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The Landscape of Real Estate in Park City

Moderated by Sabina Dana Plasse
Location Photography by Adam Finkel

As Park City grows and expands beyond its city core, and the area embraces more year round residents and new developments, real estate remains a hot commodity from legacy properties and new turnkey residencies, remodels to rebuilds. Seasoned professional real estate agents Maverick Bolger, JD of the Utah Luxury Group, Mark Rodeheaver of Berkshire Hathaway Utah Properties, and Brad Erickson of Park City real estate gathered at one of The Colony at White Pine Canyon’s most pristine mountain high estates to discuss the current Park City real estate market, offering sage advice and observations on how buyers and sellers can navigate this competitive market.

whj: WHAT HAS BEEN THE MOST SIGNIFICANT CHANGE IN THE PARK CITY REAL ESTATE MARKET WITHIN THE PAST YEAR?

MAVERICK BOLGER: Due to the NAR (National Association of REALTORS ®) cases, there has been a breakdown in collegiality. We’ve had this solid fabric of agents in town supporting the real estate industry for a long time, and there has been a different feeling in the atmosphere over the last year. There are sharper practices across brokerages, and the communication lines are not open like they used to be. The Park City Board of REALTORS ® is working hard, and there are a lot of individual efforts to mend that fabric to bring people back together. We’re trying to restore the feeling of what has always been a very relaxed, happy business marketplace.

MARK RODEHEAVER: Within Park City limits, demand has remained strong. However, in communities primarily occupied by full time residents, properties can be on the market longer due to lending conditions and interest rates, depending on location and views. Demand for ski homes and condos, particularly in Deer Valley, continues to be robust, with Deer Valley commanding a premium over Canyons Village. The most notable inventory change is the addition of the East Village at Deer Valley condominiums and single family lots.

BRAD ERICKSON: The most significant change in our market is the introduction of Deer Valley East Village, which is essentially tripling the size of Deer Valley and offering a whole new base village and out-of-town parking to access the slopes. We’ve reached an extreme scarcity level of developable land in Park City, and for the first time, we have limited new construction options for buyers in town. Other than Sommét Blanc and Founders Place, the last two new developments in Deer Valley, this event is triggering the movement of most of the new construction to the Jordanelle basin. I agree with Maverick that the sophistication of our market has changed incredibly, and the process is becoming more challenging for some to navigate. We are a major competitor for the other big Mountain West resorts. The process that we’re going through helping buyers and sellers requires a higher level of sophistication. It is not becoming easier to transact real estate in our market. It is more challenging.

whj: DEER VALLEY EAST VILLAGE IS A SIGNIFICANT DEVELOPMENT.

MARK: The East Village at Deer Valley marks a significant expansion of one of Park City’s most coveted ski resort communities, reflecting both the evolving demand for luxury mountain living and the continued allure of Deer Valley as a premier destination. While the location is set apart from Main Street Park City, the East Village will create its own village destination and draw from communities of Promontory, East Summit County, and Heber City.

MAVERICK: It’s similar to The Canyons Village, where you have 12 to 15 hotel pads and neighborhood pods draped across Deer Valley’s East Village base area. In addition, there is the lakeside density across the highway, accessed via a tunnel, and an enormous parking lot of 1,200 spaces for day skier use.

BRAD: It is. Grand Hyatt Deer Valley was wildly successful already, as they sold out all 55 residences. Marcella lots are all but spoken for. They’ve recently released Marcella Landing, Pioche condos, and Velvaere. The Tiger Woods golf course is in heavy demand, and placeholder reservations flew in.

MARK: In terms of golf, Marcella Ridge will be located closer to Heber City and approximately five miles from the East Village. There will be 350 members with properties around the golf course, and 150 of those members will be on the mountain at the East Village. The total number of members will be 500 at the club.

whj: WHAT ARE BUYERS SEEKING IN PARK CITY AND THE SURROUNDING AREAS?

MARK: What I am seeing is that today’s buyers are drawn to a blend of luxury and mountain lifestyles, making it a highly desirable place to call home. Many seek properties that offer easy access to outdoor recreation, particularly skiing, biking, hiking, and golfing in the warmer months. In addition to recreation, many are attracted to our vibrant cultural scene, with fine dining, art galleries, and events like the Sundance Film Festival.

MAVERICK: Our market is hyper-segmented.

BRAD: I don’t know if it started with COVID, but identifying the psychology of buyers is that time is money. People don’t want more things to add to their burden of overall life because they are so busy with their jobs, families, and other responsibilities. Park City represents an effortless opportunity to come out, let loose, and decompress in the Mountain West. If you offer a way to seamlessly integrate into the activities people want without wasting time, people will buy it every time. They won’t hesitate to capture the experiences and wellness opportunities.

MAVERICK: With my background as a land use attorney, I’ve dealt with a lot of land and development. In all that work, I’ve always called what’s special about Park City ‘the altitude premium.’ People come here because it’s the top of the air table, water table, and fun table regarding recreational opportunities, and all of these things are more accessible here than elsewhere in the West. I think that’s truly our magnetism for people. Historically, we’ve been discounted to many of our sister markets, and we’re coming into parity post COVID. To your point, Mark, there is an inventory constraint. The number of listings to date is nearly identical to what it was in 2019. We are dead even with pre COVID levels, and you know, certainly with no shortage of people who want in.

whj: WHAT ARE SOME OF THE NEW PRODUCTS ON THE MARKET?

BRAD: About 40 percent of the inventory is left at The Canyons Village. This will slowly be released, bringing new construction options up the mountain. Sommét Blanc, next to the Montage, was very successful with preconstruction reservations and converted most of those reservations to contracts. That project is currently going vertical. Founders Place near the St. Regis in Deer Valley launched phases 1 and 2, and phase 3 will be released this winter. Outside of that, everything is going out to the Jordanelle Basin and Deer Valley East Village.

MAVERICK: There are approximately 8,000 equivalent residential units (ERUs) entitled within the Jordanelle periphery, which includes Benloch Ranch, Hideout, and Sky Ridge, wrapping up and around to the East Village. That’s without taking into account the roughly 30,000 ERUs entitled in the north Heber Valley. In addition, Midway is hitting a big stride. Our team has a couple of projects coming online in Midway, including 80 to 100 high end condo hotel units. We are seeing a lot of peripheral effect because Park City is fairly mature in town. We’re almost like San Francisco, where there’s not much new interior inventory. There’s infill and remodel, but not greenfield development.

whj: WHAT TYPES OF BUYERS ARE SEEKING PARK CITY REAL ESTATE? WHO IS A PARK CITY BUYER?

BRAD: Our market offers one of the most easily accessible destinations of all the major ski resorts in the U.S. People love the nonstop flights from every major city, and it’s only 40 minutes up the mountain. Returning to the discussion that time is money, Park City and its surrounding areas offer people the ability to seamlessly integrate from wherever they live. In addition, we have one of the fastest home-grown populations in our country, with Salt Lake City and the rest of the valley being a feeder market to our area. I am seeing fewer and fewer people moving fulltime. We are still seeing Californians and the sunbirds from Scottsdale. Texas is a huge feeder market. However, activity from full-timers has slowed down, and I’m seeing people leaving our market for the first time in a while. Heber is a great example. A couple of years ago, it was down about 11% year over year, and they weren’t building a whole lot of new inventory. We didn’t have the demand to fill in that particular area. It’s a combination of people finally feeling free to start moving around the country again and some pent-up sellers waiting for interest rates to come down or a major life event. That is leading to increased inventory in the surrounding areas of Park City. However, people are still coming here. Mountain enthusiasts are still seeking the lifestyle and the ease of entry into the market.

MAVERICK: The ultra-high-net-worth buyer has found Park City. We have never had a string of $25 million, $30 million plus listings, pendings, and closings like we are experiencing. We’re on that submarket’s radar like never before.

BRAD: A $65 million listing in Deer Crest is pending.

MARK: What I continue to find interesting is that families with private aircraft, who can fly anywhere they want, come to Deer Valley and Park City. It’s an indicator that we have something special. They can go to Jackson Hole, Big Sky, Yellowstone Club, Aspen, and Telluride, but choose Park City. We have two private airport options, Heber and Salt Lake City, which can accommodate private aircraft parking in the busiest of weeks. While I have seen this over the last 15 years, it seems ever increasing, which I think contributes to some of the higher price sales in our market. We have some new shops and have added brand names in some of the stores along Main Street. We truly are unique and a draw to all kinds of visitors.

MAVERICK: It concerns safety in light of the back-to-back hurricanes in the Southeast. People are going where they can set up a home base, know that all of their things and people will be protected, and be able to get to it quickly. It’s not an island bunker but a place where they can set up life without being affected by political fluctuations, extreme weather, etc. Park City represents stability in many different ways.

BRAD: I see multi-generational wealth, especially in the last five years, trying to capture experiences versus more assets or more things. Their families are spread out all over the country, with kids on the West Coast going to school in Texas or on the East Coast, and Park City offers this perfect meeting spot. I’ve heard parents say they’re trying to bribe their kids to hang out with them more, and buying in Park City is the perfect way to encourage them to spend time together. This isn’t a financial analysis by people. It is a purely emotional purchase, and people have the wealth to do so.

MAVERICK: The bolstering that Salt Lake City provides helps people feel confident that there’s a business case for Park City, too. The Wall Street Journal named Salt Lake City as the country’s hottest job market in the country last year. There’s a lot of business opportunity here. You can move here and know that you can put your fingers into this and that venture. The entrepreneurial density in Park City alone, never mind the Salt Lake metro area, is just so deep.

BRAD: We’re in a very business friendly state and are now attached to one of the fastest and youngest major metropolitan areas in the United States. If you look at the modeling of the Bay Area to Tahoe, it’s exactly how Salt Lake City is to Park City. Salt Lake City is a huge feeder market for us, and prices continue to climb higher as we have scarcity up here.

MAVERICK: As good a life as we have, you will hear some people complain about traffic.

MARK: Ten years ago in Park City, the mud season and off season were slower times in town. You could tell when the lifts stopped turning, or summer was over. The streets were quiet, and some shops would close for a period of time when tourism slowed down. Today, there is a vibrant flow of people and families year round. Part of this is a reflection of the increased population due to COVID transplants, but we are starting to see the lack of an off season pre COVID. It’s also a reflection of life in Park City. People have discovered it. No matter the time of the year, it’s a good time to visit and spend time in the mountains. Whether you live here fulltime or not, Utah is a great place to spend that extra weekend, week, or month you have off.

BRAD: Over 12,000 cars are commuting to Park City daily, and as affordability changes, we used to have a community where people lived in Old Town and the surrounding areas. The workforce is being pushed out to Kamas, Midway, Heber, and Salt Lake City. All those people are commuting into town, and it seems like we no longer have a shoulder season.

whj: HOW HAVE INTERESTRATES CHANGED THE MARKET?

MARK: That’s a good question. I started to see primary homes priced in the three to six million dollar range. These homes were not in a golf community but more centrally located without amenities and outside of the nightly rental neighborhoods of Lower Deer Valley and Old Town. When the interest rates started changing, I had three different listings around that price point, and they all stayed longer on the market than I would have predicted. They did sell, though it just took a bit longer. In terms of ski real estate, Deer Valley seems unaffected by the interest rates. A lower priced condo in Old Town or the Canyons is more sensitive to interest rate fluctuations. Many buyers note that with the costs of ownership, along with a mortgage, a certain property might not pencil as a good investment.

BRAD: Currently, investors can put their money in very liquid places and receive 5-6% returns. With the Fed lowering the Fed Funds Rate, people are starting to look to where they will put their money next. When easy money is closer to 3-4%, it may make sense for people stocking cash to jump back into real estate. If you combine that with fewer building starts as construction costs continue to climb, this could set the stage for another very tight inventory scenario where more buyers are looking and fewer places to look at. On top of that, where the older demographic holds the wealth, they already have their primary homes. They already have either low mortgage rates or their homes are paid off. So, what will they do with that capital when suddenly, they’re not getting good returns on them? I think they’re going to unleash it on experiences. Experiences like Park City ski homes, boats, planes, etc. They can’t buy more time in life but can buy those adventures.

MAVERICK: It compounds what Brad was saying about the lock-in effect. Some people in the $2.5 million to $4.5 million range can’t afford to move again. Even if they wanted to change places in town, they have such a good set of circumstances with their mortgage payments that they landed during COVID, they’re stuck. In some of our more desirable neighborhoods, we haven’t seen much of a receding tide on baseline prices.

MARK: Most folks who have a low interest rate generally do not buy ski real estate. If they are looking to move up or down, the rates they were able to lock are more than double, which would increase their payment. While real estate values most likely have increased since their purchase, they would have to pay tax on their gains and move into a higher interest rate loan. Ultimately, the investment’s bottom line will likely not make sense. If they pay cash, the buyer’s investment model changes as the investment rate, including family time, increases.

BRAD: They can’t sell right now and upgrade to anything else without taking on more costs.
MARK: When the stock market starts to slow and interest rates drop a touch more, and after the elections are over, I suspect the buyers relying on financing will increase, and prices for certain types of properties will increase.

whj: ARE THERE STILL CASH BUYERS?

MARK: Yes, in the past the cash buyer in our market has been approximately 52 percent. This really depends on the type of product, price points, and investment strategy. In a primary neighborhood, homes that are $2-4 million will most likely be financed. Higher end ski properties are primarily cash.

MAVERICK: It’s even higher than perceived because of the data. I have had several high-net-worth clients in the last year using a bridge loan to avoid moving assets around. It looks like a financed purchase when it crosses that MLS for data purposes. But they have the cash, and if push had come to shove, they would have made the deal work and not taken out the loan.

MARK: When interest rates were lower, those who would typically pay cash elect to put debt on their cash. These buyers and investors are likely getting a very competitive rate with certain financial relationships through their business connections. Ultimately, it depends on the property and location of how many buyers in our current market are paying cash.

BRAD: Those private equity lines are dried up, and mostly cash is reinfused in the market. Outside of it, in the peripheral areas, I’m seeing a lot of baby boomer wealth helping out first-time home buyer children, and it’s either looking like cash or a sizeable down payment helping their kids along.

MARK: Being a first-time home buyer or homeowner is quite difficult in our market and outlying communities. To an extent, Park City is very different from any other mountain town as you have Salt Lake City, Heber, Oakley, Kamas, and Coalville. If you are willing to drive, you can purchase a home for almost half of what you normally pay in the Park City school district. Over the last few years, Heber and Midway have seen a real surge in the price of real estate that is associated with the demand. Many owners in Park City are also selling and moving down the valley to move up in home size and finishes. Others are leaving for the improved weather. Though it’s only a 15-minute drive away, the elevation drop equates to a seven degree difference in winter and less snow an ideal spot for those seeking a more relaxing lifestyle.

whj: HOW ARE SELLERS ACCOMMODATING THE MARKETPLACE?

MAVERICK: It’s how it’s always been. We are pretty bifurcated. I’ve heard that word tossed around as it’s a tale of two markets. You have high end with polished inventory and the most desirable products everybody wants. It’s getting gobbled up relatively quickly. Then, you have the products where you know if you’ve got a buyer who wants a deal, you can find something that’s a little bit tired, with room for some equity addition; you may find these places below replacement cost. If you want new and shiny, maybe you’re going to sacrifice location to go and get that outside in the periphery, but if you want to be in town, you might need to be prepared to bring in some contractors to update finishes.

whj: ARE THERE MANY REMODELS OR REBUILDS?

MARK: Yes, remodels are a large part of our market in town. As you drive through communities such as Park Meadows and Thaynes Canyon, many homes are not only being remodeled but also some homes are being completely removed and rebuilt. The ideal location with easy access to skiing and living in Park City is the largest driver. These homes are also in the Park City School District and close to all the restaurants, trails, and activities. Many are second home buyers frustrated with the lack of inventory outside of the golf areas of Promontory and Tuhaye.

MAVERICK: Everywhere.

BRAD: Yes, all over.

MARK: As you drive around Park City, no matter the neighborhood, there is a home under construction. The demand for homes, specifically updated ones, has increased. Those updated in a sought-after neighborhood here are much easier to sell, even if the lot is not the most desirable or the style is not exactly what the buyer is seeking. With the limited inventory of remodeled homes, you will also see the new home inventory is equal or less. As such, many are turning to Promontory and Tuhaye to help solve these new home shortages, including an amenitized neighborhood for a select few.

whj: WHAT IS HAPPENING WITH NEW CONSTRUCTION, INCLUDING COSTS AND COMPLETION?

MAVERICK: A lot of work is going to be imported. We are not tapped out, but there is a strain on quality labor already. If you have more demand, then I think we’ll see that exceed existing capacity. We’ll see more labor come to Utah and Park City.

BRAD: Due to scarcity in available, developable land and since land developers make their premiums based on their land acquisition, it’s getting harder for developers to build new construction as they need to get a good deal on the land. Concrete costs, for example, to build parking structures, are so cost-prohibitive that developers are taking huge risks, hoping values go up during construction. A lot of risk is involved, so it is challenging to start new projects right now.

MAVERICK: Deals are happening. They are not through entitlements, but big pots of money are moving around. I think we’ll see a lot more in the hopper from developers targeting pre-Olympic sales. That gives them the next five or so years to get their feet under them and get vertical.

whj: HOW IS THE SUPPLY CHAIN?

BRAD: Supplies are available, but the workforce is not. People are having an easier time getting what they need. It’s just not being built as fast as they would like it.

MARK: New construction is very difficult to find if you are looking in the primary home neighborhoods such as Park Meadows, Silver Springs, or Old Town. Many of the new homes are centered around the Jordanelle reservoir. While not in Summit County or the Park City School District, the demand has increased year after year with the excitement of the East Village at Deer Valley, and they fell on the community outside of the Park City limits. The literal creation of a new ski village is also driving the demand. Some of these communities also allow nightly rentals, which is a bonus.

MAVERICK: The trend of bringing the outdoors in has continued. Lots of windows and glass are still the drivers of buyers. The cool colors of the white, grey, and blue tones have been replaced with browns, taupes, and more natural earth tones. Buyers are gravitating to feeling relaxed and cozy in front of that large window with tons of natural light. Feeling connected to nature is a big part of a continued movement in interior design.

whj: ANY NEW BUILDING TRENDS?

MAVERICK: Sprinter van garages. We Parkites love our toys.

MARK: COVID started the home office trend, but there’s really nothing new.

BRAD: The most significant change I have seen is that people are moving away from anything drastic. They are going towards a more timeless feel. There’s a demand for organic, for soft woods, a Scandinavian and timeless design, and everybody wants to incorporate the outside inside. If you can bring the elements from the outside in and make them part of your home, that is huge in design and style. We’re moving away from the cold, dark finishes and the sterile style that feels like an operating table.

MARK: Another trend that continues is improving the outdoor areas. While many come for and stay for summer, they want to extend their living areas. As such, larger patios, yards, and even pools are being incorporated into the home design. Some families spend more time in the summer here than skiing on the mountain. Cool mountain evenings with no bugs and limited rainfall are an appeal to many around the country.

MAVERICK: The rooftop area is not out of the question, even when living on top of the mountain. I heard murmurs of a home being designed nearby that was engineering a multi-million-dollar retracting window transom roof assembly.

BRAD: One of our friends built his and her garages with separate entrances. It was a U shaped house with a separate entrance on one side and separate powder bathrooms and mud rooms.

MAVERICK: People are definitely interested in reducing inconvenience by placing multiple uses within their properties so that you have the climbing or bouldering wall in the barn and a bunkhouse, especially in these estate developments. They want more than one family to come with all the extra people and not have everyone on top of each other. They also want technology but ease of use.

whj: HOW ARE YOU ADVISING CLIENTS FOR BUYING AND SELLING?

MARK: You need patience to buy, but it depends on the neighborhood. There are only a few deals out there.

MAVERICK: For buyers who want to see the upside right away, you almost have to rely on the hidden value, such as a bedroom that’s not a bedroom now, but could be with a window addition. And, then suddenly, you turn what was two bedrooms with a bonus room into a three bedroom for rental purposes. Or if you find something was underpriced because an agent wasn’t familiar with the market dynamics and didn’t do their job, you were quick to do it.

MARK: A deal does not sit long, and there are always multiple people.

BRAD: There are always reasons buyers need homes, but in our secondary market, I’m advising clients to take their time. Nothing in the economic indicators show the markets getting away from us anytime soon. We have a saying that buyers always buy in a seller’s market, so buyers have more opportunities right now. They have more time and less pressure to find exactly what they want. I advise buyers to take a deep breath, scour the inventory, and get comfortable with the home. For sellers, I’m advising them that if you’re trying to get top dollar, the spread between buyers and sellers, where reality is, is farther apart than it’s ever been. Sellers are still going to the market, listing their properties extremely high. We advise sellers to have everything fully dialed in, all repairs made, and updates if they can afford to do it. We have an in-house group that does complete staging and furnishing packages before listing a home, and if you’re going to go big on price, you have to be absolutely meticulously dialed. If someone doesn’t have to have it right now, they won’t buy it.

MAVERICK: Park City’s municipal veterans talk about the Round Valley open space and the ski resorts as our moat. We live in a very physically protected space because of how the land has worked out. People love it. You almost feel this visceral vulnerability when you’re away.

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