Fall 2024 Real Estate Update

October 12, 2024

Dear All,

The Wall Street Journal recently reported the listing of a newly constructed home with its own private gondola at Deer Valley Resort in Park City, Utah. If the home sells anywhere near its listing price of $65 million, it would be the most expensive residential sale in Utah’s history; the current record is $39 million. The property is absolutely gorgeous and includes extraordinary amenities, like the gondola, a two-lane bowling alley, a climbing wall, and a basketball court. While the price seems unfathomable for a 7-bedroom home, the economics of scarcity in Utah’s most desirable mountain neighborhood will likely lead to a billionaire buying the home for a record price. In that scenario, the billionaire will likely perceive that she or he got good value for the trophy home. I am fascinated by the price dynamics of scarce, desirable assets, like rare art, collectibles, Bitcoin, and even ski-in/ski-out properties. When scarcity meets desirability, prices can soar. 

Spanning more than 21,000 feet on 2.6 acres, the home has 7 bedrooms. Credit to “Hitting the Market in Utah…”, Wall Street Journal, by Katherine Clark, 9/18/24.

This example of real estate opulence consumes a massive amount of investment capital for a single vacation home for one family and their friends to enjoy. With $65 million (or even $39 million), I could transform Eagle Point Resort with new amenities, attractions, and lodging that would be enjoyed by many families for generations to come. Nonetheless, I tip my cap to Deer Valley’s developers for making the resort area so desirable that global buyers will pay top dollar for extraordinary ski-in/ski-out properties. 

Over here in Beaver, Utah, we have not yet seen any eight-figure real estate transactions. That said, Eagle Point has experienced consistent real estate price appreciation and hit a record milestone of its own: sales of residential lots with ski-in/ski-out access have achieved the notable price of $1 million per acre in Aspen Crest, the gated, ski-in/ski-out community in the heart of Eagle Point Resort. This puts Eagle Point in rare company for ski-in/ski-out resort developments and in a league of its own for southern Utah. The graph below shows how prices have grown from $200,000 per acre to $1,000,000 per acre since the inception of the Aspen Crest neighborhood in 2018. 

The price history is based on a data set of 34 lot sales at Eagle Point Resort from 5/2018 through 10/2024.

For comparison, we analyzed 14 active listings of ski-in/ski-out properties ranging in size from 0.37 to 2.10 acres in the Wasatch MLS where Park City sales are reported. Comparable building lots which sell at Eagle Point for $1 million per acre range from $5.5 million to $9.5 million per acre in Park City. 

Now, I firmly believe that there should be a discount for Eagle Point properties relative to those in Park City. After all, buyers will pay more to be closer to an international airport and for more robust dining, shopping and lodging experiences. Yet, ski-in/ski-out properties are scarce because most ski resorts operate on Federal or State lands which prohibit residential development. Eagle Point is on private land and also offers something unique: unrivaled peacefulness and serenity. The economics of scarcity explain why I am bullish on the long-term prospects for most ski-in/ski-out developments in the Mountain West. In closing, it is worth noting that Eagle Point’s ski-in/ski-out property prices, while rising impressively, are still quite affordable relative to the extreme prices in the Park City market that increasingly targets the billionaire class. 

REAL ESTATE UPDATE

Detailed below is a third quarter 2024 update of real estate activity in our community. 

1. NEW DEVELOPMENT

Aspen Crest Premier Phase II Subdivision

After sales of Lots 3, 4, 5 (pending) and a purchase option on Lot 6, there are only four remaining lots in Aspen Crest Premier Phase II, the resort’s premier ski-in/ski-out location. These lots extend the iconic viewscape of homes that currently line the Glacier Glade ski run. Prices range from $450,000 to $680,000. 

Aspen Crest Premier Phase II Lot 1 -- 0.50 acre lot.  Listing price:  $500,000.

Aspen Crest Premier Phase II Lot 2 -- 0.50 acre lot.  Listing price:  $450,000.

Aspen Crest Premier Phase II Lot 7 -- 0.63 acre lot.  Listing price:  $630,000.

Aspen Crest Premier Phase II Lot 8 -- 0.68 acre lot.  Listing price:  $680,000.

2. CONDO & HOME LISTINGS

Skyline Terrace Condo 1 -- This 1BD/1BA, 880 sq ft ski-in/ski-out condo is under construction for delivery in early 2025.  Listing price: $295,000. 

Snowflake Condo 22 -- This 2BD/2BA, 1036 sq ft ski-in/ski-out condo comes fully-furnished with gorgeous views.  Listing price: $455,000.

Snowflake Condo 11 -- This 2BD/2BA + loft, 1204 sq ft ski-in/ski-out condo comes fully furnished with multiple upgrades throughout. Perfect for personal and/or rental use.  Listing price: $465,000.

322 N Upper Meadow Dr -- Captivating 2019 custom-built log cabin home, 1675 sf, fully furnished 3 bd/3 ba 2-story home with loft & attached 528 sf 2 car garage; sits on 0.34 acres.  Listing price: $945,000.

3. LOT LISTINGS

Ski-In/Ski-Out 

Aspen Crest Lot 16 -- This 0.33 acre ski-in/ski-out lot is in the coveted Aspen Crest subdivision.  Listing price: $360,000. 

Skyline Terrace Homesite 5 -- This 0.42 acre ski-in/ski-out lot is located above the Belknap Bow slope in the new Skyline Terrace neighborhood. Listing price: $375,000.

Eagle Song Parcel 1 -- Build your dream home on this 0.44 acre ski-in/ski-out lot located on the Belknap Bow ski run.  Listing price:  $399,000. 

Skyline Terrace Homesite 2 -- This 0.42 acre ski-in/ski-out lot is located above the Belknap Bow slope in the new Skyline Terrace neighborhood. Listing price: $400,000. 

Non Ski-In/Ski-Out

West Village Lot 29 --This 0.61 acre lot is the last West Village property priced under $100,000.  Listing price: $96,000. 

West Village Lot 28 -- Beautiful 1.10 acre lot.  Listing price: $125,000.

West Village Lot 61 -- Gorgeous 1 acre lot.  Listing price:  $140,000.

West Village Lot 88 --This 0.61 acre lot sits on top of the hill with 360-degree views.  Listing price: $199,000.

4. SALES OR PENDING SALES SINCE LAST UPDATE

Aspen Crest Premier Phase II Lot 3 (0.53 acres) -- SOLD

Aspen Crest Premier Phase II Lot 5 (0.63 acres) -- PENDING

Puffer Lake Meadows (73 acres) -- SOLD 

Skyline Terrace Lot 1 (0.44 acres) -- SOLD

Snowflake 1 (1 BD condo) -- SOLD

Snowflake 30 (Studio condo) -- SOLD

Aspen Equity Construction specializes in design + build projects where we apply our unique understanding of terrain, snow and rainfall dynamics, and best-fit materials for building in the Tushar Mountains. If you already own a building lot at Eagle Point and would like to break ground on a vacation home or investment property within the next two years, please ask us for a free estimate for building services. 

Best wishes,

Shane P. Gadbaw

Owner/Operator/Developer - Eagle Point Resort

Owner/Broker - Aspen Equity Real Estate