Park City Real Estate Blog

The markets continue to be focused on - and influenced by - Greece's ongoing financial saga. Stocks took a hit last Thursday when Greece's budget deficit was reported to be worse than previously thought, causing uncertainty and anxiety in the markets. The next day, the saga continued when Greek Prime Minister George Papandreou asked the European Union and International Monetary Fund to activate their huge $45 Billion Euro aid package. That news helped relieve some of the uncertainty in the markets, but this story is far from over. Greece will need to take some dramatic measures to bring their budget deficit to a significantly lower level.

The $45 Billion Euro bailout for Greece wasn't the only whopping figure in the news last week. Here at home, the U.S. Treasury Department announced that it will unload $129 Billion of debt this week in 5-year Treasury Inflation Protected Securities and 2-, 5- and 7-year Notes. The massive amount of debt supply being loaded into the markets just keeps on coming - and it's getting larger. Treasury auctions have more than doubled since the 2nd quarter of 2008...and this doesn't even include the regularly scheduled T-Bill auctions each week or the monthly 30-year Bond auctions. This week's huge amount of supply could prevent Bond prices - and home loan rates - from improving when it hits the markets.

The Fed announced last week that it may start trimming its balance sheet by selling some of its Mortgage Backed Securities assets as early as the 3rd or 4th quarter of this year. Remember, the Fed recently ended its purchase program in which it purchased $1.25 Trillion in Mortgage Backed Securities to help lower home loan rates and stabilize the housing sector. Since the program ended, the market has been very volatile. Despite the fluctuations, rates remain good overall, but once the Fed starts to sell some of their huge holdings, rates will likely rise as even more supply comes into the market.

The heat is on for those who are out shopping for homes right now - as the Homebuyers Tax Credit is about to come to an end.

Last November, the government expanded and extended the new Homebuyers Tax Credit. According to the program, first-time homebuyers are eligible for a tax credit of up to 10% of the purchase price of the home, with a maximum credit of $8,000. And current homeowners are eligible for up to $6,500.

Although military personnel may qualify for a special extension, the vast majority of homeowners must have contracts in effect no later than April 30, 2010 and must close no later than June 30, 2010 to qualify for the credit.

This means that homebuyers now have less than one week to get their paperwork going to qualify for this credit, before it goes away!

Here are some important details about this tax credit.

Dollar-for-Dollar Benefit

The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction" or reduction in tax liability that would only reduce $1,000 to $1,500 when all was said and done.

So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Even Better... It's Refundable!

Remember, because it's a tax credit, it's refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability.

For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

What are the Income Caps?

Single tax filers with incomes up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers with incomes of $145,000 and above are ineligible.

Joint filers with incomes up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers with incomes of $245,000 and above are ineligible.

What's the Maximum Purchase Price?

The Colony, Park City  -  Announcing a new property on the market at 219 White Pine Canyon Rooad, a 9,052 sq. ft., 10 bath, 6 bdrm, "Mountain Ski Home" located right on The Canyons Ski Resort slopes.  Quality finishes and magnificent views.  MLS® $6,800,000 - Fabulous Deal.

Property information

Property Website: www.ColonySkiHome.com

Just got the October Issue of Ski Magazine in the mail.  Each year they survey their readers for the best ski resorts in the US and Canada.  And, the results were no surprise.

Deer Valley was rated number 1 overall again (3rd year in a row).  And, was rated number 1 for  Grooming, On-Mountain Food, Lodging, Dining, and Service.  (Eat your heart out Vail!)  I've got to admit a certain prejudice for the resort since I live here, but I think they really deserve the award.  The staff goes out of its way to make you're time on montain as a great as it can be ... from valeting your skis when you pull up to  free overnight storage (if you want your skis waxed its $5) to lifties that keep the lift areas smooth (and always give the chairs a bump if you need it) to perfectly groomed slopes (and nice power and trees in Lady Morgan if you want it) to great food (nothing beats Deer Valley's Turkey Chili on a cold, crisp moutain ski day).  The instructors are also great if you need lessons or want someone to take the kids for the day.  And, not least, the fact that they limit the number of people on moutain ... it make you feel like a VIP.

Park City Mountain Resort was rated number 4 overall (right behind Vale).  And, was rated number 1 for access...you can basically pull into the parking lot (less than 30 minutes from Salt Lake Airport), strap on the skis, and be skiing greatest snow on earth in less than 15 minutes.  Park City Moutain Resort also allows snowboarders (which Deer Valley doesn't ... that could be a plus or minus depending on what you want).  They also have night skiing and a top-notch ski school (check out the Signature 5 program -- 5 kids per class maximum if you don't want to go the private lesson route. Plus, it is right in downtown Park City ... so, lodging, night life, dining, and shopping is easy to get to.

Rounding out the pack of Park City area ski resorts is the Canyons ... ranked number 20.  We actually decided to get a season pass at the Canyons this year (along with our Deer Valley renewable 10 pack) ... their military discount on season passes was just to great not to take advantage of (I'm a retired Air Force LtCol).  I love skiing the back areas of The Canyons the conditions are usually awesome and slopes uncrowed.  The downside it can be a bit time consuming to get across the mountain but you have lots of open glade, deep powder skiing and are rewarded with no crowds.  The one fault I've found with The Canyons (in the past) was with their grooming -- on the slopes and the lift areas.  We're all hoping that Talisker (high end property developer who recently bought The Canyons) will take that service up a notch because The Canyons has some of the best terrain in the country and it would only take a bit of management focus to bring the service levels up to Deer Valley and Park City Mountain Resort.  (Note: I'm probably being a bit picky because we get so spoiled at the other two resorts in town ... The Canyons is still a cut above most of the other resorts I've been to.)

And, to top it all off  ... the National Oceanic and Atmospheric Agency is predicting an awesome ski season (see my other blog entry).  So, come out prepared for great snow conditions and the best vacation you can  have.  (Or, be like us ... dump the rat race and come out to live permenantly -- we did that 8 years ago and haven't looked back.)

The National Oceanic and Atmospheric Administration (NOAA) is the government organization that analyse and predict weather patterns.  They're saying that we are in an El Nino pattern through this ski season.  Historically, El Nino has meant large snowfalls in the Rocky Mountain regions (includes Utah).

So, keep your fingers crossed ... we could be in for a winter like we had a couple of years ago when it snowed multiple times every week and we had awesome powder conditions.all season long.  So, when you come out to Park City this year, make sure you bring your fat boy skis along.

Old Town, Park City  -  Announcing a price reduction on 301-1637 Short Line Road, a 600 sq. ft., 2 bath, 1 bdrm single story. Now MLS® $239,000 - .

Property information

The Park Record (Park City's local newspaper) published an informative article that I thought would be useful for our clients (see below).

My take on the market is that it is slow compared to our historical sales but is improving.  During the first 6 months of 2009, we saw a dramatic slow down in sales with new properties coming on the market out numbering sales by 2 or 3 to 1.  Recently (July & August) in our office, we've seen that drop to close to parity with new listings only slightly out numbering sales.  But, those sales are occuring within specific price brackets and criteria.

Essentially, properties under $500,000 and over $2,500,000 are selling ... in between is extremely slow.  I think much of this has to to with the availability of financing (for the under $500K sales) and the fact that most buyers over $2.5M are paying cash.  In fact, more properties over $3M have sold year to date than all of 2008. 

The problem with many condominum sales is that they are considered by lenders as condo-hotels.  A condo-hotel is generally one that has a front desk that checks visitors/renters into the property -- just like in a hotel.  There are a few local lenders that will make loans on these types of condos, but most major lenders won't (I can help with this ... just give me a call).

But, buyers are looking for deals and the properties that sell reflect that attitude.  Basically, if the property is priced competively with the current market then it has a reasonable chance of selling.  Some of that market price is driven by distressed property sales.  The reality is that appraisers are now using short sales in their appaisals and those short sales are impacting what lenders will loan on a property -- thus, setting market value.  Sellers who are unwilling to take current market conditions into account end up with their properties just sitting ... those that do, have a high likelyhood of a sale.

If you're a buyer, there are some real investment opportunities out there with both property prices and interest rates down.

If your a seller, make sure you set the price of your property to reflect the current market ... when we do a listing presentation, I'm always careful to provide the seller with the full spectrum of market conditions ... so, they can make an informed decision on where they want the price point for their property to be placed.  This includes not only an anlysis of the price points of current transactions, but also where the buyer activity has been.  (It is kind of like fishing ... if you don't have your line at the depth the fish are at, you won't get a bite.)

Read the article below and I hope it helps in your buying or selling decisions,

Nick Coleman
435.640.7781
Summit Sothebys International Realty

Mid-year realty report bleak for condos and vacant land
Single-family home prices still holding, increasing
by Andrew Kirk, OF THE RECORD STAFF
Posted: 08/11/2009 06:14:14 PM MDT

While real estate experts insist the bottom of the market is near, if not already past, the mid-year report from the Park City Board of Realtors shows sales were off through the first six months of 2009.

The Report

The board reported Friday that total real estate transactions in the greater Park City area, which includes Summit and Wasatch counties, totaled $317 million in the first six months of 2009, down about 50 percent in total sales compared to the same period in 2008.

The figure is down about 75 percent from the peak period of 2007.

Total transactions in the first half of 2009 fell to 403, down about 45 percent compared to the 731 in the first six months of 2008.

As a percentage of total volume sold, sales of single-family homes strengthened, making up 64 percent of all sales compared to 42 percent of sales in the same period in 2008. Condominium sales fell to 28 percent of the total volume in the first half of 2009 compared to 42 percent the previous year. Vacant land sales continued to decline.

Single-family home prices in Park City proper continued to rise, but again, board president Lincoln Calder said the numbers are skewed by low sales volume. The median sales price for single-family homes sold in the Park City limits during the first half of 2009 was $2.3 million, up 18 percent compared to $1.9 million a year ago. In the Basin, the median sales price increased to $729,000 in the first six months of 2009, up from $700,000 last year.

Meanwhile, single-family home prices fell in the Heber Valley 12 percent and in Kamas 9 percent. The median sales price for condominiums in Park City fell nearly 30 percent and in the Basin, 31 percent. Those sales were 95 percent of all condo sales in the two counties.

In Park City proper, only five parcels of land were sold in the first six months of the year, and their median price was 36 percent less than land sales in the first half of 2008. In the Basin, the median price for land fell 56 percent.

The Analysis

Calder warns that comparisons to 2007 should be taken with a grain of salt since that year also saw many transactions completed for sales that were negotiated during the previous two years.

The numbers for single-family homes are great news when compared with other resort communities he counted. Some of those towns are down 80 percent, he said.

The economies of Park City and the Wasatch Front have always benefited the community. Park City is a town where people can live and work year-round, making it an ideal place for a permanent residence, he said.

"Park City as a product is a great thing and that's our biggest strength," Calder said.

The decline in condo sales is largely due to the credit crunch. Many condos in Summit County are vacation properties of owners. Until buyers in other parts of the country begin to feel more comfortable about the value of their current properties, they're less willing to purchase new ones, he said.

Also, the lending requirements for vacation properties have become stricter. Some even refuse to lend if there's a chance the condo would end up in a nightly rental market. Just the hint that an owner might need outside help to make mortgage payments could upend a deal. Lending requirements were too loose before, and this is an instance of the pendulum swinging too far in the other direction, Calder explained.

Land sales are slow because there isn't a lot of available land left in Park City, he said.

Calder confirmed that declining median sales prices for condos is a general trend, and there's no way of knowing when the bottom has really been hit. But he thinks it was back in February of this year and he's optimistic.

Broker Jess Reid echoed those sentiments.

"I agree it's going to be tough the rest of this year for real estate. But we're on a comeback," he said Monday.

As volume and transactions pick up, a lowering of prices is a natural reaction as owners realize they need to match or beat what their neighbor got in order to sell, he said.

Over the next few months he said he'll be watching some newer condominium properties to see how well they sell. If the developers have trouble closing, that might prolong the pricing slump.

Park City, where else would you want to be in the winter.   Nothing could be better then skiing or boarding down a fresh powder slope on a bluebird day at one of Park City’s Ski resorts.  There are three world class resorts in town.   Deer Valley (ski only) voted the number 1 resort by Ski Magazine for 2008, Park City Mountain voted number 5, and The Canyons (Utah’s largest ski resort) came in at number 13 all good reasons to stay and play in Park City.  All three resorts offer both group and private lessons to enhance your ability on the slopes.  Lessons are available for all ages with special kids programs so they can have a fun filled day while you are out cruising the mountain in search of untapped terrain. 

If you have the energy after a day on the slopes or want to take a day off the hill there are plenty of other winter activities in the area.  Park City Mountain has a tubing park called Gorgoza Park which is located just off of Interstate 80.  They offer lift served tubing and also mini snowmobile rides for kids.  Soldier Hollow, located in Midway, also has a tubing park with the longest lanes in Utah.  Both parks have nighttime tubing hours.  Soldier Hollow, site of the 2002 Olympic Biathlon, offers an Olympic Biathlon Experience, as well as snowshoeing and cross country skiing in addition to tubing. 

Cross country skiing is also available right in town at the Park City Golf Course with trails meandering by the White Barn along State Route 224.   White Pine Touring rents cross country skis and sells passes for their well groomed and maintained 20K course.  There are different trails for all levels of cross country skiers.  White Pine Touring also has Telemark ski rentals for those adventuress enough to tackle the ski slopes or the backcountry.   They also offer snowshoe rentals which is a fun way to explore the outdoors.

For thrill seekers there is the bobsled ride at the Utah Olympic Park site of the 2002 Olympic Games.   You can tour the ski jump hill or ride the Xtreme Zipline the world’s steepest.   The Olympic Park also has a Snowzone for sledding and head first air boards.  For those non-thrill seekers in your party the park does offers two fine ski museums.  The Alf Engen Ski Museum and the 2002 Eccles Olympic Museum give a good overview of Utah’s ski history and the 2002 Olympic experience.

If you are looking for motorized fun, snowmobiling should cover that.  There are several snowmobile outfitters in Park City which offer a variety of adventures in and around the area.  Some have access to private lands and others offer tours in the Unita Mountains. 

What vacation would be complete without a sleigh ride.  The Boulder Mountain Ranch, Rocky Mountain Sleigh Company, and the Snowed Inn Sleigh Company offer a variety of rides and dinner options.  The Snowed Inn Sleigh Company’s restaurant is located right on Park City Mountains slopes.  The Viking Yurt located on The Canyons Resort offers snow cat pulled sleigh rides.  They also offer tour nights where you can snowshoe or cross country ski in addition to dinner.   If you want a little adventure you can always try the Ski Dating where you and your date strap onto a pair of tandem skis and go out for a run.

Promontory, Park City  -  Announcing a price reduction on 2658 Cliffrose Court, a 9,348 sq. ft., 6 bath, 5 bdrm 2 story located on the 7th Fairway of the Pete Dye Golf Course. Now MLS® $3,490,000 - Reduced 1.5M -Bring Offer.

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I recently attended a seminar , hosted by the developers of The Silver Strike Lodge, on the Real Estate Market conditions.  The seminar speaker was Criag Thomas, an economist with CitiGroup (had also worked for Moody).  He provided a lot of insight on the overall ecomomy and the future trends in Real Estate.  He and a number of other economists see housing prices stablizing in 2009 and price increases starting in 2010.  Following is a synopsis provided by the host of the seminar :

Uncertainty that individuals feel over their current wealth status following the economic shocks of the past year have created a near paralysis in real estate buying activity.

As elements of uncertainty evolve to a state of greater clarity, prospective buyers will begin to consider buying opportunities.

Craig Thomas, an economist with CitiGroup, gave a lecture last week that was sponsored by The Developers of The Silver Strike Lodge and it helped many who attended gain perspective into the economy and our current real estate dilemma. The following is a partial summary of many of his talking points and some of my own thinking that you might find useful as you begin to interact with your clients this winter.

The Elements of Uncertainty

Element                                    Status

The New President                   Obama won the election and he has nearly finished appointing his new cabinet and the majority of our population is pleased with his appointments. A smooth transition from Bush to Obama is occurring.

The Congress                           Democrats have a majority in the House and the Senate but not a super majority in the Senate. This means that while change will come it will likely be well considered first.      

The Bailouts                             Some large financial institutions have been allowed to 

(Financial Institutions)               fail while others have been saved. The worst is probably over and stability appears to be returning.

The Bailouts                             Bush has committed funds for a loan that will provide a

(Auto Industry)                         bridge allowing the industry to restructure and has prevented its collapse, at least temporarily. Obama will most likely prevent a collapse.

Mortgage Rates                        The Government has taken measures to cause rates to lower which will have the effect of stimulating many capable buyers to buy.

The housing bubble has burst in markets such as Florida, southern California, Las Vegas

and Phoenix. The bubble actually began to burst in 2006. After 3 years of agony we are

well past the mid point of the real estate crash. Many variables that must occur in order

for a recovery to occur have begun to adjust positively.

Variables that Must Adjust

Variable                                   Status

Credit Availability                     Is beginning to loosen

Mortgage Rates                        Are coming down

Housing Prices                          Are adjusting downward and that creates affordability which stimulates sales.

New Housing                           Housing starts are down significantly which will cut supply

Construction                             of housing and that should accelerate existing home absorption rates.

Recession                                 It is acknowledged by the Government that we have been in a recession since the end of 2007. Many economists believe that positive growth will occur by the end of the 3^rd quarter of 2009.

Personal Savings                       From the early 1990’s until the 4^th quarter of 2006

Rates                                        individual savings rates declined. Since the 1^st quarter of 2007 individual savings rates have accelerated and are quickly approaching 1990 levels. People with cash can afford to borrow with the more stringent borrowing guidelines now in place.

Population Growth                    Growing populations in a Country translate to growing

Rates                                        economies. The U.S. growth rate is healthy compared to much of the rest of the world. Growing populations are consumers of real estate.

Portfolio                                   With the recent Stocks and Bond price declines many

Re-Allocations                          investors are adjusting their portfolios of investments to include more real estate in order to have a more balanced and safer portfolio.

Regional                                   The Rocky Mountain region of the U.S. is the healthiest

Economics                                economic region in the Country. Salt Lake City and Park City are among the healthiest cities in the region.

In the past weekend’s addition of the Wall Street Journal, Columnist Peggy Noonan  wrote an opinion piece about our Country and its long term prospects.

                        “This is a good time to remember who we are. We are the largest and most technologically powerful economy in the world, the leading industrial power of the world, and the wealthiest nation in the world.” There’s a lot of ruin in a nation,” said Adam Smith. There’s a lot of ruin in a great economy, too. We are the oldest continuing democracy in the world, operating, since March 4, 1789, under a vibrant and enduring constitution that was formed by geniuses and is revered, still, coast to coast. We don’t make refugees, we admit them. When the rich of the world get sick, they come here to be treated, and when their children come of age, they send them here to our universities. We have a supple political system open to reform, and a wildly diverse culture that has moments of stress but plenty of give.”

                        “The point is not to say rah-rah, paint our faces blue and bray “We’re No. 1.” The point is that while terrible challenges face us – improving a sick public education system, ending the easy-money culture, rebuilding the economy – we are building from an extraordinary, brilliant and enduring base.”

We still have a long way to go but there is light at the end of the tunnel. Uncertainty is diminishing and the variables that will manifest in a recovery are beginning to take shape. Those with vision and fortitude will begin to explore opportunities sooner rather than later and when they identify an opportunity, they will buy.

Star Harbor, Heber City  -  Announcing a price reduction on 1583 Alpine Ave, a 6,200 sq. ft., 6 bath, 5 bdrm 2 story. Now MLS® $1,395,000 - $300,000 Price Reduction.

Property information

At our staff meeting this morning, we were discussing the current market trends.

Overall sales volume is down 41% over May 07 (this is close to the national averages).  And, we have about 1,000 more properties on the market.  This might sound bad, but not if you are a buyer.  Donald Trump said it best last night on Larry King Live ... it is a great time to be a buyer.  Sellers are more willing to negotiate,  mortgage rates are still down (don't expect this to last), and there is more selection.  Donald Trump also thought we were at the bottom of the national market.

I tell my buyers that it is OK to make offers they fell comfortable with ... in other words, an offer that they feel takes a downward risk out of the purchase.  And, sellers are likely to seriously consider those offers.

So, the take away is:

• Buyers: Now is the time to find dream home and get a great mortgage rate, now is the time to strike.  If you wait, you get hit with a double wammy -- less flexible sellers and higher interest rates. 
• Sellers: price your home competitively and make sure it shows well.  There is lots of competition for buyers and you need to make your home attractive to them.

The continuing appreciation of home values in the West -- and especially Utah -- is not an anomally.  Why?  Because people always need a place to live.  Real estate has historically been less volatile than other investment mediums like the stock market. And, over the long term, it has provided a great return on investment.

If a buyer (according to NAR) where to put $10,000 on a typically priced home at typically appreation rate of 5%, they would see a return of $110,300 after 10 years.  Compare that to the stock market appreciating at 10% annually where they would only see a return of $23,600.

From a historical perspective, if you keep your home 6 to 10 years (vice looking for a quick "flip" profit) that investment is going to pay off.  The housing cycle we're seeing now is nothing new.  Remember back in the early 80s and 90s when some areas of the country experienced the worst downturns of the previous 25 years. This caused localized weaknesses and job losses.  But, if you purchased a home then and sold it today you would have seen a great return on your investment. 

Nationally, Real Estate seems to be trending downward -- at least from what you read in the media.  But, there are areas that seem not to be following that trend.  The Park City real estate market has cooled down ... but, it is still healthy with prices remaining stable in the first quarter of 2008.  Following is a press release by the Park City Board of Realtors that provides some interesting data on the Park City market. 

PRESS RELEASE

25 April 2008 (Park City) - The most exclusive real estate in Utah continued to hold its value as the median price of a single-family home sold in the greater Park City area, which includes Summit and Wasatch counties, in the first quarter remained at $649,140, nearly unchanged compared to a median price of $650,000 in the first quarter of 2007, according to a report today by the Park City Board of REALTORS.^®

Within the city limits of Park City, the median home price was $1.76 million for single-family homes, down 11 percent compared to $1.98 million a year earlier in the same quarter.  The median single-family home price in the Snyderville Basin was $742,450, down 4 percent from $771,000 in the first quarter of 2007. In the Kamas Valley, the median home price was $285,000, down 9 percent from $314,450 a year ago. Homes in the Heber Valley, however, saw median prices increase 9 percent to $359,900 compared to $329,000 a year ago.

"We have seen price adjustments going on in the market and sellers need to be realistic in their pricing," said Tyler Richardson, president of the Park City Board of REALTORS.^® "For buyers, it shows there are some good values out there."

Richardson added that having only one quarter of statistics gives limited information on specific market areas. "I would urge buyers and sellers to contact a local Park City REALTOR® to get a full market analysis on what is happening in their area of interest," he said.

The median price of condominiums sold in the first quarter in Park City proper climbed 13 percent to $1.05 million compared to $925,000 in the first quarter of 2007. This rise was largely due to closings of newly constructed high-end condos with ski-in/ski-out access.  Richardson noted that, "Location and lifestyle still hold sway, showing, once again, that buyers come to Park City for lifestyle reasons rather than purely economic reasons."

Sales of single-family homes in the greater Park City area, which includes Summit and Wasatch counties, totaled 113 sales in the first quarter, compared to 209 sales in the first quarter of 2007. Fewer sales mean sellers need to be flexible in pricing their properties.

Condominium sales in the first quarter in the greater Park City area totaled 136 transactions compared to 247 sales a year ago. The median condo sales price in the first quarter was $533,900, down from $550,000 in the same period last year.

"There is an opportunity for buyers to find a great value, but they need to work closely with a local Park City REALTOR^® to do so," Richardson said.  "There has never been a better time for locals to make a lateral move within our market.  It is a good time for a family to move up to a larger home, an out-of-town family to move into town or for empty nesters to scale down to a smaller home or condo.  With interest rates still low and the temporary increased mortgage loan limits, it is even more of a good time to make a move."

The good news for both home buyers and home sellers is that conforming loan limits have been raised to $729,750 for properties in Summit County, considered a high-cost area. The new loan limits, part of an economic stimulus package signed by President George W. Bush in February, are temporary and will expire at the end of this year.

According to a leading Park City lender, "Not all counties received this higher increase.  A conventional, conforming loan today (loan amounts less than or equal to $417,000) with standard closing fees would carry about a 6 percent interest rate on a 30-year-fixed. A jumbo loan would be about 7.25 percent. The agency, high-balance conforming loan (loans at $417,000 - $729,750) would be about 6.5 percent."

The Park City Board of REALTORS® also reported that along the Wasatch Back, sales of single-family homes in the Heber Valley were down 44 percent - 41 transactions in the first quarter of 2007 compared to 23 sales in this year's first quarter. In the Kamas Valley, there were seven sales in the first quarter compared to 20 sales a year earlier. 

"Our area market as a whole has seen no change in the median price from the first quarter of last year to this year's first quarter," Richardson said. "Park City real estate is weathering the storm very well. While the volume of transactions is down we are not seeing the dramatic fall in prices and only a slight increase in foreclosures. In general most of our sellers are strong and have the wherewithal to hold through during a weaker market, helping price stability."