Utah Cribs » Economy Update

NAR: 2012 home sales will be strongest in past 5 years | Inman News

utahcribs — Mon, 02 Apr 2012 16:19:59 +0000

The National Association of Realtors is predicting existing-home sales will jump 7 to 10 percent in 2012 to the highest level in five years, based on an “uneven but higher sales pattern” so far this year.Pending home sales fell a seasonally adjusted 0.5 percent from January to February, which was up 9.2 percent from the same time a year ago, NAR said today in releasing its latest Pending Home Sales Index.Last week, NAR reported a similar trend for existing-home sales, which were down 0.9 percent from January to February, but up 8.8 percent from a year ago.The pending sales data released today provides a glimpse into more recent trends, because it tracks homes that were under contract in February — deals that will in most cases be finalized within one or two months.NAR said 31 percent of Realtors experienced contract failures in February, in some cases because buyers mortgage applications were rejected or because appraisals came in below the negotiated price.In the Northeast, NARs index slipped a seasonally adjusted 0.6 percent from January but was up 18.4 percent from a year ago.

via NAR: 2012 home sales will be strongest in past 5 years | Inman News.

UtahRealtors.com :: January home sales highest in five years

utahcribs — Wed, 21 Mar 2012 14:44:26 +0000

January home sales highest in five yearsCategories: None | Tags: NoneUtah home sales increased for the eighth consecutive month in January, up more than 6 percent compared to the prior year, according to a new report from the Utah Association of Realtors. Utah Realtors sold 120 more homes this year than they did last January, closing 1,985 transactions. In fact, this was the best January in five years in terms of homes sold.Among the more populated areas, sales were particularly strong in Salt Lake, Uintah and Davis counties where sales were up 30, 29 and 6 percent, respectively.“The Utah real estate market began the new year in much the same way as the prior year concluded: Home sales were up, housing inventory was down and market fundamentals continued to improve,” said Utah Association of Realtors President Lori Chapman. “The spring buying season is also looking like it will be stronger than last year.”The number of contracts signed to buy homes in January increased 20 percent, signaling a likely rise in February closed sales. The number of January pending sales has not been higher since 2007.Another positive sign is the fact that the number of homes available for sale is declining. In January, inventory fell 24 percent compared to the prior year.“The falling inventory is good news because excess supply has been one reason we’ve seen drops in home prices,” Chapman said.January inventories typically rise following the holiday season, but this year bucked that trend with inventories falling about 3 percent from December levels. With about 20,000 homes listed for sale at the end of January, this is the lowest inventory since February 2007.The Utah Association of Realtors estimates that at the current pace of sales, it would take 7.1 months to clear the entire inventory, the lowest level since July 2007, before home prices began falling. This indicator has seen significant improvement since last year when it stood at 10.4 months.The lower inventories can be attributed to the pickup in home sales and a decline in new listings. The number of newly listed properties fell 12 percent in January. Over the past 12 months, new listings are down an average of about 13 percent.The median price was $166,000, down about 7 percent compared to January 2010.“One reason for the decline is the fact that the share of lower-priced homes being sold is higher than it was last year,” Chapman said. “When a lower-priced mix of homes is compared to a share of more expensive houses, the comparisons can be skewed.”During the 12 months ending in January 2012, homes priced $150,000 and below accounted for 39 percent of all home sales. The year earlier that share was only 30 percent. Over the past year, sales of homes priced $150,000 and below have soared, rising nearly 40 percent. At the same time, sales declined in each of the higher price ranges. For all sales, sellers are receiving more of their original asking prices. In January, sellers received about 91 percent of their original list prices compared to 89 percent during the same period a year earlier.UtahHousingTracker Home

via UtahRealtors.com :: January home sales highest in five years.

Why you should buy a home in Utah now!!

utahcribs — Mon, 13 Feb 2012 17:25:56 +0000

Warren Buffets Opinion

Many people are wondering when they should get back into the market. If the article above is any indication that time is now.

Olympic Exploratory Committee Formation in Salt lake City, UTAH

utahcribs — Thu, 09 Feb 2012 19:38:19 +0000

I’m sure you all heard the very exciting news regarding the exploration of hosting either the 2022 or 2026 Olympics here in Utah! I’ve attached the press kit from the State as well as an article that appeared in the Salt Lake Tribune yesterday. I think that the prospect of hosting the Olympics in the future may be very helpful in our efforts to energize both prospective buyers, developers, and investors——I encourage you to pass this information along to them as you see fit. The committee has four months to recommend a go or no go (we’re betting on a go) and the USOC will make its selection in 2013. Both Denver and Tahoe have formed exploratory committees but I like our chances given the amount of infrastructure already built—– it amounts to a significant head start with little or no need for government funding. The IOC will decide in 2015. In the meantime, the buzz surrounding the effort should help with improved momentum in a recovering market environment.

This is wonderful news, as we all remember the 2002 Winter Olympics here in Salt Lake City. It was a wonderful event, and brought great exposure for our wonderful state. This would be a huge boost for the Economic status of Utah. And I hope that we as a state support the efforts of the committee in any way possible.

Frequently asked questions when Buying a home.

utahcribs — Tue, 31 Jan 2012 18:25:42 +0000

Frequently asked questions home buyers and sellers:

Question: Is my earnest money automatically non-refundable when I offer on a home?

Answer: NO! When you get an offer accepted, you will be required to deposit earnest money, but it does not become non-refundable right when it is deposited. In the real estate purchase contract you have two deadlines that you would need to pass before the earnest money becomes completely non-refundable. The first is the “Due Diligence” deadline and the second is the “Financing and Appraisal Deadline”. The Due Diligence includes your inspection of the property. If for some reason the house has problems and issues that you cannot resolve with the seller, you can cancel the contract and get your earnest money back as long as you do it before the deadline. The deadline is typically 10-14 days for a residential home purchase. You can also get your earnest money back if for some reason you cannot secure the intended financing you thought you could get. You also would have to cancel this before the deadline in order to get the deposit back. The financing and appraisal deadline is usually 20-24 days.

Question: I have my 3.5% down-payment for an FHA loan. Is there anything else I need to pay for when I buy a home?

Answer: YES! When you buy a home and financing is involved you will have closing costs, in addition to the down-payment. The closing costs involve all of the lender fees such as loan origination, document preparation, lender policies, and appraisals. They also include the title company’s fees for recording the property and handling the settlement process. However, the buyer can ask the seller to offer concessions to pay for these closing costs for the buyer. For example, if the closing costs on a $200,000 totaled $5,000, the buyer can offer $200,000 but then ask the seller to pay $5,000 for them to go towards closing costs. This would eliminate the buyer having to come out of pocket for these expenses, and only have put the 3.5% down on the home.

Question: If I don’t use a buyer’s agent, can I negotiate the 3% commission that a buyer’s agent would have received off of the list price of the home?

Answer: NO! Many buyers get confused about this principle because they feel there is a commission that can be used as a negotiating point if they don’t have a realtor. They couldn’t be more wrong. What buyers fail to understand is who pays the commission, and who the commission contract is between. The seller pays the commission. This is decided BEFORE the house even hits the market and it is included in the listing agreement between SELLER and LISTING AGENT. The listing agreement is a completely separate contract between only the seller and listing agent. Typically the agreement is for 6%. The seller agrees to pay this 6% to listing agent when the house sells. The listing agent then puts the home on the market and advertises to other realtors that they will get 3% if they bring a buyer. If no other realtors are involved, the listing agent can keep the full 6% as agreed upon previously. So in essence, the seller has agreed to pay a 6% no matter if there is a buyer’s agent involved or not. The commission contract is not between buyer and seller, so the buyer cannot effectively negotiate the commission out of the purchase price. The buyer is better off being represented by a competent realtor who understands negotiations, the market, and the home buying process.

The nine steps to buying a home.

utahcribs — Tue, 31 Jan 2012 18:24:54 +0000

Get pre-approved with the Josh Mettle Lending Team

This step is one of the most simple and crucial steps to buying your first home. This step is important because Josh Mettle’s team will be able to tell you how much you can afford and what your actual payments will be. Many times buyers simply find an online mortgage calculator to figure out principal and interest requirements, but don’t take into account mortgage insurance, taxes, HOA fees, homeowners insurance, credit scores, and debt to income ratios. The preapproval will also look at your credit score and Josh’s team can give you tips on how to improve it.

2.Identify your needs and wants

After you know how much you want to spend, you need to sit down and identify and your actual needs and wants. This includes everything from cities and neighborhoods, to square footage, number of bedrooms, and style of home. Being realistic about your needs and wants will save you time and headache. The biggest need should be the area you want to live. Have a realtor send you properties in different areas to get an idea what is out there. Drive different neighborhoods and see if they work for you and are close enough to your work, recreation, friends, etc. If the neighborhood doesn’t meet your requirements, then you need to scratch any houses in that area. The three L’s of real estate are Location, Location, Location and this applies to you with your home search. The best house on the planet will lose its “cool” for you if it doesn’t fit in the area you want to live in.

3-Search for a home

Once you know where you want to live, the fun can begin. Touring four to five properties in one morning will tell you if you will be able to find your perfect home in the area you have selected. If you are encouraged by the homes you see, keep looking in that area. When you see a great home, don’t be afraid to jump and make an offer.

4-Write an offer

“How much should we offer?” This phrase is usually the first thing that comes out of buyers’ mouths when they find the perfect home. The answer is, “Depends on the house!” There is no simple equation or formula that tells you how much you can offer off of list price. You need to work backwards with your realtor to determine the value of the home. Before you simply “lowball” every house you see, sit down with your realtor at a computer and review the comparables. By doing this you will be able to determine the market value and make an appropriate offer. Some houses are overpriced and you can justify putting in an offer 10% less than market value. Others are priced very competitively and you can offer 1-3% off list price, while others (such as bank repos) are priced extremely competitively and you may have to offer at least list price or even over to have a shot at landing the house.

5-Get an inspection

Once you have the house “Under Contract”, you can begin your inspection process. This includes a physical property inspection by a licensed inspector. Inspectors will check all the systems of the house including plumbing, electrical, heating, and A/C. The inspector will also look for leaks and cracks in the roof and foundation. They also can do meth and radon tests. We like to tell people this is similar to a doctor’s checkup. The inspector will not make any repairs, rather he will make suggestions and if the property needs a specialist, such as a roofer, we will get the roofer out there to look at the problem. In addition to the physical inspection, you will also inspect the title report for any possible problems with title report such as liens or judgments against either the buyer or seller. Remember that in Utah, property is sold “As-Is”, meaning the seller is not obligated in any way to fix or perform any repairs for you, however sometimes sellers may be willing to do some in order to get the deal closed.

6-Get an appraisal

Throughout the whole process you will be in touch with the lender by providing them with any information they need to get the loan processed. The lender will order your appraisal through a third party company. The appraiser will view the property and compare it to other comparable properties that have sold recently. The lender will send you a copy of the appraisal once it is complete.

7-Do a final walk through

Once the appraisal and inspection items have been completed, you are close to closing! You can do a final walk through of the home with the realtor to see the condition of the home and verify that any requested repairs were completed. This is a good time to figure out where you’re going to put the new 60” flat screen or the new sectional you are buying.

8-Settlement

Settlement takes place at a title company and involves you signing all the loan documents. You will sign a settlement statement which shows the breakdown of the monies involved in the transaction. The lender and realtor are typically present and can help answer any questions you may have. Once you have signed the title company will receive the wire from the lending institution that is giving the money and disburse it accordingly (this is called funding). Once the seller and buyer have signed and the funds are wired, the title company can record the house in your name!

9-Get the keys and move in!

As soon as the house records, it is yours and you can move in! This typically happens within one day of settlement, but can be up to four days. If you are planning to move in over the weekend, be sure to tell your realtor and lender that you’d like to sign by Tuesday or Wednesday if possible so that funding and recording can take place with no problem. Time to move in and enjoy the house! Don’t forget to invite your realtor and lender over for the house warming party!

Developer secures financing for Sugar Hole project | ksl.com

utahcribs — Thu, 15 Dec 2011 15:19:51 +0000

SALT LAKE CITY — The stalled development not-so-affectionately known as the “Sugar Hole” could soon be showing signs of life.Developer Craig Mecham says hes secured financing for his most recent vision for the corner of 2100 South and Highland Drive in Sugar House.If all goes to plan, construction on the $51 million mix of street-level shops and restaurants, topped by five levels of apartments, will begin in spring 2012.”We think this will be a great asset for the community of Sugar House,” Mecham said.Its a scaled-back version of the project he first pitched in 2007. Those plans included a seven-story office structure and an abutting eight-story residential building, with retail on the ground floor of both buildings.The revised plans call for 44,000 square feet of retail space, with 204 one-, two- and three-bedroom apartments. Plans also include two levels of underground parking.”Given the prominence and significance of this particular location, were very excited that Mecham has his financing and designs in order and is moving forward,” said Soren Simonsen, who represents Sugar House on the Salt Lake City Council.The City Council, acting as the Redevelopment Agency of Salt Lake City, voted Tuesday to lend Mecham $5 million for construction of the underground parking garage. The developer also has secured a $36 million construction loan from Wells Fargo, he said.Mecham plans to repay the RDA loan with parking fees collected from tenants and the public. Rent from commercial and residential properties will go toward the bank loan. The developer is putting up about $10 million for the project, according to financial documents.”Its going to be a major complement to the Sugar House area,” Mecham said.That hasnt been the case for the past four years. In January 2008, crews began demolishing the eclectic row of shops that faced 2100 South to make way for a planned 4½-acre mixed-use development.The credit crunch created by the Great Recession made securing financing for the project difficult. The development also was a casualty of Salt Lake Citys then-maligned planning division.”With the economy and political environment, there have been a lot of issues weve had to deal with,” Mecham said. “Its been a long, drawn-out process.”

via Developer secures financing for Sugar Hole project | ksl.com.

New tax deal may speed Cottonwood Mall revival | The Salt Lake Tribune

utahcribs — Wed, 30 Nov 2011 16:35:46 +0000

New tax deal may speed Cottonwood Mall revivalBy cathy mckitrickThe Salt Lake TribunePublished: May 18, 2011 12:34PMUpdated: June 2, 2011 02:31AMAl Hartmann | The Salt Lake Tribune A fence remains around the empty lot of the former Cottonwood Mall at 4835 S. Highland Drive. Holladay officials hope the approval of an extension of tax increment financing will jump-start the redevelopment of the property.With the exception of Macy’s department store, the 57-acre Cottonwood Mall property sits vacant in Holladay, a victim of the recent recession.However, buildings soon could sprout on the sprawling space if its new developer, Dallas-based Howard Hughes Corp., can obtain a four-year extension from the city and other affected government entities on the scheduled start date of a 20-year tax subsidy.A 2008 agreement channels 75 percent of new property tax dollars generated by the urban renewal project back to the developer over a 20-year period, starting no later than 2013. Holladay city also pledged to give back 75 percent of its sales tax revenue during that time.Howard Hughes consultant Kris Longson told the Holladay City Council last week that the company needs more time to build the first phase, which is why it needs an extension on the subsidy.“We need to represent to our board that it’s all still in place that if they move forward, they can still make it work financially,” Longson told the council.At stake is $96 million in new property-tax dollars to offset the project’s infrastructure costs.Longson seeks a new vote of the project’s taxing entity committee — which includes the county, city, school district and others — that would authorize the 20-year diversion of new tax dollars to begin no later than 2017.Completion of Cottonwood’s Phase 1 will start the flow of tax dollars to the developer. As previously agreed, the Howard Hughes Corp. must invest a minimum of $226 million into Phase 1, constructing 134 residential units and adjacent retail and office amenities.General Growth Properties owned the 1960s-era mall and razed it in 2008, intending to invest $550 million to build a high-end, phased neighborhood of homes, retail and office space in its place. Preliminary work took place to reroute Cottonwood Creek through the property and also to raise portions of it several feet.However, the economic downturn drove GGP toward bankruptcy, stalling the ambitious construction project for more than three years.In November 2010, General Growth emerged as two publicly traded companies, having completed the spinoff of the standalone Howard Hughes Corp., which focuses on master-planned developments.On its website — howardhughes.com — the company touts the Cottonwood project as a town center that will one day “serve Salt Lake City’s most affluent neighborhoods.”At build-out, the property could feature 614 residential units, 575,000 square feet of retail and 195,000 square feet of office space.Randall Feil, attorney for Holladay’s Redevelopment Agency, said Howard Hughes Corp. would need all 20 years of tax incentives to make the project work.“If they finish [Phase 1] in 2014, the trigger year would be 2015,” Feil told the City Council.City Manager Randy Fitts remains cautiously optimistic about how soon and how fast the immense overhaul can happen.“When they arrive in our building permit office and lay some plans down, then we’ll get excited,” Fitts said.The start of actual construction will be cause for celebration in this small east-side city, Fitts added. “Next to our city’s incorporation, that will be probably the biggest news we’ve had.”cmckitrick@sltrib.comTwitter: @catmck

via New tax deal may speed Cottonwood Mall revival | The Salt Lake Tribune.

Home Affordability At Its Highest in Nearly Two Decades

utahcribs — Mon, 21 Nov 2011 18:36:18 +0000

The combination of stabilizing home prices and super-low interest rates has led to housing becoming more affordable now than it has been at any time over the last two decades, according to a press release by the National Association of Home Builders.Homes are more affordable now than they have been in two decades. Now if only we could obtain some credit… © Galina Barskaya – Fotolia.comThe latest NAHB/Wells Fargo Housing Opportunity Index HOI showed that 72.9 % of homes sold over the last quarter, were affordable for families that earned an income of at least $64,000, which is the present national median income. This is the eleventh successive quarter in which this housing affordability measure has scored over 70%. In previous years, the measure rarely scored over 60%, showing just how far housing affordability has come in the last few years.However, just because homes are affordable, doesn’t mean that everyone can take advantage of the fact. Bob Nielsen, chairman of the NAHB, was quoted as saying that although housing affordability is at its highest level in 20 years, the difficulty in obtaining credit remained one of the biggest stumbling blocks to people looking to buy a home:“Tough economic conditions — particularly in markets that experienced major changes in house prices and production — as well as extremely tight credit conditions confronting home buyers and builders continue to remain significant obstacles to many potential home sales.”But for those lucky few who do have the means to obtain credit or buy a property outright, the pickings now are exceedingly rich. Take the Lakeland-Winter Haven, Fla., area, where a nationwide high 92.5% of all homes sold in the last quarter were said to be affordable to those households earning at least $53,800, the median annual income for that area.Other major markets in which homes are extremely affordable right now included Indianapolis-Carmel, Ind.; Toledo, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; and Ogden-Clearfield, Utah.And it’s not just larger markets where homes are becoming more affordable – some smaller markets have seen an astonishingly high number of affordable property sales over the last quarter, such as Fairbanks, Alaska, which led the nation with 97.8% of all homes sold being rated affordable for those earning the state’s median annual income of $91,700.It’s not all easy pickings though, as some areas are still proving to be completely unaffordable. New York-White Plains-Wayne, N.Y.-N.J., led the nation in having the least number of affordable home sales, at just 23.3%.

via Home Affordability At Its Highest in Nearly Two Decades.

The 8 Healthiest Housing Markets | Realtor Magazine

utahcribs — Wed, 09 Nov 2011 19:09:59 +0000

This was just posted in Realtor Magazine. They have done a study of the 8 healthiest real estate markets in the country. Utah is Number 3!! Finally some good new to read. This was no surprise to us, as we have had one of our best years ever in sales.. If you have any questions about the Real Estate market in Salt Lake City, UT give us a call.

3. Salt Lake City, Utah

2011 Building Permit Forecast: 1,294

2012 Building Permit Forecast: 1,181

With lots of high-tech businesses, Salt Lake City is poised to have some grains in employment and income in the coming year. After a drop in home prices, prices are expected to rebound and increase 4.7 percent next year.

via The 8 Healthiest Housing Markets | Realtor Magazine.