UTAH IS A PRETTY GREAT STATE!
Most Livable and Affordable Metro:
Househunt, Inc. ranked Salt Lake City as the #1 most livable and affordable city!
Best City:
Kiplinger ranked Provo as the #10th best city to live in!
Best US Economy:
US Economic Freedom Index ranked Utah as #4 for the best economy!
America’s Recession Proof City
Salt Lake was in the Top 10 ranked by Forbes Magazine!
Top State For Jobs:
Forbes ranked Utah as #1 for jobs and Beacon Hill ranked Utah as #1 most competitive job market!
Top State For Business:
Forbes Magazine ranked Utah as #2 and CNBC ranked Utah as #3 for best business!
Looking Back To See What Is Ahead
I analyze the Utah County housing market on a weekly basis. I have seen the trends. I watch the home sales fluctuate. I wanted to share some real numbers with you. It is not what you are hearing on the news...it is good news!
Home sales are very similar for the months of September, October, and November in 2007 and 2008.
The number of homes sold in 2008 are also very similar to 2000, 2001, 2002, and 2003.
This tells us that the market is stable. We have consistent home sales throughout the year ranging from 250-450 per month!
It looks like 2009 will be another successful year for selling homes!
Seasons Greetings from Heidi:
"Christmas time is about loving, sharing, giving, and doing good for others. Wouldn’t it be great if we could box up the Christmas spirit, and then open a box of it every month throughout the year??!! We can in our hearts! I want to have this feeling all year long!"
Thursday, December 18, 2008
Tuesday, November 18, 2008
More First-Time Home Buyers
More First-Time Home Buyers
The 2008 National Association of Realtors Profile of Home Buyers and Sellers reveals that the number of first-time buyers has risen as a percentage of the market share and they plan to own their homes longer than buyers in the past.
Lawrence Yun, NAR chief economist, said a higher share of first-time buyers makes perfect sense, and it’s a trend he expects to grow. “First-time buyers are much more flexible in entering the market because they aren’t concerned about selling an existing home,” he said. “Given low home prices, plentiful supply, and affordable rates, it’s been an optimal time for entry-level buyers with a long-term view. Considering the temporary first-time buyer tax credit and improvements to the FHA loan program, we expect stronger entry-level activity as the flow of credit improves – that, in turn, should free more existing owners to make a trade in 2009.”
The number of first-time buyers rose to 41 percent from 39 percent of transactions in last year’s survey and 36 percent in 2006. The typical first-time buyer purchased a home costing $165,000 and plans to stay in that home for 10 years, up from seven years in 2007.
The median down payment by first-time buyers was 4 percent, up from 2 percent in 2007; the number purchasing with no money down fell from 45 percent in 2007 to 34 percent in the current survey.
Commuting costs factored greatly in neighborhood selection, with 41 percent of buyers saying they were very important and another 39 percent saying transportation costs were somewhat important.
Source: National Association of Realtors
The 2008 National Association of Realtors Profile of Home Buyers and Sellers reveals that the number of first-time buyers has risen as a percentage of the market share and they plan to own their homes longer than buyers in the past.
Lawrence Yun, NAR chief economist, said a higher share of first-time buyers makes perfect sense, and it’s a trend he expects to grow. “First-time buyers are much more flexible in entering the market because they aren’t concerned about selling an existing home,” he said. “Given low home prices, plentiful supply, and affordable rates, it’s been an optimal time for entry-level buyers with a long-term view. Considering the temporary first-time buyer tax credit and improvements to the FHA loan program, we expect stronger entry-level activity as the flow of credit improves – that, in turn, should free more existing owners to make a trade in 2009.”
The number of first-time buyers rose to 41 percent from 39 percent of transactions in last year’s survey and 36 percent in 2006. The typical first-time buyer purchased a home costing $165,000 and plans to stay in that home for 10 years, up from seven years in 2007.
The median down payment by first-time buyers was 4 percent, up from 2 percent in 2007; the number purchasing with no money down fell from 45 percent in 2007 to 34 percent in the current survey.
Commuting costs factored greatly in neighborhood selection, with 41 percent of buyers saying they were very important and another 39 percent saying transportation costs were somewhat important.
Source: National Association of Realtors
Thursday, November 13, 2008
NEXT Stimulus Bill
As a constituent and a Realtor, I ask that Congress focus any future stimulus package on reinvigorating housing markets. The current crisis is the result of problems in the nation's housing markets. Efforts to boost the economy must calm jittery real estate markets.
Earlier, the National Association of Realtors (NAR) proposed a 4-Point Housing Stimulus Plan that should be part of any new stimulus package. NAR's plan would:
*Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit's limited availability and repayment requirement severely limit the credit's use and effectiveness.
*Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.
*Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.
*Permanently bar banks from engaging in real estate brokerage and management. The banks have proven they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases.
Housing has always lifted our economy out of past economic downturns. It's imperative now to foster a housing recovery, so that the economy can recover.
Earlier, the National Association of Realtors (NAR) proposed a 4-Point Housing Stimulus Plan that should be part of any new stimulus package. NAR's plan would:
*Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit's limited availability and repayment requirement severely limit the credit's use and effectiveness.
*Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.
*Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.
*Permanently bar banks from engaging in real estate brokerage and management. The banks have proven they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases.
Housing has always lifted our economy out of past economic downturns. It's imperative now to foster a housing recovery, so that the economy can recover.
Monday, November 3, 2008
Update on credit conditions
Fannie Mae and Freddie Mac economists give update on credit conditions:
Even though subprime lending has dried up, there are still plenty of mortgages available — as long as borrowers meet certain conditions. That was the message of Freddie Mac Chief Economist Frank Nothaft in a presentation to the National Association of Home Builders on Oct. 22.
“I think the good news is that conventional conforming and FHA mortgage rates are still relatively affordable,” Nothaft said. “However, there are some caveats.”
Those stipulations are that borrowers 1) make a down payment, 2) have good credit, 3) apply for a conventional, conforming loan and 4) meet full documentation underwriting standards.
“You can get very good rates and there’s actually plenty of credit available in the marketplace for an applicant who meets those requirements,” Nothaft said.
Borrowers can even get jumbo loans if they meet those criteria — although there will be more underwriting and the products will cost more, he said.
Banks have been tightening their credit standards each quarter for the last year and a half for all loans, including prime ones, according to the Federal Reserve Board’s Senior Loan Officer Survey. The reason? Even though borrowers may be prime from a credit perspective, they may be buying in areas where home prices are falling and that leads to tightened standards, said Doug Duncan, Fannie Mae chief economist.
However, Duncan said there are signs banks may stop tightening their mortgage standards.
“I think we’ll probably see the peaking of [credit tightening this quarter],” Duncan said. “I think if all these efforts to increase liquidity are starting to be successful, you’ll start to see those numbers flatten out and ultimately tail off.”
Even though subprime lending has dried up, there are still plenty of mortgages available — as long as borrowers meet certain conditions. That was the message of Freddie Mac Chief Economist Frank Nothaft in a presentation to the National Association of Home Builders on Oct. 22.
“I think the good news is that conventional conforming and FHA mortgage rates are still relatively affordable,” Nothaft said. “However, there are some caveats.”
Those stipulations are that borrowers 1) make a down payment, 2) have good credit, 3) apply for a conventional, conforming loan and 4) meet full documentation underwriting standards.
“You can get very good rates and there’s actually plenty of credit available in the marketplace for an applicant who meets those requirements,” Nothaft said.
Borrowers can even get jumbo loans if they meet those criteria — although there will be more underwriting and the products will cost more, he said.
Banks have been tightening their credit standards each quarter for the last year and a half for all loans, including prime ones, according to the Federal Reserve Board’s Senior Loan Officer Survey. The reason? Even though borrowers may be prime from a credit perspective, they may be buying in areas where home prices are falling and that leads to tightened standards, said Doug Duncan, Fannie Mae chief economist.
However, Duncan said there are signs banks may stop tightening their mortgage standards.
“I think we’ll probably see the peaking of [credit tightening this quarter],” Duncan said. “I think if all these efforts to increase liquidity are starting to be successful, you’ll start to see those numbers flatten out and ultimately tail off.”
NAR Presidents views on Utah Market
National Association of Realtors president visits Utah and reports on economy
"Existing home sales have slowed in Utah, but the state is still holding on better than most", said Dick Gaylord, president of the National Association of REALTORS®, during a recent visit to Utah. Gaylord, quoting NAR Chief Economist Lawrence Yun, said "the state has created 3,000 new jobs in the past 12 months and 100,000 jobs in the past three years."
“Because of local market gains, there is a great deal of pent-up demand and it continues to accumulate,” Gaylord quoted Yun as saying. “It’s only a matter of time before we see rises in home sales and also in activity in the market. So I think we’re going to see a change in 2009.”
Gaylord also said the state foreclosure rate of 1.2 percent was “not bad news at all,” since a normal foreclosure rate is about 1 percent.
"Existing home sales have slowed in Utah, but the state is still holding on better than most", said Dick Gaylord, president of the National Association of REALTORS®, during a recent visit to Utah. Gaylord, quoting NAR Chief Economist Lawrence Yun, said "the state has created 3,000 new jobs in the past 12 months and 100,000 jobs in the past three years."
“Because of local market gains, there is a great deal of pent-up demand and it continues to accumulate,” Gaylord quoted Yun as saying. “It’s only a matter of time before we see rises in home sales and also in activity in the market. So I think we’re going to see a change in 2009.”
Gaylord also said the state foreclosure rate of 1.2 percent was “not bad news at all,” since a normal foreclosure rate is about 1 percent.
Friday, October 31, 2008
Home Sales History
Let's take a look back in History! I think everyone is forgetting how times used to be just 3-8 years ago!!!
Consumers only hear the negative news. Even others in my industry are saying how bad the market is. But we have agents in our Coldwell Banker office who are experiencing their most profitable year yet!
I did some checking and according to our MLS statistics in Utah County we are selling about as many homes in the same amount of time that we did in 2004... just 4 years ago!! And before that we were selling LESS than we are selling now!!!
Here are the actual numbers:
September 2008 sales: 433 Days on the market: 87 (Election year)
September 2007 sales: 400 Days on the market: 53
September 2006 sales: 644 Days on the market: 39
September 2005 sales: 662 Days on the market: 70
September 2004 sales: 468 Days on the market: 79 (Election year)
September 2003 sales: 428 Days on the market: 81
September 2002 sales: 367 Days on the market: 86
September 2001 sales: 280 Days on the market: 88
September 2000 sales: 289 Days on the market: 95 (Election year)
September 1999 sales: 316 Days on the market: 84
What happened??? Well, home sales went up 50% in a year and that only lasted for two years!! Now they are back down to 'normal'! Do you see the pattern during Election years? There were less home sales the year before and after election years!
The market is doing just fine. Buyers are buying and sellers are selling. Buyers are getting loans. Sellers are lowering their prices to more affordable price tags and then finding they can buy a lower priced home too.
I am looking forward to 2009 because 2008 was great. The market is stabilizing. The elections will be over. The economy is stabilizing. Utah is growing. Jobs are available. All is well.
Consumers only hear the negative news. Even others in my industry are saying how bad the market is. But we have agents in our Coldwell Banker office who are experiencing their most profitable year yet!
I did some checking and according to our MLS statistics in Utah County we are selling about as many homes in the same amount of time that we did in 2004... just 4 years ago!! And before that we were selling LESS than we are selling now!!!
Here are the actual numbers:
September 2008 sales: 433 Days on the market: 87 (Election year)
September 2007 sales: 400 Days on the market: 53
September 2006 sales: 644 Days on the market: 39
September 2005 sales: 662 Days on the market: 70
September 2004 sales: 468 Days on the market: 79 (Election year)
September 2003 sales: 428 Days on the market: 81
September 2002 sales: 367 Days on the market: 86
September 2001 sales: 280 Days on the market: 88
September 2000 sales: 289 Days on the market: 95 (Election year)
September 1999 sales: 316 Days on the market: 84
What happened??? Well, home sales went up 50% in a year and that only lasted for two years!! Now they are back down to 'normal'! Do you see the pattern during Election years? There were less home sales the year before and after election years!
The market is doing just fine. Buyers are buying and sellers are selling. Buyers are getting loans. Sellers are lowering their prices to more affordable price tags and then finding they can buy a lower priced home too.
I am looking forward to 2009 because 2008 was great. The market is stabilizing. The elections will be over. The economy is stabilizing. Utah is growing. Jobs are available. All is well.
Tuesday, October 7, 2008
$700 Billion Rescue Bill
President Signs $700 Billion Rescue Bill
President George W. Bush signed a historic economic rescue bill on Friday, which sets out to revive the U.S. financial system by allowing the federal government to buy up to $700 billion in failed mortgaged from banks and other financial institutions.
The president signed the bill shortly after the U.S. House of Representatives voted 263-171 today to pass the far-reaching legislation.
"This legislation is critical to stopping the economic turmoil that millions of Americans are facing," NAR President Dick Gaylord said in a statement. "Today's action will go a long way toward ending the current economic crisis crippling the housing and financial markets."
The legislation will help restore liquidity to the mortgage market, which will stabilize the housing market and protect home owners, Gaylord said.
President George Bush, along with congressional members, had lobbied throughout the week for the support of spending billions of dollars to buy bad mortgage-related securities from troubled financial institutions, as a way to ease the credit crisis.
The bill was tossed a setback earlier in the week after the House voted it down, which sent stocks plunging 777 points, the biggest single-day drop in U.S. history.
The Senate revived the bill on Wednesday by making changes to the $700 billion measure, which was aimed at garnering more bipartisan support. The revised bill extended bank deposit insurance and expired tax breaks. The Senate passed its version of the bill in a 74-25 vote on Oct. 1. (see NAR Applauds Senate Stabilization Action).
Earlier in the week, NAR had called on its members to contact Congress to support the bill. NAR also teamed up with eight other business organizations to run an ad in major newspapers across the country that urged Congress to pass the recovery plan.
Source: REALTOR Magazine Online (10/3/08)
President George W. Bush signed a historic economic rescue bill on Friday, which sets out to revive the U.S. financial system by allowing the federal government to buy up to $700 billion in failed mortgaged from banks and other financial institutions.
The president signed the bill shortly after the U.S. House of Representatives voted 263-171 today to pass the far-reaching legislation.
"This legislation is critical to stopping the economic turmoil that millions of Americans are facing," NAR President Dick Gaylord said in a statement. "Today's action will go a long way toward ending the current economic crisis crippling the housing and financial markets."
The legislation will help restore liquidity to the mortgage market, which will stabilize the housing market and protect home owners, Gaylord said.
President George Bush, along with congressional members, had lobbied throughout the week for the support of spending billions of dollars to buy bad mortgage-related securities from troubled financial institutions, as a way to ease the credit crisis.
The bill was tossed a setback earlier in the week after the House voted it down, which sent stocks plunging 777 points, the biggest single-day drop in U.S. history.
The Senate revived the bill on Wednesday by making changes to the $700 billion measure, which was aimed at garnering more bipartisan support. The revised bill extended bank deposit insurance and expired tax breaks. The Senate passed its version of the bill in a 74-25 vote on Oct. 1. (see NAR Applauds Senate Stabilization Action).
Earlier in the week, NAR had called on its members to contact Congress to support the bill. NAR also teamed up with eight other business organizations to run an ad in major newspapers across the country that urged Congress to pass the recovery plan.
Source: REALTOR Magazine Online (10/3/08)
Monday, September 22, 2008
Utah's Hot Economy
Urban Utah's economy hot
State dominates an index of cities' performance
By Tom Harvey
The Salt Lake Tribune
Article dated: 09/10/2008
Best Performing U.S. Cities 2008
Utah's urban corridor is at the forefront of the "new economy."
So much so that three Wasatch Front metro areas are in the Top 25 in the United States in the annual Best-Performing Cities index compiled by the Milken Institute and Greenstreet Real Estate Partners. Provo-Orem is in the No. 1 spot, with Salt Lake City at No. 3 and Ogden-Clearfield 18th.
The rankings speak to Utah's combination of institutions of higher education that spin off research into commercial products, the concentration of high-tech and medical science companies and a competitive pool of capital.
Report author Russ DeVol, an economist and director of Regional Economics at the Milken Institute, also cited the low cost of doing business in Utah, a pro-business attitude and the state's comparatively small exposure to the subprime mortgage crisis.
"So Utah overall has been the best performer in the past few years," said DeVol.
Jason Perry, executive director of the Governor's Office of Economic Development, said the Milken index is just one of several recent reports that rank Utah as a top state for doing business and for its high-tech industry. Milken is important because it looks at long-term economic indicators that the state also uses to decide how to spend money on economic development efforts, he said.
"Certainly we take from this that we are doing this right. It helps guide us as we help to recruit companies in the future and grow business here."
This was the ninth year the institute has ranked urban-area economies. The Best-Performing Cities study is based on job creation and retention, the quality of jobs being produced and overall economic performance.
The Utah urban areas received high ratings because the jobs created here generally are higher-paying and linked to the state's booming technology and life-sciences sector.
Those types of jobs are dependent upon what DeVol calls the intangible economy, which is knowledge-based, often developed at universities and characterized by the importance of human capital and intellectual labor.
That contrasts to the "old economy," based on manufacturing in which jobs were relatively low-skilled and in such places as Michigan and Ohio.
"Other areas have seen a large loss of jobs to China," DeVol said. "Utah is not as tied in as closely to what some called the old economy."
Emphasizing the shift away from the manufacturing economy of the so-called Rust Belt, the South had 16 metro areas among the top 25 of the index, while the West had eight.
Among other reasons, Provo-Orem jumped from the eighth place in the index last year to No. 1 based on increased research at Brigham Young University and the subsequent spin-off of jobs into the private sector.
Although BYU is mainly a teaching institution with a relatively small research budget, it has faculty who are entrepreneurial-minded and its highly rated Marriott School of Management offers a number of classes on entrepreneurship, said Mike Alder, director of the Office of Technology Transfer.
''We have had a lot of research in new drugs, in diagnosis and in medical devices,'' he said.
Shauna Theobald, chair of the Utah Valley Entrepreneurial Forum, which promotes business start-ups, said an "ecosystem" has developed in Utah County that feeds entrepreneurial activity. That includes a history of high-tech companies stretching back to WordPerfect and Novell and a group of Angel investors, individuals who pour money into start-ups.
"We've got the money. We've got the inventors. We've got the experience," said Theobald, a manager at Novell's Open Source Technology Center.
DeVol said Salt Lake City benefits from the presence of the University of Utah, particularly its medical research. The metro area also has a high concentration of computer hardware and software companies, and strong financial and medical companies that are regional leaders.
Hill Air Force Base helps drive the economy of the Ogden-Clearfield area, which moved up 42 places from last year in the Best-Performing Cities index.
"Hill has been an important anchor in drawing a number of aerospace-related firms to the area," said DeVol.
In southern Utah, St. George ranked in fourth place among small cities after being No. 2 last year. Much of that area's economy is based on construction, which has been hit by the downturn in the nation's housing market.
State dominates an index of cities' performance
By Tom Harvey
The Salt Lake Tribune
Article dated: 09/10/2008
Best Performing U.S. Cities 2008
Utah's urban corridor is at the forefront of the "new economy."
So much so that three Wasatch Front metro areas are in the Top 25 in the United States in the annual Best-Performing Cities index compiled by the Milken Institute and Greenstreet Real Estate Partners. Provo-Orem is in the No. 1 spot, with Salt Lake City at No. 3 and Ogden-Clearfield 18th.
The rankings speak to Utah's combination of institutions of higher education that spin off research into commercial products, the concentration of high-tech and medical science companies and a competitive pool of capital.
Report author Russ DeVol, an economist and director of Regional Economics at the Milken Institute, also cited the low cost of doing business in Utah, a pro-business attitude and the state's comparatively small exposure to the subprime mortgage crisis.
"So Utah overall has been the best performer in the past few years," said DeVol.
Jason Perry, executive director of the Governor's Office of Economic Development, said the Milken index is just one of several recent reports that rank Utah as a top state for doing business and for its high-tech industry. Milken is important because it looks at long-term economic indicators that the state also uses to decide how to spend money on economic development efforts, he said.
"Certainly we take from this that we are doing this right. It helps guide us as we help to recruit companies in the future and grow business here."
This was the ninth year the institute has ranked urban-area economies. The Best-Performing Cities study is based on job creation and retention, the quality of jobs being produced and overall economic performance.
The Utah urban areas received high ratings because the jobs created here generally are higher-paying and linked to the state's booming technology and life-sciences sector.
Those types of jobs are dependent upon what DeVol calls the intangible economy, which is knowledge-based, often developed at universities and characterized by the importance of human capital and intellectual labor.
That contrasts to the "old economy," based on manufacturing in which jobs were relatively low-skilled and in such places as Michigan and Ohio.
"Other areas have seen a large loss of jobs to China," DeVol said. "Utah is not as tied in as closely to what some called the old economy."
Emphasizing the shift away from the manufacturing economy of the so-called Rust Belt, the South had 16 metro areas among the top 25 of the index, while the West had eight.
Among other reasons, Provo-Orem jumped from the eighth place in the index last year to No. 1 based on increased research at Brigham Young University and the subsequent spin-off of jobs into the private sector.
Although BYU is mainly a teaching institution with a relatively small research budget, it has faculty who are entrepreneurial-minded and its highly rated Marriott School of Management offers a number of classes on entrepreneurship, said Mike Alder, director of the Office of Technology Transfer.
''We have had a lot of research in new drugs, in diagnosis and in medical devices,'' he said.
Shauna Theobald, chair of the Utah Valley Entrepreneurial Forum, which promotes business start-ups, said an "ecosystem" has developed in Utah County that feeds entrepreneurial activity. That includes a history of high-tech companies stretching back to WordPerfect and Novell and a group of Angel investors, individuals who pour money into start-ups.
"We've got the money. We've got the inventors. We've got the experience," said Theobald, a manager at Novell's Open Source Technology Center.
DeVol said Salt Lake City benefits from the presence of the University of Utah, particularly its medical research. The metro area also has a high concentration of computer hardware and software companies, and strong financial and medical companies that are regional leaders.
Hill Air Force Base helps drive the economy of the Ogden-Clearfield area, which moved up 42 places from last year in the Best-Performing Cities index.
"Hill has been an important anchor in drawing a number of aerospace-related firms to the area," said DeVol.
In southern Utah, St. George ranked in fourth place among small cities after being No. 2 last year. Much of that area's economy is based on construction, which has been hit by the downturn in the nation's housing market.
Saturday, September 13, 2008
Best City-Provo/Orem
The Milken Institute/Greenstreet Real Estate Partners Best Performing Cities Index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. The components include job, wage and salary and technology growth.
The Best Performing Cities ranking depicts those U.S. metropolitan areas that are recording the top economic performance.
THE NUMBER 1 RANKING GOES TO:
Provo-Orem, UT
Population: 493,306
5-yr Job Growth (2002-2007) Score: 116.49 Rank: 5
1-yr Job Growth (2006-2007) Score: 103.87 Rank: 3
5-yr Wages & Salaries Growth (2001-2006) Score: 109.54 Rank: 33
1-yr Wages & Salaries Growth (2005-2006) Score: 105.23 Rank: 3
Job Growth (Mar07 - Mar08) Growth: 1.90 % Rank: 27
5-yr Relative HT GDP Growth (2002-2007) Score: 105.80 Rank: 55
1-yr Relative HT GDP Growth (2006-2007)7 Score: 106.06 Rank: 9
High-Tech GDP LQ - 20078 Score: 1.34
The Best Performing Cities ranking depicts those U.S. metropolitan areas that are recording the top economic performance.
THE NUMBER 1 RANKING GOES TO:
Provo-Orem, UT
Population: 493,306
5-yr Job Growth (2002-2007) Score: 116.49 Rank: 5
1-yr Job Growth (2006-2007) Score: 103.87 Rank: 3
5-yr Wages & Salaries Growth (2001-2006) Score: 109.54 Rank: 33
1-yr Wages & Salaries Growth (2005-2006) Score: 105.23 Rank: 3
Job Growth (Mar07 - Mar08) Growth: 1.90 % Rank: 27
5-yr Relative HT GDP Growth (2002-2007) Score: 105.80 Rank: 55
1-yr Relative HT GDP Growth (2006-2007)7 Score: 106.06 Rank: 9
High-Tech GDP LQ - 20078 Score: 1.34
Thursday, September 4, 2008
Increase in Affordability
Report: Utah real estate sees increase in affordability
Home prices in Salt Lake City and other parts of Utah are more affordable than they’ve been in years, according to a national report released Aug. 19. The Housing Opportunity Index, which is published by the National Association of Home Builders and Wells Fargo, said second quarter home prices in the Salt Lake metro area were more affordable than they’ve been since 2005.
The report said that during second quarter 2008, nearly 55 percent of all new and existing homes were affordable to families earning the area’s median income of $65,300. The availability of affordably priced homes hasn’t been this high since the third quarter of 2005 when 58 percent of homes were considered affordable.
Of all the Utah metro areas reported, Ogden-Clearfield had the highest affordability ranking in the state, with 68 percent of homes being affordable to those earning the median income. That’s up from about 61 percent in the first quarter.
The Provo-Orem Metropolitan Statistical Area also saw improved affordability in the second quarter although there were fewer affordable homes in the area compared to Salt Lake and Ogden. Provo-Orem, however, is showing real improvement in terms of affordability. As recently as the third quarter of 2007, only 22.5 percent of homes were affordable to those earning the area’s median income. Now nearly 50 percent of homes are considered affordable.
Even St. George has seen huge affordability gains. In 2006, only 16 percent of St. George homes were affordable; now that number has jumped to nearly 37 percent.
Home prices in Salt Lake City and other parts of Utah are more affordable than they’ve been in years, according to a national report released Aug. 19. The Housing Opportunity Index, which is published by the National Association of Home Builders and Wells Fargo, said second quarter home prices in the Salt Lake metro area were more affordable than they’ve been since 2005.
The report said that during second quarter 2008, nearly 55 percent of all new and existing homes were affordable to families earning the area’s median income of $65,300. The availability of affordably priced homes hasn’t been this high since the third quarter of 2005 when 58 percent of homes were considered affordable.
Of all the Utah metro areas reported, Ogden-Clearfield had the highest affordability ranking in the state, with 68 percent of homes being affordable to those earning the median income. That’s up from about 61 percent in the first quarter.
The Provo-Orem Metropolitan Statistical Area also saw improved affordability in the second quarter although there were fewer affordable homes in the area compared to Salt Lake and Ogden. Provo-Orem, however, is showing real improvement in terms of affordability. As recently as the third quarter of 2007, only 22.5 percent of homes were affordable to those earning the area’s median income. Now nearly 50 percent of homes are considered affordable.
Even St. George has seen huge affordability gains. In 2006, only 16 percent of St. George homes were affordable; now that number has jumped to nearly 37 percent.
Monday, September 1, 2008
Home Sales Tips
Essential Home-Selling Tips
What is staging? Sabrina Soto, "Get It Sold" host and home-staging expert, knows.
Here are her top tips for helping you compete in today's real estate market.
By Sabrina Soto
1. Curb appeal
A fresh coat of paint on the front door and a groomed lawn invites buyers in. Pull weeds, rake leaves and trim overgrown shrubs, especially if they block windows or the path to your front door.
2. Paint
It's important to make your house generic. A fresh coat of neutral paint will make your home appear larger, brighter and more appealing to potential buyers.
3. Make repairs
Fix things like leaky faucets and sticky cabinets, and replace old screens. They may seem insignificant, but minor repairs add up in the mind of a potential buyer. They tend to overestimate how much repairs cost. You don't want to give them any reason not to put in an offer.
4. Rearrange
Make sure your furniture placement allows for easy traffic flow and shows the purpose of each room. If you have too much furniture, rent a portable storage device to hold things until you are ready to move into your new place. If you don't have enough furniture, borrow or rent. A clean and uncluttered kitchen is a staple of home staging.
5. Pack up
This includes personal photos and portraits. Less is always more. The less clutter and knickknacks you have lying around, the more potential buyers will be able to see your home and what it offers. Remember, you are selling your house, not your stuff. Plus, getting a head start on packing will eliminate some stress down the road.
6. Organize
When your house is meticulously organized, buyers will envision themselves living a stress-free life in your home.
7. Clean
Clean every inch of your house, and don't forget to make your windows and floors sparkle. If your carpet appears old and stained, think about replacing it. Also, make sure there are no offensive odors. Purchase an air-neutralizing spray that will help remove odors without creating an overwhelming masking odor. Clean homes sell!
8. Lighten up
Lighten up your home with natural tones and a neutral dose of style.Let the sun shine in, and turn on the lights. Open all blinds or curtains, and make sure the house is well lit.
9. Temperature
Be sure potential buyers are comfortable when touring your home. If it's freezing outside, leave the heat on, and if it's summer, turn on the air conditioner.
10. Keep it ready to show
It may be a little inconvenient, but until you accept an offer, keep your home in tip-top shape at all times. What this means is that each room should have a clear purpose, nice flow and be clean and clutter-free. Buyers need to be able to picture themselves and their things in a room, and taking these steps will help ensure that.
What is staging? Sabrina Soto, "Get It Sold" host and home-staging expert, knows.
Here are her top tips for helping you compete in today's real estate market.
By Sabrina Soto
1. Curb appeal
A fresh coat of paint on the front door and a groomed lawn invites buyers in. Pull weeds, rake leaves and trim overgrown shrubs, especially if they block windows or the path to your front door.
2. Paint
It's important to make your house generic. A fresh coat of neutral paint will make your home appear larger, brighter and more appealing to potential buyers.
3. Make repairs
Fix things like leaky faucets and sticky cabinets, and replace old screens. They may seem insignificant, but minor repairs add up in the mind of a potential buyer. They tend to overestimate how much repairs cost. You don't want to give them any reason not to put in an offer.
4. Rearrange
Make sure your furniture placement allows for easy traffic flow and shows the purpose of each room. If you have too much furniture, rent a portable storage device to hold things until you are ready to move into your new place. If you don't have enough furniture, borrow or rent. A clean and uncluttered kitchen is a staple of home staging.
5. Pack up
This includes personal photos and portraits. Less is always more. The less clutter and knickknacks you have lying around, the more potential buyers will be able to see your home and what it offers. Remember, you are selling your house, not your stuff. Plus, getting a head start on packing will eliminate some stress down the road.
6. Organize
When your house is meticulously organized, buyers will envision themselves living a stress-free life in your home.
7. Clean
Clean every inch of your house, and don't forget to make your windows and floors sparkle. If your carpet appears old and stained, think about replacing it. Also, make sure there are no offensive odors. Purchase an air-neutralizing spray that will help remove odors without creating an overwhelming masking odor. Clean homes sell!
8. Lighten up
Lighten up your home with natural tones and a neutral dose of style.Let the sun shine in, and turn on the lights. Open all blinds or curtains, and make sure the house is well lit.
9. Temperature
Be sure potential buyers are comfortable when touring your home. If it's freezing outside, leave the heat on, and if it's summer, turn on the air conditioner.
10. Keep it ready to show
It may be a little inconvenient, but until you accept an offer, keep your home in tip-top shape at all times. What this means is that each room should have a clear purpose, nice flow and be clean and clutter-free. Buyers need to be able to picture themselves and their things in a room, and taking these steps will help ensure that.
Saturday, August 30, 2008
Sales Data for Utah
Regarding local and national economic facts and sales data, this is what is going on in our market:
First, the trend we have seen since December 2007 continues. Sales rose in July 2008 to 445, up from 394 in June. This represents an increase of 65 percent in 7 months.
Second, with strong sales in July 2008 of 445, we are now only down 17 percent from last July's sales of 538 units.
Year To Date sales are off 32 percent.
Many have been saying that affordability is an issue and while we have seen prices slip about 3 percent, our market indicates that if priced right it will sell! But price is certainly a factor, as sales of homes priced above $500,000 are down 37 percent. Keep in mind however, that these homes represent only 5 percent of the total market.
If price is an issue, why are condos sales still down? With 85 sold in July 2008, condos sales are down 28 percent from last year's 119. The answer may be perceived value. Condo prices have slipped 12 percent from last year, compared to only 3 percent for single-family detached homes.
"If anyone was waiting for a strong sign that we are seeing things turn around then they should find plenty to celebrate this month. We see much to celebrate with July's statistics. Real estate remains a very good place to invest."
Utah County Association of Realtors CEO-Taylor Oldroyd
First, the trend we have seen since December 2007 continues. Sales rose in July 2008 to 445, up from 394 in June. This represents an increase of 65 percent in 7 months.
Second, with strong sales in July 2008 of 445, we are now only down 17 percent from last July's sales of 538 units.
Year To Date sales are off 32 percent.
Many have been saying that affordability is an issue and while we have seen prices slip about 3 percent, our market indicates that if priced right it will sell! But price is certainly a factor, as sales of homes priced above $500,000 are down 37 percent. Keep in mind however, that these homes represent only 5 percent of the total market.
If price is an issue, why are condos sales still down? With 85 sold in July 2008, condos sales are down 28 percent from last year's 119. The answer may be perceived value. Condo prices have slipped 12 percent from last year, compared to only 3 percent for single-family detached homes.
"If anyone was waiting for a strong sign that we are seeing things turn around then they should find plenty to celebrate this month. We see much to celebrate with July's statistics. Real estate remains a very good place to invest."
Utah County Association of Realtors CEO-Taylor Oldroyd
Monday, August 25, 2008
Paying Off Your Mortgage
Are you thinking about paying off your mortgage early??
One additional payment per year can save you thousands of dollars in interest!
There are two good ways to pay off your mortgage sooner:
1. Make an additional payment by writing one additional check a year to be applied directly to principal.
2. Split each of your normal monthly payments in half and pay every two weeks. (26 half payments equals 13 whole payments)
By making one extra payment per year you will pay less interest and your payments are applied to your principal balance more frequently!
To Pay or Not to Pay off early
To pay your mortgage off early is a secure investment. Many debate whether or not to put extra money towards paying off their mortgage or invest in bonds or stock market. Consider prepaying your mortgage because it reduces total interest expense. You will earn a 'guaranteed return' on your home mortgage.
To not pay your mortgage you will generally get a better market return. If you have a 30 year mortgage at 7% and take advantage of the tax deduction, you will get a better return on any market investment that earns more than 5.1%.
To pay your mortgage early you can cancel your Private Mortgage Insurance (PMI). You probably have PMI if you borrowed more than 80% of your home's appraised value. Making extra payments on your mortgage will help you reach the 20% equity you need to drop the PMI and stop paying those premiums.
To not pay off your mortgage early or you will lose the tax deduction. You will not be able to deduct the interest you would have been paying. If you are in a high tax bracket you should weigh the consequences before paying down the mortgage.
To pay your mortgage early will give you peace of mind. Owning a home and being debt free can be psychologically rewarding. Just be careful that paying your mortgage early doesn't come at the expense of using your retirement savings or lead to high interest credit cards debt.
To not pay your mortgage early because of a possible prepayment penalty. Most fixed mortgages don't carry prepayment penalties, some adjustable rate mortgages do. Discuss the terms of your loan with your lender before you prepay to make sure you won't be penalized.
To pay your mortgage early to have more at retirement. Pay more now to have more later! If you would prefer to not have to use your retirement savings to finish paying your mortgage then consider prepaying now while you are in the workforce.
Planning for tomorrow is important. The more you educate yourself on your financial options, the more confident you will feel with your decisions.
One additional payment per year can save you thousands of dollars in interest!
There are two good ways to pay off your mortgage sooner:
1. Make an additional payment by writing one additional check a year to be applied directly to principal.
2. Split each of your normal monthly payments in half and pay every two weeks. (26 half payments equals 13 whole payments)
By making one extra payment per year you will pay less interest and your payments are applied to your principal balance more frequently!
To Pay or Not to Pay off early
To pay your mortgage off early is a secure investment. Many debate whether or not to put extra money towards paying off their mortgage or invest in bonds or stock market. Consider prepaying your mortgage because it reduces total interest expense. You will earn a 'guaranteed return' on your home mortgage.
To not pay your mortgage you will generally get a better market return. If you have a 30 year mortgage at 7% and take advantage of the tax deduction, you will get a better return on any market investment that earns more than 5.1%.
To pay your mortgage early you can cancel your Private Mortgage Insurance (PMI). You probably have PMI if you borrowed more than 80% of your home's appraised value. Making extra payments on your mortgage will help you reach the 20% equity you need to drop the PMI and stop paying those premiums.
To not pay off your mortgage early or you will lose the tax deduction. You will not be able to deduct the interest you would have been paying. If you are in a high tax bracket you should weigh the consequences before paying down the mortgage.
To pay your mortgage early will give you peace of mind. Owning a home and being debt free can be psychologically rewarding. Just be careful that paying your mortgage early doesn't come at the expense of using your retirement savings or lead to high interest credit cards debt.
To not pay your mortgage early because of a possible prepayment penalty. Most fixed mortgages don't carry prepayment penalties, some adjustable rate mortgages do. Discuss the terms of your loan with your lender before you prepay to make sure you won't be penalized.
To pay your mortgage early to have more at retirement. Pay more now to have more later! If you would prefer to not have to use your retirement savings to finish paying your mortgage then consider prepaying now while you are in the workforce.
Planning for tomorrow is important. The more you educate yourself on your financial options, the more confident you will feel with your decisions.
Monday, August 11, 2008
Client Appreciation Event
JOIN US FOR A DAY OF FUN!!!
Coldwell Banker Client Appreciation Day
Saturday, August 23, 2008
10:00 AM to 2:00 PM
300 East 100 North, Orem
Day of fun includes:
Kids Safety
Free hot dogs
Balloons
Inflatable bouncers
RAD Kids
Face painting
Rock Climbing Wall
Allen's Camera
Safety Classes
And more....
Please RSVP to Heidi at 801-494-7008 so we know you are coming.
Bring one canned food item to donate to the Utah County Food Bank!
See you there!!!
Thursday, July 31, 2008
President Bush signs Housing and Economic Recovery Act of 2008
President Bush signed the Housing and Economic Recovery Act of 2008 today, a bill that will assist an estimated 400,000 homeowners facing foreclosure by allowing them to refinance their current mortgages with a Federal Housing Administration-backed loan. The bill also permanently increases the conforming loan limit to as high as $625,500.
“One of the biggest reasons we’ve seen a slowdown in home sales is because buyers are having difficulty obtaining mortgage funds. That’s why this bill is significant: It increases the access to affordable, stable mortgages,” said Chris Sloan, president-elect of the Utah Association of REALTORS®.
The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
Another part of the bill includes a temporary tax credit for first-time home buyers of up to $7,500 for those who purchase between April 9, 2008, and July 1, 2009. This credit is available to anyone buying their first house or anyone who has not owned in three years. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full credit. A home is eligible for the credit if it is any residence that will be used as a primary residence (single-family, townhouse, condo, etc.)
For more detailed information about the tax credit, visit www.federalhousingtaxcredit.com
“One of the biggest reasons we’ve seen a slowdown in home sales is because buyers are having difficulty obtaining mortgage funds. That’s why this bill is significant: It increases the access to affordable, stable mortgages,” said Chris Sloan, president-elect of the Utah Association of REALTORS®.
The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
Another part of the bill includes a temporary tax credit for first-time home buyers of up to $7,500 for those who purchase between April 9, 2008, and July 1, 2009. This credit is available to anyone buying their first house or anyone who has not owned in three years. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full credit. A home is eligible for the credit if it is any residence that will be used as a primary residence (single-family, townhouse, condo, etc.)
For more detailed information about the tax credit, visit www.federalhousingtaxcredit.com
Thursday, July 24, 2008
10 Reasons to Buy Now
10 Reasons to Consider Buying a Home Now
For the first time in a long time, buyers are in the
driver’s seat. At least for now, in most markets, you can get a great
value on a home. But this favorable market may not last forever and
if you intend to buy a home, now may be the best time to enter the
real estate market.
1. Increased Jumbo Loan Limits Are Set to Expire on
December 31, 2008.
The recent increase of the jumbo loan limits
by the government is helping add favorable terms into the marketplace
which translates into easier qualifying and affordability for buyers. But
those increased jumbo loan limits won’t last forever and are set to
expire on December 31, 2008. While the new loan limits vary across
Utah, they are now $431,250 in Wasatch County and the national
maximum of $729,750 in Salt Lake County, Tooele County and Summit
County. The rest of the state has risen to $417,000.
2. Despite fluctuations, current financing rates are
allowing you to get more for your money—but it won’t
last forever.
An increase in interest rates, even by just a quarter
of a percent, will decrease affordability of homes; so much so that you
may not be able to afford the home that you want today and you may
have to purchase less than you might want or need.
3. Real estate is a strong, long term investment.
Many buyers are concerned about falling prices and the possibility of paying
too much for their home. But it must be remembered that real estate
is not the stock market and the purchase decision should be made for
the long term. Since record keeping began in 1968 by NAR, the national
median existing-home price rose every year through 2006, even during
recessions and periods of sales decline. Typically, in a balanced market,
home values rise at the general rate of inflation plus 1.7 percentage
points, according to NAR.
4. In order to build wealth, you should consider having
real estate in your investment portfolio.
Many people choose to invest their money in the stock market. And while stocks
can be a lucrative way to improve your financial situation, there is
another, arguably better, method. Stability is key to building wealth
and stocks, in most cases, don’t compare with the stability of real
estate. When you purchase real estate as an investment you can
potentially get more for your money.
5. Today’s market may offer a particularly good
opportunity to buy investment properties.
While the recent slowdown in the housing market has softened prices for home
sellers, it has also resulted in an unusually good opportunity to buy
rentals and other investment properties. Inventories of homes for
sale have climbed steadily over the past two years, which has put
downward pressure on prices. In particular, the large number of bank-
owned properties, has resulted in an increased inventory.
Banks are not in the real estate business and are usually anxious to
get the properties off their books. As a result, many properties that
are bank owned are selling at discounted prices.
6. The potential benefits of real estate as compared to
stock.
With stocks, $200,000 will buy you exactly $200,000 worth
of stocks, no more, no less. However with real estate, that same
$200,000 can, if you qualify for the necessary financing, enable you to
buy a home that is priced at approximately $1,000,000. If both of these
investments increase in value by 10% you will have only a 10% return
on your stock money and a 50% return on the money you invested
in real estate, less any costs and expenses of real property ownership.
7. There are a lot of homes to choose from right now.
The large supply of homes on the market clearly favors buyers and it
should take several months to draw the inventory down. Regardless
of price range, in most markets, there are plenty of houses from which
to choose. There’s a great selection of homes, condos and
townhouses. You have many options. When resale inventories are
low, buyers are forced to make compromises.
8. Homes are among their most affordable since 2004.
Home prices have dropped so quickly and so far that, valuations—the
differences between what a home should cost and its actual prices—
are the lowest they’ve been since 2004, according to March 5, 2008
CNN article entitled Housing: Best time to buy in four years. The article
said, “The Cleveland-based bank National City Corp, together with
financial analysis firm Global Insight, revealed Tuesday that more than
88% of the 330 housing markets surveyed showed price declines and
improved affordability during the last three months of 2007.” The
article went on to report a quote from National City’s chief economist,
Richard DeKaser, noting “Housing valuations are almost back to long-
term norms.” He called current affordability “the best in the past four
years.”
9. Inflation may be on the horizon.
All of the bad news has hit all sectors of our economy—from falling home prices, rising
food and energy prices, the credit crunch and a deteriorating labor
market. According to Realty Times’ June 25, 2008 article entitled Realty
Viewpoint: More Signs Housing Nearing Bottom, “Home prices have
receded while consumer prices for food and gas have doubled since
2004.” The article went on to report that, “The stock market has
lost trillions in gains. The DOW has dropped from over 14,000 points
to below 12,000 for the first time since 2006. The only thing that isn’t
down is unemployment, up to 5.5 percent from 4.5 percent this year.”
If history is any indicator, with this news comes the likelihood that the
Fed will look to increase interest rates as a way of combating the
inflation pressures.
10. The market may be changing!
Lawrence Yun, Chief Economist of the National Association of Realtors, recently spoke to a group of
Realtors in Park City noting, “Even though Utah is already fundamentally
healthier than many other real estate markets, improved economic
conditions for the U.S. in the second half of the year should continue
to help housing in the Beehive State as more people choose to move
here.”
In fact, Yun told the group that he expects prices will be higher in 99
percent of U.S. markets five years from now, which is why he emphasized
to the group that it’s important to make buying decisions based on
long-term trends, not short-term ones. “In the Rocky Mountain area,
for example, prices could rise 30 percent in five years,” Yun said.
“The long-term prospect is very bright for the Rock Mountain states,”
he said. “Given that currently it’s a buyer’s market—high inventory,
historically low rates—it may be a good time to enter the marketplace.”
A second report released by the Utah Association of Realtors on June
21, 2008 noted that “Home and condo sales along Utah’s Wasatch
Front were up for the fourth straight month in May, more good news
for a state that has consistently outperformed the nation in the housing
market arena.” The article went on to report, “In May, single family
home and condo sales along the Wasatch Front—including Salt Lake,
Utah, Davis and Weber counties—were up 4 percent compared to
April, according to statistics from the Utah Association of Realtors.
In fact, home and condo sales have been increasing every month since
the beginning of the year and were up a whopping 59 percent since
January.”
Locally, consider these figures supplied by the Utah Association of
Realtors:
• Over the next few years, Utah’s population is estimated to grow by
about 200,000 people—up from 2.7 million residents in 2007 to 2.9
million by 2010—according to the Utah Population Estimates Committee.
• For this next year alone, Utah is expected to add 142,000 new people,
a figure that translates into about 46,100 new households being formed
over the next years. In other words, the state will need about 46,100
new housing units in the next couple years to house these additional
people.
If you are ready to learn more about the opportunities in today’s housing market, please contact me today. I am a
professional Realtor® who can help! If you need to sell your home—even if you have to discount
it based on the current marketplace—together we can look at your position to determine the best steps based on today’s market conditions.
Heidi Alldredge
801-494-7008
For the first time in a long time, buyers are in the
driver’s seat. At least for now, in most markets, you can get a great
value on a home. But this favorable market may not last forever and
if you intend to buy a home, now may be the best time to enter the
real estate market.
1. Increased Jumbo Loan Limits Are Set to Expire on
December 31, 2008.
The recent increase of the jumbo loan limits
by the government is helping add favorable terms into the marketplace
which translates into easier qualifying and affordability for buyers. But
those increased jumbo loan limits won’t last forever and are set to
expire on December 31, 2008. While the new loan limits vary across
Utah, they are now $431,250 in Wasatch County and the national
maximum of $729,750 in Salt Lake County, Tooele County and Summit
County. The rest of the state has risen to $417,000.
2. Despite fluctuations, current financing rates are
allowing you to get more for your money—but it won’t
last forever.
An increase in interest rates, even by just a quarter
of a percent, will decrease affordability of homes; so much so that you
may not be able to afford the home that you want today and you may
have to purchase less than you might want or need.
3. Real estate is a strong, long term investment.
Many buyers are concerned about falling prices and the possibility of paying
too much for their home. But it must be remembered that real estate
is not the stock market and the purchase decision should be made for
the long term. Since record keeping began in 1968 by NAR, the national
median existing-home price rose every year through 2006, even during
recessions and periods of sales decline. Typically, in a balanced market,
home values rise at the general rate of inflation plus 1.7 percentage
points, according to NAR.
4. In order to build wealth, you should consider having
real estate in your investment portfolio.
Many people choose to invest their money in the stock market. And while stocks
can be a lucrative way to improve your financial situation, there is
another, arguably better, method. Stability is key to building wealth
and stocks, in most cases, don’t compare with the stability of real
estate. When you purchase real estate as an investment you can
potentially get more for your money.
5. Today’s market may offer a particularly good
opportunity to buy investment properties.
While the recent slowdown in the housing market has softened prices for home
sellers, it has also resulted in an unusually good opportunity to buy
rentals and other investment properties. Inventories of homes for
sale have climbed steadily over the past two years, which has put
downward pressure on prices. In particular, the large number of bank-
owned properties, has resulted in an increased inventory.
Banks are not in the real estate business and are usually anxious to
get the properties off their books. As a result, many properties that
are bank owned are selling at discounted prices.
6. The potential benefits of real estate as compared to
stock.
With stocks, $200,000 will buy you exactly $200,000 worth
of stocks, no more, no less. However with real estate, that same
$200,000 can, if you qualify for the necessary financing, enable you to
buy a home that is priced at approximately $1,000,000. If both of these
investments increase in value by 10% you will have only a 10% return
on your stock money and a 50% return on the money you invested
in real estate, less any costs and expenses of real property ownership.
7. There are a lot of homes to choose from right now.
The large supply of homes on the market clearly favors buyers and it
should take several months to draw the inventory down. Regardless
of price range, in most markets, there are plenty of houses from which
to choose. There’s a great selection of homes, condos and
townhouses. You have many options. When resale inventories are
low, buyers are forced to make compromises.
8. Homes are among their most affordable since 2004.
Home prices have dropped so quickly and so far that, valuations—the
differences between what a home should cost and its actual prices—
are the lowest they’ve been since 2004, according to March 5, 2008
CNN article entitled Housing: Best time to buy in four years. The article
said, “The Cleveland-based bank National City Corp, together with
financial analysis firm Global Insight, revealed Tuesday that more than
88% of the 330 housing markets surveyed showed price declines and
improved affordability during the last three months of 2007.” The
article went on to report a quote from National City’s chief economist,
Richard DeKaser, noting “Housing valuations are almost back to long-
term norms.” He called current affordability “the best in the past four
years.”
9. Inflation may be on the horizon.
All of the bad news has hit all sectors of our economy—from falling home prices, rising
food and energy prices, the credit crunch and a deteriorating labor
market. According to Realty Times’ June 25, 2008 article entitled Realty
Viewpoint: More Signs Housing Nearing Bottom, “Home prices have
receded while consumer prices for food and gas have doubled since
2004.” The article went on to report that, “The stock market has
lost trillions in gains. The DOW has dropped from over 14,000 points
to below 12,000 for the first time since 2006. The only thing that isn’t
down is unemployment, up to 5.5 percent from 4.5 percent this year.”
If history is any indicator, with this news comes the likelihood that the
Fed will look to increase interest rates as a way of combating the
inflation pressures.
10. The market may be changing!
Lawrence Yun, Chief Economist of the National Association of Realtors, recently spoke to a group of
Realtors in Park City noting, “Even though Utah is already fundamentally
healthier than many other real estate markets, improved economic
conditions for the U.S. in the second half of the year should continue
to help housing in the Beehive State as more people choose to move
here.”
In fact, Yun told the group that he expects prices will be higher in 99
percent of U.S. markets five years from now, which is why he emphasized
to the group that it’s important to make buying decisions based on
long-term trends, not short-term ones. “In the Rocky Mountain area,
for example, prices could rise 30 percent in five years,” Yun said.
“The long-term prospect is very bright for the Rock Mountain states,”
he said. “Given that currently it’s a buyer’s market—high inventory,
historically low rates—it may be a good time to enter the marketplace.”
A second report released by the Utah Association of Realtors on June
21, 2008 noted that “Home and condo sales along Utah’s Wasatch
Front were up for the fourth straight month in May, more good news
for a state that has consistently outperformed the nation in the housing
market arena.” The article went on to report, “In May, single family
home and condo sales along the Wasatch Front—including Salt Lake,
Utah, Davis and Weber counties—were up 4 percent compared to
April, according to statistics from the Utah Association of Realtors.
In fact, home and condo sales have been increasing every month since
the beginning of the year and were up a whopping 59 percent since
January.”
Locally, consider these figures supplied by the Utah Association of
Realtors:
• Over the next few years, Utah’s population is estimated to grow by
about 200,000 people—up from 2.7 million residents in 2007 to 2.9
million by 2010—according to the Utah Population Estimates Committee.
• For this next year alone, Utah is expected to add 142,000 new people,
a figure that translates into about 46,100 new households being formed
over the next years. In other words, the state will need about 46,100
new housing units in the next couple years to house these additional
people.
If you are ready to learn more about the opportunities in today’s housing market, please contact me today. I am a
professional Realtor® who can help! If you need to sell your home—even if you have to discount
it based on the current marketplace—together we can look at your position to determine the best steps based on today’s market conditions.
Heidi Alldredge
801-494-7008
Friday, July 18, 2008
Top Ten Desired Features
Top Ten: Home Features Desired by All Home Buyers
Can you guess what the top ten features are?? What are your top features when looking for a home?? How would your favorite features compare to this national public survey??
#10. Home less than 10 years old
#9. Fencing
#8. Patio
#7. Separate shower enclosure in master/main bath
#6. High-speed Internet Access
#5. Cable/Satellite TV-ready
#4. Backyard/play area
#3. Walk-in closet in master bedroom
#2. Garage (2 or more spaces)
#1. Central Air Conditioning
Source: National Association of Realtors 2007 survey of Buyer's Home Feature Preferences
Can you guess what the top ten features are?? What are your top features when looking for a home?? How would your favorite features compare to this national public survey??
#10. Home less than 10 years old
#9. Fencing
#8. Patio
#7. Separate shower enclosure in master/main bath
#6. High-speed Internet Access
#5. Cable/Satellite TV-ready
#4. Backyard/play area
#3. Walk-in closet in master bedroom
#2. Garage (2 or more spaces)
#1. Central Air Conditioning
Source: National Association of Realtors 2007 survey of Buyer's Home Feature Preferences
Friday, July 11, 2008
Looking Back
As I study the market and look for statistics I have noticed a common thread. All of the statistics are from the booming years of 2006 and 2007. We are still reaping the benefits of those booming years. We added new jobs, new homes, and sold homes at increased prices! That is all still continuing from previous years. We had such a big economical jump that we can't possibly have that every year! We keep the momentum going. Jobs are stable, home prices are stable, so we can all enjoy the benefits of some great previous years!
(The following Information/Statistics provided by Jeff Thredgold
For up-to-date analysis other economic issues, visit www.thredgold.com)
"Since the first quarter 2004 Utah’s economy has been racing. Job growth in the first quarter of 2007 was 4.5 percent higher than for the first quarter of 2006, more than triple the rate of the U.S. overall. In the last year alone the state’s robust economy added more 54,000 jobs.
More than 14,000 of those new jobs came in the construction industry, proof that Utah’s building boom is bucking the national trend. Likewise, Utah added more than 5,000 new manufacturing jobs, a growth rate better than 4 percent.
Utah’s average payroll wage reached $34,000 in 2006, making it 38th in the nation. It grew 1.3 percent over the year prior. Utah’s pay averages 83 percent of the national average.
All these factors have combined to make for an incredible housing market!
In the first quarter of 2007, the average home price in Utah grew 17 percent, making the state tops in the nation for real estate growth. This after Utah trailed the nation in real estate appreciation in the calendar year 2003. That’s from 50 to 1 in four years.
To what to attribute this boom?
Utahns enjoy a high quality of life. The fertility rate is the highest in the United States, and long has been. Utah’s total population growth in 2006 was 2.4 percent, ranking it sixth in the nation. And the inhabitants enjoy good health and long lives. The life expectancy in the state is the nation’s third highest. At 28.5 years, the median age is the nation’s lowest. Its household size is the nation’s largest. And the populace is well educated. Fully 91 percent of the state has a high school diploma and 27 percent hold a bachelor’s degree.
The economy has also grown thanks to a sharp rise in energy prices and natural resources, which the state enjoys in abundance.
The governor’s optimism has proven contagious. In first quarter a survey by public opinion pollster Dan Jones & Associates business people in Utah are upbeat about the future. Some 50 percent of those polled rated their optimism about the financial futures of their companies as a seven or eight on a 10 point scale. Another 33 percent rate their company’s future at a nine or 10! In terms of capital spending, 71 percent said that they anticipated spending about the same or somewhat more in the first quarter. When it comes to adding employees, 47 percent said they expected to increase somewhat their headcount in the coming quarter.
“One of the nation’s tightest labor markets is forcing wages higher, good news for Utah workers,” says Jeff Thredgold, president of Thredgold Economic Associates. “The Utah real estate sector is healthy, with more moderate price appreciation expected over the next 12-18 months.”
Employment
Utah’s rise in employment occurred in 10 of 11 major sectors, with only information jobs showing a small decline. The job growth was lead by construction jobs, with more than 14,500 jobs added, a 15-point percentage gain. Job growth was also strong in the professional and business services sector, which added 9,200 net new jobs, a growth rate of 6 percent. But the biggest gain came in the high-paying natural resources and mining sector, which grew by 15.7 percent and added 1,500 new jobs, mostly in rural Utah.
Trade/Transportation/Utilities: This sector of the economy saw an increase of 8,800 jobs over the past year, a growth rate of 3.8 percent. Roughly 240,000 Utahns work in this sector.
Manufacturing: Utah gained an estimated 6,100 manufacturing jobs in 2006, a growth rate of 2.6 percent. There are currently about 125,000 manufacturing positions in Utah.
Information: Publishing, motion picture and sound recording, telecommunications, and Internet service providers make up this information sector. Current employment in this sector is about 32,800 positions, a net decline of 200 jobs from the year prior.
Financial Activities: Growth in financial activities was strong in the past year, with 3,400 new positions added. Nearly 74,000 people in the state are employed in financial activities, an increase of 4.8 percent over 2005.
Professional and Business Services: The professional and business services sector, which includes activities such as legal services, architecture, engineering, and employment services, saw employment rise by a sizeable 9,200 jobs in the most recent 12-month period to 164,000 positions. This represents a growth rate of 6.0 percent.
Education and Health Services: Growth in this sector at 4 percent trailed slightly the overall 4.5 percent job growth rate in the State, with an increase of 5,200 positions. Approximately 140,000 individuals work in this sector.
Leisure and Hospitality: The economy added some 2,900 jobs in the Leisure and Hospitality sector, a growth rate of 2.8 percent. Roughly 109,000 Utah residents work to feed, entertain, and accommodate both visitors and locals alike.
Government: The three levels of government—federal, state, and local—account for a combined 18 percent of the non-farm jobs in Utah, and grew a modest 1 percent in 2006. Government now employs approximately 212,000 Utahns.
Other Services: Auto repair, personal care, and non-profit organizations are some of the employment categories in this sector. Employment in other services was up 5.1 percent and now totals 35,600 positions.
Utah’s unemployment rate was 3 percent in May of 2006 and a miniscule 2.5 percent in May 2007! That’s the lowest on record in Utah and the lowest in the contiguous 48 states.
It’s a testament to the strength of the economy that the Utah jobless has dropped even while the State has enjoyed a record inflow of new residents.
Economic Growth
Strong Utah economic growth and heavy inflows of new residents has led to rising home values. In the Salt Lake MSA (metropolitan statistical areas) the median sales price of homes in the Salt Lake MSA rose 12.3 percent in 2006.
The broader data of the Office of Federal Housing Enterprise Oversight (OFHEO) noted an average U.S. home price rise of 4.25 percent during 2006. The average Utah home price rose 17.01 percent, ranking Utah first among the 50 states. Part of the gain is due to slack being taken up in the Utah housing market. Over the last five years home price appreciation has totaled an average of 48.29 percent, which trails the five-year national average of 53.53 percent.
By comparison, the average home price during the past five years rose by 93.76 percent in Arizona, 95.75 percent in Nevada, 21.15 percent in Colorado, 64.25 percent in Idaho, and 60.96 percent in Wyoming. Such an analysis suggests that home prices in Utah still have room to run."
(The following Information/Statistics provided by Jeff Thredgold
For up-to-date analysis other economic issues, visit www.thredgold.com)
"Since the first quarter 2004 Utah’s economy has been racing. Job growth in the first quarter of 2007 was 4.5 percent higher than for the first quarter of 2006, more than triple the rate of the U.S. overall. In the last year alone the state’s robust economy added more 54,000 jobs.
More than 14,000 of those new jobs came in the construction industry, proof that Utah’s building boom is bucking the national trend. Likewise, Utah added more than 5,000 new manufacturing jobs, a growth rate better than 4 percent.
Utah’s average payroll wage reached $34,000 in 2006, making it 38th in the nation. It grew 1.3 percent over the year prior. Utah’s pay averages 83 percent of the national average.
All these factors have combined to make for an incredible housing market!
In the first quarter of 2007, the average home price in Utah grew 17 percent, making the state tops in the nation for real estate growth. This after Utah trailed the nation in real estate appreciation in the calendar year 2003. That’s from 50 to 1 in four years.
To what to attribute this boom?
Utahns enjoy a high quality of life. The fertility rate is the highest in the United States, and long has been. Utah’s total population growth in 2006 was 2.4 percent, ranking it sixth in the nation. And the inhabitants enjoy good health and long lives. The life expectancy in the state is the nation’s third highest. At 28.5 years, the median age is the nation’s lowest. Its household size is the nation’s largest. And the populace is well educated. Fully 91 percent of the state has a high school diploma and 27 percent hold a bachelor’s degree.
The economy has also grown thanks to a sharp rise in energy prices and natural resources, which the state enjoys in abundance.
The governor’s optimism has proven contagious. In first quarter a survey by public opinion pollster Dan Jones & Associates business people in Utah are upbeat about the future. Some 50 percent of those polled rated their optimism about the financial futures of their companies as a seven or eight on a 10 point scale. Another 33 percent rate their company’s future at a nine or 10! In terms of capital spending, 71 percent said that they anticipated spending about the same or somewhat more in the first quarter. When it comes to adding employees, 47 percent said they expected to increase somewhat their headcount in the coming quarter.
“One of the nation’s tightest labor markets is forcing wages higher, good news for Utah workers,” says Jeff Thredgold, president of Thredgold Economic Associates. “The Utah real estate sector is healthy, with more moderate price appreciation expected over the next 12-18 months.”
Employment
Utah’s rise in employment occurred in 10 of 11 major sectors, with only information jobs showing a small decline. The job growth was lead by construction jobs, with more than 14,500 jobs added, a 15-point percentage gain. Job growth was also strong in the professional and business services sector, which added 9,200 net new jobs, a growth rate of 6 percent. But the biggest gain came in the high-paying natural resources and mining sector, which grew by 15.7 percent and added 1,500 new jobs, mostly in rural Utah.
Trade/Transportation/Utilities: This sector of the economy saw an increase of 8,800 jobs over the past year, a growth rate of 3.8 percent. Roughly 240,000 Utahns work in this sector.
Manufacturing: Utah gained an estimated 6,100 manufacturing jobs in 2006, a growth rate of 2.6 percent. There are currently about 125,000 manufacturing positions in Utah.
Information: Publishing, motion picture and sound recording, telecommunications, and Internet service providers make up this information sector. Current employment in this sector is about 32,800 positions, a net decline of 200 jobs from the year prior.
Financial Activities: Growth in financial activities was strong in the past year, with 3,400 new positions added. Nearly 74,000 people in the state are employed in financial activities, an increase of 4.8 percent over 2005.
Professional and Business Services: The professional and business services sector, which includes activities such as legal services, architecture, engineering, and employment services, saw employment rise by a sizeable 9,200 jobs in the most recent 12-month period to 164,000 positions. This represents a growth rate of 6.0 percent.
Education and Health Services: Growth in this sector at 4 percent trailed slightly the overall 4.5 percent job growth rate in the State, with an increase of 5,200 positions. Approximately 140,000 individuals work in this sector.
Leisure and Hospitality: The economy added some 2,900 jobs in the Leisure and Hospitality sector, a growth rate of 2.8 percent. Roughly 109,000 Utah residents work to feed, entertain, and accommodate both visitors and locals alike.
Government: The three levels of government—federal, state, and local—account for a combined 18 percent of the non-farm jobs in Utah, and grew a modest 1 percent in 2006. Government now employs approximately 212,000 Utahns.
Other Services: Auto repair, personal care, and non-profit organizations are some of the employment categories in this sector. Employment in other services was up 5.1 percent and now totals 35,600 positions.
Utah’s unemployment rate was 3 percent in May of 2006 and a miniscule 2.5 percent in May 2007! That’s the lowest on record in Utah and the lowest in the contiguous 48 states.
It’s a testament to the strength of the economy that the Utah jobless has dropped even while the State has enjoyed a record inflow of new residents.
Economic Growth
Strong Utah economic growth and heavy inflows of new residents has led to rising home values. In the Salt Lake MSA (metropolitan statistical areas) the median sales price of homes in the Salt Lake MSA rose 12.3 percent in 2006.
The broader data of the Office of Federal Housing Enterprise Oversight (OFHEO) noted an average U.S. home price rise of 4.25 percent during 2006. The average Utah home price rose 17.01 percent, ranking Utah first among the 50 states. Part of the gain is due to slack being taken up in the Utah housing market. Over the last five years home price appreciation has totaled an average of 48.29 percent, which trails the five-year national average of 53.53 percent.
By comparison, the average home price during the past five years rose by 93.76 percent in Arizona, 95.75 percent in Nevada, 21.15 percent in Colorado, 64.25 percent in Idaho, and 60.96 percent in Wyoming. Such an analysis suggests that home prices in Utah still have room to run."
Sunday, July 6, 2008
Checklist
CHECKLIST: Remember the homes you visit!
Buyers look at an average of 10-25 homes before settling on the one! That's a lot to keep track of, especially considering all of the pros, cons, and features of each.
I want my buyers to make the best use of their time looking at homes, so I keep notes of their comments on all items throughout the home. The good, the bad, the ugly, and the wonderful!
We can use this checklist to track and compare the homes you visit. With this handy record, you'll make fewer revisits and have an easier time determining the best house for you. One tip: You might want to bring a digital camera to take pictures of homes and features that you really like so you can look through them later to refresh your memory.
Besides jotting down notes on each relevant item, you may want to rate features, with 10 being the best and 0 being nonexistent. (If a particular item holds more importance for you, add more points.) Average your ratings for an overall score.
GENERAL
Neighborhood/location______________
Curb appeal/exterior______________
View______________
Age of house______________
Amount of natural light______________
Square footage and room sizes______________
Floor plan and traffic flow______________
INTERIOR (note age and condition where appropriate)
Flooring______________
Wall color, coverings______________
Cracks, crumbling walls______________
Bathrooms______________
Water pressure______________
Appliances______________
Air conditioning________ Central Air________ Window Units_________ None________
"Wired" features*______________
General storage space______________
Kitchen storage______________
Items included/excluded ______________
EXTERIOR (note age and condition where appropriate)
Gutters______________Clean?______Covered?_______
Chimney/fireplace______________
Roof______________
Garage size_________Attached________ Detached________
Landscaping/outdoor seating areas______________
OVERALL RATING:______________
Notes and overall impressions______________
* High-speed data lines, cable connection, jacks _______________
** Appliances, lighting fixtures, ceiling fans, window treatments, furniture, built-ins _______________
Note: This list should not replace a formal inspection by a licensed professional home inspector.
"A house is made of walls and beams. A home is built with love and dreams."
Source of rating idea: Ralph Roberts with Ralph R. Roberts Real Estate, Warren, Mich.
Buyers look at an average of 10-25 homes before settling on the one! That's a lot to keep track of, especially considering all of the pros, cons, and features of each.
I want my buyers to make the best use of their time looking at homes, so I keep notes of their comments on all items throughout the home. The good, the bad, the ugly, and the wonderful!
We can use this checklist to track and compare the homes you visit. With this handy record, you'll make fewer revisits and have an easier time determining the best house for you. One tip: You might want to bring a digital camera to take pictures of homes and features that you really like so you can look through them later to refresh your memory.
Besides jotting down notes on each relevant item, you may want to rate features, with 10 being the best and 0 being nonexistent. (If a particular item holds more importance for you, add more points.) Average your ratings for an overall score.
GENERAL
Neighborhood/location______________
Curb appeal/exterior______________
View______________
Age of house______________
Amount of natural light______________
Square footage and room sizes______________
Floor plan and traffic flow______________
INTERIOR (note age and condition where appropriate)
Flooring______________
Wall color, coverings______________
Cracks, crumbling walls______________
Bathrooms______________
Water pressure______________
Appliances______________
Air conditioning________ Central Air________ Window Units_________ None________
"Wired" features*______________
General storage space______________
Kitchen storage______________
Items included/excluded ______________
EXTERIOR (note age and condition where appropriate)
Gutters______________Clean?______Covered?_______
Chimney/fireplace______________
Roof______________
Garage size_________Attached________ Detached________
Landscaping/outdoor seating areas______________
OVERALL RATING:______________
Notes and overall impressions______________
* High-speed data lines, cable connection, jacks _______________
** Appliances, lighting fixtures, ceiling fans, window treatments, furniture, built-ins _______________
Note: This list should not replace a formal inspection by a licensed professional home inspector.
"A house is made of walls and beams. A home is built with love and dreams."
Source of rating idea: Ralph Roberts with Ralph R. Roberts Real Estate, Warren, Mich.
Thursday, July 3, 2008
Questions for Condos
9 Questions to Ask The Condo Association
When you buy a condo, you join an association of owners that determines everything from whether to plant flowers in the courtyard to how to finance a major roof project. Before you buy, contact the condo association with the following questions. In the process, you'll learn how responsive-and organized-its members are!
1. What percentage of units are owner-occupied? What percentage are tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale. (And be FHA approved)
2. What covenants, conditions, bylaws, and restrictions govern the property? Is there a grandfather clause in place? You may find, for instance, that those who buy a property after a certain date can't rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live with them.
3. How much does the association keep in reserve? How is that money being invested?
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn't the monthly homeowner assessment cover?? The common area maintenance, recreational facilities, trash collection, insurance, cable TV, internet, water, snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board's fiscal policy.
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions of the development.
A final note: Remember to play nice. When you buy into a condo building or homeowners association, you join a group with a variety of personalities and agendas. Negotiation and cooperation are key to living in harmony.
Sources: Kim Daugherty, Coldwell Banker Gundaker, St. Louis, and Realtor.org
When you buy a condo, you join an association of owners that determines everything from whether to plant flowers in the courtyard to how to finance a major roof project. Before you buy, contact the condo association with the following questions. In the process, you'll learn how responsive-and organized-its members are!
1. What percentage of units are owner-occupied? What percentage are tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale. (And be FHA approved)
2. What covenants, conditions, bylaws, and restrictions govern the property? Is there a grandfather clause in place? You may find, for instance, that those who buy a property after a certain date can't rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live with them.
3. How much does the association keep in reserve? How is that money being invested?
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn't the monthly homeowner assessment cover?? The common area maintenance, recreational facilities, trash collection, insurance, cable TV, internet, water, snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board's fiscal policy.
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions of the development.
A final note: Remember to play nice. When you buy into a condo building or homeowners association, you join a group with a variety of personalities and agendas. Negotiation and cooperation are key to living in harmony.
Sources: Kim Daugherty, Coldwell Banker Gundaker, St. Louis, and Realtor.org
Thursday, June 26, 2008
Increase Home Value
8 Quick Fixes to Increase Value
With buyers scarce, sellers must convince them that their property offers what many want most - top value for dollar spent. Here are eight fast fixes:
1. Buff up curb appeal. You've heard it before, but it's critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special-such as big flower pots or an antique bench - to help viewers remember house A from B.
2. Enrich with color. Paint is cheap, but forget the adage that it must be white or neutral. Don't get too advantageous with jarring pinks, oranges, and purples. Use soft colors that say "welcome," lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.
3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel.
4. Add old-world patina. Install crown molding at least six to nine inches in depth, proportional to the room's size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It's all in the details.
5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.
6. Clean out, organize closets. Get sorting-organize your piles into "don't need," "haven't worn," and "keep." Closets must be only half-full so buyers can visualize fitting their stuff in.
7. Update window treatments. Buyers want light and views, not dated, fancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.
Sources: Ernie Roth, Roth Interiors, Los Angeles; Angel Petragallo, abr, Group One, Boise, Idaho; Melissa Galt, Galt Interiors, Atlanta; Steve Kleiman, CEO, Oakington Realty, Houston; Sid Davis, Sid Davis & Associates, Farmington, Utah, and author of First-Time Homeowners' Survival Guide (Amacom, 2007); Steve Hochman, Friendly Note Buyers, Roxbury, N.Y.; Margi Kyle, designer and spokesperson for Hunter Douglas.
With buyers scarce, sellers must convince them that their property offers what many want most - top value for dollar spent. Here are eight fast fixes:
1. Buff up curb appeal. You've heard it before, but it's critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special-such as big flower pots or an antique bench - to help viewers remember house A from B.
2. Enrich with color. Paint is cheap, but forget the adage that it must be white or neutral. Don't get too advantageous with jarring pinks, oranges, and purples. Use soft colors that say "welcome," lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.
3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel.
4. Add old-world patina. Install crown molding at least six to nine inches in depth, proportional to the room's size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It's all in the details.
5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.
6. Clean out, organize closets. Get sorting-organize your piles into "don't need," "haven't worn," and "keep." Closets must be only half-full so buyers can visualize fitting their stuff in.
7. Update window treatments. Buyers want light and views, not dated, fancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.
Sources: Ernie Roth, Roth Interiors, Los Angeles; Angel Petragallo, abr, Group One, Boise, Idaho; Melissa Galt, Galt Interiors, Atlanta; Steve Kleiman, CEO, Oakington Realty, Houston; Sid Davis, Sid Davis & Associates, Farmington, Utah, and author of First-Time Homeowners' Survival Guide (Amacom, 2007); Steve Hochman, Friendly Note Buyers, Roxbury, N.Y.; Margi Kyle, designer and spokesperson for Hunter Douglas.
Friday, June 20, 2008
Home Hazards and Potential Dangers
4 Home Hazards
These issues don't necessarily cause illness but are serious nonetheless. The following are common hazards home inspectors often find:
1. Faulty wiring: Overloaded circuits, loose wires, missing covers on distribution boxes, abandoned appliances, or aluminum wiring, which can become problematic with age.
2. Loose guard rails: Stairway guardrails, especially on exterior stairways, that are not securely connected. Decks - often installed by home owners unfamiliar with building codes - that have loose boards.
3. Shower doors: Shower doors that lack safety glass and are not properly secured. A home owner who slips when stepping out of the bathtub and grabs a glass door that isn't properly fastened could be severely injured.
4. Drainage problems: Downspouts discharging next to an exterior wall or a negative grade that slopes toward the home and brings water toward the home, causing foundation deterioration. This can lead to water damage, often seen in the basement, and possibly mold growth. Look for cracks, foundation wall stains, and musty, damp smells.
5 POTENTIAL DANGERS IN A HOME
Home inspection company Pillar to Post has identified these common dangers. Buyers and sellers need to contact a home inspector to make sure these problems aren't present.
RADON
This colorless, odorless gas can seep into the home from the ground and has been called the second most common cause of lung cancer.
What to look for: Basements or any protrusions into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon .
A radon test can determine if high levels of radon are present.
ASBESTOS
This fibrous material - once popular in building materials because it provides heat insulation and fire resistance - was banned in 1985. It may still be found in older homes' insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness.
What to look for: Homes built before 1985 are at risk of having asbestos within construction materials. Home owners should be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.
LEAD
This toxic metal, used in home products for many years, can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, lead pipes, or lead-contaminated dust or soil.
What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.
HAZARDOUS PRODUCTS
Stockpiles of household items - such as paint solvents, pesticides, fertilizers, and motor oils - can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested.
What to look for: Make sure these items aren't tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don't realize these products can pose a danger and may forget they're storing them. But buyers don't want it to become their problem - and expense - to dispose of. If these products are found, the buyer should require their removal and get a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.
GROUNDWATER CONTAMINATION
Hazardous chemicals that are illegally disposed of can seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can also lead to contamination.
What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. Pillar to Post offers a Neighborhood Environmental Report that details any dangers or remedies of environmental incidences and sources of contamination that have occurred at a specified address and within its vicinity.
These issues don't necessarily cause illness but are serious nonetheless. The following are common hazards home inspectors often find:
1. Faulty wiring: Overloaded circuits, loose wires, missing covers on distribution boxes, abandoned appliances, or aluminum wiring, which can become problematic with age.
2. Loose guard rails: Stairway guardrails, especially on exterior stairways, that are not securely connected. Decks - often installed by home owners unfamiliar with building codes - that have loose boards.
3. Shower doors: Shower doors that lack safety glass and are not properly secured. A home owner who slips when stepping out of the bathtub and grabs a glass door that isn't properly fastened could be severely injured.
4. Drainage problems: Downspouts discharging next to an exterior wall or a negative grade that slopes toward the home and brings water toward the home, causing foundation deterioration. This can lead to water damage, often seen in the basement, and possibly mold growth. Look for cracks, foundation wall stains, and musty, damp smells.
5 POTENTIAL DANGERS IN A HOME
Home inspection company Pillar to Post has identified these common dangers. Buyers and sellers need to contact a home inspector to make sure these problems aren't present.
RADON
This colorless, odorless gas can seep into the home from the ground and has been called the second most common cause of lung cancer.
What to look for: Basements or any protrusions into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon
A radon test can determine if high levels of radon are present.
ASBESTOS
This fibrous material - once popular in building materials because it provides heat insulation and fire resistance - was banned in 1985. It may still be found in older homes' insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness.
What to look for: Homes built before 1985 are at risk of having asbestos within construction materials. Home owners should be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.
LEAD
This toxic metal, used in home products for many years, can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, lead pipes, or lead-contaminated dust or soil.
What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.
HAZARDOUS PRODUCTS
Stockpiles of household items - such as paint solvents, pesticides, fertilizers, and motor oils - can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested.
What to look for: Make sure these items aren't tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don't realize these products can pose a danger and may forget they're storing them. But buyers don't want it to become their problem - and expense - to dispose of. If these products are found, the buyer should require their removal and get a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.
GROUNDWATER CONTAMINATION
Hazardous chemicals that are illegally disposed of can seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can also lead to contamination.
What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. Pillar to Post offers a Neighborhood Environmental Report that details any dangers or remedies of environmental incidences and sources of contamination that have occurred at a specified address and within its vicinity.
12 Questions for a Home Inspector!
Disputes over property condition and repairs can kill a deal in a hurry. Take the time to schedule inspections and find out the condition of the property as early as possible to allow adequate time for resolving any issues that arise.
12 Questions Buyers Should Ask the Home Inspector
1. Are you a member, in good standing, of a professional inspectors organization, such as the American Society of Home Inspectors?
2. Are you licensed? (Required only in some states)
3. What systems-plumbing, heating, electrical-will the inspection include?
4. How long will the inspection take?
5. How much will the inspection cost?
6. Can we accompany you on the inspection?
7. Do you have references?
8. Do you carry errors and omissions insurance?
9. What is your specialty and what sort of continuing education have you completed?
Note: If the inspector is a plumber by training and has no expertise in home construction, the inspection might not be comprehensive.
10. Do you provide a written report at no extra charge?
11. Does the report include estimates of repair costs?
12. Does your company also do repairs when you find problems? If the answer is yes, it may indicate a conflict of interest.
TIP: If you have particular concerns about one area of the home-the foundation, for instance-you might want to hire a second inspector who specializes in that component.
12 Questions Buyers Should Ask the Home Inspector
1. Are you a member, in good standing, of a professional inspectors organization, such as the American Society of Home Inspectors?
2. Are you licensed? (Required only in some states)
3. What systems-plumbing, heating, electrical-will the inspection include?
4. How long will the inspection take?
5. How much will the inspection cost?
6. Can we accompany you on the inspection?
7. Do you have references?
8. Do you carry errors and omissions insurance?
9. What is your specialty and what sort of continuing education have you completed?
Note: If the inspector is a plumber by training and has no expertise in home construction, the inspection might not be comprehensive.
10. Do you provide a written report at no extra charge?
11. Does the report include estimates of repair costs?
12. Does your company also do repairs when you find problems? If the answer is yes, it may indicate a conflict of interest.
TIP: If you have particular concerns about one area of the home-the foundation, for instance-you might want to hire a second inspector who specializes in that component.
Friday, June 13, 2008
Real Estate Forecast: Sunny with a strong chance of Sales
Is the worst over?
Though we aren’t sending out the celebratory party invites just yet, there are a lot of strong signals that are leading the real estate community to believe that the “worst of times” may be in the past.
The key to any degree of stabilization in the housing market is, of course, the balance between supply and demand.
What I can tell you based on my experience is that the market is showing some very early signs of building momentum. In fact, over the last few weeks we have seen dozens of stories published both in real estate trade and consumer publications that reveal some interesting facts about a potential turnaround in the economy and housing sector based on supply and demand.
What could this mean for a consumer? Read on.
Increasing Demand
• According to a May 13, 2008 Utah Department of Workforce Services report, the seasonally adjusted unemployment rate was
3.1 percent in April, down from 3.3 percent in March.
• New companies and projects are adding new jobs. According to Deseret News’ June 1, 2008 Utah TrendLines Extra article
entitled, “Utah Economic News and Data,” a new commercial center, 201 Commerce Center, will add 4,000 jobs in the next
ten years. Oracle Corporation will add 100 jobs paying an average wage more than double the Salt Lake County median wage and a Swiss company is looking to add an aircraft maintenance facility at the Ogden-Hinkley airport in Ogden that would create 200 jobs.
Decreasing Supply
• According to the University of Utah's Bureau of Business and Research, residential construction in Utah is falling. The number
of residential building permits for homes, twin homes, condominiums and apartments declined 58.2 percent in the first
quarter of 2008, compared with the same period last year. With fewer homes being built, current plentiful inventories will likely
shrink.
Bright News in Mortgage: Welcome News for Buyers
And if that news wasn’t good enough for real estate, late last month Fannie Mae reported it was scrapping its declining markets policy which previously required borrowers to put up an extra 5% down payment when purchasing homes in areas deemed “declining markets.”
Under the policy change, borrowers will get loans up to 95% loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90% to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
The previous controversial policy kept some would-be home buyers from taking action because they could not come up with the funds to make the increased down payment. Others may have avoided buying because they were afraid to do so if prices were still declining. By eliminating this policy, Fannie May will instead require 3% down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system and 5% minimum down payments for loans process manually, Inman News reported.
The new policy, which took effect June 1, should be welcome news for many buyers, especially first time buyers. NAR President Richard F. Gaylord said the easement of this policy is good news for the industry: “This means consumers across the country will have access to safe, affordable financing with down payments of only 5% on most mortgages, with 100% financing available on some loan products, and we could see an upturn in home sales this summer.”
NAR Chief Economist Lawrence Yun concurs noting, “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming loans will help consumers in high cost markets...”
So What Could This Mean For A Buyer?
If Yun’s predictions are correct, the housing market will strengthen and prices are likely to begin a steady upswing in the coming months.
Lancaster Online’s May 18, 2008 “Housing Slump can be a Boon to Buyers,” included a quote from Coldwell Banker President and Chief Operating Officer Jim Gillespie who said, “This is the absolute
best time in my 33 years in real estate to buy a home. Interest rates are still low, inventory levels are high and prices are stable. You should not try to time the market. People who try to time the market get burned.”
In Utah, even with fewer sales, the average sales price declined only 1.2% in the first quarter of 2008 compared with the first
quarter of 2007, according to the Utah Association of Realtors. Homes priced above $500,000 are seeing adjustments but homes priced less than $300,000 are seeing activity and, in most cases, are not seeing significant reductions.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going into contract. It seems in most markets, housing prices have adjusted to a point where they are “fair” and it seems buyers are responding. As a result, especially thanks to the recent Fannie May declining markets policy change, people who couldn’t afford a home a few years ago are coming back into the market.
If You’re Ready to Move-Up, Now May Be the Time
I recently came across an article published online by the Wall Street Journal on March 16, 2008 entitled “Opportunity knocks in sinking housing market” that synopsized the move-up market quite well. It read: “If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
“To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2 percent, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real estate exposure when the market is well below its peak.
“In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate.
“Still, like any thrifty shopper, you want to buy when there's a sale – and that is what today's market offers.”
My Recommendation: Carpe Diem!
If you have been sitting on the sidelines waiting to enter the market, there may not be a better time than now. Prices in some markets may not have hit their lowest point, but they probably aren’t far off. In many areas, only the pace of sales has been affected while prices have held firm and in some cases, have gone up.
Waiting for the absolute bottom to hit before buying puts you at risk of missing it and getting caught up in a market on the upswing, which, based on what many industry analysts are reporting, may be on the horizon sooner than originally predicted.
As your real estate professional, I would welcome the opportunity to counsel you on the opportunities available in today’s market and help you take advantage of them before it is too late.
Please call me today so we may get started.
Though we aren’t sending out the celebratory party invites just yet, there are a lot of strong signals that are leading the real estate community to believe that the “worst of times” may be in the past.
The key to any degree of stabilization in the housing market is, of course, the balance between supply and demand.
What I can tell you based on my experience is that the market is showing some very early signs of building momentum. In fact, over the last few weeks we have seen dozens of stories published both in real estate trade and consumer publications that reveal some interesting facts about a potential turnaround in the economy and housing sector based on supply and demand.
What could this mean for a consumer? Read on.
Increasing Demand
• According to a May 13, 2008 Utah Department of Workforce Services report, the seasonally adjusted unemployment rate was
3.1 percent in April, down from 3.3 percent in March.
• New companies and projects are adding new jobs. According to Deseret News’ June 1, 2008 Utah TrendLines Extra article
entitled, “Utah Economic News and Data,” a new commercial center, 201 Commerce Center, will add 4,000 jobs in the next
ten years. Oracle Corporation will add 100 jobs paying an average wage more than double the Salt Lake County median wage and a Swiss company is looking to add an aircraft maintenance facility at the Ogden-Hinkley airport in Ogden that would create 200 jobs.
Decreasing Supply
• According to the University of Utah's Bureau of Business and Research, residential construction in Utah is falling. The number
of residential building permits for homes, twin homes, condominiums and apartments declined 58.2 percent in the first
quarter of 2008, compared with the same period last year. With fewer homes being built, current plentiful inventories will likely
shrink.
Bright News in Mortgage: Welcome News for Buyers
And if that news wasn’t good enough for real estate, late last month Fannie Mae reported it was scrapping its declining markets policy which previously required borrowers to put up an extra 5% down payment when purchasing homes in areas deemed “declining markets.”
Under the policy change, borrowers will get loans up to 95% loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90% to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
The previous controversial policy kept some would-be home buyers from taking action because they could not come up with the funds to make the increased down payment. Others may have avoided buying because they were afraid to do so if prices were still declining. By eliminating this policy, Fannie May will instead require 3% down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system and 5% minimum down payments for loans process manually, Inman News reported.
The new policy, which took effect June 1, should be welcome news for many buyers, especially first time buyers. NAR President Richard F. Gaylord said the easement of this policy is good news for the industry: “This means consumers across the country will have access to safe, affordable financing with down payments of only 5% on most mortgages, with 100% financing available on some loan products, and we could see an upturn in home sales this summer.”
NAR Chief Economist Lawrence Yun concurs noting, “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming loans will help consumers in high cost markets...”
So What Could This Mean For A Buyer?
If Yun’s predictions are correct, the housing market will strengthen and prices are likely to begin a steady upswing in the coming months.
Lancaster Online’s May 18, 2008 “Housing Slump can be a Boon to Buyers,” included a quote from Coldwell Banker President and Chief Operating Officer Jim Gillespie who said, “This is the absolute
best time in my 33 years in real estate to buy a home. Interest rates are still low, inventory levels are high and prices are stable. You should not try to time the market. People who try to time the market get burned.”
In Utah, even with fewer sales, the average sales price declined only 1.2% in the first quarter of 2008 compared with the first
quarter of 2007, according to the Utah Association of Realtors. Homes priced above $500,000 are seeing adjustments but homes priced less than $300,000 are seeing activity and, in most cases, are not seeing significant reductions.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going into contract. It seems in most markets, housing prices have adjusted to a point where they are “fair” and it seems buyers are responding. As a result, especially thanks to the recent Fannie May declining markets policy change, people who couldn’t afford a home a few years ago are coming back into the market.
If You’re Ready to Move-Up, Now May Be the Time
I recently came across an article published online by the Wall Street Journal on March 16, 2008 entitled “Opportunity knocks in sinking housing market” that synopsized the move-up market quite well. It read: “If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
“To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2 percent, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real estate exposure when the market is well below its peak.
“In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate.
“Still, like any thrifty shopper, you want to buy when there's a sale – and that is what today's market offers.”
My Recommendation: Carpe Diem!
If you have been sitting on the sidelines waiting to enter the market, there may not be a better time than now. Prices in some markets may not have hit their lowest point, but they probably aren’t far off. In many areas, only the pace of sales has been affected while prices have held firm and in some cases, have gone up.
Waiting for the absolute bottom to hit before buying puts you at risk of missing it and getting caught up in a market on the upswing, which, based on what many industry analysts are reporting, may be on the horizon sooner than originally predicted.
As your real estate professional, I would welcome the opportunity to counsel you on the opportunities available in today’s market and help you take advantage of them before it is too late.
Please call me today so we may get started.
Saturday, June 7, 2008
2008 Home Sales Statistics
I thought this is a list of very good FACTS straight from the head of the Utah County Association of Realtors! As we look at real numbers it is comforting to see that the housing market is very stable right now. We are seeing an increase!!
The following letter is from: Taylor Oldroyd,
CEO Utah County Association of Realtors®
Subject: Monthly Statistics--April 2008
1.There is a lot of talk about where the bottom of this housing correction is…I am going out on a limb to say that the bottom was in Dec 2007. December saw the fewest number of homes with only 269. Since then, we have increased at a nice and consistent pace. January increased seven to 276. Februray we saw another step of 15 to 291. March broke the 300 mark and hit 327. In April we reached 395. This represents a 47% increase since Dec 2007. I'd say that is a nice climb out of the bottom.
2. Of course comparing April 2008 with last year we still see a 32.5% reduction in sales. Again though,this is a nice step in the right direction. March 2008 compared to March 2007 was off nearly 10 points higher at 43.4%. The signs of a pick up in the market are clear.
3. How did Condos make out? Last month was off 51% compared to last year and this month again a bit of an improvement. April 2008 sales of Condos is down 37% compared to last April.
4. The upper-end of the market continues to struggle however. For only the second time in recent history, no homes priced above $1 million were sold. And home sales above $500k were down 71% from April 2007.
Summary: Price it right and it will sell. If you're in the higher end, hang in a bit longer and as Utah leads the country in economic indicators, these upper-end homes will see a slow rebound too.
The following letter is from: Taylor Oldroyd,
CEO Utah County Association of Realtors®
Subject: Monthly Statistics--April 2008
1.There is a lot of talk about where the bottom of this housing correction is…I am going out on a limb to say that the bottom was in Dec 2007. December saw the fewest number of homes with only 269. Since then, we have increased at a nice and consistent pace. January increased seven to 276. Februray we saw another step of 15 to 291. March broke the 300 mark and hit 327. In April we reached 395. This represents a 47% increase since Dec 2007. I'd say that is a nice climb out of the bottom.
2. Of course comparing April 2008 with last year we still see a 32.5% reduction in sales. Again though,this is a nice step in the right direction. March 2008 compared to March 2007 was off nearly 10 points higher at 43.4%. The signs of a pick up in the market are clear.
3. How did Condos make out? Last month was off 51% compared to last year and this month again a bit of an improvement. April 2008 sales of Condos is down 37% compared to last April.
4. The upper-end of the market continues to struggle however. For only the second time in recent history, no homes priced above $1 million were sold. And home sales above $500k were down 71% from April 2007.
Summary: Price it right and it will sell. If you're in the higher end, hang in a bit longer and as Utah leads the country in economic indicators, these upper-end homes will see a slow rebound too.
Wednesday, May 28, 2008
Great Time to Buy or Sell
Utah is among the best states in the nation! We enjoy low unemployment, large influx of new residents, and plenty of available housing! This is a great time to buy or sell in Utah!
* Inventory is excellent, offering many choices in many price ranges. Buyers can truly choose the perfect home!
* The housing market is experiencing price stabilization so buyers are getting better value for their money!
* It is estimated that over 41,000 people will be moving to Utah this year!
* Mortgage programs are plentiful for qualified buyers!
* FHA lending programs are available to more people, even in the Jumbo Loan market!
* Interest rates are historically low!
The market is growing and housing is needed! Buyers and sellers can find the market favorable right now!
This positive information was provided by a great mortgage officer:
Stevan Davis
Axiom Financial
801-836-5678
* Inventory is excellent, offering many choices in many price ranges. Buyers can truly choose the perfect home!
* The housing market is experiencing price stabilization so buyers are getting better value for their money!
* It is estimated that over 41,000 people will be moving to Utah this year!
* Mortgage programs are plentiful for qualified buyers!
* FHA lending programs are available to more people, even in the Jumbo Loan market!
* Interest rates are historically low!
The market is growing and housing is needed! Buyers and sellers can find the market favorable right now!
This positive information was provided by a great mortgage officer:
Stevan Davis
Axiom Financial
801-836-5678
Wednesday, May 21, 2008
Waiting to buy might not be in your best interest!
Buyers: We’re in a buyer’s market! But history shows this market won’t last forever and some early implications are showing that it may be changing sooner than you think. Here’s why you may want to act now, before the market begins to adjust:
Fact #1: Affordability is increasing
Fact #2: Interest rates remain attractive
Fact #3: Many sellers are motivated
Fact #4: There are a lot of homes to choose from
Fact #5: Historically speaking, Utah real estate is a strong, long term investment
Why You May Not Want to Make the Mistake of Waiting:
Many buyers are sitting on the sidelines waiting for Utah real estate to “bottom out,” but doing so could cost you plenty in terms of higher housing prices and interest rates. Locally, Salt Lake City, according to an April 29 Forbes article entitled “Recession Proof Cities,” seems to be holding its own as well. The article notes, “A November 2007 report from the U.S. Conference of Mayors projected that Salt Lake City would be one of the few large cities in the country not to suffer a decline in gross metropolitan product from the mortgage crisis.” Furthermore, Lake City’s unemployment is among the lowest among the country’s 50 largest cities and it continues to create job growth in spite of national economic indicators.
What The Experts Are Predicting:
The National Association of Realtors is projecting that home sales will trend up this year. According to the national real estate organization’s April 8, 2008 market update report entitled “Existing Home Sales to Stabilize Before Upturn in Second Half of 2008,” “Little change is expected in existing home sales over the next few months, before improving notably during the second half of the year.” Lawrence Yun, NAR chief economist said the market will come into clear focus this summer, noting “Existing home sales could start to show a sustained increase within a few weeks, unless there are some additional economic problems or excessive inflationary pressure."
Early Implications Show That the Market May Be Changing:
While the stars remain aligned for buyers, in recent weeks there have been some noteworthy developments that could mean positive growth for real estate and a shift towards a more normalized, balanced market. According to an April 25, 2008 Realty Times article entitled, “Real Estate Outlook: Index Says Positive Growth Underway,” there are several implications that show real estate growth may be on the horizon:
• Applications for mortgages to buy houses were up again, for the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by 3.5% and conventional purchase applications rose 2.1%.
• The federal government reported that house prices nationwide stopped their slide between January and February – and actually increased by six tenths of one percent.
• Interest rates remain well under 6%, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74% and 15-year loans at 5.27%. The Federal Reserve is likely to knock another quarter percent off short term rates next week.
• Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market.
A Good Market:
The bottom line is that this is a very good market for buyers but it won’t last forever. And while it is hard to predict when the market will officially “bottom out,” the only way you may do so is when it has begun to rise again. We are starting to see homes sell, largely in part thanks to a drop in home prices, attractive interest rates and a large number of homes from which to choose. All of these factors are changing consumers’ outlook on real estate.
Fact #1: Affordability is increasing
Fact #2: Interest rates remain attractive
Fact #3: Many sellers are motivated
Fact #4: There are a lot of homes to choose from
Fact #5: Historically speaking, Utah real estate is a strong, long term investment
Why You May Not Want to Make the Mistake of Waiting:
Many buyers are sitting on the sidelines waiting for Utah real estate to “bottom out,” but doing so could cost you plenty in terms of higher housing prices and interest rates. Locally, Salt Lake City, according to an April 29 Forbes article entitled “Recession Proof Cities,” seems to be holding its own as well. The article notes, “A November 2007 report from the U.S. Conference of Mayors projected that Salt Lake City would be one of the few large cities in the country not to suffer a decline in gross metropolitan product from the mortgage crisis.” Furthermore, Lake City’s unemployment is among the lowest among the country’s 50 largest cities and it continues to create job growth in spite of national economic indicators.
What The Experts Are Predicting:
The National Association of Realtors is projecting that home sales will trend up this year. According to the national real estate organization’s April 8, 2008 market update report entitled “Existing Home Sales to Stabilize Before Upturn in Second Half of 2008,” “Little change is expected in existing home sales over the next few months, before improving notably during the second half of the year.” Lawrence Yun, NAR chief economist said the market will come into clear focus this summer, noting “Existing home sales could start to show a sustained increase within a few weeks, unless there are some additional economic problems or excessive inflationary pressure."
Early Implications Show That the Market May Be Changing:
While the stars remain aligned for buyers, in recent weeks there have been some noteworthy developments that could mean positive growth for real estate and a shift towards a more normalized, balanced market. According to an April 25, 2008 Realty Times article entitled, “Real Estate Outlook: Index Says Positive Growth Underway,” there are several implications that show real estate growth may be on the horizon:
• Applications for mortgages to buy houses were up again, for the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by 3.5% and conventional purchase applications rose 2.1%.
• The federal government reported that house prices nationwide stopped their slide between January and February – and actually increased by six tenths of one percent.
• Interest rates remain well under 6%, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74% and 15-year loans at 5.27%. The Federal Reserve is likely to knock another quarter percent off short term rates next week.
• Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market.
A Good Market:
The bottom line is that this is a very good market for buyers but it won’t last forever. And while it is hard to predict when the market will officially “bottom out,” the only way you may do so is when it has begun to rise again. We are starting to see homes sell, largely in part thanks to a drop in home prices, attractive interest rates and a large number of homes from which to choose. All of these factors are changing consumers’ outlook on real estate.
Friday, May 9, 2008
Crisis is over!
I don't think we were officially in a "crisis"! Yes, home sales have gone down, mortgage lending is tight, foreclosures are high, but it all is part of the cycle. There is some encouraging news. I found this article written for the Wall Street Journal and I agree with it completely.
I have included some quotes from the writer.
"The Housing Crisis Is Over"
By CYRIL MOULLE-BERTEAUX
Wall Street Journal Online
May 6, 2008
"For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor...
The boom made housing unaffordable for many American families, especially first-time home buyers...
Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst...
Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs...
Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually...
Inventories will drop even faster to a seven months of supply – by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market...
More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure...
A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets' perception of risk related to housing, the financial system, and the economy...
Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now."
I have included some quotes from the writer.
"The Housing Crisis Is Over"
By CYRIL MOULLE-BERTEAUX
Wall Street Journal Online
May 6, 2008
"For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor...
The boom made housing unaffordable for many American families, especially first-time home buyers...
Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst...
Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs...
Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually...
Inventories will drop even faster to a seven months of supply – by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market...
More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure...
A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets' perception of risk related to housing, the financial system, and the economy...
Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now."
Thursday, April 24, 2008
Home Sales Are Down
"Home Sales are DOWN"
It is the big news today. We hear it daily on every news broadcast. I heard another quote today that home sales in Utah are down 40%! Compared to WHAT??
I am looking at the real numbers. When I look at our Wasatch Front Regional Multiple Listing Service statistics I can see the actual numbers. Yes, when we compare home sales to the first quarter of 2007 then we are down about 40%. But when I look at home sales for the first quarter of 2004, we are down only by about 10%.
Homes sales for fourth quarter in UTAH COUNTY
(winter months/end of year):
Fourth Quarter for 2004 was 1,362
Fourth Quarter for 2005 was 1,703
Fourth Quarter for 2006 was 1,746
Fourth Quarter for 2007 was 952
Homes sales for the first quarter in UTAH COUNTY
(Winter months/beginning of year):
First Quarter for 2004 was 1,017
First Quarter for 2005 was 1,204
First Quarter for 2006 was 1,481
First Quarter for 2007 was 1,518
First Quarter for 2008 was 901
It is not 'doom and gloom' as the news likes to make us feel! Back in 2004 we were not hearing news about homes sales dropping by 40%. We thought the market was just fine. Then beginning in late 2005 we had an amazingly large increase of home sales that lasted over the past two years. Now when we go back to 'normal' home sales like we had in 2004, the media wants us to believe that we are in a recession. It is just not so.
I have posted home sales for Utah County. I would also like to mention that in Salt Lake County the number of homes sold in the first quarter of 2004 was 2,837 and the first quarter of 2008 was 2,284 (which means Salt Lake County is only down by less than 3%). Also, in Weber County the home sales in the first quarter of 2004 were 691 and in the first quarter of 2008 it was 697 (that is an INCREASE!)
As I have shown here some of the home sales are down slightly from the 2004 numbers. But we have to consider all of the bad press, the problems with mortgage loans, home sales in other States, and being an election year. Once we look at ALL of the statistics we can be assured that the housing market is stable. Buyers are buying and sellers are selling!
It is the big news today. We hear it daily on every news broadcast. I heard another quote today that home sales in Utah are down 40%! Compared to WHAT??
I am looking at the real numbers. When I look at our Wasatch Front Regional Multiple Listing Service statistics I can see the actual numbers. Yes, when we compare home sales to the first quarter of 2007 then we are down about 40%. But when I look at home sales for the first quarter of 2004, we are down only by about 10%.
Homes sales for fourth quarter in UTAH COUNTY
(winter months/end of year):
Fourth Quarter for 2004 was 1,362
Fourth Quarter for 2005 was 1,703
Fourth Quarter for 2006 was 1,746
Fourth Quarter for 2007 was 952
Homes sales for the first quarter in UTAH COUNTY
(Winter months/beginning of year):
First Quarter for 2004 was 1,017
First Quarter for 2005 was 1,204
First Quarter for 2006 was 1,481
First Quarter for 2007 was 1,518
First Quarter for 2008 was 901
It is not 'doom and gloom' as the news likes to make us feel! Back in 2004 we were not hearing news about homes sales dropping by 40%. We thought the market was just fine. Then beginning in late 2005 we had an amazingly large increase of home sales that lasted over the past two years. Now when we go back to 'normal' home sales like we had in 2004, the media wants us to believe that we are in a recession. It is just not so.
I have posted home sales for Utah County. I would also like to mention that in Salt Lake County the number of homes sold in the first quarter of 2004 was 2,837 and the first quarter of 2008 was 2,284 (which means Salt Lake County is only down by less than 3%). Also, in Weber County the home sales in the first quarter of 2004 were 691 and in the first quarter of 2008 it was 697 (that is an INCREASE!)
As I have shown here some of the home sales are down slightly from the 2004 numbers. But we have to consider all of the bad press, the problems with mortgage loans, home sales in other States, and being an election year. Once we look at ALL of the statistics we can be assured that the housing market is stable. Buyers are buying and sellers are selling!
Tuesday, April 22, 2008
1955
Comments made in the year 1955:
"I'll tell you one thing, if things keep going the way they are, it's going to be impossible to buy a week's groceries for $20."
"Have you seen the new cars coming out next year? It won't be long before $2000 will only buy a used one."
"If cigarettes keep going up in price, I'm going to quit. A quarter a pack is ridiculous."
"Did you hear the post office is thinking about charging a dime just to mail a letter?"
"If they raise the minimum wage to $1, nobody will be able to hire outside help at the store."
"When I first started driving, who would have thought gas would someday cost 29 cents a gallon. Guess we'd be better off leaving the car in the garage."
"Kids today are impossible. Those duck tail hair cuts make it impossible to stay groomed. Next thing you know, boys will be wearing their hair as long as the girls."
"I'm afraid to send my kids to the movies any more. Ever since they let Clark Gable get by with saying 'damn' in 'Gone With The Wind,' it seems every new movie has either "hell" or "damn" in it.
"I read the other day where some scientist thinks it's possible to put a man on the moon by the end of the century. They even have some fellows they call astronauts preparing for it down in Texas."
"Did you see where some baseball player just signed a contract for $75,000 a year just to play ball? It wouldn't surprise me if someday they'll be making more than the president."
"I never thought I'd see the day all our kitchen appliances would be electric. They are even making electric typewriters now."
"It's too bad things are so tough nowadays. I see where a few married women are having to work to make ends meet."
"It won't be long before young couples are going to have to hire someone to watch their kids so they can both work."
"Marriage doesn't mean a thing any more; those Hollywood stars seem to be getting divorced at the drop of a hat."
"I'm just afraid the Volkswagen car is going to open the door to a whole lot of foreign business."
"Thank goodness I won't live to see the day when the Government takes half our income in taxes. I sometimes wonder if we are electing the best people to congress."
"The drive-in restaurant is convenient in nice weather, but I seriously doubt they will ever catch on."
"There is no sense going to Atlanta or Memphis anymore for a weekend. It costs nearly $15 a night to stay in a hotel."
"No one can afford to be sick any more; $25 a day in the hospital is too rich for my blood."
"If they think I'll pay 50 cents for a hair cut, forget it."
Do you remember the year of 1955?
"I'll tell you one thing, if things keep going the way they are, it's going to be impossible to buy a week's groceries for $20."
"Have you seen the new cars coming out next year? It won't be long before $2000 will only buy a used one."
"If cigarettes keep going up in price, I'm going to quit. A quarter a pack is ridiculous."
"Did you hear the post office is thinking about charging a dime just to mail a letter?"
"If they raise the minimum wage to $1, nobody will be able to hire outside help at the store."
"When I first started driving, who would have thought gas would someday cost 29 cents a gallon. Guess we'd be better off leaving the car in the garage."
"Kids today are impossible. Those duck tail hair cuts make it impossible to stay groomed. Next thing you know, boys will be wearing their hair as long as the girls."
"I'm afraid to send my kids to the movies any more. Ever since they let Clark Gable get by with saying 'damn' in 'Gone With The Wind,' it seems every new movie has either "hell" or "damn" in it.
"I read the other day where some scientist thinks it's possible to put a man on the moon by the end of the century. They even have some fellows they call astronauts preparing for it down in Texas."
"Did you see where some baseball player just signed a contract for $75,000 a year just to play ball? It wouldn't surprise me if someday they'll be making more than the president."
"I never thought I'd see the day all our kitchen appliances would be electric. They are even making electric typewriters now."
"It's too bad things are so tough nowadays. I see where a few married women are having to work to make ends meet."
"It won't be long before young couples are going to have to hire someone to watch their kids so they can both work."
"Marriage doesn't mean a thing any more; those Hollywood stars seem to be getting divorced at the drop of a hat."
"I'm just afraid the Volkswagen car is going to open the door to a whole lot of foreign business."
"Thank goodness I won't live to see the day when the Government takes half our income in taxes. I sometimes wonder if we are electing the best people to congress."
"The drive-in restaurant is convenient in nice weather, but I seriously doubt they will ever catch on."
"There is no sense going to Atlanta or Memphis anymore for a weekend. It costs nearly $15 a night to stay in a hotel."
"No one can afford to be sick any more; $25 a day in the hospital is too rich for my blood."
"If they think I'll pay 50 cents for a hair cut, forget it."
Do you remember the year of 1955?
Monday, April 21, 2008
New Area Code
New 385 Area Code For Utah
On July 11, 2007, the Utah Public Service Commission issued an order approving the deployment of a new area code for use in the area presently served by the 801 area code.
The new area code, 385, will provide additional telephone numbers that are necessary to support the growth in Utah residents, telecommunications service providers, available telecommunications products, and additional lines.
The new 385 area code will cover the same geographic area as the existing 801 area code. In general, the introduction of the 385 area code will affect residents in the following counties: Davis, Morgan, Salt Lake, Weber, and Utah.
When will the new 385 area code become effective?
As early as March 29, 2009, new telephone numbers will be assigned with the new 385 area code.
What will change as a result of the new area code? Specifically, how will telephone dialing change?
The way customers dial a local call will change; customers will be required to dial 10 digits for all local calls, whether the telephone number they utilize is in the 801 area code or the new 385 area code.
So, when will customers be required to use this new dialing arrangement?
Permissive 10-digit dialing begins June 1, 2008 and ends March 1, 2009. During permissive dialing, calls can be dialed with either 7 or 10 digits.
Mandatory 10-digit dialing begins March 1, 2009. After this date, calls dialed with 7 digits will not go through. The caller will get a recorded announcement instructing them to hang up and dial their call with 10 digits.
What will not change as a result of the new area code?
Customers with existing 801 area code telephone numbers will HAVE NO CHANGE to their area code or telephone number.
Local calling areas will remain the same; the price of a call, coverage area, or other rates and services will not change. In other words, if it is presently a local call, it will still be a local call without any toll charges.
Customers can still dial just three digits to reach 911 and 411.
What should I do to ensure that my home telephone service continues to operate smoothly?
You may want to do some of the following things to make sure your calls will complete as dialed:
If necessary, reprogram equipment such as automatic-dialers, fax machines, and computer modems before mandatory dialing begins.
Be sure everyone in your household is aware that 10-digit dialing for all local calls will be required.
On July 11, 2007, the Utah Public Service Commission issued an order approving the deployment of a new area code for use in the area presently served by the 801 area code.
The new area code, 385, will provide additional telephone numbers that are necessary to support the growth in Utah residents, telecommunications service providers, available telecommunications products, and additional lines.
The new 385 area code will cover the same geographic area as the existing 801 area code. In general, the introduction of the 385 area code will affect residents in the following counties: Davis, Morgan, Salt Lake, Weber, and Utah.
When will the new 385 area code become effective?
As early as March 29, 2009, new telephone numbers will be assigned with the new 385 area code.
What will change as a result of the new area code? Specifically, how will telephone dialing change?
The way customers dial a local call will change; customers will be required to dial 10 digits for all local calls, whether the telephone number they utilize is in the 801 area code or the new 385 area code.
So, when will customers be required to use this new dialing arrangement?
Permissive 10-digit dialing begins June 1, 2008 and ends March 1, 2009. During permissive dialing, calls can be dialed with either 7 or 10 digits.
Mandatory 10-digit dialing begins March 1, 2009. After this date, calls dialed with 7 digits will not go through. The caller will get a recorded announcement instructing them to hang up and dial their call with 10 digits.
What will not change as a result of the new area code?
Customers with existing 801 area code telephone numbers will HAVE NO CHANGE to their area code or telephone number.
Local calling areas will remain the same; the price of a call, coverage area, or other rates and services will not change. In other words, if it is presently a local call, it will still be a local call without any toll charges.
Customers can still dial just three digits to reach 911 and 411.
What should I do to ensure that my home telephone service continues to operate smoothly?
You may want to do some of the following things to make sure your calls will complete as dialed:
If necessary, reprogram equipment such as automatic-dialers, fax machines, and computer modems before mandatory dialing begins.
Be sure everyone in your household is aware that 10-digit dialing for all local calls will be required.
Tuesday, April 15, 2008
Take The Stress Out
Here are the top ten ways to take the stress OUT of homeownership!
Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.
2. Remember, there's no "right" time to buy, just as there's no perfect time to sell. If you find a home now, don't try to second-guess interest rates or the housing market by waiting longer - you risk losing out on the home of your dreams. The housing market usually doesn't change fast enough to make that much difference in price, and a good home won't stay on the market long.
3. Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family - the people who will be living in the home.
4. Accept that no house is ever perfect. If it's in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
5. Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself - room size, kitchen, etc. - that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
7. Plan ahead. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don't leave yourself short and let your home deteriorate.
9. Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don't lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home's most important role is to serve as a comfortable, safe place to live.
Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.
2. Remember, there's no "right" time to buy, just as there's no perfect time to sell. If you find a home now, don't try to second-guess interest rates or the housing market by waiting longer - you risk losing out on the home of your dreams. The housing market usually doesn't change fast enough to make that much difference in price, and a good home won't stay on the market long.
3. Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family - the people who will be living in the home.
4. Accept that no house is ever perfect. If it's in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
5. Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself - room size, kitchen, etc. - that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
7. Plan ahead. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don't leave yourself short and let your home deteriorate.
9. Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don't lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home's most important role is to serve as a comfortable, safe place to live.
Monday, April 7, 2008
It is Good in Utah
With all the negative news in the national media we need to remember how good it is in Utah. Lets look at some facts from 2007 statistics…
· 25,000—30,000 new households were formed in 2007
· Utah population growth was 3.2% in 2007 (the US population growth was 0.9%)
· Utah job growth rate was 4.5% in 2007 (the US job growth was 1.3%)
· Employment is expected to grow in Utah at 3.3% in 2008
AND
· Utah Unemployment is expected to stay at 2.9% for 2008
· Personal Income growth was 9% in Utah in 2007
So things are looking good in Utah!
Information provided by:
Ryan Osborne
Mortgage Planner
801.440.9200
· 25,000—30,000 new households were formed in 2007
· Utah population growth was 3.2% in 2007 (the US population growth was 0.9%)
· Utah job growth rate was 4.5% in 2007 (the US job growth was 1.3%)
· Employment is expected to grow in Utah at 3.3% in 2008
AND
· Utah Unemployment is expected to stay at 2.9% for 2008
· Personal Income growth was 9% in Utah in 2007
So things are looking good in Utah!
Information provided by:
Ryan Osborne
Mortgage Planner
801.440.9200
Wednesday, April 2, 2008
Tips To Get a Better Interest Rate
Credit Tips That Will Score Lower Interest Rates
Courtesy of Ryan Osborne
A good credit score translates into lower interest rates for home borrowers. In a mortgage lender's eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans. If this is you, don't panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter.
Here are a few suggestions:
Should I pay off all my past due balances?
This is usually a good idea, but you only need to worry about the past due balances that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pay off delinquent items over two years old, it can actually bring your credit score down - something you don't want to do. Bringing that score up means you'll get a better interest rate on your loan.
Should I close existing credit card accounts that I don't use?
No. Part of your credit score is based upon credit history. If you have old credit cards that you don't use very much, you still have the benefit of the credit history they represent. Rather than trying to pay off all your credit cards, you can move part of the debt from one card to another to even out the distribution of debt. Try to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. Also, if your credit provider will increase your line of credit, the ratio of debt to available credit is automatically reduced. When married couples have separate credit card accounts, the debt can be transferred from one spouse to another to clear up credit issues for the other spouse. That spouse with clean credit can be designated as the sole borrower on the loan, but ownership of the home can still go in both names.
What about errors on my credit report?
If you have items that are showing up on your credit report that you know you have already paid, request that these items be removed by the credit bureau. They are obligated to rectify this within 30 days. If there are items on your credit report that are less than two years old, send in your payment if possible and mark the back of the check with the following notation: "Accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit record." If necessary, the cancelled check will be proof that this should be promptly removed from your credit report if it interferes with the closing of your loan.
Any other mortgage questions please contact:
Ryan Osborne
Mortgage Planner
801.748.4877
Courtesy of Ryan Osborne
A good credit score translates into lower interest rates for home borrowers. In a mortgage lender's eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans. If this is you, don't panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter.
Here are a few suggestions:
Should I pay off all my past due balances?
This is usually a good idea, but you only need to worry about the past due balances that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pay off delinquent items over two years old, it can actually bring your credit score down - something you don't want to do. Bringing that score up means you'll get a better interest rate on your loan.
Should I close existing credit card accounts that I don't use?
No. Part of your credit score is based upon credit history. If you have old credit cards that you don't use very much, you still have the benefit of the credit history they represent. Rather than trying to pay off all your credit cards, you can move part of the debt from one card to another to even out the distribution of debt. Try to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. Also, if your credit provider will increase your line of credit, the ratio of debt to available credit is automatically reduced. When married couples have separate credit card accounts, the debt can be transferred from one spouse to another to clear up credit issues for the other spouse. That spouse with clean credit can be designated as the sole borrower on the loan, but ownership of the home can still go in both names.
What about errors on my credit report?
If you have items that are showing up on your credit report that you know you have already paid, request that these items be removed by the credit bureau. They are obligated to rectify this within 30 days. If there are items on your credit report that are less than two years old, send in your payment if possible and mark the back of the check with the following notation: "Accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit record." If necessary, the cancelled check will be proof that this should be promptly removed from your credit report if it interferes with the closing of your loan.
Any other mortgage questions please contact:
Ryan Osborne
Mortgage Planner
801.748.4877
Thursday, March 27, 2008
Home Sales Rise
As the market is constantly changing and there is currently a lot of negative press about the housing market, I felt it was helpful to post part of this more positive article. It is wise to council with a good realtor to make sure you are aware of the housing market surrounding your area!
Existing Home Sales Rise In February
Reported by Walt Molony, wmolony@realtors.org
WASHINGTON, March 24, 2008 -
Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8% below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92% in February from 5.76% in January; the rate was 6.29% in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Existing Home Sales Rise In February
Reported by Walt Molony, wmolony@realtors.org
WASHINGTON, March 24, 2008 -
Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8% below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92% in February from 5.76% in January; the rate was 6.29% in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Common Closing Costs
Common Closing Costs for Buyers
From Realtor.org
As a buyer you will likely be responsible for a variety of fees and expenses that you, and the seller, will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:
* Down payment
* Loan origination
* Points, or loan discount fees, which you pay to receive a lower interest rate
* Home inspection
* Appraisal
* Credit report
* Private mortgage insurance premium
* Insurance escrow for homeowner's insurance, if being paid as part of the mortgage
* Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
* Deed recording
* Title insurance policy premiums
* Land survey
* Notary fees
* Prorations for your share of costs, such as utility bills and property taxes
For your information you can usually plan on paying about 3% of the purchase price in 'closing costs'.
Your lender must provide a good-faith estimate of all settlement costs so you will know up front what to expect!
From Realtor.org
As a buyer you will likely be responsible for a variety of fees and expenses that you, and the seller, will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. The title company or other entity conducting the closing will tell you the required amount for:
* Down payment
* Loan origination
* Points, or loan discount fees, which you pay to receive a lower interest rate
* Home inspection
* Appraisal
* Credit report
* Private mortgage insurance premium
* Insurance escrow for homeowner's insurance, if being paid as part of the mortgage
* Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
* Deed recording
* Title insurance policy premiums
* Land survey
* Notary fees
* Prorations for your share of costs, such as utility bills and property taxes
For your information you can usually plan on paying about 3% of the purchase price in 'closing costs'.
Your lender must provide a good-faith estimate of all settlement costs so you will know up front what to expect!
Friday, March 21, 2008
Top 5 Cities to Find a Job
Top 5 Cities to Find a Job:
4. Atlanta, Ga., is a hub for the financial and technology industries with positions in accounting, civil and electiral engineering and jobs at Fortune 500 companies like Coca Cola, UPS and Home Depot.
5. Fort Worth, Texas, with job opportunities in teaching, construction, even vision care products and air craft equipment.
4. Atlanta, Ga., is a hub for the financial and technology industries with positions in accounting, civil and electiral engineering and jobs at Fortune 500 companies like Coca Cola, UPS and Home Depot.
3. Austin, Texas, is a vibrant and young city with an entrepreneurial spirit, so a good place to think about opening a small business. Also a wide range of career choices in technology.
2. Witchita, Kan., where aircraft and petroleum industries have bounced back and looking to hire for their production lines. There are also plenty of opportunities for health care workers.
1. Salt Lake City, Utah, tops the list in job growth with opportunities in nursing, education and banking.
By TORY JOHNSON
ABC News.com
March 10, 2008
To view the video about this subject:
http://cosmos.bcst.yahoo.com/up/player/popup/?cl=6905329
4. Atlanta, Ga., is a hub for the financial and technology industries with positions in accounting, civil and electiral engineering and jobs at Fortune 500 companies like Coca Cola, UPS and Home Depot.
5. Fort Worth, Texas, with job opportunities in teaching, construction, even vision care products and air craft equipment.
4. Atlanta, Ga., is a hub for the financial and technology industries with positions in accounting, civil and electiral engineering and jobs at Fortune 500 companies like Coca Cola, UPS and Home Depot.
3. Austin, Texas, is a vibrant and young city with an entrepreneurial spirit, so a good place to think about opening a small business. Also a wide range of career choices in technology.
2. Witchita, Kan., where aircraft and petroleum industries have bounced back and looking to hire for their production lines. There are also plenty of opportunities for health care workers.
1. Salt Lake City, Utah, tops the list in job growth with opportunities in nursing, education and banking.
By TORY JOHNSON
ABC News.com
March 10, 2008
To view the video about this subject:
http://cosmos.bcst.yahoo.com/up/player/popup/?cl=6905329
Thursday, March 20, 2008
Ways to Raise Your Credit Score
5 Ways to Raise Your Credit Score – And Fast
By Ryan Osbourne
Mortgage Planner
If you are looking to improve your credit score quickly, now is the time to get started. Give us a call. We’ll review your credit and find out exactly where you stand and where you need to get to. In the meantime, here are some great strategies you can utilize right away to give your score a little boost.
1. Create Some Balance: While paying down installment debt (car, school, mortgage, etc.) will definitely boost your credit score, paying down or paying off revolving debt, such as credit cards, can cause a quick jump in your credit score. The trick is to get and keep your balances below 30% of your credit limit on each card. For faster results, attack those cards with balances closer to their respective credit limits first, as opposed to those cards with simply the highest debt. Remember, if you pay off any credit cards completely, do not close your accounts without discussing it with your mortgage professional first. Canceling those cards may inadvertently undo all of your hard work.
2. Know Your Limits: Make sure that your credit card issuers are reporting the correct limits on your accounts to the three major credit bureaus. Without an available limit, your account will appear to be maxed out at its highest reported balance each month. This could cost you up to 80 points in certain instances. Some creditors, such as American Express® and certain cards issued by Capital One®, actually have a policy of not reporting available credit. However, most companies will report your credit limits if you ask them in writing.
3. Take Some Credit: If you have a credit card account in very good standing, make sure that all three credit bureaus know about it. Just like your credit limits, some creditors don’t report your information to all three credit companies – this is why credit scores often vary between bureaus. If this is the case, give them a call to find out why. Correcting this oversight could provide a significant boost to your score. Also, if you’re in very good standing, ask your creditor for a lower rate or higher credit limit. This will increase the gap in the debt you owe versus the credit you have available. Sometimes hinting about closing an account can suddenly bring out the generous spirit of certain card issuers. Give it a try. The worst they can say is no.
4. Protect Your Interests: Your credit is calculated based solely on the information available to your creditors. If you have a HELOC, make sure it’s listed as a mortgage or an installment account on your credit reports and not a revolving debt. If you had a bankruptcy, be sure that all items associated with the bankruptcy are being reported correctly, that is with a zero balance. This action could increase your score by 50-100 points. Because simple mistakes like these can wreak havoc on your credit score, it’s important to monitor your credit every four to six months.
5. Even the Score: If you find information on your credit report that you believe is inaccurate or incomplete, then you have the right to dispute it free of charge. For the fastest results, visit the appropriate credit bureau’s website and file a complaint online. If supporting documents are necessary, you have to file your dispute by mail. If you’d like more information or a copy of our Sample Dispute Letter, give us a call right away. We’ll be glad to help you in any way we can or, if it becomes necessary, refer you to credit professionals you can trust.
From Ryan Osbourne
Mortgage Planner
Questions or comments for Ryan call: 801.748.4877
By Ryan Osbourne
Mortgage Planner
If you are looking to improve your credit score quickly, now is the time to get started. Give us a call. We’ll review your credit and find out exactly where you stand and where you need to get to. In the meantime, here are some great strategies you can utilize right away to give your score a little boost.
1. Create Some Balance: While paying down installment debt (car, school, mortgage, etc.) will definitely boost your credit score, paying down or paying off revolving debt, such as credit cards, can cause a quick jump in your credit score. The trick is to get and keep your balances below 30% of your credit limit on each card. For faster results, attack those cards with balances closer to their respective credit limits first, as opposed to those cards with simply the highest debt. Remember, if you pay off any credit cards completely, do not close your accounts without discussing it with your mortgage professional first. Canceling those cards may inadvertently undo all of your hard work.
2. Know Your Limits: Make sure that your credit card issuers are reporting the correct limits on your accounts to the three major credit bureaus. Without an available limit, your account will appear to be maxed out at its highest reported balance each month. This could cost you up to 80 points in certain instances. Some creditors, such as American Express® and certain cards issued by Capital One®, actually have a policy of not reporting available credit. However, most companies will report your credit limits if you ask them in writing.
3. Take Some Credit: If you have a credit card account in very good standing, make sure that all three credit bureaus know about it. Just like your credit limits, some creditors don’t report your information to all three credit companies – this is why credit scores often vary between bureaus. If this is the case, give them a call to find out why. Correcting this oversight could provide a significant boost to your score. Also, if you’re in very good standing, ask your creditor for a lower rate or higher credit limit. This will increase the gap in the debt you owe versus the credit you have available. Sometimes hinting about closing an account can suddenly bring out the generous spirit of certain card issuers. Give it a try. The worst they can say is no.
4. Protect Your Interests: Your credit is calculated based solely on the information available to your creditors. If you have a HELOC, make sure it’s listed as a mortgage or an installment account on your credit reports and not a revolving debt. If you had a bankruptcy, be sure that all items associated with the bankruptcy are being reported correctly, that is with a zero balance. This action could increase your score by 50-100 points. Because simple mistakes like these can wreak havoc on your credit score, it’s important to monitor your credit every four to six months.
5. Even the Score: If you find information on your credit report that you believe is inaccurate or incomplete, then you have the right to dispute it free of charge. For the fastest results, visit the appropriate credit bureau’s website and file a complaint online. If supporting documents are necessary, you have to file your dispute by mail. If you’d like more information or a copy of our Sample Dispute Letter, give us a call right away. We’ll be glad to help you in any way we can or, if it becomes necessary, refer you to credit professionals you can trust.
From Ryan Osbourne
Mortgage Planner
Questions or comments for Ryan call: 801.748.4877
Reasons to Own a Home
7 Reasons to Own Your Home
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don't rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the "Buy vs. Rent" calculator at www.GinnieMae.gov
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don't rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the "Buy vs. Rent" calculator at www.GinnieMae.gov
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