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Show Winter figures show slump in local real estate sales by Dave Adler Winter real estate sales, which generally constitute the lion's share of the year-round market, suffered a decline of 30 to 60 percent last season, leaving the industry in a state of uncertainty, according to Jess Reid, president of the Park City Board of Realtors. Reid, also president of Jess Reid Real Estate Ltd., attributed the sharp decline to a "lack of urgency on the part of those who are faced with the prospect of making a buying decision. This is major investment decision," said Reid, noting that real estate purchases in Park City frequently range from $100,000 to $1 million. Reid attributed the "lack of urgency" to two factors. "First," he said, "people are more cautious and conservative in business dealings since the recession. And second, there is a great deal of uncertainty over the legislation that Congress is considering with respect to tax simplification and deduction of interest payments." But the 30 to 60 percent decline has left approximately 1,240 properties up for sale, according to Reid, and that has had a significant psychological psycho-logical impact on real estate agents, sellers and buyers. "The mood varies," said Reid. "It ranges from severe frustration to the optimistic side, which is that people are still buying in Park City. "People in the industry are not selling as much as they would like, and they've learned that they have to work three times harder than they used to. And they've learned that they have to be better." Reid added, "We're in a highly-competitive buyers' market. It's a great time to buy because prices have been dropping." But while it may be a good market for potential buyers, it may also be a rough market for some who want to sell their homes. As an example, Reid cited some Racquet Club condominiums that sold for $67,000 in 1979. In 1980 during the boom period in Park City, their value had risen to between $150,000 to $160,000. "Today," said Reid, "they'd probably be had for $112,500." Reid' said that's a good re-sale price for those who bought homes in 1979, but not for the 1980 purchaser. When will the real estate market hit bottom? "It's very difficult to predict that," said Reid. "I would say that it's either bottomed out or is very near to bottoming out right now." The sale of several projects around town may indicate the down-slide has ended and the market will begin to move up again, he said. "A number of foreclosed projects have now sold out, and others are on the verge." But he cautioned that a number of projects in town "may not have the staying power to wait until the market begins to improve again." Reid hopes summer sales will put a dent in the winter decline, though in the past "summer sales have only been fair," he said. Nevertheless, he is optimistic about the future of the market. "The success of Park City has been assured. We're just experiencing some growing pains. At some point, we'll find the hot button, and buying will pick up." Reid pointed out that the problems of the Park City real estate market are not just local. "It's a national problem, and resorts in the intermountain region have been facing some of the problems we're facing," he said. "As a matter of fact, we're not as bad off as some of the other resorts. Vail, Steamboat Springs and Sun Valley, for example, are probably in vworse condition than we are." Reid said the uncertainties of the real estate industry won't disappear until congressional direction is made clear. "We'll just have to wait to see, what Congress does," said Reid. "The National Realtor's Association is lobbying hard to protect our interests." |
