As we head into the summer months the market indicators show that the Park City and Summit County real estate markets appear to be moving in a positive direction. These indicators give hope for an improving overall economy, and a real estate market that is poised to improve after having reached the anticipated low point.

Interest rates remain at record lows, providing buyers the opportunity to take advantage of home pricing that is at its lowest in several years, while taking advantage of favorable mortgage rates. Look for the market to continue to improve throughout the remainder of 2010, however at a slow steady pace.

Park City recently appeared on the Wall Street Journal’s top 10 places to buy a second home. Ranked as #4, Park City was recognized for its powdery winters and beautiful summers as well as its prime location only 25 minutes from Salt Lake City International Airport. No doubt the presence of Deer Valley Resort (voted number one in Ski Magazine three years in a row), the premier golf courses and our outdoor playground had a huge part in landing this title.

Keller Williams Park City agents took the day off on June 8 to participate in the company’s third annual RED Day (Renew, Energize, Donate) community service event. RED Day is a nationwide company service day that, in recent years, was one of the largest collective community service events in real estate history (over 130,000 hours of service work). With over 40 agents participating in Park City, places visited were Swaner Nature Preserve, the National Ability Center and the Park City Christian Center. From painting and landscaping at the National Ability Center to sorting clothes at the Christian Center and picking up trash on the trails of Swaner Nature Preserve, KWPC agents worked hard to complete a number of needed tasks. Agents also participated in an emergency flood relief effort in Oakley, UT, filling sandbags and placing them beside rivers to protect the local houses and community from flooding. Each year, KWPC engages in numerous fundraising and community service events with hopes of truly making a difference in the community.

Park City, UT (June 8, 2010) – On Tuesday, June 8, Keller Williams Park City Real Estate associates took the day off to participate in the company’s third annual RED Day community service event. RED Day is an acronym for RENEW, ENERGIZE, DONATE.

KW Cares, the philanthropic arm of Keller Williams, organizes "Red Day" a yearly event in which Keller Williams’ associates, clad in red t-shirts, dedicate their day to go out into the community and do service work at a local level. RED Day is a nationwide company service day that, in recent years, was one of the largest collective community service events in real estate history (over 130,000 hours of service work).

Places visited in Park City included Swaner Nature Preserve, the National Ability Center and the Park City Christian Center. From painting and landscaping at the National Ability Center, to sorting clothes at the Christian Center and picking up trash on the trails of Swaner Nature Preserve, KW agents worked hard to complete a number of needed tasks.

Agents were also able to participate in an emergency flood relief effort in Oakley, UT, filling sandbags and placing them beside rivers to protect the local houses and community from flooding.

"What a privilege it was for us to help those being threatened by the flooding," said McDonald. "I think we definitely made an impact on the residents of Summit County in their time of desperate need."

One project, one organization, one event at a time, the real estate professionals at Keller Williams Park City are actively engage in making a difference in the community.

An additional indicator of a housing market’s strength, or weakness, is the number of foreclosures and notices of default taking place. In the first quarter of 2007, just two foreclosures occurred in Summit County. That number has increased every quarter since, reaching a high of 134 in the fourth quarter of 2009. In the first quarter of 2010, the number of Summit County foreclosures dropped to 81, a 40% decline. The number of notices of default also dropped, from 205 in the fourth quarter of 2009 to 177 in the first quarter of 2010, a 14% decline. Lower numbers of foreclosures and defaults are strong indicators that the economy and housing market have started to recover.

It is also worth noting that the foreclosures and notices of default in Wasatch County, adjacent to Summit County, declined in the first quarter of 2010 over the forth quarter of 2009. Foreclosures dropped from 65 to 61, and notices of default fell from 129 to 94.

The sale-price versus list-price ratio has dropped nearly every month since December of 2007. This ratio measures the difference between what a home listed for and the price at which it sold. In February, the sale-price versus list-price ratio hit 94.80 percent, up from 94.75 percent in January. The ratio remained at 94.80 in March, suggesting that buyers are moving closer to paying what sellers are asking – yet another sign that the Park City market may have reached a bottom in terms of property devaluation.

To say that activity in the Park City housing market has increased from the same time last year would be an understatement. During the first quarter of 2009, just 167 transactions took place in the greater Park City area (the lowest quarterly transaction total in 20 years). By comparison, 325 closed during the first quarter of 2010, nearly a 100% increase.

The 12-month rolling average (of the number of houses sold in the Park City area) jumped last October and has increased steadily since, marking the first time there has been sustained positive growth in the rolling total of units sold since November 2005. The 12-month rolling total of dollar volume has seen an equally impressive jump during the past six months. The rolling total volume sold in March reached $1,021,240,993, up 19 percent over the previous year.

Yet another significant statistic, and one that supports the hypothesis of a bottom in housing prices, is the 12-month rolling average of the single family home median sales price. Over the 18-month period of April 2008 to September 2009, the median home price fell to a low of 27 percent – from $710,000 to $500,000. That price has now remained flat for seven months, further indicating that housing pricing has found a bottom.

The Park City housing market’s "absorption rate," which estimates how long it will take a house to sell, has fallen for the seventh month in a row. The absorption rate hit a high of 41.26 months in August of 2009. Currently, there is only a 27.29 month supply of inventory – a noteworthy sign suggesting that we are moving into an improving, more active real estate market. What has been a strong buyer’s market over the past year could be moving back towards a more balanced market, signaling that the window of opportunity for buyers may soon be closing.

The first quarter of 2010 showed signs that the real estate market in particular, and the overall economy in general, are in the early stages of recovery.

According to the National Association of Realtors, the sales of existing homes increased nationally in March, climbing 6.8 percent over February. Sales also increased significantly from March 2009, rising 16.1 percent. The first-time home buyer tax credit (which expired at the end of April) and lower prices also had a significant impact on the sales of existing homes. In addition, the upturn in interest rates prompted some buyers to move more quickly in order to secure favorable financing – a turn of events that no doubt comes as welcomed news to sellers as we move into the traditionally strong spring and summer sale seasons.

Speaking of interest rates, they are likely to play a major factor in the recovery of the housing market in general. While home values have fallen over the past 18 months, interest rates have remained at record lows. But as the economy starts its recovery, mortgage rates are bound to be pushed higher. In addition, the Federal Reserve Bank has slowed its purchase of mortgage-backed securities (MBS), which helped hold rates down. Now that MBS buy-back program has slowed, interest rates have only one way to go – up. Be forewarned: some industry experts predict that interest rates could climb to six percent by this time next year.

Mortgage interest rates are still extremely low, but the question is, how much longer can they stay at these levels? As of December 1, 2009, 30 Year Fixed rates were 4.75%, for loan amounts up to $729,750. One of the reasons interest rates are so low, is partly the result of the Federal Reserve’s program of buying Mortgage Backed Securities (MBS).

Since the Fed began buying MBS earlier this year, they have purchased more than $1.039 Trillion. This has kept pressure on interest rates to stay low. However, the Feds are scheduled to stop buying MBS at the end of March. Most people believe when they stop buying MBS, mortgage rates will increase sharply. Some analysts are speculating rates could increase a full percent very quickly.

What does that mean for you? It means if you are considering purchasing a property or refinancing your existing mortgage, you should not wait much longer. For example, on a loan amount of $500,000, a one percent increase in the rate means a monthly payment increase of approximately $310.00. That equates to $18,600 over a five year period. For additional information, please give us a call.

There is a great article on msnbc.com regarding the rising interest rate and the effect it has on affordability and buying power. It is very relevant to those considering purchasing a home in Park City especially if you plan to finance some portion of that purchase.

Here is a excerpt from the article
"The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent in just the past week.

Decline in purchasing power ......  The rule of thumb is that every 1 percentage point increase in mortgage rates reduces a buyer's purchasing power by about 10 percent."

So if you have been waiting for the perfect time to buy that home in Park Meadows or Thaynes Canyon, there may just not be a better time.

March 28, 2010

TALISKER EXPANDS WITH PURCHASE OF THE WALDORF ASTORIA HOTEL AT THE CANYONS

Toronto – Talisker announced today its purchase of Park City ’s newest luxury hotel, The Waldorf Astoria, Park City , located at The Canyons.

The Waldorf Astoria, Park City , opened last summer at the foot of Talisker’s ski resort, The Canyons. The hotel includes 170 rooms and condominium units, dining at Spruce, as well as the Golden Door Spa which offers an exquisite menu of services available to hotel guests and the community alike.

"We are proud to add this wonderful and complementary asset to the Talisker and Canyons properties in Park City", said Jack Bistricer Chairman and CEO of Talisker. "The Waldorf Astoria, integrated into The Canyons Resort, will expand The Canyons’ offerings and Talisker’s Definitive Alpine Living experience."

Talisker is developing real estate in several Park City area communities, including The Canyons ski resort, Empire Pass at Deer Valley Resort, Tuhaye golf course community, and others comprising more than 13,000 acres throughout the area. As the creator of the remarkable Talisker Club, Talisker has been recognized by the Robb Report as the Best of the Best of Mountain Resorts, and by Travel + Leisure Golf’s America ’s Top 100 Golf Communities