The Real Estate market in Park City, Utah has not been immune to the value changes that the rest of the country has seen. Early on in the National housing and credit collapse many agents in Park City claimed that our area was insulated and we would not be affected by the changes the rest of the country was experiencing. An in depth analysis of our market now shows that market changes in Park City mirror the national averages. Prices have retreated to the 2005-2006 levels in many areas while falling well below that in the outlying areas of the city.  The change has occurred in residential entry level condominiums and every market segment right through multi-million dollar luxury ski villas.

            Changes can be seen not only in sales prices, but also in the mindset of the Buyers. Park City is a destination ski resort area offering arguably one of the county’s best vacation and second home experiences. The things that made Park City desirable before the economic change have not changed, but the Buyers now have a different perspective on real estate here. Buyers still want to own in Park City and the emotion behind the decision to buy here has not changed. The focus that drives which Park City home a Buyer purchases has changed and the emotional drive toward a particular home is gone. In past years Buyers fell in love with a home, now the buyers can be just as focused on the deal as they are a particular home. Park City real estate buyers now often have a somewhat indifferent attitude to the home or condominium they are purchasing; as long as they are getting a deal, they love the home.

            Prospective property owners are writing offers on multiple homes with the intent of purchasing whichever property presents the best bargain. Park City real estate Buyers are still focused within a particular area, property type, and price range, but the message to Sellers is “I like your home best, but I’ll substitute it with the home down road or in the next subdivision if I believe it represents is a better value”.

             The ski and snowboard season opening is upon us in Park City, Utah.  Park City real estate sales statistics for the year have shown that property in Park City is selling. Here we will take a more in-depth look at which homes and condominiums in Park City are selling with a focus on ski and snowboard slope-side locations at Park City Mountain Resort.

            Park City Mountain Resort offers the fewest opportunities for true ski-in/ski-out real estate in Park City, UT (in comparison to Deer Valley and Canyons Resort areas). Due to this fact, we will broaden the scope of the analysis to include walk-to skiing and riding homes and condominiums. There are three lift access points to consider in determining a walk-to-ski/ride home or condominium at Park City Mountain Resort: The Park City Mountain Resort Base Area, The Town Lift / Historic Old Town Area and the Silver Star Lift area.

            Of the just under 100 homes and condominiums that have been sold in the Historic Old Town area of Park City this year, over 40 of them can be counted in the walk-to-ski category. There have been over 950 home and condominium sales in the greater Park City area this year.  Many Park City real estate sales are to buyers looking for vacation and second home properties, but not all of the properties are ski-in/ski-out or walk-to-ski.

            One quarter of the sales of the Park City Mountain Resort walk-to-ski/ride properties have been in the Silver Star at Park City subdivision. There are still a few developer owned condominiums at Silver Star, but the sales within Silver Star have been both re-sales and developer owned models. This indicates that the market has found the correct sales price and buyers are responding. The sales prices at Silver Star this year represent an average of nearly 30% off the historic high asking prices.

            For more information on Park City Mountain Resort (which opened for the season on Nov. 20) ski-in/ski-out or walk-to-ski homes and condominiums contact a realty professional with YouInParkCity.com.

             The Headline touts rental revenue, but what is “great revenue” in Park City, UT?

            Park City, UT is home to many second homes and vacation homes that are used infrequently by their absentee owners. Many of these homes and getaways are available as short term rentals for vacationers. Also, the majority of the hotels in Park City are condominium hotels meaning that each unit is separately owned and a rental management company is running the hotel amenities while sharing room revenues with the owners. Thus when a property is listed for sale in Park City, the subject of rental revenue opportunity is often mentioned, if not by the seller, then by the prospective buyer.

            Great rental revenue though is subjective. Will the purchase produce a positive cash flow? Will it be revenue neutral? Or will the buyer be making monthly payments to own a little piece of Park City? The answer is, it all depends.

            I have a “rule of thumb” that generally holds true for nightly rentals in the Park City area. Enough revenue will be generated to cover taxes and HOA fees after the revenue split with the property manager. There are many variable in this simple equation: how much owner usage will there be and during what times? How well is the property marketed? What is the management split (in Park City it is usually around 50% for nightly rental property)? What amenities are available to the renters? Etc. etc.

            Recent price changes have made many of the revenue opportunities look stronger, but you must also consider that rental revenues have been falling along with condominium prices in Park City. A recent travel symposium speaker estimated that nightly rental prices will be off by 17% this year after falling 10% last year and 10% the year before, so while nightly lodging tallies which count room nights show increasing visitor nights, rental revenues are far from their peaks. Buyers and Sellers should also note that added rooms in the Park City area bring more competition to fill each bed.

            Will the “great rental revenue” on the property you buy in Park City prove to be a good retirement scheme?  I doubt it. Will it provide you with a great place to vacation, create family memories, and provide a drive to keep you working in hopes of retiring here? Definitely. I always say “purchase a home or condo in Park City for the lifestyle it can provide and the enjoyment it will bring you”.

            Rarely does a property in Park City “pencil” when it comes to rental revenue. Note that I didn’t say “never” and appreciation cures everything when it comes to investments. Besides, do you really want to stay in that great revenue producing storage facility you bought in Salt Lake City?

            Let the YouInParkCity.com Group assist you in finding a home or condominium in Park City, UT.