Just like anything in the Govt. Statistics are usually behin a little on the reporting.. Govt. Posted home values rose 0.7 percent in November.
The same report says Home prices are at an all time high since Feb.2009.
According to the National Association of Realtors, 80% of purchases close within 60 days. This is an interesting statistic since most buyers and real estate agents put settlement deadlines of 30 – 45 days. Where in all reality people should start plannin on 60 days.
The question I keep getting from prospective buyer’s is, Should I Buy a Home now? Consider the following, Tax credits, low home prices, and the expiration of all incentives soon. Tax credit is no more come May…
January 29, 2010 utahcribs
Utah News
ksl.com – Huge growth projected along Wasatch Front.
This is a really interesting article about the growth along the wasatch front. Population for the Salt Lake Valley is expected to grow by 1.1 million people by 2040. That is only 30 years. That an average of almost 40,000 people moving into the city every year. From an economic stand point this is great news. More consumers. The simple law of economics, supply and demand. With more people moving into the City, demand will go up.. Supply will have to catch up or speed up to keep up with the pace that is projected for growth..
Once again, our good friend Josh Mettle has given us some great insight.. Here is his breakdown of the Federal Reserve meeting from Jan. 27th.. I found it helpful.
A Simple Explanation Of The Federal Reserve Statement (January 27, 2010 Edition)
The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.
In its press release, the FOMC noted that the U.S. economy “has continued to strengthen”, that the jobs markets is getting better, and that financial markets are supportive of growth.
There was no mention of the housing market’s strength. The last 3 statements from the Fed included that specific verbiage.
It’s the fifth straight statement in which the Fed spoke about the economy with optimism. This should signal to markets that 2008-2009 recession is over and that economic growth is returning to U.S. economy.
The economy isn’t without threats, however, and the Fed identified several in its press release, including:
Credit remains tight for consumers
Businesses are reluctant to hire new workers
Housing wealth is down
The message’s overall tone, however, remained positive and inflation appears is still within tolerance.
Also in its statement, the Fed confirmed its plan to hold the Fed Funds Rate near zero percent “for an extended period” and to wind down its $1.25 trillion commitment to the mortgage market by March 31, 2010. This is noteworthy because Fed insiders estimate that the bond-buying program suppressed mortgage rates by 1 percent through 2009.
Mortgage market reaction to the Fed press release is, in general, negative. Mortgage rates are rising this afternoon.
The FOMC’s next scheduled meeting is March 16, 2010.
via Josh Mettle Blog – Josh Mettle.
New St. George airport hits halfway mark
January 27th, 2010 @ 10:34pm
By John Hollenhorst
ST. GEORGE — The biggest and most expensive construction project in St. George history has passed the halfway mark. It's that city's new municipal airport, and it's so big it's helping to keep the economy alive during hard times.
The project was in the planning stages for many years, and was delayed significantly by studies to determine noise impacts at nearby Zion National Park. All that is history now, and it's starting to look like a real, big-city airport.
Map of new St. George Municipal Airport, courtesy SGU Construction. Click to enlarge
Not so long ago, the valley where the new airport is going up was pretty much empty — except for an abandoned airstrip from the 1930s, adopted by enthusiasts from a model airplane club. Now, all that history is buried under the future St. George airport.
“This airport is five times bigger than our current airport,” says Larry Bulloch, public works director for the city of St. George.
The price tag is $160 million, plus another $100 million for an expressway connection to Interstate 15. It's a complete replacement for the existing St. George Airport.
For years, growth has been hamstrung by the existing airport's location: on top of a 0.5-square-mile mesa, with take-offs and landings directly over St. George neighborhoods.
“It was constrained. It could not be expanded and upgraded to meet the FAA safety standards,” Bulloch says.
By the numbers… St. George Municipal Airport
• $160 million project
• 9,300 ft. (1.8 miles) runway expandable to 11,500 ft.
• Built on 1,200 acres, nearly five times the size of existing airport
• Will accommodate regional jet aircraft, 737s and Airbus 319s
• To be completed by January 13, 2011
The new runway is more than a half mile longer than the one St. George has relied on for years. That puts it in a whole new category, with lots more opportunity.
“This new airport will be able to handle both regional jets and 737s,” Bulloch says.
With St. George's first airliner capability, and a new two-story terminal with jet ways and baggage carousels, city leaders hope to lure major airlines and attract businesses that will boost the regional economy.
Meanwhile, hundreds of construction jobs over the last 16 months have been more than welcome in a part of Utah hard hit by the recession.
“It has been the project that has carried us through the last few years, economically,” Bulloch says. “There would have been more people out of work, hundreds of people out of work, I'm sure.”
The new runway is just about ready for paving. If construction crews manage to stay on schedule, St. George's new airport should open a year from now, on January 13, 2011.
via ksl.com – New St. George airport hits halfway mark.
Interest Rates WILL RISE, the question is WHEN. Currently FHA is tightening even further their borrower qualifications. Soon borrowers will need at least a mid 600′s score to still qualify for the 3.5% down program; if not they will be forced to put 10% down. Furthermore 2 things are changing with FHA: # 1 seller gifted funds max amount will be lowered from 6% to 3% AND upfront mortgage insurance is going from 1.75% to 2.25% of the loan amount. All this is being put into action so that FHA can build their reserves account as they had vastly increased their market share. Simultaneously bonds are expected to raise and perhaps the largest factor in mortgage interest rates is the fact that the government has been subsidizing the purchase of mortgage backed securities; this will go away in April.
As these three things converge you can be SURE of one thing: Interest Rates WILL GO UP. The cost to buy a home on a monthly basis WILL GO UP. The things still in question are:
# 1 WHEN, if all this happens SOON how long will it take to directly effect MTG. RATES? My guess, as soon as June, as late as beginning 2011.
# 2 WILL this effect CAUSE housing prices to fall even more? My guess, under $300K in Salt Lake City, NO.
The math is simple. If rates rise 1.5% (as many experts predict) then the average priced home in SLC (Currently $221K) will cost you $210.00 MORE a month. OR put another way, rates go up 1.5% you will spend $100 more a month PER $100K you finance.
This can make a marginal difference; think about it! Many are fence sitting thinking the house they want may still come down $50K. Well if you wait and really do save $50K it may still cost you hundreds more a month in RATE.
IT really comes down to finding that sweet spot between price and rates and the bottom. I am an expert and watch it everyday…..so want my honest opinion? Rates are as LOW as you will get NOW, and prices under $300K are as low as you can get. Best time to buy for price and rate: NOW. Once again. Right now you can own the average priced home in SLC at $211K with 3.5% down for $1095 a month. And that price will get you a nice home around 2500 square feet with a 2 car garage in a good neighborhood in the south west end of the valley! HEY, believe me…..I know the market is BAD, I live eat and breath it……but is there anyone out there that REALLY BELIEVES it will get better than that???
So we have some new news in regards to the possibility of interest Rates changing? We all stil don’t know, and that is the one consistency we all have right now. Today I have a feeling is going to be rocky on the market front. We will see how Wall Street reacts to President Obama’s Speech tonight.. Pray for the best..
We are up for some action the next two days starting with results from today’s enormous auction of $42B in 5-Year Notes released at 1pm ET. Auction results can be a market mover – and handling the market reaction could be challenging today, as just about an hour later, the highly anticipated
and pivotal Fed Policy Statement will arrive, at 2:15pm ET.
The Fed Funds Rate will remain unchanged. However will the Fed hint that they may start to shift away from their present accommodative policy, by the exclusion of the line they’ve included in all of 2009’s Statements, about rates staying low “for an extended period”?
And what might the Fed say about their present Mortgage Backed Security purchase program? It has been made clear at each of the last two meetings that this program will end. But there has been chatter from different Fed Members, who feel this program should be extended. However, the Fed and Mr. Bernanke have come under fire for the expansion of the Fed’s balance sheet – and with $1.25T already added to the Fed’s balance sheet in MBS purchases, it’s hard to imagine a meaningful expansion taking place. Which could see rates on the rise.
Hopefully we get a clear message on this today as the market hates uncertainty.
And in the backdrop of this two day meeting is the elephant in the room…the Fed Chairman himself, Ben Bernanke doesn’t have confirmation yet that his position as Fed Chair will continue for another term.
Tonight, President Obama delivers his first official State of the Union address. The administration has come under heavy fire, so it will be interesting to see how President Obama responds, and whether he stays the course or changes direction. These addresses can cause market reaction the following day – so we expect the next 24 hours in the market to be quite bumpy.
This article was written by
Aaron Butler <aaron.butler@academymortgage.com>
This is an article from a fellow Loan Officer “Josh Mettle”. Very informative, the important part of this article is that for buyers currently in the market, this will help with negotiations.. For sellers? Take note, lower your price to the market analysis and sell your property. 2010 is going to be a rough year just like 2009, I am not going to even begin to predict what is ahead once the tax incentives go away… Scary…
Just one month after from blowing away Wall Street, December’s Existing Home Sales hit the skids, shedding nearly 17 percent and falling to a 4-month low.
Don’t be alarmed, though. The plunge was expected. And not just because Pending Home Sales cratered last month. 
When November’s Existing Home Sales surged, it was clear to observers that an expiring $8,000 federal tax credit was the catalyst. At the time, the tax program was slated to expire November 30 and the looming deadline pushed a lot of would-be buyers from a December time frame into November.
The expiration date has a cannibalizing effect on December’s sales figures. It was only later that Congress extended the tax credit to June 30, 2010.
So, with home sales plunging in December, it’s no surprise that home supplies rose for the first time in 9 months. Home Supply is calculating by dividing the number of homes for sale by the current sales pace.
The national housing supply now rests at 7.2 months.
Despite December’s Existing Home Sales report appearing shaky, it’s actually terrific news for home buyers.
See, for the past few months, as housing has been improving, sellers nationwide have been bombarded by messages of “hot markets” and rising home prices by the media. Psychologically, a seller is more likely to hold firm on price if he believes the housing market is improving and now December’s data is deflating that argument.
This is why we say there’s always two sides to a housing story — the buyers’ side and the sellers’ side. And, usually, what’s good for one party is bad for the other. It’s what we’re seeing now.
Because of soft data like December’s Existing Home Sales, buyers may retake some negotiation leverage that’s been lost since Spring 2009, helping to improve home affordability and, perhaps, spur more sales.
In the Salt Lake Metro Area, Single-Family Home Sales were up 36% in the Fourth Quarter.
Sales of single-family homes in Salt Lake County were up 36.2 percent in the fourth quarter compared to the same quarter last year. There were 2,403 homes sold, up from 1,764 homes sold a year ago. Last year at this time fourth quarter sales were down 21 percent.
Nearly every area of the Salt Lake Valley reported double-digit increases in single-family home sales. In Draper (84020) home sales soared by 51.7 percent. In Midvale (84047), sales were up 108.8 percent. In Herriman (84096), sales rose by 42.3 percent. In West Valley (84128), sales were up 38.5 percent. Areas of downtown Salt Lake City also saw big increases in sales. Sales in the Avenues (84103) were up 41.7 percent.
Driving the home sales was the $8,000 federal home buyer’s tax credit and more affordable home prices. In the fourth quarter the median single-family home price fell 7.6 percent to $221,650, down from $239,950 a year ago.
Home prices rise for 6th straight month in Nov. – Yahoo! News.
So this is interesting? I would like everyone to read this carefully.. We are seeing many different reports coming out regarding the Housing market. Take a look at the newest one.. Home prices are on the rise.. What will happen to home prices in 2010? Probably the same thing that is going to happen to Interest Rates.. GO UP..
LDS Church to build new temple in Payson
January 25th, 2010 @ 4:01pm
PAYSON — The Church of Jesus Christ of Latter-day Saints will build a new temple in Payson. Church President Thomas S. Monson made the announcement Monday.
It will be built near 930 West and 1550 South, about a mile from the 800 South I-15 interchange.
The new temple will be built to help meet the needs of the growing Church membership in the area. The Church says it will also ease the heavy use of the Provo Temple, which is one of the busiest in the Church.
“Temples answer those soul-searching questions of the purpose of life, of why we are here and where we are going. They are sanctuaries from the storms of life and bless the lives of members of the Church who worship within their sacred walls,” said President Monson.
According to the Church's website, there are 152 temples worldwide in operation or in the planning and construction phases.
via ksl.com – LDS Church to build new temple in Payson.
