Home Buyer Tax Credit Extension

Congress passed two measures for the housing market on November 5, 2009!

The first time home buyer tax credit deadline was extended to loans purchased on or before May 1, 2010, and closing by July 1, 2010. For first time home buyers the credit will remain at $8000, and all other home buyers could be eligible for up to $6500. The income limits to qualify for the credits was increased as well, to allow more buyers to qualify, and hopefully boost the move up and move down buyers. This will also hopefully move some inventory in the higher priced homes that have been very hard to sell all this year.
For current home owners looking to cash in on this credit, they must have owned their current home at least 5 years. The tax credit is available for the purchase of principal homes costing $800,000 or less. Purchase of second homes or vacation homes are ineligible. The credit will be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
Congress also voted to extend the higher conforming loan limits for Fannie, Freddie and FHA loans. These limits are set at 125% of the average home price in your area, up to a high limit o$795,000. You have to check your county limits to determine the actual high price limit for your area. This will have the greatest impact on states like California, Washington, and the Northeast where average home prices are substantially higher than most of the country. But, this is good news for home buyers in those areas who would otherwise have to finance home purchases with "jumbo" loans which typically have much higher rates.

JD Powers Award

J.D. Power and Associates Ranks Coldwell Banker Highest in Home Seller Satisfaction
SANDY, Utah – September 24, 2009 – Coldwell Banker Real Estate LLC ranked highest among real estate companies in satisfying home sellers according to the recently released J.D. Power and Associates 2009 Home Buyer/Seller Study.
The independently administered study measured customer satisfaction of homebuyers and sellers among the largest national real estate firms.  The study incorporates more than 3,100 evaluations from 2,801 respondents who bought or sold a home between April 2008 and June 2009. The survey was fielded between April and June 2009.
“This recognition is a testament to the brand’s legacy as an industry leader, our commitment to innovation and, above all, our powerful network,” said Dan Christensen, president of Coldwell Banker Residential Brokerage in Utah.
“With unsurpassed local knowledge, expertise and work ethic, we at Coldwell Banker have always felt that our network of professionals is the greatest in the industry, and we’re pleased J.D. Power and Associates recognized it,” he added.
J.D. Power and Associates examined four factors in the home-selling experience including: agent, marketing, office, and package of additional services. Among home sellers, Coldwell Banker Real Estate ranked highest with a score of 815 and performed particularly well in all four areas.
Coldwell Banker Real Estate also ranked particularly high in the home-buyer segment. The brand ranked second with a score of 801 on a 1,000-point scale, performing particularly well in the office factor.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on home building and home improvement, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit www.JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About Coldwell Banker Residential Brokerage
Coldwell Banker Residential Brokerage, a leading residential real estate brokerage company in Utah, operates 12 offices with about 900 sales associates serving the communities of the greater Wasatch Front. The company offers residential and commercial brokerage, corporate relocation and mortgage services. Through its internationally renowned Coldwell Banker Previews® program, the company is widely recognized for its expertise in the luxury housing market. Coldwell Banker Residential Brokerage, online at HYPERLINK "http://www.utahhomes.com/" www.UtahHomes.com, is part of NRT LLC, the nation’s largest residential real estate brokerage company. NRT, a subsidiary of Realogy Corporation, operates Realogy’s company-owned real estate brokerage offices. For more information, please visit "http://www.UtahHomes.com" www.UtahHomes.com or call 801.563.8700.

Newcomers to Provo!

"The [most moved to area] college towns where students and education professionals help welcome outsiders. Among the places in America that have welcomed the most newcomers in 2008, three are home to major colleges and universities: Raleigh, N.C., Provo, Utah, (home to Brigham Young University, one of the country's largest private colleges), and Austin, Texas, home to the University of Texas at Austin.

"If there are lots of newcomers, it's easy to make friends; there's a sense of vibrancy there," says William Frey, a senior fellow at the Brookings Institution. "Places that don't have a lot of new migrants tend to be older and more stagnant. They're also more close-knit."

Intellectual centers like the above-mentioned college towns, however, reliably attract new residents because universities are large, relatively stable employers--and a steady flow of students keeps the population young.

"You have an educated population, and you have a large youthful population," says Alexander von Hoffman, senior fellow at the Joint Center for Housing Studies at Harvard University. "These places retain people after they've graduated, and attract like-minded people."

Published by Forbes.com
10/01/2009

Home Sales Up! Summer 2009

Wasatch Front home sales up for second consecutive month


Sales of existing Wasatch Front homes were up for the second consecutive month, rising 4 percent in July, while Utah County sales increased by a whopping 22 percent, according to statistics released by the Utah Association of REALTORS® Aug. 25, 2009.

In July, Salt Lake, Utah, Davis, Weber and Tooele County REALTORS® sold 2,352 single-family homes, townhomes and condominiums compared to the 2,261 properties sold in July 2008. In Utah County, REALTORS® sold 566 existing homes compared to the 465 homes sold last year.


The statistics mirrored figures released by the National Association of REALTORS® that said U.S. home sales were up 5 percent in July compared to July 2008. On a monthly basis, U.S. seasonally adjusted home sales increased 7 percent, the first time in five years that sales increased for four months in a row.


Along the Wasatch Front, sales were down 6 percent from June to July; however, the decrease was expected because sales are traditionally slower in July and the Utah statistics are not seasonally adjusted.


The median price of homes in the five-county area in July was $205,000, down 6 percent from last year. In a separate report, the Federal Housing Finance Agency said Utah home prices decreased nearly 12 percent for the second quarter.

Home Run 2 Grant

FREQUENTLY ASKED QUESTIONS ABOUT HOME RUN 2 GRANTS

*What is the $4,000 Home Run 2 Grant?

The Home Run 2 Grant is a mortgage assistance program that grants $4,000 to home buyers who wish to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.

*How is Home Run 2 different from the first Home Run program?

The first Home Run program, which ended in June 2009, provided a $6,000 grant to eligible home buyers. Home Run 2 provides a $4,000 grant. The first program required that homes be ready for occupancy upon closing. Home Run 2 buyers have two additional options. They can purchase a home that is contracted for construction or partially finished and contracted for completion. Homes that have been previously occupied do not qualify.

When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.

All other aspects of the program are materially the same as the first Home Run program.

*Who is eligible to receive a $4,000 Home Run 2 Grant?

• Home buyers who did not receive a $6,000 grant under the previous $6,000 Home Run Grant Program.

• Home buyers (any person taking title) must meet the following income restrictions:

o Single person, maximum income, $75,000

o Married couple, maximum income, $150,000

o If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.

o Income calculations will be determined by the Adjusted Gross Income as verified by the Approved Lender using the 2008 IRS Federal Income Tax transcript obtained directly from IRS or from an authorized third-party vendor.

• Home buyers must occupy the purchased home as a primary, permanent residence.

• If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.

• The Home Run 2 Grant Program is effective only for home purchases closed after a Home Run 2 Grant Commitment has been issued for that specific transaction. The grant funds may not be issued for homes purchased prior to obtaining the Home Run 2 Grant Commitment.

*Can Cash Buyers qualify to get the Home Run 2 Grant?

Yes. Cash Buyers must contact Utah Housing directly. Cash Buyers, like all other Buyers, must obtain a written Home Run 2 Grant Commitment prior to closing.

*What property types can be purchased with a $4,000 Home Run 2 Grant?

Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.

*What type of loan can a home buyer use to purchase the home?

If a home buyer needs a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any Approved Lender. Examples of qualifying loans include:

∗ Conventional loans

∗ FHA, VA, or Rural Housing loans

∗ Utah Housing Corporation loans


*How does a home buyer apply for a $4,000 Home Run 2 Grant?

Apply for a grant through an Approved Lender. Approved Lenders are the key link between a home buyer and the Home Run 2 Grant. The Approved Lender assists a home buyer to provide necessary information to secure the grant commitment from Utah Housing Corporation. A home buyer does not work directly with Utah Housing Corporation (unless the home is being purchased for cash).


*Do I have to be a first-time home buyer to get a Home Run 2 Grant?

No. Home Run 2 Grants are available to all home buyers (all persons who take title) whose maximum income is $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person.

*Can the $4,000 Home Run 2 Grant be combined with the new $8,000 federal tax credit?

Yes, if home buyers meet the independent criteria of both the federal government and the Home Run 2 Grant programs, they may take advantage of both. The $4,000 Home Run 2 Grant is available to both those who are first-time home buyers as well as those who previously owned a home. The $8,000 federal tax credit is available only to first-time home buyers.

*How many Home Run 2 Grants are available to home buyers?

A total of approximately 1,950 grants of $4,000 each will be available. Only one grant can be used for the purchase of each home and can only be issued to persons who did not obtain a grant under the previous $6,000 Home Run Program. Home Run 2 Grants are distributed on a first-come, first-served basis to fully-qualified home buyers. The approximate number of remaining grants is posted at all times on Utah Housing web page at www.utahhousingcorp.org.

*Is the Home Run 2 Grant taxable?

The Home Run 2 Grant will probably be taxable as income under federal and state tax laws. Utah Housing does not provide any tax advice regarding the taxability of the Home Run 2 Grant. If Utah Housing receives a favorable ruling from the Internal Revenue Service that a Home Run Grant is not taxable, Utah Housing will post the ruling on its Website (www.utahhousingcorp.org) and a home buyer should review the ruling in connection with the preparation of their tax return(s).

*If I have additional questions, who do I contact?

Contact Heidi Alldredge, Realtor for Coldwell Banker at 801-434-7008.

Important Note: Buyers should make sure that they work closely with a Realtor and an Approved Lender for the Home Run 2 Grant Program to ensure that required materials are submitted in a timely manner, but not prematurely.
When a Home Run 2 Grant Commitment is issued, if the Eligible Home is fully constructed, the Commitment expires 10 calendar days after the date of issuance (unless that day falls on a weekend or holiday and then it is the following business day). If the Eligible Home is somewhere in the construction process, the Commitment expires on June 30, 2010.

*Steps to obtain a Home Run 2 Grant:

1. Buyer signs a contract to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.

2. Buyer applies for mortgage loan through an Approved Lender and Approved Lender obtains all required Home Run 2 documentation and written loan underwriting approval.

3. When all required Application materials have been obtained, Approved Lender submits a Home Run 2 Grant Request to Utah Housing and receives from Utah Housing a Home Run 2 Grant Commitment authorizing the Grant for the Buyer.

4. The purchase closing is scheduled at a title company. As soon as closing documents have been signed, the title company faxes required documents to Utah Housing so that it can request that the Escrow Agent send a wire of $4,000 to the closing.

5. The Home Run 2 Grant Commitment must be dated on or prior to the date shown on closing documents.

FHA Changes For Condos

Beginning October 1, there will be some changes to the approval process for FHA Condo loans nationwide. The reason for this change is to complete a current due diligence of all Condo projects.

Up until now, Condo projects were either already approved and listed on HUD’s website for FHA financing, or they could be “spot approved” for FHA loans, meaning the lender could get evidence that the Condo project met FHA guidelines and approve a loan on one of the units. This did not approve the whole project through HUD though, so the next time someone wanted to get an FHA loan on a unit in the same project, they also had to go through the “spot approval” process.

Under the new rules, FHA lenders will have the authority to actually approve a whole Condominium project for HUD. This means that “spot approvals” will be eliminated. Once a loan is done on a unit in a development, it will be added to the HUD approved list and future FHA loans in the project will be easier to do. 

All current Condominium project approval will be invalid. After October 1, 2009 all Condo projects will have to go through new approval. Until a Condo project is approved and listed with HUD then FHA financing will not be an option.  Over time, this should really streamline the time it takes to do FHA loans on condos here in the Utah County area.

The drawback is that it may take longer and be far more difficult to get an FHA loan done on that first unit in the project, so keep that in mind when buying a Condo that is not on HUD’s approved list. If you would like more information about these changes and what the requirements are for a Condo project to be eligible for FHA financing, just let me know!

New Lending Regulations

New lending regulations could delay closings

New lending rules that require mandatory disclosures and waiting periods for mortgage loans have many lenders advising buyers, sellers and real estate agents to plan for at least 30-day closings and to expect possible delays. The regulations, which went into effect July 30, are part of an amendment to the Truth in Lending Act that seeks to ensure consumers receive cost disclosures earlier in the mortgage process, says the Federal Reserve Board.

The new rules apply to all mortgages secured by the borrower’s home, including primary and second homes as well as refinancings, and require lenders to give good faith estimates of mortgage loan costs within three business days after receiving a consumer’s application for a mortgage loan. The rules prevent any fees from being collected before the consumer has received the early disclosures except for a reasonable fee for obtaining a credit report.

The new rules also include various waiting periods, including the requirement that a home loan cannot close until seven days after the borrower has been issued the initial disclosures.

Furthermore, the new regulations require lenders to disclose if the annual percentage rate on the loan changes by more than 0.125 percent from the amount stated in the initial disclosure. If there is a need for a corrected disclosure, the consumer has another three days to review the new document before the loan can close. Because APR is affected by a variety of items, a corrected disclosure may be needed if there are changes in the interest rate, loan product, closing date, settlement fees or other related items. If these changes occur unexpectedly, it could push back the closing.

In similar fashion, the Home Valuation Code of Conduct (HVCC) gives home buyers three days to review a copy of the appraisal before closing on the loan, unless they waive the right.

In addition to the new review periods, mailing dates could affect closings as well. In cases where the disclosures are mailed, they won’t be considered “received” until three business days after the lender places them in the mail. For example, if corrected disclosures are mailed, the earliest the buyer could close would be on the sixth business day after the mailing (i.e., three business days for mailing and three business days for consumer review, with the consumer being allowed to close on the third review day).
Note: In terms of the three- and seven-day waiting periods, a business day is defined as all calendar days except Sundays and legal public holidays.

Taken together, the new waiting periods could unexpectedly delay closings, especially if an appraisal comes in late or the APR changes. While the borrower may be able to waive the truth-in-lending waiting periods in a “bona fide personal financial emergency,” do not rely on this exemption.
Make sure your settlement deadlines provide enough time to accommodate for the new waiting periods.
By using a realtor, if you do end up in a situation where you won’t be able to meet the settlement deadline because of the timeframes in the new regulations, then your realtor will make sure to extend the REPC with an addendum.

Housing Recovery

Are We Moving Towards a Housing Recovery?

“We have enough cumulative signs now that we’ve come through the worst and not only are things less bad, we’re starting to see pockets of improvement.” Those are the promising words of Charles Schwab Chief Economic Strategist Liz Ann Sanders during her July 28, 2009 interview with Diane Sawyer on ABC’s Good Morning America.

Sanders was responding to Standard & Poor’s/Case-Schiller’s latest Home Price Index which revealed that though housing prices were down nationally 17.9% since June 2008, the rate of home price deterioration has in fact slowed and the Standard & Poor’s/Case-Schiller home price index saw its first monthly gain in the three month period ended in May, from the same period ending in April.

Sanders went on to note, “You have to go through less bad on your way to good.” This viewpoint certainly concurs with what we’re seeing locally as well. While there are many more “bargains” now than at any time in the past few years, the latest numbers show that prices may be stabilizing—but we don’t anticipate that we’ll suddenly see giant leaps in home prices anytime soon.

What we do know is that the housing market was the first to enter the down market and probably will be the first to emerge from it. But it all takes time.

To emphasize that point, Sanders noted, “We’re not going to go into positive gain territory anytime soon but we were looking at declines down in the 18 to 19% so they’re getting a little less bad and that’s just a sign that the turn has come in so I do think prices are bottoming here. It’s not universal but broadly, nationally you can say that. There is still going to be some pockets of weakness but also some pockets of significant strength.”

Locally in pockets along the Wasatch Front there has been a surge in home sales over the last several months. In fact, in its July 28, 2009 Decline in home sales along Wasatch Front slows, ABC 4 reported that, “The decline in home sales along the Wasatch Front is starting to slow. The Salt Lake Board of Realtors released new statistics Tuesday that have a bit of good economic news in them. There were 5,428 single-family homes sold in the second quarter in Salt Lake, Davis, Utah, Weber and Tooele counties. That's only down about 2% from the same time last year. And, in Utah County, home sales were actually up nearly 15%.”

The reported continued, “The Salt Lake Board of Realtors says buyers have been motivated to buy new homes by the lower prices and government incentives.”

So what does all of this mean for today’s buyers?

The latest news shows that prices may be stabilizing but they’re likely to remain at these levels for some time. The Wall Street Journal Reporter Nick Timiraos wrote in his July 29, 2009 blog posting What the Case-Shiller Numbers Mean for Home Buyers, “A purchase could make sense for borrowers who plan to live in their home for a long time now that prices are more in sync with incomes.”

What should we watch for?

During the Good Morning America interview, Sanders, and Mike Santoli, an associate editor of Barron’s, both provided their key vital signs to watch for in calling for a recovery. Among them:

Liz Ann Sanders’ Three Improving Economic Vital Signs to Watch For:

- Index of Leading Economic Indicators, which has enjoyed three months of increases

- New unemployment claims are down 93,000; “We’ve never still been in a recession when we’ve seen that kind of drop,” said Sanders.

- The spread between short term (set by the Fed) and long term interest rates (driven by the market) is widening; these numbers are telling us that the economy is recovering

Mike Santoli’s Three Improving Economic Vital Signs to Watch For:

- Dow above 8,000; if it stays above 8,000, Santoli noted, this would be a good indicator that we’re on the road to recovery. As an aside, the week ended July 31, 2009, we danced over the 9,000 mark, closing Friday, July 31 at 9,171, making it the best July for the Dow in over 20 years, according to CNNMoney.com’s July 31, 2009 article Dow ends best July in 20 years.

- Santoli concurred with Sanders’ new unemployment claim indicator

- Back to school retail sales; Santoli stated that this is a check on consumer psychology; Santoli noted that we should watch sales reports from companies like Target and Wal-Mart to report to determine if consumer psychology is improving.

In the end, what all of this information is telling us is that though we are starting to show signs of improvement, we probably won’t see huge surges in home prices any time soon. Home prices seem to be realigning more closely with incomes in most markets. With mortgage rates remaining attractive, the $8,000 first time home buyer tax credit that is on the table until November 30 and foreclosures on the decline, the key signs are finally pointing in the right direction.

If you are ready to make an informed decision about real estate, please contact me today!

This week a Realty Times article provided some insight into a rebounding market. Here are the highlights:

*Pending home sales rose sharply, by nearly 7 percent, in the last month measured by the National Association of Realtors.
*Pending sales were up in all four major regions of the country—and that caught the attention of some key industry economists.
*Orawin Velz, economic forecaster for the Mortgage Bankers Association, said in a commentary that "the steady improvements in pending home sales are encouraging," and confirm the view that existing home sales hit their cyclical bottom in January and are likely to continue to rise in the coming months.
*Since the January low point, she noted, the Realtors' pending sale index is up by 13 percent.
*Mortgage rates continue to be favorable, an average of 5.3 percent last week for 30 year fixed rate loans, 4. 8 percent for 15 year fixed, and those rates are pulling in growing numbers of home purchase loan applications.
*According to the Mortgage Bankers Association's weekly survey, new applications to buy houses increased by nearly 7 percent in the week ending July 3rd.

Real numbers for Utah County—
Active Sellers in Utah County
June - 2009 4442
July - 2009 4378
Down by 1% in one month (good news)

Active Buyer's in Utah County
June - 2009 883
July - 2009 1055
8.4% increase in the number of active Buyers in one month (good news)

Working Together

Everyone plays an important role to make the home buying process a success! Here is a break down of responsibilities for homebuyers, realtors and lenders.

Homebuyer needs to:

• Obtain a credit-checked preapproval before you start to shop for a home. (Applying in person may help expedite the process.)
• Review the timeline and potential impacts with your home mortgage consultant so you can keep your REALTOR® informed.It is wise to plan for at least a 30-day close.
• In the initial disclosure packet you receive, the impacts of the new regulations and investor requirements are outlined. Make sure to pose any questions to your home mortgage consultant.
• Know that these new regulations and investor requirements are in place to ensure you have time to consider your loan choice and feel confident to move forward.
• Review the appraisal delivery disclosure and determine whether or not you wish to waive the 3-business-day review period prior to closing.
• Understand that the interest rate on your loan impacts the APR. This means that until you lock in your rate, an exact APR cannot be determined. Minimally plan on locking at least 10 business days prior to the date you wish to close.
• Understand that a change in mortgage product could impact your APR and therefore your estimated closing date.
• Understand that changes in fees by third parties such as your settlement agent could also impact your closing date.

Realtor needs to:

• Set realistic expectations upfront and throughout the transaction with the listing agent, the seller and the homebuyer in regards to potential closing dates. It is wise to plan for at least a 30-day close.
• Discuss these new provisions with your settlement agents immediately to avoid unnecessary delays down the road. It is critical that any third party fees that impact the APR are accurate because any change of fees that increases the APR more than .125% will require the lender to re-disclose the TIL — allowing 7 business days before the transaction can close. This allows 3 business days for mailing and provides the homebuyers with the time required to determine if they are comfortable with their loan choice.
• Provide the settlement agent information to the lender as early in the process as possible.
• Make sure the homebuyers understand that their interest rate impacts their APR and that until that rate is locked
(which is at their discretion), the initial TIL will not be accurate, so a PreClosing TIL disclosure will likely be needed.

Home Mortgage Lender/consultant needs to:

• Help homebuyers understand timelines and anything that can impact their closing date. It is wise to encourage homebuyers, and REALTORS®, to plan for at least a 30-day close.
• Take applications and help homebuyers understand their product options.
• Issue homebuyers their initial disclosures.
• Collect fees. (Note: unless the initial disclosures are handed to the homebuyer the same day as you take his or her application, fees cannot be collected until the customer has received his or her initial disclosures).
• Ensure the loan is locked at least 10 business days prior to the desired close date (4 business days for the Reverse Fixed Rate product).
• If the APR increases more than .125% then the lender must re-disclose the TIL 7 business days before the transaction can close (4 business days for the Reverse Fixed Rate product). This allows 3 business days for mailing and provides the homebuyers with the time required to determine if they are comfortable with their loan choice.

Have We Reached Bottom?

Have We Reached Bottom? 10 Factors to Consider
RISMEDIA, June 24, 2009-Historically, the value of real estate goes through cycles. Many factors affect the value of homes including the laws of “supply and demand.” From the Appraisal Institute, here’s a quick reference guide to some of the factors involved and advice on how to spot a turning point in the market:
1. A spike in local sales activity. A spike refers to a significant rise in the number of home sales (or values) in a local market area, which generally is measured month to month. A spike does not necessarily mean continued growth, i.e. it could be a one month phenomenon.
2. Higher asking and selling prices vs. appraisal value opinions for residential properties. Appraisers study the markets; they do not make the markets. When the data shows higher sale prices in comparable properties market value opinions will increase proportionally. Appraisers seek evidence of value but do not create the value. In time periods with low activity, evidence of any kind is difficult to find.
3. More activity at open houses. Open houses with five to eight attendees is considered average, so a dozen or more people attending an open house means buyer interest is picking up. Also, the mood of the attendees is important. Are they optimist and upbeat? Buyers interest alone does not always translate to effective purchasing power. If the number of buyers in the market increases but they do not have requisite down payments, the sales may still not occur.
4. Shorter marketing times. In some markets, houses have been up for sale for more than a year. In most balanced residential markets, properties that are priced competitively will typically sell in less than six months. If the Days On Market (DOM) is shortening, many practitioners will read an improvement in the market.
5. Reduced number of foreclosures and short sales. A reduction in these transactions commonly signals a more balanced market. If lenders are reluctant to foreclose because of an oversupply of inventory, they may choose to wait to repossess the properties, which could allow a spike in the number of foreclosures later despite a better market condition.
6. Stabilized employment. Stable or increasing employment rates provide the necessary confidence for potential buyers to invest in a home. Since most buyers rely on borrowed funds to make real estate purchases and borrowing money usually requires a source of repayment and that usually means jobs, an increase in this basic need, will enable more real estate sales.
7. Fewer buyer incentives and seller concessions. Seller-paid incentives or concessions are a sign of seller motivation. If there are fewer builders offering “free” upgrades and fewer sellers sweetening the deal with big screen TVs, it may be a sign of lessening supply and therefore a better market.
8. New construction starts. Most builders are quite attune to their markets and will not build new homes without a corresponding contract for sale or a perceived increase in demand. An increase in the number of building permits usually indicates higher demand and higher prices. If residential properties are selling for 25% less than they cost to build, only a few new homes will be built. It would be prudent to buy an existing home rather than build a new one for a much higher price.
9. “Move-up” buyers entering the market. More buyers willing to move to a larger or superior quality home indicates a healthy market. The lack of buyers at the lower end of the price range will have a chain reaction throughout the market. If a buyer for a high priced home has a lower priced home to sell first, the sale of the higher priced home may have to occur before the higher priced one can sell.
10. Apartments advertising renter specials - fewer renters in the market may indicate more people are moving into owner occupied homes or it could indicate a reduction in population. Lower population will cause an oversupply of housing which will oftentimes permeate throughout several markets.

Recommendations For The White House

Business Roundtable, an association of chief executive officers of leading U.S. corporations, issued a set of recommendations for the White House and Congress that are aimed at jumpstarting the housing market in order to stimulate a broader economic recovery. The Business Roundtable’s recommendations are as follows:

· Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;

· Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;

· Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;

· Make permanent the current temporary conforming loan limits; and

· Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

“We believe targeted, demand-side solutions – such as the ones Business Roundtable is recommending today – will provide a critical next step for a housing recovery that will help create jobs and boost the economy as a whole,” said Smith in the Business Roundtable’s press release.

Coldwell Banker Realtors applaud the Business Roundtable for its proactive efforts to reinvigorate the U.S. housing market, and we are proud of the leadership role our parent company, Realogy, has taken in this regard. Many of our brokers and sales associates already have been involved in grassroots lobbying efforts in support of housing issues with your elected officials in Washington, D.C.
We understand that the legislative process is often a long and winding road that is hard to predict, but at some point in the future, we expect to make our voices heard in support of any new legislation in Congress that would advance these recommendations.

Utah To Rebound Quickly

SALT LAKE CITY -- A new study shows Utah may be poised to recover from the recession more quickly than most states. The
reason, according to the conservative authors, is Utah's business-friendly environment.
This is a conservative study with a lot of praise for Utah's conservative Legislature and its policies,but the forecast is a pragmatic look at what businesses want and what Utah has.
Poised to attract more high-tech companies, more in research and medicine, in recreation, tourism and energy; Utah may have
what it takes to climb out of the recession first. "We do have a very attractive environment for business, and it's been stable," said Sen. Wayne Niederhauser.
One of the advantages comes in the area of tax policy, specifically income tax reform. Utah also has less government regulation and involvement is a plus for businesses. Gov. Jon Huntsman is also working to promote Utah as a future renewable energy hub. Together, it could add up to an even more prosperous future for Utah. "There probably is not another state in America right now with better practices, in terms of attracting, building and promulgating renewable energy," Huntsman said.
At the same time, Utah has a chance to lead the way in using prosperity to create a better life for people. It can do so in many ways. One example is in being smart about health care reform. "We're saying it's great the state is embarking on health system
reform. Let's make sure that, at the end of the day, those reforms result in predictable costs for businesses and affordable costs for employees so they can succeed on the job," said Judi Hilman, with the Utah Health Policy Project.
By comparison, states like California and New York have been raising taxes steadily. That has led to a very difficult downward spiral for those states.

March 2009 KSL

Home Sales Increase

Home Sales Jump
Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.

In Utah County we saw home sales go from 361 in March to 385 in April. As of today there are 516 homes under contract in Utah County!!

Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.

Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers.

“Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”

Buyers Once Again Emerge

An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.

“This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.

It's critical that distressed homes be quickly cleared from the market, Yun says.

“Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.

NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans.

“We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”

Housing is more affordable!

National Association of Realtors Announces Housing Affordability Highest in 18 Years

This is one of the best times to purchase a home in decades. This week the National Association of Realtors underscored that fact with the release that nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.

Locally, the story is similar. In the Ogden-Clearfield area, 74.4% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the area’s median income of $68,500. That’s up 5% from the previous quarter and up 13% from the same period a year ago.

In Provo-Orem, 65.3% of all homes sold were affordable to families earning the median income of $62,900. That’s up 12% from the previous quarter and up 21% from the same period a year ago.

In Salt Lake, 65.9% of all homes sold were affordable to families earning the median income of $67,800. That’s up 7% from the previous quarter and up almost 20% from the same period a year ago.

FHA Appraisal Tips

The following are excerpts from HUD Mortgagee Letter 2005-ML-48 regarding repair and inspection requirements.

FHA Repair Requirements: Below are examples of minor property conditions that no longer require automatic repair for existing properties include, but are not limited to:

* Missing handrails * Cracked or damaged exit doors that are otherwise operable * Cracked window glass * Defective paint surfaces in homes constructed post 1978 * Minor plumbing leaks (such as leaky faucets) * Defective floor finish or covering (worn through the finish, badly soiled carpeting) * Evidence of previous (non-active) Wood Destroying Insect/Organism damage where there is no evidence of unrepaired structural damage * Rotten or worn out counter tops * Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed post- 1978 * Poor workmanship * Trip hazards (cracked or partially heaving sidewalks, poorly installed carpeting) * Crawl space with debris and trash * Lack of an all weather driveway surface

Below are examples of property conditions that may represent a risk to the health and safety of the occupants or the soundness of the property for which FHA will continue to require automatic repair for existing properties include, but are not limited to:

* Inadequate access/egress from bedrooms to exterior of home * Leaking or worn out roofs (if 3 or more layers of shingles on leaking or worn out roof, all existing shingles must be removed before re-roofing) * Evidence of structural problems (such as foundation damage caused by excessive settlement) * Defective paint surfaces in homes constructed pre-1978 * Defective exterior paint surfaces in home constructed post-1978 where the finish is otherwise unprotected * Exposed sub-flooring, missing carpet, vinyl, tile floors

FHA Inspection Requirements: FHA no longer mandates automatic inspections for the following items and/or conditions in existing properties:

* Wood Destroying Insects/Organisms: inspection required only if evidence of active infestation, mandated by the state or local jurisdiction, if customary to area, or at lender's discretion * Well (individual water system): test or inspection required if mandated by state or local jurisdiction; if there is knowledge that well water may be contaminated; when the water supply relies upon a water purification system due to presence of contaminants; or when there is evidence of: Corrosion of pipes (plumbing)Areas of intensive agriculture within 1/4 mile Coal mining or gas drilling operations within 1/4 mile Dump, junkyard, landfill, factory, gas station, or dry cleaning operation within 1/4 mile Unusually objectionable taste, smell or appearance of well water (superceding the guidance in Mortgagee Letter 95-34 that requires well water testing in the absence of local or state regulations) * Septic: test or inspection required only if evidence of system failure, if mandated by state or local jurisdiction, if customary to the area, or at lender's discretion * Flat and/or unobservable roof

FHA Appraisal Requirements: Appraisers are to recommend only those repairs necessary to make the property comply with FHA’s Minimum Property Requirements (MPR) or Minimum Property Standards (MPS) together with the estimated cost to cure. Recommended repairs are based on a visual inspection of readily observable items only.

Cosmetic repairs are not required; however, they are to be considered in the overall condition rating and valuation of the property. Examples of cosmetic repairs would include surface treatments, beautification or adornment not required for the preservation of the property. For example, generally, worn floor finishes or carpeting, holes in window screens, or a small crack in a windowpane are examples of deferred maintenance that do not rise to the level of a required repair but must be reported by the appraiser. The physical condition of existing building improvements is examined at the time of the appraisal to determine whether repairs, alterations or inspections are necessary - essential to eliminate conditions threatening the continued physical security of the property.

Required repairs will be limited to necessary requirements to:

protect the health and safety of the occupants (Safety)

protect the security of the property (Security)

correct physical deficiencies or conditions affecting structural integrity (Soundness)

Good News for Utah

Good News for Utah


Three of Utah's metro areas were included in the top-ten fastest growing metropolitan areas in a report released by the Census Bureau this month. The Provo-Orem, Logan, and St. George metro areas all made the top-ten list. The reports list 363 metropolitan areas throughout the nation.

The Provo-Orem metro area saw population growth of 3.4 percent, which was the sixth highest in the nation. The Logan metro area ranked ninth nationally with a 3.2 percent increase, and coming in at number ten was the St. George metro area with a 3.1 percent increase.

While the bulk of Utah's population growth came via natural growth, which is the difference between births and deaths in a year, one-third of Utah's growth came from in-migration from outside the state. This is an indication of Utah's overall economic strength.

Although the economy has slowed down, Utah is still outperforming most of the nation and is maintaining a substantially lower unemployment rate. This would indicate that we will still continue to see an increase in net in-migration to the state. "Business leaders and individuals, even internationally, are recognizing the long term trends in Utah. The state is being recognized as a long term 'hot spot' and companies must plan for the long-term; they want stability and security," says, Pam Perlich senior research economist at the University of Utah.

Homes Get Multiple Offers

The real estate sector of our economy continues to show some positive signs—a good symbol that the programs that the government has put in place are helping. USA Today reported earlier this week that “More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.” It’s exactly what we’ve seen locally in Utah County. The first time, entry level home buyer market is fueling this recovery. It’s something we certainly forecasted and it’s finally coming to fruition. Now, we’re seeing, in many markets, multiple offers on starter homes and even some frustrated buyers who are scratching their heads and wondering what happened to the buyer’s market. We warned that the change could come before we knew it and in some price ranges, it might’ve already come and went.

Here is a clip from the news article:
By Julie Schmit, USA TODAY
More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.
Multiple bids have picked up in recent months in California and other states hit hard by foreclosures and steep price drops, real estate executives say.

"If a house is in a good neighborhood, is maintained and is a good value, it'll get multiple offers," says Julie Holt, owner of Anclote Title Services in Tarpon Springs, Fla. One in 10 homes now draw multiple offers, up from one in 30 last fall, she says.

Multiple bids usually signify a market in which prices are rising and buyers outnumber sellers. That's not true now, given rampant foreclosures, still-falling prices in many regions and low demand for higher-price homes. Multiple offers on distressed properties are also not new, but their recent frequency offers hope for the real estate market, says Beth Peerce, treasurer of the California Association of Realtors (CAR).

"When you begin to see people willing to fight for a property, that's a good sign," she says. "We are beginning to see the beginning of the end of a disaster time."

End Is Near

“The End is Near”

Well we’ve certainly seen some interesting twists in the market over the last week. Nationally, new mortgage applications for home purchases and refinancings were up 77 percent from the same week in April 2008.

Mortgage rates continue to average well below 5 percent – 4.7 percent last week on average for 30-year fixed rate loans and 4.5 percent for 15 year loans. Rates like these are a major factor pushing applications.

Nearly 600,000 home buyers have already claimed either the $7,500 tax credit from last year or the $8,000 credit for this year, according to IRS data cited by the National Association of Home Builders.

Also of interest, new home sales have been showing signs of improvement. Last week the Commerce Department reported that March sales were off just 0.6 percent, exceeding analysts’ expectations, after climbing in February.

In other positive trends, interestingly enough, The Wall Street Journal reported this week, “Analysts say: The end (of declines) is near. While new home sales show signs of stabilizing as builders cut back on building and boom-bloated inventories are slowly absorbed, prices of both new and existing homes are still being dragged down by a flood of foreclosures. Still, the experts were optimistic that the federal government's efforts to stem foreclosures eventually will have an effect by the end of this year or early next year; Mark Zandi, chief economist of Moody's Economy.com, even ventured (jokingly) a date when home prices would stop falling—December 15, 2009.”

It’s hard to know whether or not the sum of these indicators is equivalent to a recovery but my sense is that the end is near—if we haven’t already passed it here in Utah (some experts are even saying that we’ve already hit bottom and we’re in slow recovery mode). When the bottom has hit exactly is hard to predict but based on what I am seeing in our offices, based on the statistics that I am seeing on pendings and buyer interest/activity and based on the overall national recovery effort, it seems the prediction by many experts (in late 2008) that we would hit bottom by the middle of 2009 is probably not far off.

Now for those of you who are “timing” the market, I have to caution you on this. The only way you know that the market has hit bottom is when it is on its way up. While certainly housing is one of the biggest and most important investments we will make in our lifetime, it is also important to remember that our home is so much more than an investment. It is not a stock that we trade quickly. It is where we raise our family, where we create memories and where we plant our roots. So as you try to “time” the market, remember these key facts and make sure that beyond the investment, you are choosing a home that will bring you the happiness you deserve. Because in the end, that is what matters most. Choose the home that is right for you and your family right now and for years to come. Historically speaking, Utah real estate brings long-term investment gains for almost all homeowners so if you choose the home that is right for you, you almost can’t lose.

10 Tips For Cell Phone Etiquette

68% of Americans say they observe poor cell phone etiquette at least once every day, according to a national poll from market research group Synovate.

Could you unknowingly be one of these offenders?

Here are 10 basic cell phone etiquette rules to keep in mind when interacting with colleagues and customers:

1. Remember who you’re working with. How would you feel if you were having an important conversation with a sales associate, and she broke off the discussion every time her mobile phone buzzed? Your customers are your boss. They want your attention, and you're compensated for the time you spend with them. Block out all other issues while you’re working with them and make sure you give them your full, undivided attention during the appointment.

2. Bluetooth headsets are not meant to be permanent. It’s good to use hands-free devices such as Bluetooth headsets, especially when driving or multitasking—but they don’t have to be affixed to your head 24/7. If you’re attending a meeting, or simply having lunch with a friend, get rid of the headset! Bluetooth is fine when you’re alone in your office or driving in your car, but try to avoid keeping it in your ear all hours of the day.

3. Talk at a normal tone. 72% of people in the above-mentioned Synovate survey said the most annoying cell-phone violation is people who talk too loud. Most cell phones can pick up very quiet noises. Not to mention, most people around you don’t want to hear your entire conversation. Some experts suggest a 10-foot zone, meaning you should try to be at least 10 feet away from other people when talking on your cell phone. While this rule may be difficult in some situations, try to practice speaking at a soft and normal tone.

4. Don’t forget vibrate or silent modes. Next to the “loud talker,” the most annoying cell phone habit is a loud, annoying ring, especially when it blares during a meeting or other relatively quiet function. Make it a habit to check your cell phone regularly when entering a meeting or important gathering to make sure your cell phone is either turned off or switched to the vibrate position.

5. Avoid goofy ringtones. Hearing your favorite song every time your phone rings may seem cute to you, but it could be construed as offensive, obnoxious, or simply unprofessional to others. Stick to generic-sounding ringtones when programming your phone.

6. Don’t text and drive. Chances are that you've passed someone on the highway that is driving and trying to text. Don’t be that person! (And don't be near that person, either!) This is dangerous and should be avoided at all times. Plenty of major road accidents involve texting. If you must text in your automobile, do so while your car is parked.

7. Don’t reply to a missed call with a text. In general, if you miss a phone call from someone, avoid responding with a text like, “What did you need?” This rule can be broken in certain situations, however. For example, you might be in a movie where you need to reply with a text indicating you will call back as soon as possible, but do so sparingly.

8. Avoid talking on your cell phone in certain places. Most people will agree that certain places are off limits to talking on your phone—for example, at the movies, in elevators, while standing in line at the bank, and during a meal at a restaurant. If you have to think twice about whether you should use your cell phone, you probably are not in a good place to be talking on it—so put it away.

9. Don’t multitask unless you need to. We’ve all done it, but it’s bad phone etiquette, and the person you're talking to can tell when you're distracted. Sometimes its inevitable. But when possible, stop your other tasks, focus, and give the caller your full concentration.

10. Let callers know when you’re using your cell phone. In many circumstances, it’s good to remind or inform the other party that you're using your cell phone in case distractions or a disconnection arises. Plus, some information may be confidential, and your client or customer might not want to share sensitive information if she knows you are communicating through a mobile device. When applicable, take the time to let your callers know you are speaking on your cell phone, and if they have any important or confidential information they wish to share, you will call them back from a land line or meet them in person.

In any case, the next time you reach for your phone, be sure to remember some of these simple phone etiquette strategies— those around you, will be glad you did.

Growing Population

Fastest Growing Population an Indicator of Utah's Economic Strength
by PR or News Wire
21 April 2009—

Three of Utah's metros were included in the top-ten fastest growing metropolitan areas in a report released by the Census Bureau this month!! Provo-Orem, Logan and St. George metro area all made the top-ten. The reports list 363 metropolitan areas throughout the nation.

The Provo-Orem metro area saw population growth of 3.4 percent which was the sixth highest in the nation. Logan metro area ranked ninth nationally with a 3.2 percent increase and coming in at number ten was the St. George metro area with a 3.1 percent increase.

One-third of Utah's growth came from in-migration from outside the State. This is an indication of Utah's overall economic strength.

Although the economy has slowed down, it is still outperforming most of the nation and is maintaining a substantially lower unemployment rate. This would indicate that we will still continue to see an increase in net in-migration to the state. "Business leaders and individuals, even internationally, are recognizing the long term trends in Utah. The State is being recognized as a long term 'hot spot' and companies must plan for the long-term; they want stability and security, "says, Pam Perlich, senior research economist at the University of Utah.

In addition to having a young well educated labor force, the fact that many people are relocating to Utah in search of quality employment adds to Utah's attractiveness when companies are looking to expand or relocate. These facts are recognized as positive considerations for companies who are in a growth mode, despite the general economic downturn. Successful companies must plan for the long-term and the trends of in-migration, natural growth and a young well educated workforce all bode well for the State.

Buyers Take Advantage!

After approximately 36 months of a changing market, there is a great deal of inventory in almost all markets. The bottom line is that qualified consumers may benefit from purchasing a home now.
Right now there is a powerful combination of historically-low fixed mortgage rates, the $8,000 tax credit for first time home buyers, and affordable prices!
Sales of existing homes recently jumped 5 percent in February 2009 compared with the same month last year. The National Association of Realtors also released its Pending Home Sales Index on April 1, 2009 noting that pending home sales “rose 2.1 percent to 82.1 from a reading of 80.4 in January.” With these recent positive indicators, we are starting to see some new gains in the market, which could be a sign that buyers are getting into the market to take advantage of stimulus incentives and much improved affordability conditions.
If you are considering purchasing a home, don’t let this window of opportunity pass you by. I am providing you with this information so that you can make an informed decision about the current market. In the last 30 years we’ve seen very few opportunities in which buyers can prevail and now truly may be the time. If you’d like to discuss your opportunities in relation to the current real estate market, please contact me today.

New Loans! Good News!

More good news from the mortgage industry -----

Super Jumbo loan programs are back!!
Loan amounts to $2 million and Loan To Valuss to 80%. Available in 30-year fixed, 5-year ARM and 3-year ARM.

680+ FICO score will loan up to $650,000
700+ FICO score will loan up to $1.5 Million
720+ FICO score will loan up to $2 Million

Today's rates for example:

up to $1 Million, 30-year fixed, at 6.125% interest; or a 5-yr ARM at 5.25% interest

up to $1.5 Million, 30-year fixed, 6.0% interest; or a 5-yr ARM 5.125% interest

And don't forget-------conventional, conforming purchase requires 740+ FICO score, 80% Loan To Value, with a 30-yr fixed, is only 4.50% interest!!!!

First-time home buyers still get the federal tax credit up $8,000
and our new State incentive to purchase a new home (never lived in) will get $6,000.

Utah Is The Happiest State

Utah and Hawaii residents generate top scores in survey measuring health, happiness
By KEVIN FREKING | Associated Press | Mar 11, 09 6:40 AM

Looking for happiness. It's family-friendly communities for some, tropical paradise or the rugged West for others. A survey of Americans' well-being, conducted by Gallup in partnership with Healthways and America's Health Insurance Plans, gives high marks to Utah, which boasts lots of outdoor recreation for its youthful population.

Speaking of outdoor recreation, the islands of Hawaii took second place and Wyoming was third in the poll that rated such variables as mental, physical and economic health.

But fun outdoors obviously wasn't the only criteria _ "wild, wonderful" West Virginia was ranked last among the states.

And the bluegrass state of Kentucky was 49th, with Mississippi 48th on the list.

In general, highest well-being scores came from states in the West while the lowest were concentrated in the South. The happiest congressional districts were some of the wealthiest, while the lowest scores came in some of the poorest.

Jim Harter, a researcher at Gallup, said he was reluctant to explain regional differences without more study, but he suspected that some of the variations are explained by income. For example, when people were asked to examine their status in life now and five years from now, wealthier people tended to score higher.

The survey attempts to measure people's well-being. It examines their eating and exercise habits, work environment and access to basic necessities, just to name some of the criteria.

The massive survey involved more than 350,000 interviews. Examples of the questions include: Did you smile or laugh a lot yesterday? Are you satisfied or dissatisfied with your job or the work you do? Did you eat healthy all day yesterday? Do you feel safe walking alone at night in the city or area where you live?

Researchers hope the findings will help employers better understand what they can do to create more productive workers. Eventually, the data could even be used to compare health and happiness by ZIP code. The survey is going to be generated for 25 years, according to current plans.

Grant to purchase NEW homes

Governor signs bill for new homes grant

Gov. Jon Huntsman Jr. signed a bill yesterday that will provide $6,000 grants to buyers of newly constructed, never-occupied homes. Upon his signature, he immediately directed the Utah Housing Corporation to begin dispersing grants under the “Home Run” program to buyers who finance a recently constructed home with a 30-year (or less) fixed-rate mortgage and meet other qualifications.


Senate Bill 260 created a fund that will use federal stimulus dollars to provide about 1,600 grants to be distributed through Utah Housing Corporation to home buyers on a first-come, first-served basis.

To apply for the grant, home buyers should work through their lender. Any mortgage lender qualified to make mortgage loans under Utah law can assist home buyers to secure the Home Run grant. Lenders will work directly with Utah Housing Corporation to apply for the grant money. Examples of qualifying mortgages include conventional, FHA, VA, Rural Housing and Utah Housing loans. Cash buyers should work directly with Utah Housing.

Consumers do not have to be first-time buyers to qualify for the program but incomes cannot exceed $75,000 for singles and $150,000 for married couples. Buyers who qualify for both programs can take advantage of the $8,000 federal home-buyer tax credit as well as a Home Run grant.

“It is up to the states to use the federal stimulus money in a way that truly has a beneficial impact on our economy. This is an immediate stimulus targeted at the weakest area of Utah’s economy,” Huntsman said in a press release. “This investment of $10 million will result in 8,800 jobs in the market and $324 million in wages into our economy. This boost is critical for us to reverse our current position.”

To learn more about program details and how buyers can apply, visit www.UtahHousingCorp.org . Also visit www.UtahHousingFacts.com for information about both the Home Run program and the $8,000 federal first-time home buyer tax credit.

Unable to Make Your Payment?

If you are unable to make your mortgage payment:

1. Don't ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.

Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand foreclosure prevention options.

Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at: Hud.gov

6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287.

7. Prioritize your spending.

After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8. Use your assets.

Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10. Don't lose your house to foreclosure recovery scams!

If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

Foreclosure Fraud

Fight Foreclosure fraud
The Utah Division of Real Estate is offering advice on how to avoid foreclosure scams in light of Utah's rising foreclosure rate.

The division has compiled the "Top Five Common Foreclosure Frauds" as well as "Five Ways Consumers Can Protect Themselves against Foreclosure Fraud" lists for the public.

Top Five Common Foreclosure Frauds
Consumers should be wary of any offers that include the following language:

*Save Your Credit: "Pay us a fee and sign your house over to us. The foreclosure will be recorded against us, not you." In this scheme, the lender will record the foreclosure against the homeowner who does not pay as promised under a mortgage.

*Lease-Back Repurchase Schemes: "We'll buy your property, lease it to you, and you have the option to buy it back!" Fraudsters prey on trusting individuals to get access to their home equity, title to property, credit, or money. Legitimate lease-back or lease-option agreements exist, but consumers must closely scrutinize the deal.

*Bank Relationships: "We have a special relationship with banks and can solve your problem quickly with no harm to your credit!" There are no easy solutions when you are facing foreclosure.

*Guaranteed Short Sale: "A short sale can save your credit, guaranteed!" Short sales can be a legal, effective method for preventing a foreclosure, but they are not guaranteed to be accepted by your lender, and they can affect your credit.

*Claim Bankruptcy: "Stop foreclosures with bankruptcy!" Financial advisers typically recommend bankruptcy only when all other avenues have failed so consumers should weigh all options before pursuing this path.

Five Ways Consumers Can Protect Themselves against Foreclosure Fraud
Below are tips to assist consumers who may be facing foreclosure:

1. Contact your lender as soon as you become delinquent. It costs lenders a significant amount of money to foreclose on a property, and many lenders have programs to help consumers.
2. Seek the advice of a competent professional, recommended by someone you know and trust. Real estate licensees, attorneys, and mortgage licensees can help you identify options for your situation. Make sure you are working with a licensed professional.
3. Do not transfer the title to your home to a third party. Individuals who are truly working in your best interest will want to help you keep your home or help you evaluate your best options.
4. Contact government agencies that can help you. Many agencies provide services for those facing foreclosure. The U.S. Department of Housing and Urban Development provides a list of HUD approved housing counseling agencies. They can be found at www.hud.gov.
5. Report any person or company who guarantees they will solve your problem. Your awareness may help government agencies prevent others from being harmed. You can report real estate fraudsters to the Utah Division of Real Estate at 801-530-6747 or by filing a complaint form: www.realestate.utah.gov.

American Recovery and Reinvestment Act

The “American Recovery and Reinvestment Act of 2009,” passed the House on February 13, 2009, by a vote of 246 - 184. Later that day, the Senate also passed the bill by a vote of 60 - 38. The President signed the bill on February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.


Neighborhood Stabilization – Provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2009 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, Realtors® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.


Commercial Real Estate - Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commerical property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.


Rural Housing Service – The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.


Tax-Exempt Housing Bonds - Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.


Energy Efficient Housing Tax Credits & Grants - To promote green jobs and energy independence, ARRA invests significantly in efforts to make homes and buildings more energy efficient. The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing efficiency efforts.


Transportation Investments - The bill provides $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects. NAR policy supports increased spending on the types of transportation infrastructure addressed in the bill with the exception of Amtrak and high-speed inter-city rail where NAR has no policy. These investments will tend to moderate traffic congestion and support a variety of transportation alternatives which will improve the quality of life of American communities and bolster the value of real estate.


Broadband Deployment - The bill creates $7.2 billion in grants to promote broadband deployment in unserved and underserved areas and for mapping the availability of broadband service in the U.S. Any entity is eligible to apply for a grant including municipalities, public/private partnerships and private companies as long as they comply with the grant conditions. The grants are subject to “network neutrality” requirements to ensure that broadband networks be free of restrictions on content, sites, or platforms, on the kinds of equipment that may be attached, and on the modes of communication allowed.
The bill also charges the FCC is with developing a national broadband plan that shall seek to ensure that all Americans have access to broadband capability and shall establish benchmarks for meeting that goal.
These provisions are important victories because increased broadband access promotes economic growth and expands opportunities for home sales. A 2006 Commerce Department report determined that property values are 6% higher in communities where broadband is available.

December Home Sales

According to the Wasatch Front Regional Multiple Listing Service (WFRMLS), for Utah County Home Sale,s we are seeing a rise in sales for the month of December compared to 2007!
In December 2004 there were 374 homes sold with average market time of 74 days.
In December 2005 there were 415 homes sold with average market time of 61 days.
In December 2006 there were 439 homes sold with average market time of 50 days.
In December 2007 there were 225 homes sold with average market time of 69 days.
In December 2008 there were 265 homes sold with average market time of 92 days.
Home sales for November 2008 were at 248, so December brought a higher amount of homes sold in 2008!

Help For Homeowners

Realtors® Urge Congress to Help 'HOPE For Homeowners'
TUESDAY, 03 FEBRUARY 2009
The National Association of Realtors® today announced its support for new legislation introduced by House Financial Services Committee Chairman Barney Frank, D-Mass., that is designed to ease loan modifications and improve refinancing options for America’s troubled homeowners by revamping the HOPE for Homeowners program.

“HOPE for Homeowners, was designed to help families refinance into safer, more affordable mortgages, in many cases helping those families avoid a devastating foreclosure,” said NAR President Charles McMillan. “Despite being well-intentioned, the HOPE for Homeowners program has had limited success. Lenders have found the program difficult to participate in because of many of the program’s constraints. This legislation, H.R. 703, is expected to make the program more lender-friendly, while preserving the benefits to homeowners. It would also limit risks to the FHA fund and to the American taxpayer. This is important legislation and we hope Congress will move forward with it.”

The legislation would also provide access to Troubled Asset Relief Program funds for small institutions and community banks and encourage additional actions to expand mortgage funding capacity in the primary market. “Stabilizing the housing market will help the nation’s economic future,” said McMillan. “H.R. 703, along with other stimulus bills being considered, will go a long way to help families keep their homes.”

NAR continues its push to enact legislation that will help stabilize and stimulate the housing market. Its four-point plan, introduced in November, is designed to spur home sales and stem the rapid rise in foreclosures by lowering mortgage interest rates and unclogging the credit market, extending the home buyer tax credit, making the increased loan limits permanent, and increasing liquidity in the both the commercial and residential real estate market.

NAR expressed support and vowed to work with Congress and the administration to establish strong housing legislation that will help stabilize home values, prevent foreclosures and put the U.S. economy on the road to recovery. “Providing relief for families facing foreclosure will help stabilize our real estate markets and our economy,” McMillan said.

Recession to End

Mark Zandi: Recession to end September 2009

In a speech to Utah business leaders, Mark Zandi, chief economist and co-founder of Moody’s Economy.com, said he expects the U.S. recession to end Sept. 15, 2009. Although he said 2009 would be “painful” and 2010 would be “uncomfortable,” he ended his speech with some reasons for optimism. First, the U.S. is paying a lot less for energy, and even though we have probably seen the low in regard to energy prices, he said he doesn’t expect prices to rise significantly in the near term.



Zandi's second reason for optimism is the fact that housing is becoming much more affordable. Nationally, he expects home prices to bottom in the third quarter; however, in the Salt Lake area, he expects prices to continue to fall. The problem in Salt Lake is that both the house price-to-income and house price-to-rent ratios are still above their historical norms. In other areas around the state, however, Zandi’s analysis pointed to more correctly valued prices. “In fact, in markets where you do see affordability, prices are stabilizing,” Zandi said.



Finally, Zandi is optimistic because he expects help from the federal government. The proposed fiscal stimulus and foreclosure mitigation programs along with aggressive efforts from the Federal Reserve should bring the U.S. out of recession. “We’re going to get out of this mess, and we’re going to get out of it by next year,” he said.

Four Steps to Recovery

The Four Step Prescription for Recovery

Possibly the most important ingredient in the 2009 real estate correction is the fact that real estate makes up 20% of the Gross Domestic Product in this country and regardless of which side of the political fence you fall on, our country cannot be fixed without first fixing the housing sector.

Real estate should be gaining a great deal of attention over the next several months, particularly by our new administration.

With this important information in tow, it is important to point out that we currently have several key indicators that may position our country for a real estate recovery in 2009:

1. Dropping Interest Rates—According to NAR’s December 17, 2008 article entitled Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report, “Mortgage rates which had averaged 6.3 percent in the third quarter, have recently fallen into the 4 percent range in some parts of the country.” The article went on to report, “NAR has estimated that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes.”

2. Improving Affordability—According to statistics released by the National Association of Home Builders, housing is becoming increasingly affordable for Utah residents. Statistics released by the organization, following the third quarter of 2008 found that Ogden-Clearfield ranked 80 out of 223 metropolitan statistical areas for housing affordability, followed by Salt Lake at 136, Provo-Orem at 160 and the St. George area at 204. According to the index, 67 percent of homes sold in the Ogden-Clearifled area during the third quarter of 2008, were affordable to families earning the area’s median household income of $65,000. In Salt Lake City, 55.3 of homes were affordable to families making the median household income of $65,300. In Provo-Orem, 48.2 percent of homes were affordable to families making the median household income of $60,000. In the St. George area, the least affordable market in the metro, 33.8% of homes were affordable to families earning the median household income of $55,100.

3. Government Intervention—As we noted before, with real estate making up 20% of the Gross Domestic Production in this country, it is imperative that the government take action to correct the housing sector. We need to move through the current financial crisis and restore the flow of credit so that qualified buyers are able to take advantage of improved affordability and successfully purchase homes. To respond to this, the government is currently looking at a number of corrector options including tax benefits, home ownership credits, subsidies or interest rate stabilization, to name a few. President-elect Obama and his economic team are in the process of developing an economic recovery plan designed to help Main Street and Wall Street with an ultimate goal of creating at least 2.5 million jobs while rebuilding our infrastructure, improving our schools, reducing our dependence on oil and saving billions of dollars. According to CNNMoney.com’s December 23, 2008 article Obama Closing in on Stimulus Plan, Vice-President-elect Joe Biden was quoted saying, “While our short-term goal is to start creating jobs as quickly as possible, we plan to invest in areas that will produce long-term benefits for the long-term health of our economy.”

4. Slowing of Distressed Properties—The timing of our price recovery may depend on how quickly the government takes steps to mitigate foreclosures. We expect sales of distressed properties to peak in early 2009—a critical factor in the housing market that directly impacts the timeframe for stabilization in the median price. NAR reported in its December 17, 2008 article entitled Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report, “To boost the economy, it is critical to stem the rising tide of foreclosures and boost home buyer confidence in the housing market,” McMillan said. “Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership.”

Looking forward to 2009, many experts agree that the financial system will begin to show signs of stabilization in early 2009 and we may begin to see a real estate turnaround by the summer. If you are considering buying, this should serve as a good indicator that now may very well be the time to purchase real estate.

If you are considering selling, possibly more so than ever, you need a qualified Realtor® who can assist you in selling your home. It is usually not enough to simply post your home on the MLS and post a For Sale sign in the yard. You need someone like myself who understands the intricacies, inventory and challenges of your local market and someone who knows how to properly position your home so it stands out among the sea of listings currently available.

If you are considering buying or selling your home in 2009, I have the resources, knowledge and experience to properly represent you in today’s market. Contact me today for the representation you deserve.

10 Ways to Get Your Home Ready to Sell

Here are some ideas to get your home ready to sell. These are all things you do not want to overlook when buyers are coming through!

1. The lawn
See your yard as an extension of the house and give it a thorough once-over. Trim unruly bushes, pull weeds, spread fresh mulch and keep it mowed. Your yard sets the expectations of the buyers before they’ve even stepped in your house.

Also, consider installing attractive outdoor lighting. It goes a long way (for a little investment) toward creating a dramatic mood. And if you have a dog, clean up the messes.

2. Smells
Give your house the "sniff test." Nothing is more distracting to a prospective buyer than a house that smells stale ... or worse. Often, you become so use to the smell of your own home that you don’t notice scents that might offend visitors.

Empty the garbage, load dirty clothes into the washing machine, run a lemon rind through the disposal, give wood furniture a quick polish, and for goodness sake, clean the litter box.

3. Keep in neutral
Tone it down. Make your house a place that anyone could imagine living in. This means removing most evidence of your personal taste. Accent walls of vivid hues are all the rage now, except in the real-estate marketplace. Decorate with a rigorous devotion to beige. Neutral walls, pale furniture, soft lighting and inoffensive art all go a long way toward creating a crowd-pleasing interior.

Store your collections in a safe place for the duration of the selling process. Remember, you want prospective buyers to look at the space, not get distracted by your stuffed animal collection.

4. Don’t stash it
Get rid of everything you wouldn’t want your mother to see. Prospective buyers will open the oven, investigate drawers for function and capacity, and study your closets and medicine cabinet. 

Part of preparing your house to sell is a ruthless purging of all these places and a thoughtful review of potentially embarrassing items.

5. Distracting doggie
The dog may not be so well-behaved when you’re not there. A barking dog is extremely distracting when prospects are trying to get a detailed look at your house.

Even though he might be contained, his voice will carry. Take him with you if you can, or drop him off at a pet-friendly neighbor’s house and repay her with house-sitting or a similar favor.

6. Team loyalties
Put your fan-of-the-year behavior on hold for a while, and stash your team merchandise in the attic. You don’t want to lose a buyer over a foam finger.

The same goes for religious paraphernalia, although that may actually be less of a deal breaker.

7. Dirty dishes
Clean the dishes in the sink. People will not understand you were in a rush to get out the door that morning, they’ll think you’re a slob who couldn’t be bothered to put the dishes in the dishwasher -- and probably hasn’t taken very good care of the house. 

If it means you have to take your family out to breakfast, make sure to leave your kitchen pristine. The same goes for the bathroom. Dry the inside of the sink and the surrounding counter completely before you leave the house.

8. Fix Up
Everything in your home must be in good working order before you put it on the market. This process can take a couple of months, but you need to fix all broken fixtures, change all burned-out light bulbs, repair any flaws in the walls and refresh any paint that needs it.

The same goes for outdated or worn wallpaper. Some things do not get better with age, and nothing dates a room more than '80s wallpaper.

9. Clear the space
You want buyers to immediately begin imagining themselves living in your house, and they’ll have a hard time seeing beyond the pictures of your family at Beaver Creek and the old issues of Garden & Gun. Even worse, they might find your taste in books laughable or your choice of evening wear tacky and decide they couldn’t possibly live in your house.

 So clear every surface, every side table, every coffee table, the sideboard, the desk, and the dining room table. You can put one item in each room, and it should be a plant or a flower arrangement.

10. Pack it in
Remove extra furniture that clutters the space -- side tables, footstools and magazine racks -- and takes up more space than a fixed chair. Create simple arrangements with maximum impact.

Often people arrange their living room as if they’re hosting the neighborhood meeting, with all the furniture lined up along the walls. Instead, place a sofa facing the fireplace, and flank it with two chairs and coffee table in between. This will create visual depth and an inviting vignette.

A New Year

HAPPY NEW YEAR 2009!!!

I am excited about 2009. My last month of 2008 was really busy with several buyers finding homes and new buyers beginning their search! I also have sellers who are being successful with consistent house showings and very interested buyers discussing purchasing terms!
There are a few factors that I think are creating this surge of activity. First, historic interest rates are moving buyers to lock in at great rate. Second, there are about 1,400 active Realtors in Utah County who have paid their Board dues. (Just six months ago we had 2,200) Third, 697 active buyers in the market as of today, that is a great number of buyers for this time of year! Fourth, listings (homes for sale) are down from 5,306 during the start of the summer to 4,321 as of today, almost 1000 homes less.

Some good things....

1. The interest rate….it is hovering about 5 % and even dropped during one morning right before Christmas, to 4.5%.
Also if you are thinking of refinancing now is a great time. The rule of thumb with a refinance is that you are going to be in the home longer than the 3 years, and to refinance when you can get the rate to drop more that 1 % below your current rate.

2. Ask me for a market update on your specific market, city, or Utah County in general. Right now the number of Active buyers (under contract and sold for the last 45 days), is revealing in light of the number of listings.

3. HAPPY NEW YEAR!!! 2009 is going to be fine! The housing market is improving! I would love to talk to you about your New Year Resolutions and how those apply to your current housing situation!