Utah versus the U.S.

How did home sales across the Wasatch Front match up with the rest of the nation?

This is a graph of how many homes sold across the Wasatch Front. The Green line represents the sales this year. The orange line is 2009 and the blue line is 2008.

Here are the actual numbers:

Here are what homes sales have looked like across the Wasatch Front since 2005:

And here is how many homes sold across the nation for the past 5 years:

Double Dipping

The National numbers are in and it looks like we have a double dip situation on our hands. January 2009 was the bottom of the market, but last months numbers show we could have another dip approaching.

Last month the United States' home sales fell to a level we haven't seen in almost 15 years! Everyone expected home sales to be a little lower, but the results were lower than anyone thought. We knew it would be low because of the expiration of the tax credit. The tax credit compressed months of demand into a short period ot time. When you look at home sales there is a spike corrolating with BOTH tax-credit deadlines.

Now that the tax credit is gone we are experiencing a decrease in demand. Because less homes are selling there are more homes available on the market. When the supply of available homes is increasing, and the demand is decreasing, it is likely that home prices will go down.

Just as the tax-credit pushed demand it also stabilized prices. House prices had stabilized last year after steadily declining since 2006. Because this stabilization was artificial we now have to catching up with reality. Interestingly enough, relative to rents and incomes, the price of houses are now roughly where they should be when compared with historical norms. The past few years we have seen inflated home prices so the decreasing numbers seem exagerated by comparison.

A major concern of economists is that this news could cause a further decrease in consumer confidence and spending. Analysts say this news may cause consumers to lose urgency to buy homes because they'll want to wait for the prices to stop dropping. As the prices drop more people will owe more than they can sell their home for. Nearly one in four homeowners with a mortgage owes more than their home is worth. As this problem grows fewer people will have the ability to sell/buy homes. "You end up in a home-price-depreciation death spiral," said Laurie Goodman, Amherst Securities Group LP in New York. "It's not clear there's enough demand to handle this overhang without another round of price declines."

A word of good news comes from economist Paul Dales of Capital Economics. He suggests that "A double dip in the housing market and house prices will not be enough to generate another recession." They are estimating as much as a 5% price reduction in home prices. So far, we have not seen prices start to slide again. The median price of an existing home sold in July was actually 0.7% higher than it was a year ago!

It's a Great Time to be Selling Homes!

We are having FUN selling homes!

There is a degree of satisfaction that comes from closing a deal. However, the greater satisfaction comes from knowing the buyer is going to love their new home. It is a fun time to be selling homes because there are so many great deals out there.

I love being able to find beautiful homes for my buyers. One of our clients just got a steal of a deal on their new home. For approximately $1400 a month they get to live in their dream home:

4 bedrooms
2.5 bathrooms
3,436 square feet
.20 Acre lot
3-car garage
RV parking
And a perfect location for their lifestyle; there is a golf course litterally in the back yard!


These great homes and amazing rates won't last forever, but as long as they do I am having fun hooking up my clients with fantastic deals!

 

 

Face of Foreclosures

This home sold in February of 2008 for $578,000

 

It is now for sale as a foreclosure for $329,000

 

Government Change Could Cost You $7,000

A few months ago I reported on some possible changes coming from Washington D.C. The wait is over and Change is approved!

The Senate has approved changes in FHA financing that will reduce the upfront costs of an FHA loan, but increase the monthly payment for mortgage insurance. The official statement points at 'perilously low' reserves as their reasoning for making the change.

The changes will go into effect October 4th, 2010.

Here is how it is right now:

If you were to get a $200,000 FHA Mortgage...
The upfront Mortgage Insurance Premium would be $4,500 (2.25% of the loan amount)
Monthly premiums would be $92 per month or $1,100 for the first year (.55% the loan amount)

Here are the new terms on a $200,000 FHA mortgage...

The upfront Mortgage Insurance Premium will be $2,500 (1.25% of the loan amount)
Monthly premium will be $142 a month or $1,700 for the first year (.85% if financing 95% of the purchase price).
If the loan is for more than 95% of the purchase price (in other words you paid less than a 5% down payment) your monthly premium will be even more: $150 a month or $1,800 for the first year. (.9% the loan amount)

Here is the difference:
Upfront cost will decrease 1%
Monthly payments will increase .3% - .35%

These may seem like small numbers, but this increased monthly payment will reduce your puchasing power. To be exact, your purchase power will be reduced $7,000! Because you'll be required to pay more each month toward insurance, you have less to pay towards the principle. It is important to get your terms locked into the current rate before these changes go into effect.

Free Parade of Homes Tickets with Daybreak Tour

Tomorrow (Saturday August 7th) we are having our Free Daybreak Tour. Those who join us will receive:
Free foreclosures list
Free tickets to the Parade of Homes
Free Mountain Mike's pizza
and a chance to see some of the great things Daybreak has to offer.

I have been doing the Daybreak Tour for a few years and it is always a thrill to see friends who live in Daybreak as well as people coming to see the community for the first time.

If you are interested join us in Daybreak at 12:00 Noon!

Here is a map of the route we will be taking through Daybreak:

E-mail me if you have any questions. No reservation is necessary, but if you e-mail me I will be sure to have enough Free tickets to the Parade of Homes for YOU.

How to Lower your Property Tax

In July and August you will be receiving your property valuation notice. This notice declares what the county assessor determines is the market value of your home as of January 1st. Your property taxes will be based on this valuation. If you disagree with the result of the valuation, you only have until September 15th to send an appeal. While you cannot appeal how much you will be taxed, you can disagree with what they claim your home is worth.

Here are the steps to submitting an appeal:

Step #1: Determine the value of your property

Examine the county's valuation and look for obvious errors. Is the square footage accurate? What about the lot size? Errors will alter the appraised value of your property. If there are no errors, it is good to review your valuation with a Real Estate Professional. They can help determine if the valuation accurately reflects the market value of your home.

Step #2: Make an Appeal
For Salt Lake County appeals use this form: BE-01.2010 Appeal Form  You have until September 15th to submit the form by mail or in person to the Board of Equalization located at 2001 South State Street #N3300, Salt Lake City, UT 84190. If you have questions about filling out this form this website will help: How to Appeal


Step# 3: Gather Evidence
If the assessment is incorrect there are 3 forms of evidence you can use to prove the true value:
     1. A professional appraisal (within 12 to 18 months of January 1st)
     2. Your closing papers if you recently purchased or refinanced the property.
     3. Comparables. Recent sales of similar properties in your area. Your Realtor will be able to provide you with a list of comparables.


If you have not received your Valuation for this year you can get it here (you'll need your parcel number): Where's My Valuation?
For any additional questions or to review the market value of your home send me an e-mail or give me a call.

Here is Your House, Let Me Help You Move In!

Purchasing a home can be a complicated and potentially stressful venture. My team and I focus on making the home finding and purchasing process as easy and stress-free as possible. Once the frenzy of contracts and negotiations is over the fun part begins: Moving!

Now that you have your new home, you want to move in as soon as possible. As a service to all of my clients I offer the use of my moving truck for free. Instead of paying more money to rent a moving van or calling all your relatives over to borrow their trucks and cars, you can use my free moving van.

We also use the moving van for community and non-profit volunteer activities. We recently helped with the Allix & Luke Thrall Yardsale which generated funds to support Allix and her 3-year old son who were recently burned in an apartment fire. We love helping our community grow day by day.

Moving into your new home can be a very enjoyable experience as you see your new house become your home. However, there are some times when you need more than a moving truck. For those who need a place to Store And Move (SAM) their priceless treasures for a time, we have an option for you as well. Mesa Systems provides approximately 1500 sq. ft containers. These containers allow you to load all of your personal property into them, lock it with your own key, and store them safely until you are ready to move them into your new home.

I have just negotiated a special deal with Mesa Systems. My clients can have a United/Mayflower container delivered to their home for Free. This is almost a $60 savings!

If you are ready to sell your home, or buy a new home, send me an e-mail. Not only will I use my knowledge and experience in Real Estate to get you a great deal on a house, but I will go beyond the real estate transaction to help you get settled into your new home.

August Hot Spots Highlight Larger Homes

We have seen a shift in the successful sales spots across the state. Now that the first-time home buyer incentive has expired the more luxurious homes are selling. 80% of the top 20 selling areas last month were homes over $300,000. Of these homes, more than 30% are over $500,000!

The current interest rates make these homes excellent to buy right now. Lower interest rates mean that you have more buying power. Combined with decreased home prices these homes are amazing deals right now.

Utah’s Hot Spots are the zip codes and prices ranges that had the most demand and highest success last month. Economic improvement and recovery start in hot spots and then spread to other areas of the valley. Purchasing a home in one of these hot spots gives you a front row seat to economic recovery.


1. Lindon, Zip 84042 Price Range: $100K – $200K
Sales History Current Homes for Sale

2. Saratoga Springs, Zip 84045 Price Range: $300K – $350K
Sales History Current Homes for Sale

3. Layton, Zip 84040 Price Range: $350K - $400K
Sales History Current Homes for Sale

4. Draper, Zip 84020 Price Range: $400K - $500K
Sales History Current Homes for Sale

5. Herriman, Zip 84065 Price Range: $350K - $400K
Sales History Current Homes for Sale


To View Home Sales History for all Zip codes and price ranges click here

E-mail me if you would like a free market report e-mailed directly to you every month.

As always if you would like to see one of these homes, or are interested in selling your home, contact me and we'll get you the best deal for your situation.