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Show 1984 was banner year for Park City real estate, market statistics show by Dave Adler Despite the lingering effects of the recession, high interest rates and an over-supply of housing, the Park City real estate industry is coming off its best year ever. And, adds Jess Reid, president of the Park City Board of Realtors and owner of Jess Reid Real Estate Ltd., it continues to thrive. The industry netted about $76 million in sales in 1984, an increase of $8 million over the previous year, said Reid, who recently reported his compilation of 1984 real estate statistics. Looking ahead, Reid said "1985 . should be a good year for the real estate industry, and it will be a buyer's year for the real estate industry, and it will be a buyer's market." Although optimistic about next year, he cautioned there is a "severe over-supply of housing which will affect the market." Reid told the Record the volume of real estate sales reported to the Board of Realtors in 1984 reached $76,192,148. That total does not reflect private transactions, said Reid, adding the sum "is very accurate" because 99 percent of the persons involved in the real estate business are members of the Board. Currently there are 28-30 member offices and about 160 individual members of the association. The increased sales up from $67,956,313 in 1983 is a "positive sign," said Reid. "Considering the effects of the recession, the high interest rates which reached 22 percent at one point, and the problems that we've had and still have, I'd say 1984 was a real good year." Other problems are excess inventory inven-tory and planning surrounding additional construction projects. But these stem from conditions and factors that are several years old, Reid said. "The Park City area was late getting hit by the recession, and so we kept selling condos, which may ' - ' -v, ,K , ? , - . a ' ! --.j - r- - ' . ' . - - " - --" - I am: - mm ? i . t jt i . .... - -" . - :- ; .a . . I )i - 4 it V- n r' N ' I -V. ffi S f f 4 t V-'" 1 ' . - ; K--f i vv' : Board of Realtors President Jess Reid reports real estate sales increased $8 million between 1983 and 1984. out. So there may be a kind of lagging effect right now, but I think things will improve considerably by this summer." Not only has the real estate ' industry itself been heavily influenced in-fluenced by the recession but apparently so has the buyer. "We're seeing a different kind of buyer since the recession. Before it, the typical buyer was involved in speculative buying, a person who would keep the :ondo for about two years and then look to turn it over and get into something else. That was the buyer looking for an investment." "But since the recession, we've They, want to get to their vacation spot and enjoy it." Reid holds tight to his belief that "at some point, but I don't know when, Park City will fulfill projections projec-tions of its becoming a bedroom community of Salt Lake. "That will make it unique for a resort town, and it will provide additional stability for the local economy." "I agree with Randy Fields that Park City will eventually become a Silicon Valley. It will attract executives from Salt Lake who will realize that their drive from Park City won't be any longer than the have given us a false sense of security. "And quite a few developers of varying skills and abilities came in and started building like crazy. They ' didn't consult with each other, and there was no master plan. 'As a result, we overbuilt. "Then the recession hit, and that combined with the high interest rates and the overbuilding, created a severe over-supply of housing." The excess housing has created a buyer's market, Reid said. "The real estate industry very closely follows the laws of supply and demand, and right now we're facing that fact." But while good for those seeking to purchase homes and condominiums, condo-miniums, the current market conditions condi-tions may well be disappointing to those wishing to sell, said Reid. "Right now is a traumatic time for realtors. I may have to tell a homeowner that the value of his home has dropped since the boom years of two or three years ago, which is hard to do. "But it's hard to generalize about the market conditions in Park City. What you have to do is to consider the different geographical pockets around the area it depends what area you're talking about. "In the area closer to the base of the resort, there is more demand, and consequently housing is more expensive. But things are beginning to bottom out there. "In the Prospector Square are?, there is considerable detiauon in prices and values." . In order to redress the imbalance between supply and demand "it will be necessary to sell the products," said Reid. Given the oversupply of inventory, the area will generally be a buyer's ; market for the next year, he added. "We're off to a sluggish start so far this year, but things should begin to improve. There is no hint of a recession and interest rates are down." Reid believes by summer the real estate market should begin to heat up. "A number of people may be waiting to buy until the general , optimism about the economy spreads "Today's buyer is looking for a better value... he is less speculative. He is concerned about holding on longer and is thinking about leaving the home to his kids' -Jess Reid, president of the Park City Board of Realtors. seen a different profile among our buyers. Today's buyer is looking for a better value in the product. He is less speculative. He is concerned about holding on longer and is thinking about leaving the home to his kids. "It is still a matter of investment, but there are other considerations now." As he looks down the road the Park City real estate industry might take, Reid has no doubts growth will continue. "There are very few areas that have both quality ski resorts and access to an international airport. People on vacation just don't want to spend their time on tortuous roads. drive from Sandy. It will attract high technology and, in fact, it already has. "But it will also continue to attract those people who place more importance on living location and the quality of life than income. You can't beat Park City when it comes to the quality of living. It's a beautiful environment without the problems of smog, and yet Salt Lake is readily accessible." W hatever the future holds for Park City in the long run, Reid is convinced there is no time like the present to "buy into Park City." With a buyer's market, "now is an excellent time to buy." |