2010- A Value Driven Market
Prudential Utah Real Estate Spring Newsletter
A timely convergence of opportunities—dropped prices, low interest rates, availability of product and motivated sellers—have created a “perfect storm” of value in Park City’s real estate market. This opportunity may be a fleeting squall, however, as the nation rises out of a recession. For buyers looking for a refuge for their families, now is the perfect time to take advantage of Park City’s excellent values and excellent choices.
Reduced Home Prices
Home prices in the Park City area have dropped considerably, offering better values than we may see for several decades. While no one can predict with certainty if the local market has hit rock bottom, total sales volume in Park City has climbed slowly but steadily each month since November 2008*.
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Reduced Interest Rates
Even if Park City real estate prices fall again, they would need to drop another full 10% to balance out a 1% rise in interest rates. While most believe the first scenario is unlikely, rising interest rates are almost certain to occur. “Going back over 30 years, my data shows that interest rates are at a near historic low,” says Rick Klein of Mountain Summit Mortgage. “Between now and the middle of 2010 would be an excellent time to take advantage of interest rates,” offers Klein.
Limited Availability of Product
In contrast to most of the nation, the supply of quality housing product in Park City has thus far been able to keep up with the demand. However, the relatively small size of resort developments means that this wide selection of product may not last long. Unlike urban projects that offer hundreds of units, Park City’s new construction can quickly become scarce.
Empire Pass in upper Deer Valley has seen increased sales over the winter. The Montage Deer Valley will open in December 2010, offering residences for private owners, Flagstaff at Empire Pass has been offering as much as 30% to 40% off, but this won’t last long.
Motivation of Sellers
Because our market held up better at the beginning of the national housing downturn, area sellers were reluctant to lower their prices. Today, sellers, developers, and lenders alike are now seeking debt relief, minimizing cost of carry, and working to remove non-performing loans from their books. But, this seller incentive may be short lived; if sellers believe the market will correct, they may quickly become less motivated.
Promontory Ranch Club is offering some of the most incredible real estate deals in Park City. With lots starting at $100,000 and nearly completed homes starting at $595,000, now is the to purchase your dream home.
The simultaneous convergence of market forces and an overall soft economy could not offer a more favorable time for buyers. You won’t want to miss it.
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Tim Gaebe
Prudential Utah Real Estate
435-602-0657
www.parkcitysecondhome.com