Home Sales To Rise, Prices Still Falling
Single-family home sales in 2010 could rise as much as 10 percent in Salt Lake County compared to 2009, according to a study released today by the Salt Lake Board of REALTORS.
The study, by economist James Wood, noted that 2008 was likely the bottom of the housing recession. Sales of single-family homes increased 3 percent in 2009 compared to 2008. In 2010, single-family sales could reach 10,000, up from 9,100 sales in 2009.
Home prices in 2010 will continue to fall another 3 to 5 percent, Wood said. Single-family home prices have already fallen 11 percent from their peak.
The complete report is available at slrealtors.com.
SLBR in the News
The Salt Lake Tribune
One of the most affordable housing markets in the Salt Lake area has become even more so after a two-year slide in home values along the Wasatch Front. Median home prices in West Valley City are down more than 12 percent from a peak of $191,540 in 2007, according to data from the Salt Lake Board of REALTORS. For the full story see: http://www.sltrib.com/ci_14067605?IADID=Search-www.sltrib.com-www.sltrib.com.
KSTU-Fox Television
The Salt Lake Board of REALTORS reported sales of existing homes and condos climbed 77 percent in November. There were 1,071 homes and condos sold in November compared to 606 sales in November of 2008. The median price of all homes sold in November dropped to $202,000, down 12 percent compared to $229,000 in November last year.
UtahBusiness.com
The Salt Lake Board of REALTORS reported that sales of existing homes and condominiums climbed 77 percent in November. November’s sales were up 15 percent compared to 928 sales in November 2007.
The biggest challenge facing Fed Chairman Ben Bernanke and his colleagues is to decide when to start boosting interest rates. Moving too soon could short-circuit the recovery. Waiting too long could unleash inflation.
Getting the housing market back on firm footing is a key ingredient to a lasting recovery. The collapse of the housing market, which dragged down home prices with it, was the catalyst for the longest and worst recession to hit the country since the 1930s.
via Some Fed officials conflicted on mortgage program – Yahoo! News.
What to do, what to do.. Boy, am I glad I don’t have to be the one to make these decisions. I am really only worried about the Utah Realestate market.. Obviously this is where I am locatetd and therefore, how this will effect my local economy is the big questions.
After the December jobs report, mortgage rates rose all the way into the new year. This month the market is expecting more positivities from the labor market. If these forecasts are accurate, the bond market will not react well and mortgage rates will move higher. The reason I recommend floating UNTIL THE END OF THE DAY is because tomorrow the ADP Employment Report is released. This is a pre-cursor to Friday's NFP report. If tomorrow's ADP report implies the labor market is continuing to improve…mortgage rates will rise.
While a corrective rally would likely ensue if labor market data is worse than expected, floating is a very risky move. With that in mind I would recommend locking. There is much to lose if the jobs report is as expected. It would essentially confirm the month long trend of rising rates we dealt with in December. This would put a firm level of resistance under mortgage rates, making lower rates even more unlikely in the future.
via Mortgage Rates at Another Crossroads Ahead of Labor Market Data.
So, I hope you all read the entire article to really get a good prospective of where interest rates are heading. Now it is a gamble, however because of the historically low interest rates we have been enjoying one should conclude it can’t last forever. Just like the housing market had to burst, sooner or later inflation is going to catch up with us. So therefore the logical conclusion would be interest rates will be forced to go up in 2010.
I am going to cross my fingers that I am wrong and hope that interst rates will stay where they are at, however my gut is telling me by summer we are going to be seeing interest rates into the 6′s.. Now that is obviously my opinion, but if you look at all the leading indicators. I am willing you will come to that same realization. Interest Rates can not stay low forever. And for that matter we don’t want them to.. Inflation is the sleeping beast in the corner of the room.. Now for my local market of Utah Realesate, we definetly don’t want interest rates to tick up just yet, because that will have a direct effect on the false jump in the local Real estate market.. If people take advantage of the great rates, perhaps we can push the markets to have a little more breathing room?
January 4, 2010 brad
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Interesting article from the WSJ about the Fed and interest rates this year… Please take our survey and comment on the blog! Everyone’s opinion is welcome!
FED article
Survey about rates!
Dubai names tallest building after bailout patron – Yahoo! News.
Oh you gotta love this.. Can you believe they finished this.. I thought for sure it was going to sit vacant for the next 15 years. But hey, I love being wrong. I wish we had unlimited amounts of oil to throw at our economy!!!
