U.S. Foreclosures Up, Utah 6th in Nation

If you think there may be a foreclosure in your future, or if you're concerned about your loan modification, contact me so we can review your options. We may be able to get you $3,000 to short sale your home. Contact me for details and to see if you qualify.

Last week ALEX VEIGA of the Associated Press reported that "Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis." This number contrasts the positive news that the number of foreclosures beginning the process are actually declining and have been declining for the past seven months. The number of default notices was down only 1% from July, but down 30% from August of last year.

Even with less loans entering the foreclosure process, this is the 9th consecutive month where the number of foreclosed homes was higher than the same month last year.

Here are the estimated numbers of national foreclosures:

August 2010: 95,364 foreclosures
July 2010: 92,503 foreclosures
August 2009: 71,523 foreclosures

For those looking to pick up a deal on a foreclosure, you can view all foreclosures for sale in Utah here. You can also search Utah HUD homes for sale here!

Local statistics can be more applicable in real estate than national statistics. In Utah, 1 in every 230 houses received a foreclosure filing in August. That's slightly worse than July when we had 1in 242 homes foreclosed. The national average is 1 in every 381 homes. Nevada, which had the highest foreclosure rate in August, saw 1 in every 84 households receiving a foreclosure notice.

Here are the top 10 states for highest number of Foreclosures:

1 - Nevada
2 - Florida
3 - Arizona
4 - California
5 - Idaho
6 - Utah
7 - Georgia
8 - Michigan
9 - Illinois
10 - Hawaii.

If you are afraid of foreclosure, or loan modification failure, contact me for other options. We may be able to get you $3,000 to short sale your home. Contact me for details and to see if you qualify.

Rising Mortgage Rates Cost Thousands

In a recent forecast of future market conditions, MBA economists published the following information about interest rates from 2009 to 2012. It has the average rates per quarter since the beginning of 2009 shadded in gray. The other numbers are the projected average interest rates per quarter.

As you can see it is expected that rates will increase to 5% by this time next year, and up to 5.7% by the end of 2012. This rise in interest rates will reduce buying power by as much as 10%!

Today with an $1,100 monthly payment you could probably get a $175,000 home. Next year that payment will only get you a $165,500 home, and by the end of 2012 the price of the home you can afford will be closer to $150,000. Here is a graphic demonstrating how the rates change buying power.

The primary reason for rising interest rates is increased deman for mortgages. This would also indicate an increase in demand for homes. As we all know, increased demand leads to increased prices. Consequently, it is possible that these increasing rates could cost even more.

Should I Sell my Home this Month?

We keep hearing about how much of a buyer’s market it is. This can still be an advantage if you are selling your home. If demand for your home is up, which it is in these Hot Spots, you’ll be able to sell your home for top dollar. Then you will also be able to take advantage of the great deals available in other neighborhoods.


While the tax-credit stimulated the sales for a few months it only applied to some buyers. Those who did not qualify for the tax credit are still looking for homes to buy. The currently lower interest rates provide more buying power. If you live in a hot spot, now is the time to list your home and start looking for a great deal to purchase.

Utah’s Hot Spots are the zip codes and prices ranges that had the most demand and highest demand 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. Sandy, Zip 84094                 Price Range: $300K - $350K
Sales History                           Current Homes for Sale

3. Salt Lake City, Zip 84105      Price Range: $350K - $400K
Sales History                           Current Homes for Sale

4. Salt Lake City, Zip 84109      Price Range: $400K - $500K
Sales History                           Current Homes for Sale

5. Salt Lake City, Zip 84109      Price Range: $200K - $250K
Sales History                           Current Homes for Sale


Home Sales History for all Zip codes and price ranges

Don't Panic

Here's a quick video for my Listings.







For more information and graphs check out my earlier report comparing the home sales along the Wasatch Front, with those of the rest of the nation.

As well as my reaction to the July statistics: Double Dip?