Salt Lake County Charts
July 19th, 2008 Categories: Real Estate News
Salt Lake County Home Sales Statistics
Stats for the first half of the year
Chart of Home Sales for Salt Lake County from January 1st to June 30th 2008. More than half of all the sales have been in the $160,000 - 300,000 Price range with 56.4%. This segment of the market seems to hang tough. The $500,000 and above has contributed just under 7% of the sales for the first half of the year. The $300,000 - 500,000 range was just a hair under 21%
I know I have some fans that are going to claim that I am spinning the numbers. They are what they are.
So the big question is. When is the high end stuff at the South end of the valley going to come tumbling down? Draper has 80 homes that are a million plus, 233 Active listings that range from $500,000 - 1,000,000.
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Shhh Don’t tell Anyone
April 13th, 2008 Categories: Real Estate News
Salt Lake Real Estate Market
Showing Signs of Improvement
Shhh Don’t tell anyone but the Salt Lake Real Estate Market inched forward. Could be seasonal, could be amazing interest rates, could be buyers are not listening to media, it could be a lot of things or a combination of all of the above.
Number of residential units sold in Salt Lake County for the month of March is up a little over 17% from February and up 30% from January. Average sold price up a hair nothing special. List to sale ratio went from 97% to 98%.
One of the things not reflected in the price is seller concessions to the buyer. For example if a property is listed for $280,000 and the buyer and seller agree to the list price BUT the seller agrees to pay $7,000 in closing cost concessions to the buyer. The price was $280,000 as reported but the affective price to the seller was $273,000.
Although appraisers will not count the concession when appraising, it still shows up in averages.
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Utah Real Estate Market According to An Expert Jeff Thredgold and Others
January 17th, 2008 Categories: Real Estate News
Utah Housing Forecast
We hear all kinds of hullabaloo about the Utah Housing market, from reporters committing loan fraud to someone that has never bought or sold a piece of property BUT listens to NPR.
Let’s hear from some experts
National Economist
“Utah is one bright spot compared to other parts of the country that are in severe pain,” said Lawrence Yun, chief economist for the National Association of REALTORS®. “It’s the shining star so far if one wants to say which market is hot.
” But that’s not to say Utah real estate will be completely free of cloudy conditions in 2008. Despite Utah’s strong economy, housing sales are still expected to slow in 2008 and some markets may face affordability challenges.
“In Utah, you’re going to see home sales at a lower, more sustainable rate, but they aren’t going to falter,” said Jeannine Cataldi, senior economist for economic forecasting firm Global Insight.
She expects activity to pick up once people know the full extent of the mortgage crisis, which is expected to peak in 2008. “Once we know how that plays out, people can make decisions and move forward,” Cataldi said.
The more debatable subject is what will happen with home prices. Some economists expect to see single-digit price growth in 2008 while others expect slight price declines.
Local Economist
Some local economists, however, see a slightly different picture.
Mark Knold, chief economist for the Department of Workforce Services, says he predicts prices will probably come down a little because he thinks, “prices are flirting above what this market can afford even in the face of good wage gains.”
Kelly K. Matthews, Wells Fargo’s executive vice president and senior economist, also says Utah has an affordability problem, which is why he expects prices to be down 6 to7 percent in mid-2008.
“I believe we are so far out of equilibrium, I do not believe we can avoid some reduction in prices.”
At the same time, Jeff Thredgold, economic consultant to Zions Bank and president of Thredgold Economic Associates, sees price activity varying depending on the market segment.
According to Thredgold, lower-end properties in the $175,000 to $300,000 range should increase approximately 7 to 10 percent. Some homes in the $300,000 to $500,000 range should see price gains of about 5 percent while others may see a slight decline. The real concern is the market for $500,000 and above properties; people may have to cut prices, and there may be areas that have to come down 5 to10 percent, he says.
“All real estate is local,” Thredgold said. “In certain communities, it will do well, but in some areas, prices may have to come down.”
I am more in line with Thregold, he clearly understands there is no across the board blanket diagnosis for Real Estate. It is local in nature, you can have zip codes with two different markets with tow different conditions at the same time.
If you would like info on your particular maket contact me.
Above quotes are from the Utah Realtor Magazine
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The Tale Of Two Markets
January 6th, 2008 Categories: Selling
Below is a seies of Slides that I hope will give a visual to the current state of the market.
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5.75 Reasons Why It Is Time To Buy A Home
January 5th, 2008 Categories: Real Estate News
Is This A Good Time To Buy A Home?
Let’s Take a Look at the Facts
Interest Rates Are 5.75% (depending on credit score)
Inventory is Ripe
Unemployment is Low
There Are Deals To Be Made
Stop listening to the media.
Dave Fox of KUTV News was involved in a loan fraud scheme. He made no money and was responsible for all the payments on a house. Are you going to listen to the media now?
Now I am aware there are some parts of the market that are still going to correct itself and prices are going to slide back. Back that is less than half the available homes and are way above the reach of the average buyer.
If you think prices are going to drop in 362,000 and under range (FHA Loan Limit) good luck.
Search over 15,000 Homes for sale along the Wasatch Front
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Seller’s Property Condition Disclosure
December 8th, 2007 Categories: Real Estate News
Seller’s Property Condition Disclosure
One of the documents used in selling a home is the Seller’s Property Condition Disclosure.
Seller is obligated under law to disclose to buyers defects in the property known to seller that materially and adversely affect the value of the property that cannot be discovered by a reasonable inspection by an ordinary prudent buyer. This disclosure form is designed to assist seller in complying with these disclosure requirements. Please thoroughly disclose your actual knowledge regarding the condition of the property.
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Salt Lake Real Estate Market’s Dirty Laundry
November 10th, 2007 Categories: Real Estate News
Is the Salt Lake Real Estate Market Good Or Bad? The answer is Yes.
I figured since people insist on getting their Real Estate News from TV Reporters I figure I might as well stop fighting it and give it to them that way. So this morning my daughter and I had fun making me a TV Reporter.
Well there certainly is no shortage of depressing news about the Real Estate Market, even the real estate agents will tell you that the market is bad. The problem I find with TV and newspapers is they are not always about the truth or should I say the whole truth and nothing but the truth. They are more concerned with readers and viewers, so they can charge more for their advertising.
When the national media reports how bad the Real Estate Market is, they are selling advertising and people don’t watch the news when the market is good. I find it amazing that people even consider national news networks as a source for local financial information.
On the other hand, things like trust, truth are all I can offer. I do not sell advertising on my space, I do report and write for business, and I believe that if I give away my knowledge to people I will be an asset and people may consider me when it is time to buy or sell or invest.
Let’s get a little clarity on things. First and foremost Real Estate Is Local In Nature, what is happening in Florida, Michigan has nothing to do with the Utah market. Markets can be different between counties and neighborhoods, between price ranges in the same zip code. Now there are some ties like interest rates and such, but my goodness rates are below 6.5% so we know that is out.
Now for real estate agents about two thirds of the agents in Utah got their license in the last five years, so most do not know what is going on. People and agents alike compare everything to last couple of years, where prices were going up 1,2 and 3 percent per month, people with bad credit and they did not have to verify their income were getting large loans, that is not normal.
So the big question is, how is the Salt Lake Market? The answer is depends. The overall residential market is fairly healthy and normal. There are some factors that are waiting to be played out. For example how much of the current inventory is from speculators and the over building in the South West part of the county.
September’s volume was down 20% over the month of August, but it usually is. The same time frame last year when the market was abnormal the volume difference was 12%.
Remember September’s closings are August contracts. There is a natural seasonal slowdown in August because families have already made their purchase.
So what’s hot and what’s not.
Hot-Sandy $300,000 and under, three bedrooms together in the main bedroom area (not 2 on the main and 3 in the basement). Age of kitchen and bath is more important than the age of the home. If they are updated clean and well maintained, then they will sell fairly quickly and usually can draw multiple offers.
Not-The boat load of the speculator properties, where they bought an older not updated home and slapped a coat of paint along with a medium grade carpet and call it updated. There are plenty of those out there and some bargains can be found that make great rental properties.
Hot- New Ramblers with a small yard, main floor laundry 2 car garage. The empty nesters have nice family homes and now want to have a house that suits their lifestyle. They are not necessarily downsizing, they really don’t want smaller houses, they want smaller yards and less rooms.
Super Hot- Condos with a 2 car garage main floor one level living. The updating applies also. The other factor in a condo is the amenities. They come at a premium. There are a lot of mature single people, that are a single income and do not want to pay for the amenities, face it fifty percent of marriages end in divorce.
Super Not- New Construction in the Southwest section of Salt Lake County except for starter price ranges if you can find them. Also Super not are Starter Mansions in Draper, there are over 200 active listings in Draper above $600,000.
Here are some lyrics from a Don Henley song Dirty Laundry that explain how I feel about TV reporters giving real estate news.
We got the bubble-headed-bleach-blonde who
Comes on at five
She can tell you bout the plane crash with a gleam
In her eye
Its interesting when people die-
Give us dirty laundry
We can do the innuendo
We can dance and sing
When it’s said and done we haven’t told you a thing
We all know that crap is king
Give us dirty laundry!
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Salt Lake Tribune Newspaper Or Tabloid
October 22nd, 2007 Categories: Real Estate News
- Is this a silly picture I found or a resume of a Salt Lake Tribune Real Estate Reporter?
With Utah’s unemployment being below 3% for a year and under 4% for two years, the tribune is feeling it too.
- The story’s headline, which said, “Utah’s housing boom now a bust,” was misleading and inaccurate. The story only cited statistics regarding home-building permits; the story did not mention existing home sales or the pockets of new-home construction that are doing well. The headline led Tribune readers to believe that all segments of Utah’s housing market are doing poorly. If such broad generalizations are going to be made in headlines, the Tribune needs to include information about each part of the housing market in the story.
The Tribune article quoted an individual who said, ” ‘People are afraid to purchase’ a home right now,” a misleading statement that could cause buyers to miss out on great appreciation opportunities. It’s a disservice to the Tribune’s readers to suggest that prospective Utah home buyers shouldn’t buy now when the National Association of REALTORS® projects Utah will see home prices increase anywhere between 7 and 10 percent in 2008. That means the buyer of a $200,000 home could miss out on $14,000 worth of appreciation by waiting to buy.
The story suggested that Utah buyers have been unable to obtain loans when in fact financing is readily available and affordable. Mortgage rates are still at historic lows, with interest rates on a 30-year fixed mortgage near 6.38 percent, much more affordable than the double-digit rates seen over the years. For buyers who would have needed subprime loans that are no longer available, safer FHA products will be able to help serve their needs.
Utah has strong market fundamentals - good job growth, population gains and low unemployment, which will keep demand for housing high.
Real estate markets are complex and the Tribune’s readers are not served by misleading generalizations that don’t tell the entire story.
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How Much Earnest Money Should I Put Down?
September 23rd, 2007 Categories: Buying
This is a really great question. I think the more you put the better.
When you are making an offer I am assuming you want to negotiate the best deal possible.
So with that said let’s look at why more EM can help you. For starters, the EM goes towards your down payment or towards your closing cost if you are doing 100% financing.
It shows how serious you are and shows you have some money. This along with good deadlines can help you get a better price as a buyer. The reality is, if you are putting down 3% or more in a total down payment, than there really is no reason, for you not to put a large EM.
Your EM is protected with the basic contingencies of the Standard Board Of Realtors Real Estate Purchase Contract-REPC (pronounced rep-see).
Those basic contingencies are Appraisal, Inspection and Loan. They all have deadlines and you can cancel the contract within those guidelines with WRITTEN NOTICE. If the contract is canceled within the parameters of the contract then the EM is returned to the buyer.
Another reason is called liquidated damages. The default clause of the REPC Paragraph #16
DEFAULT. If Buyer defaults, Seller may elect either to retain the Earnest Money Deposit as liquidated damages, or to return it and sue Buyer to specifically enforce this Contract or pursue other remedies available at law. If Seller defaults, in addition to return of the Earnest Money Deposit, Buyer may elect either to accept from Seller a sum equal to the Earnest Money Deposit as liquidated damages, or may sue Seller to specifically enforce this Contract or pursue other remedies available at law. If Buyer elects to accept liquidated damages, Seller agrees to pay the liquidated damages to Buyer upon demand. It is agreed that denial of a Loan Application made by the Buyer is not a default and is governed by Section 2.3(b).
So a large EM benefits you as a buyer all the way through, as long as you monitor your dates and everyone in the transaction stays on task and on time, your money is not at risk.
In summary, a larger EM along with good deadlines can help you negotiate a better price and in the event the seller defaults you awarded a larger damage settlement.
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