Deer valley report 2014 by Mark Sletten

Deer Valley Real Estate Report ® 2014

Berkshire Hathaway HomeServices Utah Properties Mark Sletten

Robin Sletten

Kimberlee Porter

(435)6 640-0930 msletten@bhhsutah.com

(435) 640-0218 robinsletten@gmail.com

(435) 640-5445 kporter@bhhsutah.com

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Deer Valley Real Estate Report® 2014 By

Mark Sletten Real Estate Group This update is intended to give the reader a thorough overview of the Deer Valley real estate activity for 2014. The report is broken down by area (Empire Pass, Upper Deer Valley, Deer Crest, and Lower Deer Valley) and property type (condominiums, homes, and building lots). Please note that transactions where sales prices are “Undisclosed” in the Multiple Listing Service’s database are discussed but not mentioned in the actual calculations of dollar volume, number of transactions, median price, etc. and private residence clubs are omitted altogether. As you can imagine, the data itself is voluminous and it was not practical to include every detail within this Report. The following narrative summarizes the data. Should you want to see specific information by area, property type, or in total, just let me know and we’ll send a copy to you. Areas are addressed from higher to lower elevations, beginning with Empire Pass. Let’s begin with the overall picture. Data from the Park City Board of Realtor’s database shows that for all real estate types throughout the greater Park City area, but not including the Jordanelle, Heber City, Midway and Kamas areas, 2014 saw $1,334,090,666 in sales spread over 1,471 transactions. This represented a 7.1% increase over 2013’s dollar volume and a 1.8% decrease in transactions. The results in Deer Valley surpassed the market’s overall results with over a 3% increase in the number of transactions and a 12.98 % increase in dollar volume (cumulative condominiums, homes, building lots in all four Deer Valley areas. Buyers are telling us a number of things relative to their interest in getting into the Park City/Deer Valley real estate market. Those include:   

Data indicates we are well past the bottom of the market; Interest rates remain historically very low; Inventory is shrinking and the constrained supply of property in combination with rising demand is bringing about price increases;  Time with the family is at a premium and a mountain vacation home is a place where the extended family can be together;  The property becomes a legacy asset for future generations.  The “Vail Effect” is real and having a positive impact on the resort character of our community as a whole. Everyone has a different perspective but the six points above are things we hear consistently from our clients.

This last point about the “Vail Effect” is worth elaborating upon. It doesn’t matter if you are a Deer Valley skier, or a Canyons skier, or a PCMR skier -- or you don’t ski at all as Vail’s impact on our community as a whole will be immense. In the press release on Monday December 8th, Vail Resorts detailed its plans to invest $50 million in the Park City Mountain Resort in the coming year, the largest capital program ever in the history of the United States ski industry. This includes the interconnect gondola that will connect PCMR and Canyons, creating the largest ski and winter sports area in America. In fact, an eight passenger gondola was just approved by the Summit County Planning Commission at its February 10th meeting, and goes before Park City’s Planning Commission on February 24th where passage is expected. In addition to being looked at as a “ski lift”, it is also a needed transportation alternative so that Canyons skiers who want to visit PCMR, and PCMR skiers who want to visit Canyons, can take the gondola versus driving their cars. As Vail’s Epic Pass holders discover this area, if they have an interest in real estate, they will be attracted to Deer Valley as it best represents the quality they have come to expect in Vail, Beaver Creek, and Bachelor Gulch. So at the end of the day, from a real estate perspective at least, we believe Deer Valley properties will be the biggest beneficiaries of the “Vail effect.” The geographical property breakdown which begins on the next page of this Report.

EMPIRE PASS AREA Empire Pass Condominiums Sales & Contracts - There were thirty-three closed transactions with fully disclosed sales prices, and another five which occurred quite recently and are under contract and awaiting closing. In addition there were five which closed with undisclosed sales prices. The closed and disclosed transactions totaled $104,572,400 and ranged in price from $1,500,000 for a 4-bedroom 3-bath unit in Arrowleaf, to $4,400,000 for a 5-bedroom 7-bath town home in The Belles. The median price was $2,758,000 and the average was $3,168,861. Comparatively, twenty-two condominiums in Empire Pass sold in 2013 for a cumulative total of $67,021,500. Active Listings – With sixty active listings in Empire Pass, almost all developments in the Empire Pass area are represented with properties currently on the market, although notably none are short sale or bank owned properties. The developer owned units are in Montage, Nakoma, and The Belles. Also of note, as of December 31st, twenty-five of the active listings were in Montage. Since January 1st Montage has sold six Residences, two of which have already closed, so of their eighty-one total Residences, only nineteen remain. Empire Pass Homes Sales & Contracts - One home sold in 2014, a 4-bedroom with 5,030 square feet in the Nakoma development which closed in April at $4,905,000. Another home, also in Nakoma is under contract. It has 5 bedrooms in 5,538 square feet and its list price was $5,400,000 (we won’t know its actual sale price until it closes in escrow). We believe the overwhelming success of Stein Eriksen Residences in 2014 (discussed in the Upper Deer Valley section of this Report), was a significant contributor to the decreased home sales which occurred last year in Empire Pass. Active Listings - There are thirteen homes on the market in Empire Pass ranging in price from $5,950,000 to $15,950,000. Six of the active listings are in The Belles, three are in Red Cloud, two are in the Northside neighborhood, and one each in Paintbrush and Nakoma. Empire Pass Lots Sales & Contracts - There was one Empire Pass lot sold in 2014 as compared with two sales in 2013. It was in the Red Cloud subdivision closing at $3,400,000. Comparatively, two lots sold in 2013, one in Red Cloud which closed at $4,625,000 and the other in Bannerwood which closed at $3,895,000. Active Listings – As of December 31st, there were four building lots in Empire Pass on the market, three of which are in Red Cloud (priced from $3,995,000 to $5,195,000) and one in the Bannerwood neighborhood which is priced at $3,650,000.

UPPER DEER VALLEY AREA Upper Deer Valley (AKA Silver Lake) Condominiums Sales & Contracts - There have been eighteen fully disclosed sales in 2014, plus another four where the actual closed prices were not disclosed. The total volume was 26,847,000 with a median price of $1,312,500 and an average of $1,492,611. A major factor in area sales was the impact of the Stein Eriksen Residences. In 2014 they put twenty-six of the condominiums under contract for a cumulative total of $105,530,000. Those will all close in 2016, as under Utah law, they can’t close escrow until the Certificates of Occupancy have been issued, in this case by the City of Park City. That said, all of the purchasers have put up a deposit equal to twenty percent (20%) of the purchase price and that deposit is now non-refundable, so these are all solid contracts. In 2013, there were twenty-nine closed and disclosed transactions for a total of $39,355,500, plus another four where the actual closed price was not disclosed. So when you add in the contracts in Stein Eriksen Residences to the actual closed transactions in 2014 in the Upper Deer Valley area, the total comes to $132,377,000. Given that the condominiums in Stein Eriksen Residences traded as high as $6,900,000, you can see why we made the comments we did in the Empire Pass section of the Report® above about it capturing a significant share of ski-in/ski-out home and condominium sales for the year. Active Listings - There are fifty-four condominiums on the market in Upper Deer Valley, ten of which are in the Stein Eriksen Residences. The least expensive is a 2-bedroom in Black Bear Lodge priced at $645,000, and the most expensive is in the Stein Eriksen Residences with 5-bedrooms and 6-baths priced at $6,900,000. Upper Deer Valley Homes Sales & Contracts - Nine sales occurred in Upper Deer Valley with disclosed sales prices. Pricing ranged from $2,086,500 for a 5-bedroom home in American Flag, to $12,500,000 for an 8-bedroom home in the Bald Eagle Club. One of the closed homes was in the Stein Eriksen Residences. Here, the developer finished a 5-bedroom home and it was sold to a third party for $6,975,000 and leased back for use as their model for the development. Another seven of the Stein Eriksen Residences’ homes were put under contract last year, bringing the total for their homes and condominiums to $162,720,000 in 2014. This emphasizes how much of the market Stein Eriksen Residence captured. Also, please note that much of the pricing differential in the Upper Deer Valley area is a result of some homes being ski-in/ski-out, while others are not – and there is a real premium for ski access. There was also one closing with “undisclosed” sales price bringing the total number of closed transactions in the area to ten for the year. Active Listings - There are twenty-seven homes on the market in the Upper Deer Valley area with prices ranging from $1,950,000 (3-bedrooms and 5-baths in American Flag), to $29,500,000 (12bedrooms in 22,000 square feet at 5000 Royal Street).

Upper Deer Valley Lots Sales & Contracts – No transactions occurred over the period as compared with one transaction in 2013. As noted in last year’s Deer Valley Report®, this level of activity has more to do with a lack of inventory than anything else. Active Listings - There are two lots on the market in the Upper Deer Valley area, one being in American Flag priced at $1,295,000, and the other in the Bald Eagle Club priced at $1,795,000. While not our listing, we can say without prejudice this Bald Eagle lot is the best value for a building lot presently on the market in all of Deer Valley.

DEER CREST AREA Deer Crest Condominiums Sales & Contracts – Ten sales occurred in Deer Crest in 2014 for a total of $20,951,000, up from the three sales which occurred in 2013. The average price as $2,095,000 and the median was $2,307,500. Of the ten sales in 2014, five were in the St. Regis with a range of $1,576,000 for a 2-bedroom to $2,725,000 for a 3-bedroom. Three of the sales were of units in Deer Crest Village priced from $1,050,000 (3-bedrooms, 2,518 square feet) to $1,325,000 (4-bedrooms, 2,829 square feet). By way of orientation, Deer Crest Village is located close to the base of the Jordanelle Gondola. The other two sales were in Deer Point which is a newer development just to the north of the base of the Jordanelle Gondola. It will have its own private access lift as it sits above the Jordanelle ski run. Here the two sales were made at $2,930,000 (4-bedrooms, 6,236 square feet) and $3,000,000 (5-bedrooms, 6,527 square feet) respectively. Active Listings - There are twenty-three units presently on the market in the Deer Crest area with twenty-one of those being in St. Regis priced from $1,250,000 (1-bedroom, 996 square feet) to $17,999,000 (yes that is correct and it is a 5-bedroom, 6,829 square foot Penthouse). As to the other two condominiums currently on the market in Deer Crest, both are in the Deer Pointe development where these 4- and 5-bedroom town homes are priced at $3,950,000 and $4,100,000 respectively. Deer Crest Homes Sales & Contracts - There were five disclosed sales for the year in Deer Crest with two where the actual sales prices were undisclosed. All seven of the sales were of homes with ski-in/ski-out access. The total volume was $28,200,000 with the average price being $5,640,000 and the median at $5,600,000. In 2013 there were two disclosed sales for the year, and the prices were $3,465,000 for a home in Snow Top (not ski-in/ski-out) and $7,750,000 for a ski-in/ski-out home in Deer Crest Estates. There was also one undisclosed transaction in 2013 and that home is located on W. Deer Crest Estates Drive. Active Listings - There are fourteen homes on the market in Deer Crest, all of which are ski-in/ski-out in the main Deer Crest area. These fourteen range in price from $5,385,000 to $21,900,000, with the median being $8,947,500.

Deer Crest Lots Sales & Contracts –Six lots were sold in 2014, three of which are ski-in/ski-out and the other three were in the Snow Top area (no direct ski access). The Snow Top lots sold for $679,000, $759,000 and $783,000, and the ski-in/ski-out lots in Deer Crest sold for $780,000, $925,000, and $1,425,000. The total volume was $5,195,000. For comparison, in 2013 there were nine lot sales in Deer Crest and Snow Top for a cumulative total of $9,585,000 Active Listings - There are nine lots presently on the market, all of which are in the main Deer Crest area meaning they are all ski-in/ski-out. The least expensive lot is priced a $1,495,000 and the most expensive lots are towards the top of Deer Crest near the Gondola landing and it is priced at $4,199,000.

LOWER DEER VALLEY AREA Lower Deer Valley Condominiums (AKA Snow Park) Sales & Contracts – Forty-nine condominiums sold and closed escrow with disclosed prices in 2014 for a total of $36,131,799 in sales. The average price was $737,382 and the median price was $712,500. Another two sales were made but those sales prices were not disclosed and another twelve are under contract awaiting closing. That makes for total sales for the year of sixty-one units. Comparatively, thirty-eight condominiums were sold in this area of Deer Valley in 2013, with prices ranging from $375,000 for a 1-bedroom unit in the Courchevel development, to $2,350,000 for a 3bedroom in the Black Diamond Lodge. The median price of the closed and disclosed sales in 2013 was $615,000. Active Listings - There are thirty-nine condominium units on the market in Lower Deer Valley priced from $405,000 (1-bedroom, 800 square feet, Courchevel), to $1,900,000 (4-bedrooms, 2,591 square feet, ski-in/ski-out, Black Diamond). The median price is $775,000 for a 2-bedroom in Powder Run. At this time last year there were fifty-one condominium units on the market in Lower Deer Valley. Lower Deer Valley Homes Sales & Contracts – Thirteen homes in Lower Deer Valley were sold in 2014, and another two are under contract awaiting closing. The price range was $1,300,000 for a home in the Solamere area of lower Deer Valley, and the high was $2,875,000 in Hidden Oaks. The median price was $1,855,000 and the average $1,833,462. Comparatively, there were twenty homes in Lower Deer Valley sold in 2013, although that was a banner year for the area as it represented roughly a 50% increase in terms of transactions over 2012. Active Listings – There are currently thirteen homes on the market throughout the various Lower Deer Valley neighborhoods. The least expensive is a 5-bedroom home in the Sun Ridge neighborhood priced at $1,575,000 and the most expensive is priced at $3,199,000 and is located in The Oaks

subdivision. Last year as the 2013 Deer valley Report was being written there were eighteen homes on the market throughout Lower Deer Valley neighborhoods. Lower Deer Valley Lots Sales & Contracts - Four lots were sold with prices range from $300,000 for a lot in Hidden Oaks, to $523,428 for a lot in Solamere. The total volume was $1,543,428 with the average being $385,857 and the median $360,000. Comparatively, in 2013 cumulative lot sales in the area amounted to $5,347,326 across eight transactions. As mentioned in the Upper Deer Valley section above, we believe this is attributable to a shortage inventory wise and not diminishing interest in this market segment. Active Listings - There are ten lots presently on the market throughout the Lower Deer Valley neighborhoods. The least expensive is in The Oaks priced at $450,000 and the most expensive is lot in Morning Star Estates which is priced at $1,085,000.