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
Thursday, July 31, 2008
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
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