Rob Alday & Rachel Peterman

While Glenwild continues to sizzle, Promontory is a bit slower...just as one might think with the cloud of organization hanging over the development.

Here is a snapshot of Promontory YTD (6/10/08):

-111 lots on the market...which is just an absurd number to say the least.
-2 lots have closed at $310,000 and $705,000
-7 lots are pending sale.

The homes and cabins fair a little better with:

-68 on the market at an average price of $2.9m and average price per sq ft of $509...which is still holding up.
-3 sold at $1.7m, $1.8m, and $2.3m and their average ppsf is $518.
-15 under contract at an average of $2.22m and average price per sq ft of $495.

There is a lot of inventory on the market out there, and prices will probably continue to come down this summer. Hopefully a deal will be in place by the first of the year for how the development will move forward...all signs point to yes, that it will be resolved by then.

With that being said I truly believe that this summer/early fall will be the best time to buy out there since there were no paved roads. The real estate down turn coupled with the Promontory bankruptcy fiasco, will bring out some golden opportunities in the development. I am telling people to look now and identify a few lots or homes that they would want to purchase. Maybe wait a month or so, then start putting in offers and see what flies. There will be desperate sellers. In a few years, we will all look back and wish we would have pulled the trigger.

There is a reason that all 3 parties are trying to come up with deals to get the development from the others...Promontory will become one of the best communities in the West after this re-organization takes place, and the market turns back around. Again Dr. Yun is predicting 30% to 50% appreciation for us in the next 5 years! So contact us if you are interested in getting some information on Promontory real estate. robalday@yahoo.com or 435.729.0022

Seriously folks.....this is mayhem!

Today it snowed in Park City for the whole morning!

What is this? Can I blame Global Warming? Or El Nino?

Weather like this makes me nervous....I have a vision of that movie "The Day After Tomorrow" where the weird weather starts slamming the world and then woooooosh! the USA freezes over!

But I guess I could be exaggerating....(what's new?)

Regardless, snow on June 11th is something to talk about...there is no denying that fact.

Then again - it is sunny now....(goofy mountain weather) really sunny, and I'm thinking of going for a hike in a few minutes.

That's the trade off of living in the mountain tops....snow in June vs. hiking in some of the most sought after scenery in the country at the drop of a hat

I love it here - despite the June-uary we're having....and I'm sure you would love it here too! Summer (if it ever officially comes) in Park City is amazing and I thank my mostly-lucky-stars almost everyday for the fate that brought me to this wonderful place.

But please, if anyone who's in charge is listening....can we please have our summer now....I'm ready!

Here's some interesting information regarding what the National Association of Realtors thinks about a temporary tax credit to provide incentives to home buyers into getting a move on....

hmmmmmmmm.....

NAR says a tax credit would get buyers off fence

A temporary tax credit would be the best incentive to move hesitant home buyers into the market, the NATIONAL ASSOCIATION OF REALTORS® told Congress on Thursday.

NAR said the tactic has been successful before; A 1975 temporary tax credit helped to "clear an over-supply of newly constructed homes during an economic downturn."

"We urge Congress to move quickly to conference and final passage of this tax incentive," said Jim Helsel, NAR treasurer and a partner in RSR, REALTORS®, in Lemoyne, Penn. "Failure to act quickly could further stall the housing market, hurting many of our members, who are predominantly small businesses owners and self-employed individuals."

Testifying for NAR before the House Committee on Small Business, Helsel said there are "three critical features for an optimal home buyer tax credit."
The credit should apply to all residential real estate - not solely foreclosed properties.
It should be temporary and only apply for a short period of time.
It should provide higher income limits than those the House has imposed, particularly for single individuals.

"If these measures are put in place, many individuals who are sitting on the fence will take steps to buy a home. This would not only help homeowners, buyers and sellers, but also it could expand activity as individuals furnish, paint and improve their homes. This would help boost the nation's economy," Helsel said.

NAR also discussed the importance of updating the "passive loss" rules that were enacted in 1986 to bring small investors back to real estate. The passive loss rules were not indexed for inflation, making the tax incentive irrelevant in most cases, Helsel said.

While things still look to be hot at Glenwild in the housing market, we are still seeing some good deals on lots in the development to acquire. Please contact me for more info on those robalday@yahoo.com or 435.729.0022.

In the past few days we have seen 64 properties come on the market, 14 go under contract, and 15 close. Of note:

NEW ON THE MARKET:
-Black Bear Lodge unit in Upper Deer Valley's Silver Lake Village at $2.195m; 4bd/6ba, 3575 sq ft, and $613 psf is not bad for Silver Lake....especially with being 50 steps to the slopes, and having conceirge service, a suburan shuttle, pool, and workout facilities.

-Ridgepoint townhome which is a fixer upper in Upper Deer Valley and has great views for $1.225m, 3bd/3ba, 2137 sq ft, and at $573 psf this could be a good investment with a little rehab.

-Aerie home at $1.598m; 4bd/3ba, 5862 sq ft, and at $272psf you would not be able to buy the lot and build this one for less that that...this one also has AMAZING views!

PRICE CHANGE:
-Parkwood Place condo in the Old Town development closes to the Town Lift raised the price on two of their preconstruction units by $50,000 on one and $390,000 on the other!

-Ontario Lodge unit in Upper Deer Valley that has been on the market a year has come down from $1.025m to $795k for a 3bd/4ba, 2019 sq ft condo....this guy must need OUT!

-Promontory spec home came down half a million dollars from $3.495m to $2.995m! This Sunset Ridge home is 5bd/7ba, 7800 sq ft, and at $383 psf is under valued at Promontory....could be a good pick up for the right person that wants Promontory for the long term.

PENDING:
-Deer Lake Village town home in Lower Deer Valley at $1.25m; 4bd/4ba, 2035 sq ft, and at $614 psf that is pretty strong for Lower Deer Valley prices.

CLOSED:
-Silver Bird condo in Upper Deer Valley that was a fixer upper at $900,000; 3bd/4ba, 2348 sq ft, and at $383 psf for Upper Deer Valley is drastic! This guy looked like he need to bail too.

(Just a side note, if you look at the two above transaction that sums up our market....in some places we are seeing strong numbers and in others there might be a fire sale. A total mixed bag.)

-4 Silver Strike units in Deer Valley's Empire Pass all at over $1150 per sq ft.

Here's some great rules to share with your buyers inorder to get them in the right state of mind for the process...

5 New Rules for Home Buyers

Surviving and thriving in the real estate market these days means following a whole new set of rules.

Here are five imperatives for those who want to master the home-buying game. Explaining these items to your customers to help you win friends and sales.

1. Gaming the market doesn't work. There's a chance that the home you buy today will be worth less next year. So instead of trying to time the market, drive a hard bargain for a home you really love.

2. Real winners get the lowest mortgage rate. Financing is getting more expensive. Celia Chen of Moody's predicts rates will hit 7 percent in mid 2009.

3. Jumbos are a big bargain. A new law temporarily allows Freddie Mac and Fannie Mae to buy mortgages as big as $729,750, which is keeping the jumbo rates down. The deal disappears at year-end.

4. Good schools and resort area count. Neighborhoods with highly rated schools are holding their value better than most, according to a recent study by real estate site Trulia.com. We are also seeing that properties in the nicer resort area (i.e. Deer Valley) are moving better and holding value.

5. Honesty is the best policy. Be upfront about your commission and consider letting the buyer keep any incentives offered by the sellers.