Significant Sales - week ended 8/11/17
Last week featured an extra post entitled "A Low Tech Solution To High Tech Recruiting" which discussed Utah's attraction to financial and tech firms fleeing costly coastal areas. More specifically it recommended Utah tech and financial firms active in recruiting talent from Silicon Valley and other tech centers use our comparatively low cost and high quality housing as a recruiting tool. Although I plan to explore this topic further, I found a feature article in the Aug 11th WSJ entitled " U.S. Home - Rental Giants Plan to Merge" by Ryan Dezember - https://www.wsj.com/articles/with-merger-deal-blackstone-starwood-bet-on-being-americas-biggest-home-landlord-1502361000 - valuable in shedding further light on national changes underway that will soon impact Utah's tech future. U.S. residential single family housing is the largest asset class in the world with collective value estimated at $25 Trillion - greater than that of all the shares on the U.S. stock market and Fridays article describing a merger to create a new company (Invitation Homes) that owns 82,000 homes in 17 metro areas showcased some interesting numbers. Although the new company will have a big piece of the 200,000 homes now under institutional ownership, 200,000 homes is less than 2% of the total. The article mentions the criteria for selecting past and current locations for institutional ownership, but no mention of Utah. If high population growth, high household formation growth, and job growth are criteria for selection, its hard to see why Utah has been overlooked. Although surprised, I'm delighted that we are not yet a full-on target for institutional investors in single family housing. Wall Streets bet that home ownership rates will remain low and a growing number of U.S. families will rent, opens up a great opportunity for small investors in Utah. Stay tuned for details. There were 71 pended sales reported by the Park City Multiple Listing Service in the week ended 8/11/17. 36 closings and 68 new listings were reported during that week.
Single Family Homes: It was another busy week for single family homes with 34 new listings and 35 pended sales. All but 1 of the 6 new in-town listings were offered at over $1 million. My pick for the best new in-town listing is a home at 3140 Crestline Drive in the Ridgeview subdivision in Park Meadows. This 4,280 SF, 4 bedroom, 5 bath home built in 2006 has the location, features, finishes and ownership cost that luxury home buyers are seeking. Well priced at $2,550,000 ($605/SF), this home should sell quickly. http://www.tourbuzz.net/public/vtour/display/842740?idx=1#!/play . One of last weeks 4 in-town single family home sales provides a good comparable for 3140 Crestline Drive. 3279 American Saddler in the Risner Ridge subdivision in Park Meadows is a 5,729 SF, 5 bedroom, 6 bath home built in 1991 and remodeled in 2011. This home was listed at $3,695,000 ($558/SF) and sold after 56 DOM. http://www.spotlighthometours.com/tours/tour.php?mls=11702441&state=UT . So much for luxury homes. There were 9 new listings and 8 under contracts last week in Heber/Midway and none of those properties were priced at over $1 million. It's often difficult to do justice to the values in Heber/Midway and other outlying communities due to a lack of photography/videos, but several representative single family homes were available last week. A new listing at 54 West 350 South in Midway is a 4,096 SF, 5 bedroom, 3 bath home built in 2005 and features a large enclosed back yard with views of Mount Timpanogos - perfect for a growing family. Priced at $478,000 ($126/SF), this home has excellent long term rental potential. http://www.tourbuzz.net/public/vtour/display/774788?idx=1#!/ . Another Midway home at 26 West Oberland Ct in the Valais community is a 2,173 SF, 4 bedroom, 3 bath home built in 1998 and priced at $515,000 ($237/SF). $200/mo HOA dues cover all landscaping and yard maintenance and access to excellent amenities. http://www.spotlighthometours.com/tours/tour.php?mls=11703266&state=UT . In Kamas, an area just starting to develop, a home at 150 North 200 East was listed for $365,000 ($190/SF). This 1,816 SF, 3 bedroom, 3 bath home was built in 1966 and remodeled in 2016. http://www.tourbuzz.net/public/vtour/display/845416?idx=1#!/ . An excellent value home in Heber City under contract last week was a home at 1933 Eagles Rest Rd. Built in 2001, this 3,010 SF, 3 bedroom, 2 bath home listed at $515,000 ($153/SF), sold after 70 DOM. http://www.spotlighthometours.com/tours/tour.php?mls=11702175&state=UT . It should also be noted that 2 of last weeks pended sales were new construction homes in Heber/Midway now underway and priced at $181/SF and $198/SF. Production homes in the Heber Valley feature excellent construction quality.
Condominiums: There were 19 new condo listings and 27 pended sales last week. My vote for top value new condo listing was a property at 210 Daly Ave Unit #A. This 1,539 SF, 3 bedroom, 3 bath property in a 2 unit condo association was built in 1996 and is priced at $795,000 ($517/SF). This condo has an excellent location and the ultimate Old Town amenity - a 2 car attached garage. http://www.tourbuzz.net/public/vtour/display/845222?idx=1#!/ . In condo pended sales, 4 units in the Blackstone Residences now under construction went under contract within days of listing. 3793 Blackstone Drive Unit #3H is representative of all 4 units. This 1,188 SF, 2 bedroom, 3 bath condo listed at $665,000 ($560/SF) is scheduled for a December completion. http://www.tourbuzz.net/public/vtour/display?idx=1&mlsId=257&mlsNumber=1457969 . One of the 2 additional 2 bedroom Blackstone Residences units released last week was priced at $775,000 ($652/SF).
Vacant Land: With only 15 new lot listings and 9 pended sales, it was a slow week for vacant land. Looking at the new listings and sales in the gated golf communities, it was a display of very attractive prices, but I suspect spec builders and buyers looking to spring of 2018 construction starts are not paying attention. A 1.00 acre lot at 8531 N. Ranch Garden Road in the Deer Crossing neighborhood at Promontory was listed at $445,000 including a social membership - a great value for a luxury home build. http://www.tourbuzz.net/public/vtour/display/836294?idx=1#!/ .
