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!
Showing posts with label when to buy?. Show all posts
Showing posts with label when to buy?. Show all posts
Wednesday, May 19, 2010
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.
Wednesday, June 24, 2009
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.
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.
Friday, May 1, 2009
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.
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.
Wednesday, April 15, 2009
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.
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.
Saturday, August 30, 2008
Sales Data for Utah
Regarding local and national economic facts and sales data, this is what is going on in our market:
First, the trend we have seen since December 2007 continues. Sales rose in July 2008 to 445, up from 394 in June. This represents an increase of 65 percent in 7 months.
Second, with strong sales in July 2008 of 445, we are now only down 17 percent from last July's sales of 538 units.
Year To Date sales are off 32 percent.
Many have been saying that affordability is an issue and while we have seen prices slip about 3 percent, our market indicates that if priced right it will sell! But price is certainly a factor, as sales of homes priced above $500,000 are down 37 percent. Keep in mind however, that these homes represent only 5 percent of the total market.
If price is an issue, why are condos sales still down? With 85 sold in July 2008, condos sales are down 28 percent from last year's 119. The answer may be perceived value. Condo prices have slipped 12 percent from last year, compared to only 3 percent for single-family detached homes.
"If anyone was waiting for a strong sign that we are seeing things turn around then they should find plenty to celebrate this month. We see much to celebrate with July's statistics. Real estate remains a very good place to invest."
Utah County Association of Realtors CEO-Taylor Oldroyd
First, the trend we have seen since December 2007 continues. Sales rose in July 2008 to 445, up from 394 in June. This represents an increase of 65 percent in 7 months.
Second, with strong sales in July 2008 of 445, we are now only down 17 percent from last July's sales of 538 units.
Year To Date sales are off 32 percent.
Many have been saying that affordability is an issue and while we have seen prices slip about 3 percent, our market indicates that if priced right it will sell! But price is certainly a factor, as sales of homes priced above $500,000 are down 37 percent. Keep in mind however, that these homes represent only 5 percent of the total market.
If price is an issue, why are condos sales still down? With 85 sold in July 2008, condos sales are down 28 percent from last year's 119. The answer may be perceived value. Condo prices have slipped 12 percent from last year, compared to only 3 percent for single-family detached homes.
"If anyone was waiting for a strong sign that we are seeing things turn around then they should find plenty to celebrate this month. We see much to celebrate with July's statistics. Real estate remains a very good place to invest."
Utah County Association of Realtors CEO-Taylor Oldroyd
Thursday, July 24, 2008
10 Reasons to Buy Now
10 Reasons to Consider Buying a Home Now
For the first time in a long time, buyers are in the
driver’s seat. At least for now, in most markets, you can get a great
value on a home. But this favorable market may not last forever and
if you intend to buy a home, now may be the best time to enter the
real estate market.
1. Increased Jumbo Loan Limits Are Set to Expire on
December 31, 2008.
The recent increase of the jumbo loan limits
by the government is helping add favorable terms into the marketplace
which translates into easier qualifying and affordability for buyers. But
those increased jumbo loan limits won’t last forever and are set to
expire on December 31, 2008. While the new loan limits vary across
Utah, they are now $431,250 in Wasatch County and the national
maximum of $729,750 in Salt Lake County, Tooele County and Summit
County. The rest of the state has risen to $417,000.
2. Despite fluctuations, current financing rates are
allowing you to get more for your money—but it won’t
last forever.
An increase in interest rates, even by just a quarter
of a percent, will decrease affordability of homes; so much so that you
may not be able to afford the home that you want today and you may
have to purchase less than you might want or need.
3. Real estate is a strong, long term investment.
Many buyers are concerned about falling prices and the possibility of paying
too much for their home. But it must be remembered that real estate
is not the stock market and the purchase decision should be made for
the long term. Since record keeping began in 1968 by NAR, the national
median existing-home price rose every year through 2006, even during
recessions and periods of sales decline. Typically, in a balanced market,
home values rise at the general rate of inflation plus 1.7 percentage
points, according to NAR.
4. In order to build wealth, you should consider having
real estate in your investment portfolio.
Many people choose to invest their money in the stock market. And while stocks
can be a lucrative way to improve your financial situation, there is
another, arguably better, method. Stability is key to building wealth
and stocks, in most cases, don’t compare with the stability of real
estate. When you purchase real estate as an investment you can
potentially get more for your money.
5. Today’s market may offer a particularly good
opportunity to buy investment properties.
While the recent slowdown in the housing market has softened prices for home
sellers, it has also resulted in an unusually good opportunity to buy
rentals and other investment properties. Inventories of homes for
sale have climbed steadily over the past two years, which has put
downward pressure on prices. In particular, the large number of bank-
owned properties, has resulted in an increased inventory.
Banks are not in the real estate business and are usually anxious to
get the properties off their books. As a result, many properties that
are bank owned are selling at discounted prices.
6. The potential benefits of real estate as compared to
stock.
With stocks, $200,000 will buy you exactly $200,000 worth
of stocks, no more, no less. However with real estate, that same
$200,000 can, if you qualify for the necessary financing, enable you to
buy a home that is priced at approximately $1,000,000. If both of these
investments increase in value by 10% you will have only a 10% return
on your stock money and a 50% return on the money you invested
in real estate, less any costs and expenses of real property ownership.
7. There are a lot of homes to choose from right now.
The large supply of homes on the market clearly favors buyers and it
should take several months to draw the inventory down. Regardless
of price range, in most markets, there are plenty of houses from which
to choose. There’s a great selection of homes, condos and
townhouses. You have many options. When resale inventories are
low, buyers are forced to make compromises.
8. Homes are among their most affordable since 2004.
Home prices have dropped so quickly and so far that, valuations—the
differences between what a home should cost and its actual prices—
are the lowest they’ve been since 2004, according to March 5, 2008
CNN article entitled Housing: Best time to buy in four years. The article
said, “The Cleveland-based bank National City Corp, together with
financial analysis firm Global Insight, revealed Tuesday that more than
88% of the 330 housing markets surveyed showed price declines and
improved affordability during the last three months of 2007.” The
article went on to report a quote from National City’s chief economist,
Richard DeKaser, noting “Housing valuations are almost back to long-
term norms.” He called current affordability “the best in the past four
years.”
9. Inflation may be on the horizon.
All of the bad news has hit all sectors of our economy—from falling home prices, rising
food and energy prices, the credit crunch and a deteriorating labor
market. According to Realty Times’ June 25, 2008 article entitled Realty
Viewpoint: More Signs Housing Nearing Bottom, “Home prices have
receded while consumer prices for food and gas have doubled since
2004.” The article went on to report that, “The stock market has
lost trillions in gains. The DOW has dropped from over 14,000 points
to below 12,000 for the first time since 2006. The only thing that isn’t
down is unemployment, up to 5.5 percent from 4.5 percent this year.”
If history is any indicator, with this news comes the likelihood that the
Fed will look to increase interest rates as a way of combating the
inflation pressures.
10. The market may be changing!
Lawrence Yun, Chief Economist of the National Association of Realtors, recently spoke to a group of
Realtors in Park City noting, “Even though Utah is already fundamentally
healthier than many other real estate markets, improved economic
conditions for the U.S. in the second half of the year should continue
to help housing in the Beehive State as more people choose to move
here.”
In fact, Yun told the group that he expects prices will be higher in 99
percent of U.S. markets five years from now, which is why he emphasized
to the group that it’s important to make buying decisions based on
long-term trends, not short-term ones. “In the Rocky Mountain area,
for example, prices could rise 30 percent in five years,” Yun said.
“The long-term prospect is very bright for the Rock Mountain states,”
he said. “Given that currently it’s a buyer’s market—high inventory,
historically low rates—it may be a good time to enter the marketplace.”
A second report released by the Utah Association of Realtors on June
21, 2008 noted that “Home and condo sales along Utah’s Wasatch
Front were up for the fourth straight month in May, more good news
for a state that has consistently outperformed the nation in the housing
market arena.” The article went on to report, “In May, single family
home and condo sales along the Wasatch Front—including Salt Lake,
Utah, Davis and Weber counties—were up 4 percent compared to
April, according to statistics from the Utah Association of Realtors.
In fact, home and condo sales have been increasing every month since
the beginning of the year and were up a whopping 59 percent since
January.”
Locally, consider these figures supplied by the Utah Association of
Realtors:
• Over the next few years, Utah’s population is estimated to grow by
about 200,000 people—up from 2.7 million residents in 2007 to 2.9
million by 2010—according to the Utah Population Estimates Committee.
• For this next year alone, Utah is expected to add 142,000 new people,
a figure that translates into about 46,100 new households being formed
over the next years. In other words, the state will need about 46,100
new housing units in the next couple years to house these additional
people.
If you are ready to learn more about the opportunities in today’s housing market, please contact me today. I am a
professional Realtor® who can help! If you need to sell your home—even if you have to discount
it based on the current marketplace—together we can look at your position to determine the best steps based on today’s market conditions.
Heidi Alldredge
801-494-7008
For the first time in a long time, buyers are in the
driver’s seat. At least for now, in most markets, you can get a great
value on a home. But this favorable market may not last forever and
if you intend to buy a home, now may be the best time to enter the
real estate market.
1. Increased Jumbo Loan Limits Are Set to Expire on
December 31, 2008.
The recent increase of the jumbo loan limits
by the government is helping add favorable terms into the marketplace
which translates into easier qualifying and affordability for buyers. But
those increased jumbo loan limits won’t last forever and are set to
expire on December 31, 2008. While the new loan limits vary across
Utah, they are now $431,250 in Wasatch County and the national
maximum of $729,750 in Salt Lake County, Tooele County and Summit
County. The rest of the state has risen to $417,000.
2. Despite fluctuations, current financing rates are
allowing you to get more for your money—but it won’t
last forever.
An increase in interest rates, even by just a quarter
of a percent, will decrease affordability of homes; so much so that you
may not be able to afford the home that you want today and you may
have to purchase less than you might want or need.
3. Real estate is a strong, long term investment.
Many buyers are concerned about falling prices and the possibility of paying
too much for their home. But it must be remembered that real estate
is not the stock market and the purchase decision should be made for
the long term. Since record keeping began in 1968 by NAR, the national
median existing-home price rose every year through 2006, even during
recessions and periods of sales decline. Typically, in a balanced market,
home values rise at the general rate of inflation plus 1.7 percentage
points, according to NAR.
4. In order to build wealth, you should consider having
real estate in your investment portfolio.
Many people choose to invest their money in the stock market. And while stocks
can be a lucrative way to improve your financial situation, there is
another, arguably better, method. Stability is key to building wealth
and stocks, in most cases, don’t compare with the stability of real
estate. When you purchase real estate as an investment you can
potentially get more for your money.
5. Today’s market may offer a particularly good
opportunity to buy investment properties.
While the recent slowdown in the housing market has softened prices for home
sellers, it has also resulted in an unusually good opportunity to buy
rentals and other investment properties. Inventories of homes for
sale have climbed steadily over the past two years, which has put
downward pressure on prices. In particular, the large number of bank-
owned properties, has resulted in an increased inventory.
Banks are not in the real estate business and are usually anxious to
get the properties off their books. As a result, many properties that
are bank owned are selling at discounted prices.
6. The potential benefits of real estate as compared to
stock.
With stocks, $200,000 will buy you exactly $200,000 worth
of stocks, no more, no less. However with real estate, that same
$200,000 can, if you qualify for the necessary financing, enable you to
buy a home that is priced at approximately $1,000,000. If both of these
investments increase in value by 10% you will have only a 10% return
on your stock money and a 50% return on the money you invested
in real estate, less any costs and expenses of real property ownership.
7. There are a lot of homes to choose from right now.
The large supply of homes on the market clearly favors buyers and it
should take several months to draw the inventory down. Regardless
of price range, in most markets, there are plenty of houses from which
to choose. There’s a great selection of homes, condos and
townhouses. You have many options. When resale inventories are
low, buyers are forced to make compromises.
8. Homes are among their most affordable since 2004.
Home prices have dropped so quickly and so far that, valuations—the
differences between what a home should cost and its actual prices—
are the lowest they’ve been since 2004, according to March 5, 2008
CNN article entitled Housing: Best time to buy in four years. The article
said, “The Cleveland-based bank National City Corp, together with
financial analysis firm Global Insight, revealed Tuesday that more than
88% of the 330 housing markets surveyed showed price declines and
improved affordability during the last three months of 2007.” The
article went on to report a quote from National City’s chief economist,
Richard DeKaser, noting “Housing valuations are almost back to long-
term norms.” He called current affordability “the best in the past four
years.”
9. Inflation may be on the horizon.
All of the bad news has hit all sectors of our economy—from falling home prices, rising
food and energy prices, the credit crunch and a deteriorating labor
market. According to Realty Times’ June 25, 2008 article entitled Realty
Viewpoint: More Signs Housing Nearing Bottom, “Home prices have
receded while consumer prices for food and gas have doubled since
2004.” The article went on to report that, “The stock market has
lost trillions in gains. The DOW has dropped from over 14,000 points
to below 12,000 for the first time since 2006. The only thing that isn’t
down is unemployment, up to 5.5 percent from 4.5 percent this year.”
If history is any indicator, with this news comes the likelihood that the
Fed will look to increase interest rates as a way of combating the
inflation pressures.
10. The market may be changing!
Lawrence Yun, Chief Economist of the National Association of Realtors, recently spoke to a group of
Realtors in Park City noting, “Even though Utah is already fundamentally
healthier than many other real estate markets, improved economic
conditions for the U.S. in the second half of the year should continue
to help housing in the Beehive State as more people choose to move
here.”
In fact, Yun told the group that he expects prices will be higher in 99
percent of U.S. markets five years from now, which is why he emphasized
to the group that it’s important to make buying decisions based on
long-term trends, not short-term ones. “In the Rocky Mountain area,
for example, prices could rise 30 percent in five years,” Yun said.
“The long-term prospect is very bright for the Rock Mountain states,”
he said. “Given that currently it’s a buyer’s market—high inventory,
historically low rates—it may be a good time to enter the marketplace.”
A second report released by the Utah Association of Realtors on June
21, 2008 noted that “Home and condo sales along Utah’s Wasatch
Front were up for the fourth straight month in May, more good news
for a state that has consistently outperformed the nation in the housing
market arena.” The article went on to report, “In May, single family
home and condo sales along the Wasatch Front—including Salt Lake,
Utah, Davis and Weber counties—were up 4 percent compared to
April, according to statistics from the Utah Association of Realtors.
In fact, home and condo sales have been increasing every month since
the beginning of the year and were up a whopping 59 percent since
January.”
Locally, consider these figures supplied by the Utah Association of
Realtors:
• Over the next few years, Utah’s population is estimated to grow by
about 200,000 people—up from 2.7 million residents in 2007 to 2.9
million by 2010—according to the Utah Population Estimates Committee.
• For this next year alone, Utah is expected to add 142,000 new people,
a figure that translates into about 46,100 new households being formed
over the next years. In other words, the state will need about 46,100
new housing units in the next couple years to house these additional
people.
If you are ready to learn more about the opportunities in today’s housing market, please contact me today. I am a
professional Realtor® who can help! If you need to sell your home—even if you have to discount
it based on the current marketplace—together we can look at your position to determine the best steps based on today’s market conditions.
Heidi Alldredge
801-494-7008
Friday, June 13, 2008
Real Estate Forecast: Sunny with a strong chance of Sales
Is the worst over?
Though we aren’t sending out the celebratory party invites just yet, there are a lot of strong signals that are leading the real estate community to believe that the “worst of times” may be in the past.
The key to any degree of stabilization in the housing market is, of course, the balance between supply and demand.
What I can tell you based on my experience is that the market is showing some very early signs of building momentum. In fact, over the last few weeks we have seen dozens of stories published both in real estate trade and consumer publications that reveal some interesting facts about a potential turnaround in the economy and housing sector based on supply and demand.
What could this mean for a consumer? Read on.
Increasing Demand
• According to a May 13, 2008 Utah Department of Workforce Services report, the seasonally adjusted unemployment rate was
3.1 percent in April, down from 3.3 percent in March.
• New companies and projects are adding new jobs. According to Deseret News’ June 1, 2008 Utah TrendLines Extra article
entitled, “Utah Economic News and Data,” a new commercial center, 201 Commerce Center, will add 4,000 jobs in the next
ten years. Oracle Corporation will add 100 jobs paying an average wage more than double the Salt Lake County median wage and a Swiss company is looking to add an aircraft maintenance facility at the Ogden-Hinkley airport in Ogden that would create 200 jobs.
Decreasing Supply
• According to the University of Utah's Bureau of Business and Research, residential construction in Utah is falling. The number
of residential building permits for homes, twin homes, condominiums and apartments declined 58.2 percent in the first
quarter of 2008, compared with the same period last year. With fewer homes being built, current plentiful inventories will likely
shrink.
Bright News in Mortgage: Welcome News for Buyers
And if that news wasn’t good enough for real estate, late last month Fannie Mae reported it was scrapping its declining markets policy which previously required borrowers to put up an extra 5% down payment when purchasing homes in areas deemed “declining markets.”
Under the policy change, borrowers will get loans up to 95% loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90% to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
The previous controversial policy kept some would-be home buyers from taking action because they could not come up with the funds to make the increased down payment. Others may have avoided buying because they were afraid to do so if prices were still declining. By eliminating this policy, Fannie May will instead require 3% down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system and 5% minimum down payments for loans process manually, Inman News reported.
The new policy, which took effect June 1, should be welcome news for many buyers, especially first time buyers. NAR President Richard F. Gaylord said the easement of this policy is good news for the industry: “This means consumers across the country will have access to safe, affordable financing with down payments of only 5% on most mortgages, with 100% financing available on some loan products, and we could see an upturn in home sales this summer.”
NAR Chief Economist Lawrence Yun concurs noting, “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming loans will help consumers in high cost markets...”
So What Could This Mean For A Buyer?
If Yun’s predictions are correct, the housing market will strengthen and prices are likely to begin a steady upswing in the coming months.
Lancaster Online’s May 18, 2008 “Housing Slump can be a Boon to Buyers,” included a quote from Coldwell Banker President and Chief Operating Officer Jim Gillespie who said, “This is the absolute
best time in my 33 years in real estate to buy a home. Interest rates are still low, inventory levels are high and prices are stable. You should not try to time the market. People who try to time the market get burned.”
In Utah, even with fewer sales, the average sales price declined only 1.2% in the first quarter of 2008 compared with the first
quarter of 2007, according to the Utah Association of Realtors. Homes priced above $500,000 are seeing adjustments but homes priced less than $300,000 are seeing activity and, in most cases, are not seeing significant reductions.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going into contract. It seems in most markets, housing prices have adjusted to a point where they are “fair” and it seems buyers are responding. As a result, especially thanks to the recent Fannie May declining markets policy change, people who couldn’t afford a home a few years ago are coming back into the market.
If You’re Ready to Move-Up, Now May Be the Time
I recently came across an article published online by the Wall Street Journal on March 16, 2008 entitled “Opportunity knocks in sinking housing market” that synopsized the move-up market quite well. It read: “If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
“To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2 percent, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real estate exposure when the market is well below its peak.
“In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate.
“Still, like any thrifty shopper, you want to buy when there's a sale – and that is what today's market offers.”
My Recommendation: Carpe Diem!
If you have been sitting on the sidelines waiting to enter the market, there may not be a better time than now. Prices in some markets may not have hit their lowest point, but they probably aren’t far off. In many areas, only the pace of sales has been affected while prices have held firm and in some cases, have gone up.
Waiting for the absolute bottom to hit before buying puts you at risk of missing it and getting caught up in a market on the upswing, which, based on what many industry analysts are reporting, may be on the horizon sooner than originally predicted.
As your real estate professional, I would welcome the opportunity to counsel you on the opportunities available in today’s market and help you take advantage of them before it is too late.
Please call me today so we may get started.
Though we aren’t sending out the celebratory party invites just yet, there are a lot of strong signals that are leading the real estate community to believe that the “worst of times” may be in the past.
The key to any degree of stabilization in the housing market is, of course, the balance between supply and demand.
What I can tell you based on my experience is that the market is showing some very early signs of building momentum. In fact, over the last few weeks we have seen dozens of stories published both in real estate trade and consumer publications that reveal some interesting facts about a potential turnaround in the economy and housing sector based on supply and demand.
What could this mean for a consumer? Read on.
Increasing Demand
• According to a May 13, 2008 Utah Department of Workforce Services report, the seasonally adjusted unemployment rate was
3.1 percent in April, down from 3.3 percent in March.
• New companies and projects are adding new jobs. According to Deseret News’ June 1, 2008 Utah TrendLines Extra article
entitled, “Utah Economic News and Data,” a new commercial center, 201 Commerce Center, will add 4,000 jobs in the next
ten years. Oracle Corporation will add 100 jobs paying an average wage more than double the Salt Lake County median wage and a Swiss company is looking to add an aircraft maintenance facility at the Ogden-Hinkley airport in Ogden that would create 200 jobs.
Decreasing Supply
• According to the University of Utah's Bureau of Business and Research, residential construction in Utah is falling. The number
of residential building permits for homes, twin homes, condominiums and apartments declined 58.2 percent in the first
quarter of 2008, compared with the same period last year. With fewer homes being built, current plentiful inventories will likely
shrink.
Bright News in Mortgage: Welcome News for Buyers
And if that news wasn’t good enough for real estate, late last month Fannie Mae reported it was scrapping its declining markets policy which previously required borrowers to put up an extra 5% down payment when purchasing homes in areas deemed “declining markets.”
Under the policy change, borrowers will get loans up to 95% loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90% to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
The previous controversial policy kept some would-be home buyers from taking action because they could not come up with the funds to make the increased down payment. Others may have avoided buying because they were afraid to do so if prices were still declining. By eliminating this policy, Fannie May will instead require 3% down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system and 5% minimum down payments for loans process manually, Inman News reported.
The new policy, which took effect June 1, should be welcome news for many buyers, especially first time buyers. NAR President Richard F. Gaylord said the easement of this policy is good news for the industry: “This means consumers across the country will have access to safe, affordable financing with down payments of only 5% on most mortgages, with 100% financing available on some loan products, and we could see an upturn in home sales this summer.”
NAR Chief Economist Lawrence Yun concurs noting, “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming loans will help consumers in high cost markets...”
So What Could This Mean For A Buyer?
If Yun’s predictions are correct, the housing market will strengthen and prices are likely to begin a steady upswing in the coming months.
Lancaster Online’s May 18, 2008 “Housing Slump can be a Boon to Buyers,” included a quote from Coldwell Banker President and Chief Operating Officer Jim Gillespie who said, “This is the absolute
best time in my 33 years in real estate to buy a home. Interest rates are still low, inventory levels are high and prices are stable. You should not try to time the market. People who try to time the market get burned.”
In Utah, even with fewer sales, the average sales price declined only 1.2% in the first quarter of 2008 compared with the first
quarter of 2007, according to the Utah Association of Realtors. Homes priced above $500,000 are seeing adjustments but homes priced less than $300,000 are seeing activity and, in most cases, are not seeing significant reductions.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going into contract. It seems in most markets, housing prices have adjusted to a point where they are “fair” and it seems buyers are responding. As a result, especially thanks to the recent Fannie May declining markets policy change, people who couldn’t afford a home a few years ago are coming back into the market.
If You’re Ready to Move-Up, Now May Be the Time
I recently came across an article published online by the Wall Street Journal on March 16, 2008 entitled “Opportunity knocks in sinking housing market” that synopsized the move-up market quite well. It read: “If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
“To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2 percent, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real estate exposure when the market is well below its peak.
“In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate.
“Still, like any thrifty shopper, you want to buy when there's a sale – and that is what today's market offers.”
My Recommendation: Carpe Diem!
If you have been sitting on the sidelines waiting to enter the market, there may not be a better time than now. Prices in some markets may not have hit their lowest point, but they probably aren’t far off. In many areas, only the pace of sales has been affected while prices have held firm and in some cases, have gone up.
Waiting for the absolute bottom to hit before buying puts you at risk of missing it and getting caught up in a market on the upswing, which, based on what many industry analysts are reporting, may be on the horizon sooner than originally predicted.
As your real estate professional, I would welcome the opportunity to counsel you on the opportunities available in today’s market and help you take advantage of them before it is too late.
Please call me today so we may get started.
Wednesday, May 21, 2008
Waiting to buy might not be in your best interest!
Buyers: We’re in a buyer’s market! But history shows this market won’t last forever and some early implications are showing that it may be changing sooner than you think. Here’s why you may want to act now, before the market begins to adjust:
Fact #1: Affordability is increasing
Fact #2: Interest rates remain attractive
Fact #3: Many sellers are motivated
Fact #4: There are a lot of homes to choose from
Fact #5: Historically speaking, Utah real estate is a strong, long term investment
Why You May Not Want to Make the Mistake of Waiting:
Many buyers are sitting on the sidelines waiting for Utah real estate to “bottom out,” but doing so could cost you plenty in terms of higher housing prices and interest rates. Locally, Salt Lake City, according to an April 29 Forbes article entitled “Recession Proof Cities,” seems to be holding its own as well. The article notes, “A November 2007 report from the U.S. Conference of Mayors projected that Salt Lake City would be one of the few large cities in the country not to suffer a decline in gross metropolitan product from the mortgage crisis.” Furthermore, Lake City’s unemployment is among the lowest among the country’s 50 largest cities and it continues to create job growth in spite of national economic indicators.
What The Experts Are Predicting:
The National Association of Realtors is projecting that home sales will trend up this year. According to the national real estate organization’s April 8, 2008 market update report entitled “Existing Home Sales to Stabilize Before Upturn in Second Half of 2008,” “Little change is expected in existing home sales over the next few months, before improving notably during the second half of the year.” Lawrence Yun, NAR chief economist said the market will come into clear focus this summer, noting “Existing home sales could start to show a sustained increase within a few weeks, unless there are some additional economic problems or excessive inflationary pressure."
Early Implications Show That the Market May Be Changing:
While the stars remain aligned for buyers, in recent weeks there have been some noteworthy developments that could mean positive growth for real estate and a shift towards a more normalized, balanced market. According to an April 25, 2008 Realty Times article entitled, “Real Estate Outlook: Index Says Positive Growth Underway,” there are several implications that show real estate growth may be on the horizon:
• Applications for mortgages to buy houses were up again, for the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by 3.5% and conventional purchase applications rose 2.1%.
• The federal government reported that house prices nationwide stopped their slide between January and February – and actually increased by six tenths of one percent.
• Interest rates remain well under 6%, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74% and 15-year loans at 5.27%. The Federal Reserve is likely to knock another quarter percent off short term rates next week.
• Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market.
A Good Market:
The bottom line is that this is a very good market for buyers but it won’t last forever. And while it is hard to predict when the market will officially “bottom out,” the only way you may do so is when it has begun to rise again. We are starting to see homes sell, largely in part thanks to a drop in home prices, attractive interest rates and a large number of homes from which to choose. All of these factors are changing consumers’ outlook on real estate.
Fact #1: Affordability is increasing
Fact #2: Interest rates remain attractive
Fact #3: Many sellers are motivated
Fact #4: There are a lot of homes to choose from
Fact #5: Historically speaking, Utah real estate is a strong, long term investment
Why You May Not Want to Make the Mistake of Waiting:
Many buyers are sitting on the sidelines waiting for Utah real estate to “bottom out,” but doing so could cost you plenty in terms of higher housing prices and interest rates. Locally, Salt Lake City, according to an April 29 Forbes article entitled “Recession Proof Cities,” seems to be holding its own as well. The article notes, “A November 2007 report from the U.S. Conference of Mayors projected that Salt Lake City would be one of the few large cities in the country not to suffer a decline in gross metropolitan product from the mortgage crisis.” Furthermore, Lake City’s unemployment is among the lowest among the country’s 50 largest cities and it continues to create job growth in spite of national economic indicators.
What The Experts Are Predicting:
The National Association of Realtors is projecting that home sales will trend up this year. According to the national real estate organization’s April 8, 2008 market update report entitled “Existing Home Sales to Stabilize Before Upturn in Second Half of 2008,” “Little change is expected in existing home sales over the next few months, before improving notably during the second half of the year.” Lawrence Yun, NAR chief economist said the market will come into clear focus this summer, noting “Existing home sales could start to show a sustained increase within a few weeks, unless there are some additional economic problems or excessive inflationary pressure."
Early Implications Show That the Market May Be Changing:
While the stars remain aligned for buyers, in recent weeks there have been some noteworthy developments that could mean positive growth for real estate and a shift towards a more normalized, balanced market. According to an April 25, 2008 Realty Times article entitled, “Real Estate Outlook: Index Says Positive Growth Underway,” there are several implications that show real estate growth may be on the horizon:
• Applications for mortgages to buy houses were up again, for the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by 3.5% and conventional purchase applications rose 2.1%.
• The federal government reported that house prices nationwide stopped their slide between January and February – and actually increased by six tenths of one percent.
• Interest rates remain well under 6%, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74% and 15-year loans at 5.27%. The Federal Reserve is likely to knock another quarter percent off short term rates next week.
• Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market.
A Good Market:
The bottom line is that this is a very good market for buyers but it won’t last forever. And while it is hard to predict when the market will officially “bottom out,” the only way you may do so is when it has begun to rise again. We are starting to see homes sell, largely in part thanks to a drop in home prices, attractive interest rates and a large number of homes from which to choose. All of these factors are changing consumers’ outlook on real estate.
Friday, May 9, 2008
Crisis is over!
I don't think we were officially in a "crisis"! Yes, home sales have gone down, mortgage lending is tight, foreclosures are high, but it all is part of the cycle. There is some encouraging news. I found this article written for the Wall Street Journal and I agree with it completely.
I have included some quotes from the writer.
"The Housing Crisis Is Over"
By CYRIL MOULLE-BERTEAUX
Wall Street Journal Online
May 6, 2008
"For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor...
The boom made housing unaffordable for many American families, especially first-time home buyers...
Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst...
Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs...
Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually...
Inventories will drop even faster to a seven months of supply – by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market...
More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure...
A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets' perception of risk related to housing, the financial system, and the economy...
Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now."
I have included some quotes from the writer.
"The Housing Crisis Is Over"
By CYRIL MOULLE-BERTEAUX
Wall Street Journal Online
May 6, 2008
"For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor...
The boom made housing unaffordable for many American families, especially first-time home buyers...
Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst...
Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs...
Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually...
Inventories will drop even faster to a seven months of supply – by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market...
More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure...
A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets' perception of risk related to housing, the financial system, and the economy...
Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now."
Tuesday, April 15, 2008
Take The Stress Out
Here are the top ten ways to take the stress OUT of homeownership!
Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.
2. Remember, there's no "right" time to buy, just as there's no perfect time to sell. If you find a home now, don't try to second-guess interest rates or the housing market by waiting longer - you risk losing out on the home of your dreams. The housing market usually doesn't change fast enough to make that much difference in price, and a good home won't stay on the market long.
3. Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family - the people who will be living in the home.
4. Accept that no house is ever perfect. If it's in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
5. Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself - room size, kitchen, etc. - that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
7. Plan ahead. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don't leave yourself short and let your home deteriorate.
9. Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don't lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home's most important role is to serve as a comfortable, safe place to live.
Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.
2. Remember, there's no "right" time to buy, just as there's no perfect time to sell. If you find a home now, don't try to second-guess interest rates or the housing market by waiting longer - you risk losing out on the home of your dreams. The housing market usually doesn't change fast enough to make that much difference in price, and a good home won't stay on the market long.
3. Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family - the people who will be living in the home.
4. Accept that no house is ever perfect. If it's in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
5. Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself - room size, kitchen, etc. - that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
7. Plan ahead. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don't leave yourself short and let your home deteriorate.
9. Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don't lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home's most important role is to serve as a comfortable, safe place to live.
Thursday, March 27, 2008
Home Sales Rise
As the market is constantly changing and there is currently a lot of negative press about the housing market, I felt it was helpful to post part of this more positive article. It is wise to council with a good realtor to make sure you are aware of the housing market surrounding your area!
Existing Home Sales Rise In February
Reported by Walt Molony, wmolony@realtors.org
WASHINGTON, March 24, 2008 -
Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8% below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92% in February from 5.76% in January; the rate was 6.29% in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Existing Home Sales Rise In February
Reported by Walt Molony, wmolony@realtors.org
WASHINGTON, March 24, 2008 -
Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8% below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92% in February from 5.76% in January; the rate was 6.29% in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Thursday, March 20, 2008
Reasons to Own a Home
7 Reasons to Own Your Home
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don't rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the "Buy vs. Rent" calculator at www.GinnieMae.gov
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don't rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the "Buy vs. Rent" calculator at www.GinnieMae.gov
Friday, February 1, 2008
It's All About Your Local Market
It is all about what is going on in our local market. Forget the national news. Look at what is happening right here, right now!
A realtor can help you know about the local market and the information a realtor can provide is essential to deciding when, where, and what to buy.
Whatever is happening nationally to real estate - whether it is 'booming or busting' - doesn't matter...what matters is what the market says in your city or neighborhood.
A lot of cities did not/have not/do not participate in the 'boom'- some even decreased in value. Also, when prices began to fall nationally, there are plenty of areas where prices remain steady or even rise. So the important factor to consider when buying or selling a home isn't what is going on nationally - it is what is going on in your local market. A realtor can show you the current market trends so you can prosper in a buyers or sellers market.
A realtor can help you determine if a city or area is more or less desirable to invest in.
A realtor can help you determine whether property values in a city or area are decreasing or rising.
A realtor can also help you see the future trends, and plans for new businesses in the city or area.
A realtor can help you understand your local market which will help aid you in your decision. So forget what the national news is saying and focus on your local market.
A realtor can help you know about the local market and the information a realtor can provide is essential to deciding when, where, and what to buy.
Whatever is happening nationally to real estate - whether it is 'booming or busting' - doesn't matter...what matters is what the market says in your city or neighborhood.
A lot of cities did not/have not/do not participate in the 'boom'- some even decreased in value. Also, when prices began to fall nationally, there are plenty of areas where prices remain steady or even rise. So the important factor to consider when buying or selling a home isn't what is going on nationally - it is what is going on in your local market. A realtor can show you the current market trends so you can prosper in a buyers or sellers market.
A realtor can help you determine if a city or area is more or less desirable to invest in.
A realtor can help you determine whether property values in a city or area are decreasing or rising.
A realtor can also help you see the future trends, and plans for new businesses in the city or area.
A realtor can help you understand your local market which will help aid you in your decision. So forget what the national news is saying and focus on your local market.
Saturday, January 12, 2008
Second best market in the country!
PROVO/OREM REAL ESTATE MARKET SECOND BEST IN COUNTRY
Orem, Utah — 2008 President of the Utah County Association of Realtors® Kenny Parcell is pleased but not surprised by recent national reports that many Utah housing markets are defying national trends and remain healthy and robust.
Business Week recently announced the best housing markets for the third quarter with Provo/Orem coming in at a solid number two. They compared markets across the U.S. that performed the best in terms of price appreciation in the third quarter of 2007 compared with the same period in 2006. Also in the top five were Ogden-Clearfield at number four and Salt Lake City at number five.
According to Parcell, Broker in the RE/MAX Results Spanish Fork office, “We continue to enjoy a stronger market than many national areas because our economic fundamentals like a healthy job market, population growth, increasing wages, and low interest rates, to name a few, show that while slower than last year, our market is stable and represents a great buyers market.”
The Utah County Association of Realtors® reports that the third quarter average sales price for Utah County homes was $301,065 with condos coming in at $175,167. This is a rise of 5.78% for homes and 17.41% for condos from the 3 rd quarter average sales price of 2006. In addition, existing home sales show the average ‘days on market’ are only one percent longer than this same time in 2006.
“One of the factors that makes a difference for our local market is population growth. Growth indicates that demand for homes will continue into the future,” stated Association CEO Taylor Oldroyd. According to the U.S. Census Bureau, Utah is the third fastest growing state in the country.
“With the national media indicating almost daily that the housing market is in trouble, I want all potential buyers to know the facts,” said Parcell. “The fact is our market is strong. Hey, we’re the second best market in the entire country.”
From the Utah County Association of Realtors Jan. 11, 2008
Orem, Utah — 2008 President of the Utah County Association of Realtors® Kenny Parcell is pleased but not surprised by recent national reports that many Utah housing markets are defying national trends and remain healthy and robust.
Business Week recently announced the best housing markets for the third quarter with Provo/Orem coming in at a solid number two. They compared markets across the U.S. that performed the best in terms of price appreciation in the third quarter of 2007 compared with the same period in 2006. Also in the top five were Ogden-Clearfield at number four and Salt Lake City at number five.
According to Parcell, Broker in the RE/MAX Results Spanish Fork office, “We continue to enjoy a stronger market than many national areas because our economic fundamentals like a healthy job market, population growth, increasing wages, and low interest rates, to name a few, show that while slower than last year, our market is stable and represents a great buyers market.”
The Utah County Association of Realtors® reports that the third quarter average sales price for Utah County homes was $301,065 with condos coming in at $175,167. This is a rise of 5.78% for homes and 17.41% for condos from the 3 rd quarter average sales price of 2006. In addition, existing home sales show the average ‘days on market’ are only one percent longer than this same time in 2006.
“One of the factors that makes a difference for our local market is population growth. Growth indicates that demand for homes will continue into the future,” stated Association CEO Taylor Oldroyd. According to the U.S. Census Bureau, Utah is the third fastest growing state in the country.
“With the national media indicating almost daily that the housing market is in trouble, I want all potential buyers to know the facts,” said Parcell. “The fact is our market is strong. Hey, we’re the second best market in the entire country.”
From the Utah County Association of Realtors Jan. 11, 2008
Tuesday, January 8, 2008
Home Value
From the National Association of Realtors January 2008
Home Value
Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from National Association of Realtors existing home-sales series. Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time.
For example, over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield $23,600. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, at $110,300.
Home value demonstrates the long-term value of housing as an investment, and encourages buyers who are on the fence about making a home purchase to contact a REALTOR® who can help them make a smart investment in their future.
Home Value
Over the past 30 years, the median price of existing homes has increased an average of more than 6 percent every year, and home values nearly double every 10 years, according to historical data from National Association of Realtors existing home-sales series. Thanks to the power of leverage, a homeowner’s return on investment is even more impressive over time.
For example, over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield $23,600. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, at $110,300.
Home value demonstrates the long-term value of housing as an investment, and encourages buyers who are on the fence about making a home purchase to contact a REALTOR® who can help them make a smart investment in their future.
Monday, January 7, 2008
5 Investors Tips
From the Book: 5 Investor Tips in a Slower Market
Slower markets can offer rich opportunities for investors: real estate sellers are more open to negotiate and lower home prices — and combined with low interest rates — can help you get properties at bargain levels. Yet, some buyers are reluctant.
“The market may not look perfect,” the authors write. “This is why prices haven’t taken off yet” — and why you want to get in before they do! The book offers the following tips:
1. Timing is everything. Enter the market cycle early. “When it’s quiet, when the media isn’t saying ‘record levels of appreciation,’ that’s when you want to jump in,” the authors write. As billionaire oilman J. Paul Getty once said: “Buy when everyone else is selling and hold until everyone else is buying.”
2. Get financially ready. Before you buy, consider holding costs, tax implications, and cash flow potential. Many things can go wrong when buying investment properties — such as a vacant rental or a property that won’t sell. Have cash reserves (get a partner if you don’t have any) and you’ll be prepared to ride out any market cycle. Identify your risk level and what you want: For example, an investor who wants to turn a quick profit with low holding costs would want to sell their new-home property before construction is complete. On the other hand, an investor looking for a bigger return with less capital gains tax would want to hold the property until after construction is complete and keep it as a rental property for at least one year.
3. Buy and hold. In a distressed market, this can be a smart move. A buy-and-hold strategy can help give the property an opportunity to appreciate over time. Buy at the right price, though. Compare the home’s price to what homes are selling for over a reasonable time period in that community and what you expect is the lowest price the market will reach. Get in at that price. Consider lease option investments so you can rent the property to cover payments, having the property practically pay for itself each month. Also, continue to pay down the mortgage and eventually you may even have the home paid off — an ideal position for an investor!
4. Find best deal. In a slow market, you can get great deals — and some extras. Builders overbuilt during the housing boom, resulting in high inventories of unsold properties. Now, many builders report slashing prices, offering free upgrades, absorbing all financing points for their buyers, and paying closing costs or fees. Extras aside, other good investment properties include homes five years old or less and properties in the $200,000-range, which can particularly be desirable to a large pool of buyers. Also, look for a property in an emerging market. Some indicators: sales of existing homes and new construction permits are starting to trend upward, supply is steadily dropping, mortgage loan defaults are high but starting to fall, days-on-market move below 90, and low interest rates.
5. Have an exit strategy. Have a selling strategy in place before you buy so you’re not just randomly banking on the property appreciating and then doing a quick sale. Come in with a solid selling plan. For new construction investing, your selling options might be to assign your purchase contract during the construction period, sell when construction is complete, lease and then sell, or a lease option. Reduce the taxable impact of selling your real estate investments by talking to your tax adviser about a 1031 exchange or self-directed IRA. “Know how you will get out before you get in!” the authors advise.
Slower markets can offer rich opportunities for investors: real estate sellers are more open to negotiate and lower home prices — and combined with low interest rates — can help you get properties at bargain levels. Yet, some buyers are reluctant.
“The market may not look perfect,” the authors write. “This is why prices haven’t taken off yet” — and why you want to get in before they do! The book offers the following tips:
1. Timing is everything. Enter the market cycle early. “When it’s quiet, when the media isn’t saying ‘record levels of appreciation,’ that’s when you want to jump in,” the authors write. As billionaire oilman J. Paul Getty once said: “Buy when everyone else is selling and hold until everyone else is buying.”
2. Get financially ready. Before you buy, consider holding costs, tax implications, and cash flow potential. Many things can go wrong when buying investment properties — such as a vacant rental or a property that won’t sell. Have cash reserves (get a partner if you don’t have any) and you’ll be prepared to ride out any market cycle. Identify your risk level and what you want: For example, an investor who wants to turn a quick profit with low holding costs would want to sell their new-home property before construction is complete. On the other hand, an investor looking for a bigger return with less capital gains tax would want to hold the property until after construction is complete and keep it as a rental property for at least one year.
3. Buy and hold. In a distressed market, this can be a smart move. A buy-and-hold strategy can help give the property an opportunity to appreciate over time. Buy at the right price, though. Compare the home’s price to what homes are selling for over a reasonable time period in that community and what you expect is the lowest price the market will reach. Get in at that price. Consider lease option investments so you can rent the property to cover payments, having the property practically pay for itself each month. Also, continue to pay down the mortgage and eventually you may even have the home paid off — an ideal position for an investor!
4. Find best deal. In a slow market, you can get great deals — and some extras. Builders overbuilt during the housing boom, resulting in high inventories of unsold properties. Now, many builders report slashing prices, offering free upgrades, absorbing all financing points for their buyers, and paying closing costs or fees. Extras aside, other good investment properties include homes five years old or less and properties in the $200,000-range, which can particularly be desirable to a large pool of buyers. Also, look for a property in an emerging market. Some indicators: sales of existing homes and new construction permits are starting to trend upward, supply is steadily dropping, mortgage loan defaults are high but starting to fall, days-on-market move below 90, and low interest rates.
5. Have an exit strategy. Have a selling strategy in place before you buy so you’re not just randomly banking on the property appreciating and then doing a quick sale. Come in with a solid selling plan. For new construction investing, your selling options might be to assign your purchase contract during the construction period, sell when construction is complete, lease and then sell, or a lease option. Reduce the taxable impact of selling your real estate investments by talking to your tax adviser about a 1031 exchange or self-directed IRA. “Know how you will get out before you get in!” the authors advise.
Thursday, January 3, 2008
If not now, WHEN?
“Our challenge is to ensure we do everything possible to share the reality of Utah’s current market. Tell your family, tell your friends, what is really happening in our market. Seek out opportunities to have conversations with everyone you come in contact with. Help the public to be educated.
Share the Facts
• Utah’s unemployment rate is 2.6%
• Utah's economy is the best ever and the prosperity the state's residents are experiencing is anticipated to continue through the first half of next year.
• Utah’s unemployment rate is anticipated to remain low at 3 percent during the first half of 2008.
• More than 48,000 new jobs are anticipated for the first six months of 2008—a 3.9 percent increase over the number of new jobs that emerged during the first half of 2007.
• Utah is named “Most Dynamic Economy”
• Interest rates are at historical lows. The reality is, if buyers have a job, and they have income, and they have a good credit rating, they can buy a house today!
*Housing inventories offer more options than in the last year. Inventory is up 24%. Buyers and sellers have opportunities.
IF NOT NOW, WHEN? It’s a great time to buy real estate.”
Max Thompson, COO
Coldwell Banker Residential Brokerage
Nov. 2007
Share the Facts
• Utah’s unemployment rate is 2.6%
• Utah's economy is the best ever and the prosperity the state's residents are experiencing is anticipated to continue through the first half of next year.
• Utah’s unemployment rate is anticipated to remain low at 3 percent during the first half of 2008.
• More than 48,000 new jobs are anticipated for the first six months of 2008—a 3.9 percent increase over the number of new jobs that emerged during the first half of 2007.
• Utah is named “Most Dynamic Economy”
• Interest rates are at historical lows. The reality is, if buyers have a job, and they have income, and they have a good credit rating, they can buy a house today!
*Housing inventories offer more options than in the last year. Inventory is up 24%. Buyers and sellers have opportunities.
IF NOT NOW, WHEN? It’s a great time to buy real estate.”
Max Thompson, COO
Coldwell Banker Residential Brokerage
Nov. 2007
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