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
Saturday, August 30, 2008
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!!!
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