Park City Real Estate News

A Great Bike Ride

Written By: msletten - Jun• 22•15

 

 

Displaying FullSizeRender.jpg

 

Sunday mornings in the summer are a great time to head out for road rides the outlying areas around PC.  One of our favorites actually starts in our car with our bikes on the rack. First stop, Bill White’s bakery in Iron Horse for coffee and fresh scones to go.  Next out to Kamas and park in Mark Fisher’s lot just as you are coming into Kamas on 248 from Park City (don’t tell Mark!).  Onto the bikes and off for an incredibly scenic loop of about 25 miles through Woodland by the upper Provo, then onto the bench road and back passing by the Wolf Creek Ranch entrance, and then back through Francis to the start.  The photo was taken on the stretch of the ride on Lower River Road between Woodland and Francis.  The only real climb comes just after turning off Lower River Road onto 2200 S but its relatively short and once on top, smooth sailing back to the car. Then to top it off, typically by the end of the ride Volkers’ Bakery is open for business just at the end of the parking area and you can buy a loaf of their wonderful bread .  I’d appreciate knowing about any of your favorite rides – road or mountain!

Park City Mountain Trails

Written By: msletten - Jun• 02•15

6.2.15 Blog photo

This photo was taken this morning at the Round Valley Trail Head as I was headed out for a run.  Round Valley is one of those jewels which make the Park City area such a wonderful place.  Mountain Trails Foundation maintains the trails winter and summer – and I should also mention they created most of the trails as well.  In winter you’ll find people cross country skiing, running, and hiking and in summer substituting cycling for skiing. And year round many of these folks are accompanied by their dogs.  There are many “not-for-profits” in Park City, but at the end of the day we are a mountain community and most all of us are outdoor enthusiasts utilizing some aspect of our area’s trail system.  If you’re not already a member of the Mountain Trail Foundation, you really should join.  Their website says it all “Members Today = Trails Tomorrow” and their web address is www.mountaintrails.org.

What return can I expect on a condo investment in Park City?

Written By: msletten - Jun• 02•15

1343857_Exterior_800x600

I frequently am asked by clients “…what kind of a return can I expect to be making on an investment in a Park City condo.”  I pretty much answer it the same way to all and that is “…the investment should first in your family’s fulfilling their dream of owning property in ski country and the years of wonderful memories that will generate for young and old alike.”  If that’s not the primary motivation to own a vacation home here in Park City, or really in any resort area for that matter, then they are better off renting different places when they are in ski country and buying a true investment property back home.  There, they can likely generate a capitalization rate of maybe 5% or 6%, where here in Park City that would be a 2% cap rate at best when factoring in all of the true costs of ownership.

Significant relic of Park City mining era has collapsed.

Written By: msletten - May• 14•15

Blog 5.14Blog 5.14 Blog 5.14

 

As reported on May 12th by Jay Hamburger of the Park Record, a significant relic of Park City mining era has collapsed. The derrick, which is located in the Empire Pass area of Deer Valley at the site of the old Daly West Mine, is situated outside the Montage.

The Park City Building Department told the Park Record that the collapse was a result of saturation of the soil, the instability of the ground at the location, and a mild winter without a deep frost.

We’ll keep you updated as given its historical significance, in all likelihood the derrick will be reconstructed.  Additionally, Park City Municipal Corporation is in the process of making an inventory of all mining relics with historical significance, with the intent of ultimately preserving as many as possible for future generations.

Please give us your thoughts and comments on the importance and significance of Park City’s silver mining past and relics like these.

Nationwide home prices are now within 10 percent of their pre-crash peaks!

Written By: msletten - May• 05•15

Nationwide home prices are now within 10 percent of their pre-crash peaks and seven states have surpassed those peaks, some have been establishing new high marks for several months. CoreLogic® said that its Home Price Index (HPI) that tracks home prices nationwide, including distressed sales, rose in March for the 37th consecutive month on a year-over-year basis.

The HPI was up 5.9 percent in March 2015 compared with March 2014 a +2 percent change from the year over-year HPI increase in February. The March HPI was also up 2 percent compared to the previous month. Utah overall was within 7.6% of its peak.
March 2015

 

Graph 2015
“The homes for sale inventory continues to be limited while buyer demand has picked up with low mortgage rates and improving consumer confidence,” said Frank Nothaft, chief economist for CoreLogic. “As a result, there has been continued upward pressure on prices in most markets, with our national monthly index up 2 percent for March 2015 and up approximately 6 percent from a year ago.”

CoreLogic projects that its HPI including distressed sales will increase by 0.8 percent from March to April 2015 and by 5.1 percent from March 2015 to March 2016. For the HPI excluding distressed sales the monthly increase is predicted at 0.7 percent and the annual increase from March 2015 to March 2016 at 4.7 percent.

“All signs are pointing toward continued price appreciation throughout 2015. In fact, the strong month-over-month gain in March may be a harbinger of accelerating price appreciation as we enter the spring selling season,” said Anand Nallathambi, president and CEO of CoreLogic. “Tight inventories, job growth and the inexorable impact of demographics and household formation are pushing price levels in many states, and especially large metropolitan areas like Dallas, Denver, Houston, Seattle and San Francisco, toward record levels.”

Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to March 2015) was -11 percent. Excluding distressed transactions, the peak-to-current change for the same period was -6.7 percent. The peak-to-current declines were greatest in Nevada (-34.7 percent), Florida (-31.5 percent), Rhode Island (-29 percent

Kimball Art’s Center Proposal

Written By: msletten - Apr• 20•15

Jay Hamburger wrote this story in the April 18, 2015 edition of the Park Record and it is worth a read if you haven’t already seen it.

The flurry of email correspondences arrived at City Hall just days before the Park City Planning Commission was poised to make a recommendation about a divisive proposal to rewrite a section of the municipal government’s detailed development rules.

It was expected to be one of the pivotal votes the influential panel would make in 2015, one that had the potential to stifle a California firm’s idea to redevelop the Kimball Art Center property into residences and commercial square footage. The Planning Commission on April 8 voted to forward the proposal to rewrite a section of the rules to the Park City Council with a negative recommendation.

The panel made its recommendation after a closely watched discussion that touched on a series of topics that illustrated the difficulties of developing in Old Town. The correspondences received by City Hall detail the broad nature of the opposition. The municipal government released the correspondences in response to a request by The Park Record under state open records laws.

The California developer, LCC Properties Group, wants City Hall to loosen the development rules to increase the building height allowed at the location from 32 feet tall to 45 feet tall. Such a change, which would be made to a document known as the Land Management Code, would essentially increase the height restriction from three stories to four stories.

Many of the people who wrote correspondences to City Hall seized on the developer’s desire to increase the height restriction.

Some of them mentioned the dramatic discussions between the municipal government and the Kimball Art Center itself that resulted in the not-for-profit organization scrapping an idea for a redevelopment and putting the property on the market. Park City officials turned away the Kimball Art Center’s proposal for an expansion onto the patio just off the Main Street-Heber Avenue intersection. LCC Properties Group intends to buy the property. The deal has not closed. A few of the people who wrote City Hall used the acronym KAC while referring to the Kimball Art Center.

“Please once again stand strong and let this new tenant that is taking over the KAC understand there are rules to be followed because that is what the people who have lived here for years want. We don’t need a big building we don’t need to try to be New York, Paris or Rome. All three ARE beautiful cities that I love….but this is a mountain ski (resort) ..this is a historical town…please do not let them forget this,” Marisa Durham wrote on April 5.

The next day, Janet Goldstein Fuller sent a message noting the previous discussions between City Hall and the Kimball Art Center. She said in the message the developer’s application “must be denied, for reasons and arguments that have already been worked over and finally, and officially, determined.”

“Just because a new and hungry developer walks into town, does not mean that everyone has to drop everything that has gone before, on behalf of the latest developer who thinks his operation deserves special treatment. Once again, it is a situation of having new people, particularly developers, come into this wonderful historic town and try to remake the town in a manner that the newcomer prefers, or perhaps, just believes from which more profit can be obtained,” Fuller said in the message.

None of the 21 correspondences released by City Hall was in support of a change in the rules. The developer received limited backing from the public during two important meetings that were held recently — the Planning Commission meeting on April 8 and a separate session involving the Planning Department in late February. The two meetings focused on different aspects of the LCC Properties Group proposal.

The City Council is expected to begin its discussions in early May. It seems likely there will be another round of correspondences to City Hall as the elected officials deliberate. The City Council is not bound by the Planning Commission recommendation.

Excerpts from some of the other correspondences include:

  • “The present codes for the KAC area should not be changed. The majority of the citizens of Park City certainly made that known during the last attempt to build on the KAC property and those proposals were turned down. Please do that again,” Frank and Lani Furr
  • “Our zoning restrictions are put in place for a purpose; to maintain the character and personality of our charming town. I have been a resident in Park City since 1977. I feel until this time that our town has grown up well, maintaining the original character and individuality in old town that it had when I arrived here. We are at a crossroads, as has been stated by our own leaders in Park City. We can maintain the unique character of Park City, or we can change to just another postage stamp ski town, like so many others,” Dianne Sanchez
  • “I see no justification for granting a variance to this party and feel that the 32′ limit should be closely adhered to. It saddens me to think that there might be an exception made for one request and feel that by granting this exception you would be opening a can of worms for other prospective developers,” Shirley Smith
  • “PLEASE do not allow the new owners of the KAC to change the height limits! This is the same problem as before. It was not anything against the Art Center….my opposition is to raising the height limits ANYWHERE in Old Town. Once they go up, everyone will want to go up and I DO NOT want Park City to look just like every other tunnel-like city. I would not even allow what is currently on Main Street had it been up to me,” Marilla Magill
  • “The 32′ restriction was created for a reason. Caving to the greed of a developer is wrong. Planning guidelines and rules are designed to protect our city from bad ideas that can permanently cause harm. And for what? A developers profit? Planners: please do your job and disallow this request for a height increase,” John Vrabel

Chateaux at Silver Lake Deer Valley

Written By: msletten - Feb• 17•15

689326_800x600

 

The Chateaux, which is located mid-mountain in the Silver Lake area Deer Valley, was just awarded the highly coveted “4 STAR AWARD” by Forbes Travel Guide.  Three other properties have achieved this status, those being the Montage which located in the Empire Pass area of Deer Valley, the St. Regis located in the Deer Crest area of Deer Valley, and the Waldorf Astoria at Canyons resort.  The Chateaux’s 2 and 3 bedroom units range in price from $989,900 to $1,299,000.  At present, none of The Chateaux’s 4 bedroom units are on the market.

The “Vail Effect”.

Written By: msletten - Feb• 14•15

 

 

Photo of PCMR taken from Empire Canyon on 1.31.15

 

PCMR 2.14.151

By now, most of us living in or with an interest in the Park City area have heard the term “The Vail Effect.”   Question is, is it real or just a perception?  The data answers the question, relative to real estate anyway, and it is a resounding “…yes it’s real.”

 

Since the sale of Park City Mountain Resort by Powdr Corp to Vail Resorts was announced in early September, for the 20 developments we track which are in close proximity to PCMR, 10 condominiums have gone under contract and are awaiting closing, while another 32 went under contract and have already closed. That is 42 transactions in just over 4 months and there are only 9 active listings, which at the current pace of sales represents a supply just shy of 2 months. What is completely missing from the inventory is anything situated in the Park City Mountain Resort Center itself.  For example, there is not a single listing in Resort Center and Park City Village (the Multiple Listing Service’s names for what most call The Lodge at Mountain Village).  Earlier this fall I told a number of those owners that now was likely not the time to sell as there were a number of properties available at prices that were not reflective of true market value given the events of the recent past – the litigation with Greater Park City, the threat of the resort going dark, etc.  That has completely changed and with the complete lack of inventory at present, I am now advising my clients that now would be a good time to list an at an aggressive price.

Montage at Deer Valley

Written By: msletten - Feb• 09•15

Montege

Even in a small area like Park City/Deer Valley, it is difficult to draw broad conclusions about the overall health of the real estate market. Take Deer Valley as an example. In three months last winter, the new Stein Eriksen Residences in the Silver Lake area put 26 of their 40 condominiums under contract (and these are contracts with substantial non-refundable deposits). This winter, the activity switched over to the Montage in Empire Pass where there they put 6 of their condominiums under contract since January 1st, 2 of which have already closed escrow.

With regards to Montage, it is the only property in our area that follows a model established in Vail and Beaver Creek – that is a blend of pure hotel rooms owned by a single entity combined under the same roof with individually owned condominiums (which Montage refers to as “Residences”), and all sharing the property’s amenities (spa, fitness, restaurants, après ski lounges, pools, etc.). At the Montage there are 81 Residences and 174 hotel rooms. This model also helps the individual owners with their HOA dues, in that the hotel component of the building carries a good portion of the overall operating costs. So for example, the HOA dues at Stein Eriksen Residences are higher by 15% as compared with Montage, and the HOA dues at the St Regis are 34% higher than Montage.

At present, Residences at Montage are priced from $1,995,000 to $8,995,000.

Montage at Deer Valley

Written By: msletten - Feb• 06•15

Montage

As a follow up to my last blog regarding the Montage at Deer Valley, one of the other reasons folks like it so much is its location at the top of Deer Valley.  Especially on a powder day when skiers staying at locations down the mountain are standing in lines and riding up chair lifts just to get to Empire or Lady Morgan, folks at the Montage are simply walking out the door.  This photo was taken on January 31, 2015 and you can see that even in a year with relatively little snow, Lady Morgan is serving up some great skiing.

close
Facebook Iconfacebook like buttonYouTube IconSubscribe on YouTubeTwitter Icontwitter follow buttonVisit Our WebsiteVisit Our Website