Market Overview
May 2005

2004 was one of the most phenomenal years in Park City Real Estate history!

Overall closed sales volume shows a staggering 58% increase taking our total sold volume to $1,232,199,993. This marks the first year the greater Park City market has topped one billion in sales. Just about every segment of the market did very well and showed large increases from single family lots to condominiums to homes (both primary residences and vacation homes.)

BOOM!
Unlike other areas across the United States where real estate markets have been booming for years, we have just have been in our upswing for about one year. Prior to that we had seen a stagnant year. And before that we had two to three years of slight downward adjustment markets. This has made for much pent up demand for product and we currently find ourselves in an extraordinary sellers market. Many properties are selling in 24 hours or less with multiple offers. Most all of the new large projects in our area and the Jordanelle are doing well also. Two large projects that are examples of this market are Empire Pass at Deer Valley and Promontory, The Ranch Club (almost a 7,000-acre project with plans for four golf courses and many other amenities. Both of the projects have been selling like crazy and prices are easily in the million plus range. Interestingly, almost all of the buyers are vacation homeowners.

In addition, our single-family primary residence market is just as hot as the vacation home market. Our lower priced condominiums at Kimball Junction, Bear Hollow and other places have also been selling like crazy.

SHOP TILL YOU DROP!
Commercial development is a mixed bag. The addition of Redstone shopping center seems to be going extremely well adding 8 theaters as well as nice dining and shopping, but we do still seem to have an over abundance of office space and retail scattered throughout the city and Snyderville Basin. One of our two industrial parks is sold out and the other is rapidly approaching sold out status with one more small, new industrial park in the works for the future.

NEW PROJECTS
Last but not least, the city is breaking ground on massive new projects that will enhance Park City's base industry of tourism. These projects will include a Town Center, an Olympic Size Hockey Rink, multiple, lighted softball fields as well as an indoor soccer/rugby field.

LOOKING FORWARD
2005 has started of with a bang also with total sold volume approximately ##% ahead of 2004. 2005 will be another strong year but we hope that perhaps it could soften a little bit and not continue to spike upward like it has in the last year. Currently we are in an acute shortage of inventory across the market place. It is highly possible that more resale product will be coming on the market this summer as many property owners take the opportunity to move up or out. We also are excited about several new projects coming on the market place as well.

All in all, 2005 should be a great year in a hot market place.

Deer Valley Market Overview

The Deer Valley market place has come ROARING back in 2004. Overall sold volume was up by 64%. This very closely patterns the market in the greater Park City area. Three to four years ago when we were experiencing a softer market and in fact slight downward adjustments, Deer Valley was one of the hardest hit areas of our market due to the second home and high-end nature of the market. The Deer Valley market continues to do phenomenally well in the first quarter of 2005. In fact, statistics show that it is up 118% over the previous year's overall sold volume.

Does this mean we are forming a bubble that will be popped during 2005? I believe the answer is no. Unlike many areas of the United States, our area has not been booming for 5 to 10 years in a row. We have in fact been coming out of a downward adjustment period of just a few years ago. In fact, most of us would speculate that we have been in this sellers market for approximately one year. There is much pent up demand from previous years for vacation homes in Deer Valley and we are in fact currently low on inventory. This has caused us to experience rapid sales (24 hours or less as well as multiple offers on many of our properties.)

New projects to Deer Valley like Empire Pass have done phenomenally well in advance of construction. These prices are primarily in the multi-million dollar range. Our strong market should continue and hopefully will soften some what so that we do not get into a radical cycle.

Baby boomers should continue to make our market strong. Many are experiencing inheriting wealth from their family and as well as getting their children out of college and on their own so that the income is up and the expenses are down. The facts make it a great time to fulfill those dreams of a vacation/retirement home.