Resort Real Estate

 

 

With the stock market on a roller coaster ride and the national economy is turmoil, the resort Real Estate market continues to be bouncing around the bottom. Adding to the uncertainty is that the conforming loan amounts are set to lower on October 1st. Currently, in Park City, the conforming loan limit is $739,000 but will drop to $600,500 on the 1st of October. What this means is that buyers who purchase a home or condo that wish to obtain a loan greater that the $600,500 limit will now pay Jumbo rates, typically about .50% higher. While this may not seem significant, it significantly raises the mortgage payment and in some cases could prevent the borrower from qualifying. This has the potential to negatively impact the resort Real Estate market.

 

Year to year comparison for August seems to reflect the uncertainty with the economy.The number of single family homes sold was basically flat, 73 in 2010 and 75 in 2011. However, the average sold price was down 12.6% from $755,915 to $660,727. Condo sales, interestingly enough, were quite the opposite. 37 sales in 2010 and 44 in 2011. Average sold price increased 69.8%, from $502,907 to $854,004 in 2011. This is very encouraging as we transition from the summer selling season of homes to the  vacation property winter season.

 

September 15th and fall has arrived. The Maples have turned and the Aspens are just starting. There was snow in the Colorado Rockies last night and possibly high elevation snow in Park City this weekend. Time to get in ski shape!