The Deep Creek LakeRESORT REPORT

Volume 6 Issue 1, Spring 2013 800.544.2425 301.387.2000 www.Railey.com www.DeepCreekLake.com

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2012wasanoverallencouragingyearfortheDeepCreekLakeandGarrettCountyrealestate markets.Activity noticeably improvedgeneratingpositiveresults inmanysegmentsof themarket.Closedtransactionsanddollarvolume showed significant improvement over 2011.Mortgage interest rates reached recordlows fueling sales production. However,weakness remains in the lot market asinventory outweighs demand, home startsremainsoft,andhigherendtransactionswerebelowexpectations. On Track: Both total sales and dollarvolumesoldinthelakeareaincreased10%lastyearwithmostofthegrowthconcentratedinthe$250,000-$500,000range.Bothindicatorshave increased for 3 consecutive years. Theupward trend in sales can be attributed tohigher consumer confidence, the improving economy,lowinterestrates,andlowerprices.

TotalDeepCreekLakearea residentialsaleswereup15%-205 sales in2012versus178salesin2011.Salesbetween$250,000-$500,000grewby41%lastyear.There were 6 fractional sales in 2012.Fractionalsalesareexpectedtogrowinourmarket. Current total sales for the first few monthsof2013are trackingnearly thesameas2012.

Still a Work in Progress:Lot inventorycontinuedtobeanissueandwilllikelyremainsoft for some time.Newconstruction isalsostrugglingtoregaintraction.Higherendlakefrontpropertysaleswereweakerthanexpected.Actualsalesofpropertiesover1millionwereabouthalfofwhattheywerein2011.Overallsalepricesonlakefrontpropertiesfellabout10% from 2011. This number is somewhatmisleading, because of the high number ofsales in themiddlepricerangescomparedtotheprioryear. Other Factors Impacting the Market: Excessive inventory and uncertaintysurrounding the future of Wisp Ski Areamay have been addressed in 2012. Current

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inventory is about 30% lower than a yearago andWispwas acquired inDecemberbya publicly traded real estate investment trust(seepage2fordetails). If You are a Prospective Buyer:Interestratesremainatnearrecordlowlevels.Propertyvalues have stabilized and in many casesappreciatedinotherpartsthecountyoverthepastyear.ManybelievethattheMidAtlanticandNorthEastwillbegintoreboundin2013.There are many attractive options remainingoutthere.Nowmaybeyourbestopportunitytogetthebestofallworlds. If You are a Prospective Seller: Priceyour property appropriately to the market.Often, sellers take the “I don’t need to sell”approachandinitiallyoverpricetheirproperty.This approach almost always backfires as many properties eventually sell for less,because the seller did not price it accuratelyfromthebeginning.Inaddition,appraisersaremuchmoreconservativethaninthepastandtoday’s buyer is well prepared and prudentinthebuyingprocess.Ifyouareconsideringselling, please contact Railey Realty for afree,noobligationmarketevaluationofyourproperty’svalue. In Summary:Theprofessionalassistanceof a REALTOR continues to be extremelyimportant in today’s market whether youare buying or selling. Railey Realty agentswereinvolvedinnearly70%ofall lakeareatransactions in 2012. We look forward toassistingyouwithallyourrealestateneeds.

Deep Creek Lake Real Estate Market Update

Deep Creek Lake reaL

estate Market UpDate

Meet the New

OperatOrs at wisp

BLUe MOON risiNg

eCO-tOUrisM COMMUNity

at Deep Creek Lake

iNtrODUCiNgDeep

CreekLake.COM

LOCaLs iN the News...

iN this issUe...

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As many of you know, thewinter and summer operationsof Wisp Resort emerged frombankruptcy under new ownershipthispastwinter.Thenewoperatorof the resort is Everbright Pacific, an affiliate of Salt Lake City based Pacific Group, but day to day operations will remain in localhands.InMarch,JerryGeislerwasnamed General Manager of WispResort. Jerry has been at Wisp since1975 when he started as a skiinstructor and soon thereafterbecame a bartender during thesummermonths.Jerryhasworkedin nearly every department of theresort over the past 37 years, andhis steadyhandat thehelm is therightoneattherighttime. Everbright Pacific will be helpingbyprovidingadministrativeand financial support to the resort in addition to making some muchanticipated improvements to theguestexperience.Itwilltakesome

timeforalltheupgradestocometofruition, but this summer look foritemssuchasnewoutletsforfoodserviceandadditionalskiterrain. Pacific Group and its affiliates have been responsible for approximately $1 billion inconstructionoverthepast25years,and much of that has been at topmountainresortpropertiessuchasvillages at Mammoth and SquawValley in California, Solitudein Utah, Copper Mountain inColorado, and Whistler in BritishColumbia. Pacific has also been involved in top golf resorts nearLasVegas. In addition to their real estateexpertise (they have successfullycompleted over 1,000 projectsin 27 states and Canada), Pacific Group’s management team hasextensivemountainresortoperatingexperience from places such asBreckenridge,ParkCityMountainResort, Steamboat Springs, Mt.Bachelor, Alpine Meadows,

Boreal, and, on the East Coast,Ragged Mountain near Danbury,New Hampshire. An affiliate of Pacific Group also owns Ragged Mountain. At Railey Realty, we beganworking with Pacific Group even before the bankruptcy auction.While they arenot ready tomaketheir entire improvements planavailable to the public just yet,we can let you know that we areexcitedbythepossibilities.

Meet The New Operators At Wisp

Opening later this year, theBlue Moon Rising Center forSustainable Education, is a non-profit vacation rental development being created in McHenry alongRt.219justaboveTheBoardwalkoverlookingDeepCreekLake. BlueMoon’sfounderLisaJanhad the unique vision to integratevacation rental properties withsustainable education services.OriginallyfromNorthernVirginia,Lisa moved to Deep Creek fulltime in2006.Lisa is interested inexploring a new way of thinkingabout development that fostersan understanding for the naturalenvironment.Theintentistocreate

anenvironmentforpeopletocomeand relax, but also learn aboutthemselves and the environmentthroughouttheirexperience. As a non-profit organization, Blue Moon Rising’s mission is toprovideresourcesandfacilitiesthatcultivateeconomic,environmental,and social sustainability. The 15-acre site includes over a mileof hiking trails, lake access, acommunity center, educationfacility, open-air pavilion, and

14 vacation rental cabins allbuilt out of environmentallyresponsible products and locallyreclaimed materials. Visitors willbe able to participate in activitiesthroughout their stay including:yoga, guided hikes, sustainableconstructionseminars,sustainableart workshops, live music, anddocumentary film screenings. To learnmoreaboutBlueMoonRising,visitwww.bluemoonrising.org.

Blue Moon Rising Eco-Tourism Community at Deep Creek Lake

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The Deep Creek Lake resorT reporT

RaileyRealtyisproudtobethemainsponsorandpresentthenewlyredesigned,userfriendlyareawebsite-www.DeepCreekLake.com. The site is the leading source and an official guide for all information pertainingtoDeepCreekLakeandGarrettCounty. Thesite’smanyfeaturesinclude:

Introducing DeepCreekLake.com

BusinessDirectoryThingstoDoWheretoEatWeather

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HistoryRealEstateListingsVacationRentalsAreaNews

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To advertise your local business for free in the Business Directory, click the “Add Your Free Business Listing” link at the top of the home page. Visit www.DeepCreekLake.com for more information.

Locals In The News… Current Miss Maryland Joanna GuyrecentlycompetedintheMiss America PageantandwasaTop10Finalist.JoannagraduatedfromSouthernGarrettHighSchooland attends Cornell Universitypursuingmultipledegrees.Ms.GuyservedasaninternforU.S.SenatorBen Cardin and plans to pursue acareerinlaworpublicservice.SheisalsoanadvocateforHeartHealthAwareness and the Children’sMiracleNetworkHospitals. The 4th annual SavageMan TriathlonwasheldlastSeptemberattheDeepCreekLakeStatePark.TheSavageManwasrecentlyvotedasthe“World’sHardestTriathlon”and “Best Triathlon of 2012” byTriathlete Magazine because ofGarrettCounty’sextremeelevationchanges and rough terrain. LocalcompetitorsincludedRailey Realty agents and owners Jimmy Railey, Mike Kennedy, Russell Bounds, Bill Weissgerber, and C. Kellyann Green. The 2013 SavageMan isscheduled for September 14-15,2013. Railey Realty is proud tobe one of the main sponsors withproceeds from the growing eventbenefiting the Joanna Nicolay Melanoma Foundation. Visitwww.savagemantri.orgtosignupandformoreinformation. The 1st Annual Garrett County Gran Fondo Bike Ride

was held last summer. Riders hadtheoptionofcompletinga25,44,62, 102, or 125 mile ride throughvarious parts of Garrett CountyandaroundDeepCreekLake.Theevent attracted more than 1,200cyclists from across the country.The 2013 Garrett County GranFondoisscheduledforJune22-23,2013.RaileyRealtyisalsoamainsponsorofthisevent,aswellwithproceeds benefiting the Joanna Nicolay Melanoma Foundation.Tosignupforthisyear’sridevisitwww.winthefight.org/granfondo/formoreinformation. The 1st annual WGW Benefit Golf Tournament organizedby Railey Realty owner Bill Weissgerberwasheldlastsummerat theLodestoneGolfCourseandThe Golf Club at Oakland. Theeventfeaturedover100golfersandraised more than $25,000 for local charity Landon’s Library. The2013 tournament is scheduled forJune28-29.ContactBillatbillw@railey.comformoreinformation. The Deep Creek Lake areacontinues to prepare for the 2014 National Canoe World Slalom Championships that will be heldatASCI.Nancy Railey of Railey Mountain Lake Vacations isoneof the event’s main organizers.Visitwww.deepcreek2014.comformoreinformation.

Local orthopedic surgeonDr. David Tuel continues doingvolunteer field work for Doctors Without Borders. He recentlyspent a month in the country ofBhutan, located in south Asia,donatinghisservicesandprovidingemergencymedicalcare topeopleincrisis.

From Top to Bottom: Joanna Guy, C. Kellyann Green and Jimmy Railey

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Thegoalofthisnewsletteristokeepyouinformedonthelocalrealestatemarketalongwithkeepingyouintouchwiththeissuesimpactingthismarket.Wewillalsoattempttobringyouinterestingstoriesaboutthepeopleand heritage that make Deep Creek Lake and GarrettCounty,Marylandsuchaspecialplace.It is not our intention to solicit clients from other Brokers with this newsletter. If your property is currently listed for sale with another Broker, please consult that brokerage for your real estate needs.

Spring 2013

Proven

Results!

Since 1995

Over 30 Years Experience in Western Maryland

Area’s Most Productive and Experienced Sales Force

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Long & Foster®

AreaBroker 2

Area Broker 3

All Other Brokers

67%Percentage of Residential

Dollar Volume Sold for the Deep Creek Lake AreaResidential Dollar Volume

Market Share in 2012Top MLS Brokers

69%

Long & Foster®

AreaBroker 2

Area Broker 3

All Other Brokers

Percentage of Lake Front Residential Properties Sold

Percentage of Total Lake Front Residential Properties

Sold in 2012 - Top MLS Brokers

* All data obtained from MRIS for the period 1/1/2012-12/31/2012. All data is believed to be accurate, but not guaranteed.

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