From the Desk of Brad Jensen
Park City Utah | Real Estate Newsletter | September 2016
Dear Park City,
We have had a wonderful summer in Park City and now Labor Day has come and gone way too fast. The leaves are beginning to change and fall is in the air. I am looking forward to another couple of months of biking and then ski season. This is the best time of the year for mountain biking with the fall colors and the cool weather.
The real estate market has been steady through the summer season. The narrative has been the same all year with an overabundance of inventory in the $2MM and over price range and a shortage of inventory under $2MM. It is very difficult to find a nice condo in good condition under $400K and if you want to be closer to town or near one of the resort bases you should expect to pay at least $100K more. On the other hand if you are in the market for a ski in and out home or a home on one of the golf courses you will have some good choices. That is not to say that the golf communities have been without activity. Promontory, Red Ledges and Victory Ranch have been very active. There just happens to be a lot of inventory in these golf communities.
Deer Vista is starting to be very busy as well. There are two new homes being built and two more in planning. By this time next year we expect to have several new families in residence. Our events have been lots of fun. We hope to have several more in the coming months so stay tuned.
Remember, it is time to start planning for the ski season. Don’t forget to purchase your early season ski passes and make sure your equipment is ready to go. In the meantime I will look forward to seeing you on the trails.
Father, Son (George) and Uncle Chris fishing trip on the Green River, Section A, below the Flaming Gorge Dam. Hired Trout Bum 2 for a One Day Float. Caught some big fish!
Park City Local News
Master plan for Canyons Village at Park City Mountain Resort reconfigured
The master developer of the Canyons Village at Park City Mountain Resort wants to create a “more cohesive and vibrant village core for all seasons” with the help of a new master plan, according to Larry White, chief executive officer of TCFC Finance Co., the…[read more]
Summit County and Park City Councils approve short-range transit plan
Summit County and Park City are accelerating their plans to resolve the traffic woes. Last week, Summit County and Park City announced that they will continue investing in mass transportation. Staff, along with a joint transportation advisory board, have been working for the past year…[read more]
Epic Pass Becomes Even More Epic
Photo: Associated Press – Rick Bowmer
The month of August marked an exciting acquisition in the ski industry. On August 8, 2016, it was announced that Vail Resorts, a publicly traded company, would soon buy Whistler Blackcomb ski resort for roughly $1.06 billion, making Vail Resorts the owner of the two largest ski resorts in North America.
For more information, visit here.
Why Is There So Much Paperwork to Sign to Get a Mortgage?
From Keeping Current Matters Blog – August 30, 2016
We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form.
Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.
There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.
1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage.
During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.
2. The banks don’t want to be in the real estate business.
Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.
However, there is some good news in the situation.
The housing crash that mandated that banks be extremely strict on paperwork requirements also allows you to get a mortgage interest rate as low as 3.43%, the latest reported rate from Freddie Mac.
The friends and family who bought homes ten or twenty years ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of less than 4%, they would probably bend over backwards to make the process much easier.
Bottom Line – Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.
SSIR Comprehensive Park City
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