Utah Named No. 1 For Business
Forbes Magazine released its fifth annual ranking of the best states for business and careers--and granted Utah the No. 1 spot.
Utah was recognized for its fast growing economy, which has expanded 3.5 percent annually over the past five years. Additionally, Utah's employment has increased 1.5 percent annually--while total employment in the country has shrunk.
And Utah's household incomes have increased twice as fast as the national average with a 5 percent increase annually.
Governor Gary Herbert told Forbes that Utah strives to let the free market do what it does best.
"We have a fiscally conservative government where we are trying to keep government off your backs and out of your wallet," Herbert said, as stated in the Forbes report.
In a country where 54 percent of adults think the economy and jobs are the nation's most important problems today (according to a CBS News poll), Utah's ranking says a lot about the state's economic focus.
Utah was also praised for the following factors:
*Energy costs 35% below national average
*Educated labor force (90% of residents have a high school diploma; 29% have a college degree)
*Low poverty rates
*Ample recreational opportunities
*A fiscally fit state government
View the official Forbes report: The Best States for Business and Careers.
Monday, October 18, 2010
Monday, September 13, 2010
Better news for Utah
Utah’s foreclosure rate still less than U.S. rate: Utah is ranked 24th in the nation in foreclosures, according to the Mortgage Bankers Association. For the three months ending in June, 3.4% of Utah homeowners with a mortgage were in foreclosure, compared to 4.6% nationally.
Utah is starting to add jobs: Utah added 17,200 jobs for the 12 months ended in July, according to the Utah Department of Workforce Services. The numbers represented a 1.5% gain, compared to flat growth for the U.S. Utah’s unemployment rate remained unchanged in July at 7.2%, compared to the U.S. unemployment rate of 9.5%, also unchanged. According to UDWS, “The worst of the recession appears to be behind Utah.”
Utah house inventory is coming down: In July, the number of active listings available for sale fell 4 percent compared to a year ago, according to the Utah Association of REALTORS®. Compared to two years ago, inventory was down 15 percent. The months’ supply of inventory in Utah also fell nearly 13 percent. In July, it would have taken 10.7 months at the current sales pace to sell the entire inventory of homes, down from 12.2 months a year ago and down from 12.9 months two years ago.
Utah is starting to add jobs: Utah added 17,200 jobs for the 12 months ended in July, according to the Utah Department of Workforce Services. The numbers represented a 1.5% gain, compared to flat growth for the U.S. Utah’s unemployment rate remained unchanged in July at 7.2%, compared to the U.S. unemployment rate of 9.5%, also unchanged. According to UDWS, “The worst of the recession appears to be behind Utah.”
Utah house inventory is coming down: In July, the number of active listings available for sale fell 4 percent compared to a year ago, according to the Utah Association of REALTORS®. Compared to two years ago, inventory was down 15 percent. The months’ supply of inventory in Utah also fell nearly 13 percent. In July, it would have taken 10.7 months at the current sales pace to sell the entire inventory of homes, down from 12.2 months a year ago and down from 12.9 months two years ago.
Monday, August 2, 2010
Utah County Property Taxes
You have probably received your tax notice for your property taxes recently. What does this mean?
The property taxes are calculated using a certified tax rate and the taxable value of each home and property. The tax rate is calculated based on adopted budgets of the various entities, while the property value is determined by a review of the property and current market data.
Between now and the last valuation period home prices have declined typically 5 to 9 percent. Owners should not be surprised if they notice a drop in value with no corresponding drop in taxes, given the process of how the tax rate is calculated.
Each tax entity determines its own tax rate, and the Utah County Assessor’s Office determines property value. The Assessor's office has worked hard to consider valuation changes in neighborhoods and communities for the upcoming year, but residents should also be aware of the process to appeal their valuation notice.
Property owners who wish to appeal their notices must contact the Utah County Board of Equalization within 45 days from the date of their notice. Owners will set an appointment for a hearing in an informal setting with a County real estate appraiser to reevaluate the property value.
Those who do not receive a tax notice or who have any questions can contact the Utah County Auditor's Office at (801) 851-8227.
The property taxes are calculated using a certified tax rate and the taxable value of each home and property. The tax rate is calculated based on adopted budgets of the various entities, while the property value is determined by a review of the property and current market data.
Between now and the last valuation period home prices have declined typically 5 to 9 percent. Owners should not be surprised if they notice a drop in value with no corresponding drop in taxes, given the process of how the tax rate is calculated.
Each tax entity determines its own tax rate, and the Utah County Assessor’s Office determines property value. The Assessor's office has worked hard to consider valuation changes in neighborhoods and communities for the upcoming year, but residents should also be aware of the process to appeal their valuation notice.
Property owners who wish to appeal their notices must contact the Utah County Board of Equalization within 45 days from the date of their notice. Owners will set an appointment for a hearing in an informal setting with a County real estate appraiser to reevaluate the property value.
Those who do not receive a tax notice or who have any questions can contact the Utah County Auditor's Office at (801) 851-8227.
Wednesday, June 16, 2010
Credit Score
What determines your credit score?
Whether you have had recent credit struggles, or are just trying to build up enough credit to qualify for a mortgage to purchase or refinance a home, here are some helpful tips...
Your credit score is calculated on information obtained from your personal credit file. This information is then analyzed in five different categories to produce your three-digit FICO® score.
Payment History: 35% of your score is based on paying your credit related accounts on time. Late payments or slow pays can drop your score quickly.
Credit Utilization: 30% of your score is based on how much credit you have and how you are using it. If you are close to utilizing the entire amount of your credit limit on a credit card or line of credit, it can reflect negatively on your credit score.
Length of Credit History: 15% of your score is based on good payment history over a period of time.
New Credit and Inquiries: 10% of your score is based on the number of recent inquiries and opened accounts coming from creditors. If you want to minimize the damage from credit inquiries, make sure that when you shop for a mortgage you do so in a fairly short period of time. The FICO® score treats multiple inquiries in a 45-day period as just one inquiry and ignores all inquiries made within 30 days prior to the day the score is computed.
Types of Credit: 10% of your score is based on having a variety of credit accounts such as a home mortgage, auto loans, credit cards, etc.
Overall the best way you can improve your credit score is to: Correct errors. Pay your bills on time. Pay down your debt. And apply for credit sparingly.
Whether you have had recent credit struggles, or are just trying to build up enough credit to qualify for a mortgage to purchase or refinance a home, here are some helpful tips...
Your credit score is calculated on information obtained from your personal credit file. This information is then analyzed in five different categories to produce your three-digit FICO® score.
Payment History: 35% of your score is based on paying your credit related accounts on time. Late payments or slow pays can drop your score quickly.
Credit Utilization: 30% of your score is based on how much credit you have and how you are using it. If you are close to utilizing the entire amount of your credit limit on a credit card or line of credit, it can reflect negatively on your credit score.
Length of Credit History: 15% of your score is based on good payment history over a period of time.
New Credit and Inquiries: 10% of your score is based on the number of recent inquiries and opened accounts coming from creditors. If you want to minimize the damage from credit inquiries, make sure that when you shop for a mortgage you do so in a fairly short period of time. The FICO® score treats multiple inquiries in a 45-day period as just one inquiry and ignores all inquiries made within 30 days prior to the day the score is computed.
Types of Credit: 10% of your score is based on having a variety of credit accounts such as a home mortgage, auto loans, credit cards, etc.
Overall the best way you can improve your credit score is to: Correct errors. Pay your bills on time. Pay down your debt. And apply for credit sparingly.
Wednesday, May 19, 2010
Now is the time....
Homes sales along the Wasatch Front per the Wasatch Front MLS increased 32.4% in March 2010 compared to March 2009.
Although many people are purchasing distressed properties in foreclosure sales, there are also a large number of purchases made on non-distressed properties. These market trends may indicate that we have reached the bottom.
Message to Buyers and Sellers:
Buyers and sellers, our message is simple: Things are changing and the opportunities available today, won’t last forever.
Buyers: You may not want to make the mistake of waiting for everyone else to make a move before you feel comfortable enough to make a purchase. Many people have already made a purchasing decision and we never know what the bottom of the market is until it has passed. Here’s one thing that is certain: for buyers who need to finance their purchase of real estate, increasing the interest rate is the equivalent of a price increase.
Sellers: If you are serious about selling your property, you may want to adjust your price to where the market is moving, take your lumps and move on or you may be waiting a very long time.
If you are ready to make an informed decision about your real estate opportunities, please contact me today!
Although many people are purchasing distressed properties in foreclosure sales, there are also a large number of purchases made on non-distressed properties. These market trends may indicate that we have reached the bottom.
Message to Buyers and Sellers:
Buyers and sellers, our message is simple: Things are changing and the opportunities available today, won’t last forever.
Buyers: You may not want to make the mistake of waiting for everyone else to make a move before you feel comfortable enough to make a purchase. Many people have already made a purchasing decision and we never know what the bottom of the market is until it has passed. Here’s one thing that is certain: for buyers who need to finance their purchase of real estate, increasing the interest rate is the equivalent of a price increase.
Sellers: If you are serious about selling your property, you may want to adjust your price to where the market is moving, take your lumps and move on or you may be waiting a very long time.
If you are ready to make an informed decision about your real estate opportunities, please contact me today!
Monday, March 29, 2010
Tax Credit!
Two versions of the tax credit are still being offered: a maximum credit of $8,000 for first-time buyers (and those who last owned a home 3 or more years ago), as well as a $6,500 credit for current homeowners. Either way, the credit applies only to the purchase of a new principal residence costing $800,000 or less, and there are income restrictions and other limitations, including a requirement to close the sale before July 1.
How can buyers eager to capture the tax credit streamline their home shopping?
Here are some suggestions:
1. Get to Know Your Market: Buyers can do that using Internet sites that permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process.
2. Line Up Your Financing: Talk to a reputable lender right away and go through the pre-approval process. That will tell buyers quickly how much they can borrow. At today’s extremely low interest rates, that amount may be more than many buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home.
3. Start Narrowing Your Search: With a large inventory of homes to choose from in the current market, buyers won’t have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can screen out homes that won’t fit their needs.
4.Separate Needs from Wants: Buyers can look at fewer homes if they can tell their agent what features the home they buy must have and what features would be nice but aren’t required.
5. Consider Condition: In today’s market, many of the best values are foreclosed homes that aren’t in perfect condition. Buyers should decide up front if they are willing to tackle a home that needs work, and if so, how much.
6. Keep Things in Perspective: As nice as it may be to get the tax credit, don’t let the desire to do so completely control your home search. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more.
7. Leave Time to Handle Standard Contingencies: The typical purchase contract may have several contingency clauses, for such things as a home inspection, attorney’s approval, obtaining financing and even the sale of the buyer’s current residence. Fortunately, standard contingencies in a contract won’t prevent it from qualifying for the tax credit. However, if an issue arises in the home inspection, and it can’t be resolved, the buyer may want to find another house, but doing that after April 30 will mean losing the tax credit. Allowing time to work through the contingencies before the deadline reduces that risk.
8. Be Careful of Short Sales: If the home you want to buy is offered as a short sale, qualifying for the tax credit may become more difficult. Short sales require that purchase offers be approved by both the seller and the sellers’ lender, and lenders often are slow about responding. Waiting for lender approval could leave you without a binding contract on April 30.
How can buyers eager to capture the tax credit streamline their home shopping?
Here are some suggestions:
1. Get to Know Your Market: Buyers can do that using Internet sites that permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process.
2. Line Up Your Financing: Talk to a reputable lender right away and go through the pre-approval process. That will tell buyers quickly how much they can borrow. At today’s extremely low interest rates, that amount may be more than many buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home.
3. Start Narrowing Your Search: With a large inventory of homes to choose from in the current market, buyers won’t have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can screen out homes that won’t fit their needs.
4.Separate Needs from Wants: Buyers can look at fewer homes if they can tell their agent what features the home they buy must have and what features would be nice but aren’t required.
5. Consider Condition: In today’s market, many of the best values are foreclosed homes that aren’t in perfect condition. Buyers should decide up front if they are willing to tackle a home that needs work, and if so, how much.
6. Keep Things in Perspective: As nice as it may be to get the tax credit, don’t let the desire to do so completely control your home search. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more.
7. Leave Time to Handle Standard Contingencies: The typical purchase contract may have several contingency clauses, for such things as a home inspection, attorney’s approval, obtaining financing and even the sale of the buyer’s current residence. Fortunately, standard contingencies in a contract won’t prevent it from qualifying for the tax credit. However, if an issue arises in the home inspection, and it can’t be resolved, the buyer may want to find another house, but doing that after April 30 will mean losing the tax credit. Allowing time to work through the contingencies before the deadline reduces that risk.
8. Be Careful of Short Sales: If the home you want to buy is offered as a short sale, qualifying for the tax credit may become more difficult. Short sales require that purchase offers be approved by both the seller and the sellers’ lender, and lenders often are slow about responding. Waiting for lender approval could leave you without a binding contract on April 30.
Monday, March 15, 2010
Don't Raise Down Payments
FHA Head: Don't Raise Down Payments
Now is not the time to raise the downpayment requirement on a Federal Housing Administration loan, warns FHA Commissioner David Stevens.
Stevens, testifying before a committee of the U.S. House, said his agency would probably insure 300,000 fewer home loans per year if the mandatory down payment was raised from 3.5 percent to 5 percent — a 40 percent increase.
Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the downpayment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.
The National Association of REALTORS® also opposes the proposal to raise the mandatory down payment for an FHA loan. The FHA remains financially strong because it has taken steps to ensure solid underwriting standards and responsible lending practices, said Charles McMillan, NAR immediate past president, in testimony before the House Subcommittee on Housing and Community Opportunity.
“As the leading advocate for housing issues, NAR believes that one of the best ways Congress can help strengthen FHA is to quickly consider and pass legislation that would make current loan limits permanent,” McMillan said. “It’s important to note that higher balance FHA loans perform better than lower balance ones. While some argue that higher balance loans put taxpayers at risk, such loans actually strengthen the program and reduce risk to the fund.”
Explaining that FHA has played an important role in the recent housing and economic crisis by filing the gap left by private lenders, McMillan said FHA insured almost 30 percent of single-family mortgages in 2009 and more than 50 percent of first-time buyer loans. “Historically, FHA’s market share has hovered between 10 and 15 percent of all loans. And when the private market is strong enough to return, we welcome a reduced FHA market share,” he said.
McMillan said NAR was also concerned that FHA wanted to decrease seller concessions to 3 percent. Reducing seller concessions could put homeownership out of reach for many buyers, he said, because it could require buyers to pay more at closing.
Source: Associated Press, Alan Zibel, and NAR (03/11/2010)
Now is not the time to raise the downpayment requirement on a Federal Housing Administration loan, warns FHA Commissioner David Stevens.
Stevens, testifying before a committee of the U.S. House, said his agency would probably insure 300,000 fewer home loans per year if the mandatory down payment was raised from 3.5 percent to 5 percent — a 40 percent increase.
Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the downpayment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.
The National Association of REALTORS® also opposes the proposal to raise the mandatory down payment for an FHA loan. The FHA remains financially strong because it has taken steps to ensure solid underwriting standards and responsible lending practices, said Charles McMillan, NAR immediate past president, in testimony before the House Subcommittee on Housing and Community Opportunity.
“As the leading advocate for housing issues, NAR believes that one of the best ways Congress can help strengthen FHA is to quickly consider and pass legislation that would make current loan limits permanent,” McMillan said. “It’s important to note that higher balance FHA loans perform better than lower balance ones. While some argue that higher balance loans put taxpayers at risk, such loans actually strengthen the program and reduce risk to the fund.”
Explaining that FHA has played an important role in the recent housing and economic crisis by filing the gap left by private lenders, McMillan said FHA insured almost 30 percent of single-family mortgages in 2009 and more than 50 percent of first-time buyer loans. “Historically, FHA’s market share has hovered between 10 and 15 percent of all loans. And when the private market is strong enough to return, we welcome a reduced FHA market share,” he said.
McMillan said NAR was also concerned that FHA wanted to decrease seller concessions to 3 percent. Reducing seller concessions could put homeownership out of reach for many buyers, he said, because it could require buyers to pay more at closing.
Source: Associated Press, Alan Zibel, and NAR (03/11/2010)
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