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You don't have to go very far to find consequences of the financial meltdown. There's a dramatic example near Park City, involving some of the most spectacular homes you're not likely to ever set foot in.
It's a terrible time to be selling real estate and a good time to be a buyer, but not enough people are doing that. In the case of Promontory Ranch, that means trouble for people trying to unload some very expensive property.
It's a place for people with lots of extra cash. So-called "cabins" run more than $2 million. Most homes at Promontory Ranch are $2 to $4 million, the high end more than $14 million.
Paul Benson, a Promontory homeowner, Realtor and creditor, said, "The developer set out to build one of the biggest, greatest golf course communities in the country."
Most of the houses were bought by out-of-staters wanting a second home in a resort community with spectacular amenities. Along with other western resorts, sales were good for several years.
Dennis Hanlon, president of Rocky Mountain Resort Alliance, said, "Everything was just going great guns. And people thought that would never end. We know now that it will."
"As most communities in the nation have gone through, hit rock-bottom last year when sales stalled," Benson said.
A lender revoked a loan of one-third of a billion dollars. Promontory was forced into bankruptcy. Now, many homeowners are trying to unload their investment. Of 464 homes that are built or have building permits, 82 are back on the market for resale. So are 120 vacant lots. Average time on the market has stretched out to 387 days.
But Promontory defenders say even with all the bad news, 15 have sold in recent months. "So, overall, I think we'll continue to see growth," Benson said.
Real estate people naturally profess optimism. They say the Park City area is faring better than other western resort communities.
Hanlon said, "Number of sales, actual numbers of transactions, are down 40 to 45 percent throughout all of the resorts. However, sales prices, the actual sold prices are anywhere from flat to just barely up, maybe 2 to 3 percent."
But one homeowner who wants to sell, and can't, told us the resale market here is "disastrous" and that one seller had to settle for $1.7 million on a property worth $4 million. That owner wouldn't speak on camera because a lawsuit is in the works against the developer.
In spite of bankruptcy and legal troubles, defenders say Promontory's future is not in jeopardy. "We know that it's not if, but when the market's going to turn again," Hanlon said.
Promontory's marketing director said she's not aware of prices being slashed as deeply as we heard, but she acknowledges it could happen if a seller was in dire straits. She's quick to point out, of course, it's a great time to buy for those who can afford it.
E-mail: hollenhorst@ksl.com