenwild, and Victory Ranch.
What’s Behind Red Ledges’ Surprising Success?
Price reductions and incentives have helped spur demand. The developer is running a promotion right now that gives new lot buyers a new Mercedes as an incentive for their purchase!
No wonder buyers who are investing today are excited about what’s happening at Red ledges.
Red Ledges Grand Opening
Red Ledges' Jack Nicklaus Course
The Red Ledges golf course opened 4th of July weekend, 2009. Jack Nicklaus was present for the unveiling of the course, which marked the 200th course that he has designed around the world.
“Since the topography of the Red Ledges area is so stunning and diverse, we were challenged to stay true to the Red Ledges vision by planning each hole around its natural surroundings,”
said Nicklaus. “We were able to nestle some holes around the famous sandstone ledges and situate other holes in juniper groves. I am delighted with how the course has turned out.”
Red Ledges Cottages
Red Ledges Homes
The developer is also offering finished cottage homes. These 3000-4000 square foot luxury cabins start just over $1.25M.
These Red Ledges homes with zero lot lines are perfect for second homes or primary residences, as owners don’t need to worry about taking care of landscaping and snow removal–it’s all handled by the homeowners association!
If you need a little more space, check out the selection of “semi-custom” homes ranging from 4000-5000 square feet on 3/4 to 1 acre lots.
Red Ledges Homes
If you’re looking for the most impressive home in Red Ledges, you won’t be disappointed.
This 5 bedroom 6 bathroom home, built by Promark Development, rivals the finest ski-in/ski-out homes in the Park City & Deer Valley area.
This spectacular property will be featured in the 2009 Park City Area Home Builders Association Showcase of Homes Aug 22-23, Aug 29-30, and Sept 5-7.
Perfectly situated above the Red Ledges Golf practice area, the home has fantastic views of Mt. Timpanogos, the Heber Valley, and the iconic “Red Ledges” for which the neighborhood is named.
From the moment you arrive at the home, you’ll be amazed by the thoughtfulness of the design and the quality of the finishes. The heated driveway, tastefully constructed with hand-laid pavers of different sizes, shapes, and colors, is your first clue that you have just stumbled upon a home with no compromises.
We’ll offer an in-depth exploration of the intricacies and unique features of this home in a future post. In the mean time…
Please contact us to arrange a private tour.
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Park City Pending Sales Way Up!
June 29th, 2009 Categories: Park City, Statistics & Trends
Park City Real Estate Market: Did We Hit “The Bottom”?
If you’re like most people, even if you’re convinced that Park City’s LOCATION is right for your family’s future mountain getaway, you have been waiting for the right TIMING to invest, right? Resourceful, disciplined investors take advantage of market fluctuations to acquire assets at rock-bottom prices.
Park City Pending Sales By Month
As you can see for yourself, the number of pended sales in the Park City area is up. Way up over previous months. Inventory is being absorbed at a much faster rate than any point during the year.
What does this mean for you?
Procrastination is Your Enemy.
This is the opportunity you have been waiting for. Finally, there’s a chance to enter the Park City market when prices are depressed and you have superb variety of properties to evaluate. Imagine the alternative–you could wait ’til next year…
…When the sellers who DESPERATELY NEEDED to sell already did, after savvy buyers already grabbed the most desirable properties at the best prices–the kind of deals worth bragging about in years to come.
We Guide You to the Best Deals…but We’re Not Mind-Readers!
Our distinctive style of service allows you to chart your own course. We will explore your specific goals and listen to where you are in your research process, so we can support you in your search. You’re in control, and we’re always there when you need us.
Describe what you’re looking for and we’ll work tirelessly to help you find and acquire it. It’s that EASY.
Contact Us Today for a No-Obligation “Market Bottom Consultation”
Imagine the fun you’ll have when your family finally owns a legacy property in Park City! But the process takes time and careful planning. Don’t miss this rare market opportunity–it’s a winning decision!
We’re waiting to hear from you. Just send us a quick note to: Info@ParkCityRealEstateGuide.com
Or, for faster service… Call ParkCityRealEstateGuide.com today at 1-800-485-0218.
Warning:
You might be surprised by the tone of our conversation. There will be no pressure, no hassles, no gimmicks. But don’t just take our word for it. Find out for yourself!
We only take on a handful of serious buyers each month to ensure remarkable service and results. If you don’t like our style, it’s not a problem. Simply ask us not to contact you again, and we’ll pleasantly honor your request. We can’t work with everybody…
In short, you’ve got nothing to lose….and think of what you have to look forward to!
RELATED ARTICLES:
Park City Real Estate Sales Stats
Record Deer Valley Land Deal
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Park City Condo Managment Companies–15 Questions To Ask
May 19th, 2009 Categories: Hotels & Lodging, Local Services, Real Estate
Let’s face it…
It’s been a tough couple of months for Park City & Deer Valley property managers.
With a couple of Park City’s largest property management companies announcing they would be late on rent payments due to owners…
Park City & Deer Valley second home owners and investment property owners might want to take a closer look at who’s managing their investments, and ask some due diligence questions.
By the way, these questions were forwarded to us by our friend Jonny Totten from the Park City Area Lodging Association. Thanks, Jonny!
Questions to Ask and Understand When Choosing a Park City or Deer Valley Property Management Company
· How many years has the Property Management Company been operating?
· Business hours: do they vary with different seasons?
· After hours: how are check-ins handled?
· How are emergency- maintenance problems handled?
· Are services sub-contracted or do you maintain a staff to handle housekeeping and maintenance services?
· Review contract in detail and understand the commission structure; i.e. is it based on gross revenue or net revenue?
· How are travel agent and/or credit card fees handled?
· What housekeeping and maintenance services are included? Is there a fee associated?
· Understand cancellation terms and the need for honoring existing reservations.
· How often are owner statements prepared? Review a standard year-end statement to understand credits and charges.
· How do you handle advance deposits? Do you have a trust account for owner rental revenue?
· How do you market your company, and more specifically, how will you market my property?
· What are the start-up costs?
· Do you have projections so I can know what to expect in upcoming years in addition to past years’ actual revenue #s for comparable type properties?
·What can you provide to me with regards to your company’s financial strength and ability to perform on your contractual obligations to owners?
Related Park City & Deer Valley Property Management Articles:
Deer Valley Lodging: Not Too Big To Fail
Park City Property Manager Late on Payment to Owners
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Promontory Foreclosure Auction: The New Owner is…
May 14th, 2009 Categories: Golf, Just Outside of Town, Lifestyle & Activities, Park City
Surprise! In a bizarre turn of events…
The original developers of Promontory–Arizona-based Pivotal Group–tendered a $70 million bid at the April 15 bankruptcy auction, stepped back in, and were able to re-purchase the controlling interest in the project for pennies on the dollar.
Pivotal Now Owns Promontory With Almost No Debt
The Credit Suisse Group lent $350 million to the club in 2005, and most of that money was taken out of the project as “return on capital” by the original developer.
“That is just wiped off the books,” Promontory Managing Director Rich Sonntag said about the debt.
Implausible as it may be, Pivotal now owns the existing club amenities and all future development potential, including the roads, golf courses, clubhouses, and development infrastructure with almost no debt going forward.
Was Bankruptcy Promontory’s Strategy From The Beginning?
Pivotal Promontory Managing Director Rich Sonntag insists that Pivotal CEO Francis Najafi did not orchestrate the bankruptcy to avoid repaying the loans.
Credit Suisse could have emerged as the winning bidder, but the lender withdrew its offer on April 16th.
Credit Suisse Cuts Losses, Not Willing to Increase Stake in Promontory
Credit Suisse had the opportunity to take over the property and protect a $275 Million investment by tendering a bid of $70 million and agreeing to keep the club amenities in operation in the years ahead.
A sign of the global banking crisis and mounting losses around the globe, Credit Suisse was not willing to invest additional funds and opted to walk away from the project instead.
Lenders Providing Financing at Promontory Again?
It should be easier for prospective Park City home buyers and existing Promontory owners to borrow/refinance their Promontory properties.
The bankruptcy had been a dark cloud over the community that prohibited risk-averse lenders from financing homes and lots at Promontory. It sounds like banks will look upon the project with more enthusiasm now that the auction is over.
What Does this Mean for Promontory Home Owners and Club Members?
The good news is that there’s finally some clarity regarding who will control Promontory moving forward.
Like it or not, the developer has the strongest financial position that they have ever had in the project. The infrastructure is almost complete, and there’s no debt!
The bad news is that some members/owners don’t trust Pivotal’s ability to keep the community on track, and they’re disappointed that a new developer didn’t step in and start fresh. Time will tell…
Time to Get a Great Deal at Promontory?
The supply/demand balance of homes at Promontory continues to strongly favor Buyers over sellers.
Since the bankruptcy auction, 4 homes have gone under contract. That matches the total number of homes sold in the previous 12 months!
Cutting right to the chase, Promontory was a popular spot for speculators when the Park City real estate market was booming. Many of those same speculators now can’t keep up with the payments, and we’re seeing quite a few foreclosures and short sales in the neighborhood.
Here are the homes currently available for sale at Promontory
Related Articles:
Talisker Club: World Class Skiing Meets Championship Golf
Red Ledges: Sales Success In Spite of Tough Economy
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Park City Property Manager Late on Payments to Owners
May 13th, 2009 Categories: Park City
David Holland Resort Lodging Follows Deer Valley Lodging’s Lead, Suspends Rents Payable to Park City Condo Owners
Chalk-up another victim to the nation’s financial crisis, as economic forces continue to affect Park City’s nightly rental industry.
A downturn in business during the 2008-09 winter season and the inability to get credit forced a second Park City, Utah property manager to suspend rental payments to owners for rentals in Feb and March, 2009.
More Condo Owners Wait to Receive Rents
In letters to unit owners dated March 27 and April 10 respectively, David Holland Resort Lodging stated that not paying owners moneys owned was “due in large part to the severe national economic crisis” and “in past years when we did not meet our rental projections we were able to use our reserves and borrowed funds to make up the temporary shortfall.”
David Holland Zatz, owner of David Holland Resort Lodging, confirmed Tuesday that he, too, sent a letter to about 300 condominium owners at the end of March announcing a temporary delay of payments.
Credit Crisis Hits Park City Property Managers
“Funding I thought would be available to me wasn’t. Not everyone has declined, so I’m still working on it,” he said.
With 25 years in town, Zatz has successfully navigated his company through the recession in the 1980s and the slowing following Sept. 11, 2001. The difference this time is that banks still lent money during those periods.
“It’s just a different environment right now,” he said. “We’ve weathered all the storms before. I’m confident we’ll be able work through.”
There are vendors affected as well as owners, but the accounts with Home Owners Associations are separate, he said.
Related Park City Property Management Articles:
Interviewing Park City Property Managers: 15 Questions to Ask
Deer Valley Lodging Delays Rent Payments to Owners
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Deer Valley Lodging–Not “Too Big To Fail”
May 13th, 2009 Categories: Deer Valley®, Park City, Real Estate
Deer Valley Lodging Delays Payments to Deer Valley Condo & Deer Valley Home Owners
Deer Valley lodging, a management company owned & operated by Premier Resorts International, sent a letter in late March 2009 to hundreds of property owners warning them that the company would be unable to make rental revenue payments to property owners for rentals in February & March, 2009.
According to the letter, “This extraordinary situation necessitates that we delay payment of current amounts owed to condominium unit owners under our Rental Agency Agreements. DVL plans to pay all owners the full amounts owed as soon as possible.”
The astonishing demise of one of Park City’s most influential property-management firms is being felt in many sectors of the Park City business community.
Because of the enormous range of services property managers offer, the line of unpaid creditors includes everyone from florists to plumbers.
Deer Valley Lodging Terminates Over 100 Employees
Since the announcement, Deer Valley Lodging–Deer Valley Utah’s largest property management firm–has been searching for solutions to its cash-flow challenges.
During the first week of May, Premier Resorts laid off over 100 employees, and announced a cancellation of accrued, unused vacation pay, sick leave, and personal time.
And the news hasn’t gotten any better for Premiere Resorts since the initial announcement…
Premier Resorts (DBA Deer Valley Lodging) Headed Into Bankruptcy?
Park City attorney Joseph Tesch filed a petition for involuntary Chapter 7 bankruptcy in federal court on behalf of a handful of condominium owners at The Lodges at Deer Valley, most of whom are also board members of the homeowners’ association.
According to Premier Resorts International, the parent company of Deer Valley Lodging , the filing “complicated” the company’s search for a solution to pay the 500 plus owners who have not received past-due rental revenues for February and March rentals.
The letter also said the filing “will likely affect our ability to attract financial assistance.”
It was hoped, briefly, that an investor would step in to assume the company’s financial obligations, but it appears now that will not happen. Deer Valley Resort is forming its own property-management arm.
Deer Valley Resort Steps Up, Forms New Lodging & Reservations Division
Premier Resorts, DBA Deer Valley Lodging, had use of the Deer Valley® name through a licensing agreement with Deer Valley Resort. Based on the recent turn of events, Deer Valley decided to revoke the licensing agreement and form a new company to handle the property management needs of the Deer Valley community.
The new company will provide property management services for Deer Valley condo and home owners, and community HOA’s (Homeowner’s Associations).
Kim McClelland will head the new company as Director of Lodging Operations for Deer Valley Resort Lodging and Reservations. Mr. McClelland is a longtime local lodging veteran who has also served as president of the Park City Area Lodging Association, the Park City Rotary Club and the Park City Chamber/Bureau. He is also involved with the Utah Office of Tourism and the Utah Ski Association.
We hope the new company will hire many of Deer Valley Lodging’s other key staff as well!
Related Park City & Deer Valley Property Management Articles:
Top 15 Questions to Ask Your Park City Property Manager
Park City Rental Agency David Hollands Delays Rental Payments to Owners
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Deer Valley Condos: Appreciate Your Assets
March 4th, 2009 Categories: Deer Valley®, Park City
Exploring Deer Valley, Utah Condos For Sale
I toured clients three bedroom condos in Park City & Deer Valley, Utah last week. It was the first time this particulary family had looked at condos here in Park City although they do own time-shares in Park City already.
Like many of our clients, they want to take advantage of the buyer’s market that Park City has become.
Inventory is up…
List prices are down…
For the first time in years, there are MOTIVATED SELLERS in Park City & Deer Valley Utah.
Three Reasons Why Today’s Buyers Are Investing in Park City & Deer Valley Properties
1) They want a place for their family to gather and share good times
As adult children spread across the country it’s great to have a central gathering place with convenient access from wherever your family ends up.
2) Confucious say: Your stocks may go to zero, but your home in Park City will not…
Take a look at real estate as an asset class compared to stocks, corporate bonds, etc… and you’ll see that Park City & Deer Valley real estate has proved to be a sturdy investment.
Today’s Park City & Deer Valley real estate buyers are looking to invest money in a more stable asset class than the roller coaster that is Wall Street… and who can fault them for that?!
If you’re like many investors, you would be happy with a simple return of your investment these days, not a return on your investment!
3) Here’s the big benefit of owning Deer Valley & Park City real estate…
You’ll get to appreciate your asset while your asset appreciates. How Fun is Your 401-k?
Back to the story about our Park City property tour…
Condos in Lower Deer Valley
We covered a lot of ground in three separate days of touring, but we spent much of our time in Lower Deer Valley which has a plethora of options in the three bedroom category.
Today’s buyers in Deer Valley have a great opportunity to own a piece of Park City’s Gold Coast for a significant discount over years past. Multiple listings in most of the complexes along the Deer Valley Loop, such as Fawngrove, Boulder Creek, Pinnacle, Portico, and Chapparal offer choices of floor plans, location and price points.
Park Meadows Offers More Square Feet for the Same Price as Lower Deer Valley
We also saw some three and four bedroom listings in Park Meadows neighborhoods like Four Lakes Village and Fairway Village which offer more square footage, great outdoor living and great views for similar prices as the Lower Deer Valley options.
The less convenient access to Park City’s Historic Main Street and the free Park City bus system might discourage some families who want to rent their properties while they’re not here enjoying them.
Warning: Don’t Be Overwhelmed by all the Great Park City & Deer Valley Properties For Sale
You’ll face an abundance of options, but don’t let the variety of available inventory be an impediment!
It’s a blessing…Chances are good you’ll find a property that meets your requirements, and you won’t need to win a bidding war with other buyers to acquire it for a compelling price!
The Evolution of a Park City Property Search
From the point when your search for Park City real estate begins, your conception of the type of properties that fit your criteria may evolve.
It may take some time and conversations with your family decision-making team to reconcile your contradicting perspectives…shocker!
We hear it over and over…how surprised our clients are with our casual no-pressure approach.
In these challenging times, you need a thoughtful and professional consultant to help you stay on target…not a desperate rookie who relies on high-pressure tactics and makes your exploration a miserable process.
Begin Your Park City & Deer Valley Real Estate Research Here
The bottom line is that the Park City & Deer Valley real estate market is a target rich environment for people looking to invest in the Park City lifestyle. The lifestyle and family-fun dividends you’ll receive every day just might be more fun than looking at your retirement account statements…
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