ksl.com – Stocks rise after pending home sales top forecasts.
So some good news, the stock market is reacting to the good news in the Real Estate market. I hve a hard time keeping the good/bad real estate news straight. It really doesn’t make sense to me sometimes.. And I am a local Real Estate Broker in Salt Lake City UTAH.. Real Estate is so volatile, just like every other aspect of the financial world we find ourselves in. Who’s to say its good or bad. The fact of the matter is, I am busier right now then I ever have been. Now, what do I think is going to happen in the coming months. Well bottom line, interest rates are at an all time low. Which I am amazed at, affordable housing I think has hit its bottom in Utah anyway.. However, the upper end homes along the wasatch front? That is a completely different beast. I think current owners of those types of properties are chasing the market down. They will see another 10% drop in home prices.. People just can’t afford those types of homes. So get ready for anoher roller coaster, becasue it is coming fast..
Tax credits fuel 6 pct. rise in April home sales – Yahoo! News.
Some interesting articles have been coming out about an increase in home sales.. You know many people in the industry are having mixed feelings about what is to come in the coming months? I have heard in Salt Lake City UTAH, some people are talking about another 10 percent drop in Real Estate prices. Now that is in the upper priced properties, but wow that will be a shock if that happens..
Thoughts
Bank REPO’s in UTAH
Huntsman family acquires Sothebys real estate franchise – Salt Lake Tribune.
Huntsman Family acquires Sotheby’s Franchise in Idaho and Wyoming. The luxury Real Estate Brad of Sotheby’s international has a new owner.. The Hunstman Family.. Many in the Salt Lake Valley are familiar with the household name of the Huntsman’s..
Interestingly, the Hunstman Family has decided to become a franchise owner of the Sotheby’s Brand. I think this is a great idea, NOt just because I am a broker for Sotheby’s Salt Lake office, but rather I have seen their Huntsman Springs project, and the Luxury Real Estate market share Sothebys has on the United States is unsurpassed. Which will help them sell their project.. I welcome them to the family.
Foreclosures Hit Rich and Famous – WSJ.com.
So I thought to follow up with my earlier post today about Luxury Yachts, You all would enjoy to know even the Rich and Famous are suffering through this down Turn.
Apparently they can no longer afford the 20,000 sq. ft. mansions they call their 3rd homes! The one thing the article does not point out, is most of these guys get foreclosed on and because it was a portfolio type of a loan or whatever, it usually doesn’t even hit their credit. Which obviously wouldn’t matter, because most of the time, just because they are getting foreclosed on doesn’t mean they don’t have any cash. So as this article may portray they are hurting as the common person in society today, the rich and famous are not going to get any sympathy from this reader..:)
There are going to be some millionaires made in this recession, some of the properties are going to be sold for a steal. And when the market comes back, oh and you know it will because we are Americans and we have a very short term memory, they will sell for a bundle.. Enjoy..
A Tour of Andrey Melnichenkos $300-million, Philippe Starck-Designed A Yacht – WSJ.com.
You know as I sit here looking at properties for all my clients I come across this website. In a down economy, I am glad to see the billionaire’s of the world can still aford life’s small luxury’s.. This is great, what they don’t tell you is how much it costs yearly to just maintain the enormous boats. What do the Rich and Famous do for vaccation. They go float on the ocean in one of these Yachts!
How many houses do you think I would need to sell to afford one of these guys? I want one..:)
On a lighter note, if you are looking for a good deal check out the bank repo site for UTAH>
Bank Foreclosures in UTAH
Enclosed is an attachment comparing FHA financing with Conventional Loan financing of a $200,000 home. Despite the concern everyone is having over the recent increase in the FHA Upfront Mortgage Insurance Premium from 1.75% of the base loan amount to 2.25% of that same amount, you can see in this attachment that a borrower still brings less to the closing on their new home and still has a lower monthly payment using FHA with a 3.5% down payment versus a conventional loan with a 5% down payment.
FHA financing has gone from less than 5% of the marketplace to approximately 38% now, since lenders are no longer making loan applications by taking a name, a social security number and having the applicant(s) fog a mirror as the old joke goes. If you are having to provide full documentation for a loan, why wouldn’t you want to keep more of your own money in your pocket in exchange for a lower monthly payment?
The other misconception about FHA is that it is restricted to first-time homebuyers for a smaller starter home. Actually in Salt Lake, Summit and Tooele Counties FHA loans currently go up to $729,750. Loans are being done here that were currently done exclusively in the Jumbo loan world.
Oh, one other point we didn’t talk about. We both have clients that are losing purchasing power with the current instability of interest rates. With the departure of the U.S. Government and their 1.25 Trillion Dollars of purchases in the mortgage securities market we’ve enjoyed an unprecedented 15-month period of essentially flat interest rates. That intervention by the government is over, as of the end of March.
Rates have risen by three-eights of a percentage point here in the past couple of weeks, which means a potential buyer could have bought nearly a $210,000 home for the same principal and interest payment instead of the $200,000 home outlined in this example sheet. I’m firmly convinced that many buyers, especially first-time homebuyers, who are sitting on the fence waiting for homes in the entry level of the market to drop in price, are going to be extremely disappointed.
We have people whom we have prequalified to purchase a home who are finally being motivated by the impending expiration of Federal income tax credits to get out in the market and shop. Some of them have seen homes they want to make an offer on and they find there are multiple offers pending for this particular and subsequently other homes in this price range.
Correct me if I am wrong, but doesn’t the Salt Lake Board of Realtors statistics show that the average home sales prices has leveled and that many are predicting next month’s sales figures will show a slight increase in average price?
Sure you can argue that those numbers reflect exactly that, an average sales price. But that also means for every home that may drop more in value, others are going up in value to keep the average price steady or even going up in value. The conversation about the lower end of the market is a completely different one than the one about upper-end homes.
* A FHA loan requires a 2.25% Upfront Mortgage Insurance Premium which is typically financed.
QUESTIONS? – Please feel free to contact John Simmons or Rod Bruin at Wells Fargo Home Mortgage.
Rod: 801-246-8852
John: 801-694-8065
The big news today across the financial world is that the yield on 10 year Treasury bonds (also known as government debt) has risen to 4%. One of the reasons the yield rose is because there isn’t as much demand for goverment bonds right now. The lessened demand for this goverment debt was spurred on by the jobs that were created this past month, ‘stronger economic data’ according to the Wall street Journal, and the amount of debt the government has already issued to finance itself.
So what does all that hoopla and finance stuff mean to the everyday consumer??? It simply means you can expect interest rates on homes to be on the rise as well. Many economists and other experts have been predicting this for a long time, and now it appears it is happening. Mortgage rates are tied to the bond market, so expect mortgage rates to follow. So if you’re expecting rates to get even lower than they have been for the past year and a half, I believe you have waited too long.
Comments? Opinions? Let’s hear ‘em. Here’s the article:
http://www.reuters.com/article/idUSN0543127020100405
Here are a few articles I have found that really give some great info in regards to the current status of our State. Utah’s Real Estate market is heating up, Buisness are moving in. Development is picking back up.. Some postive things are happening in our wonderful state..
Planners hope to recreate ‘Life on State’
Deseret News
SALT LAKE CITY — Back in its heyday, before I-15 was built, State Street was one of Salt Lake County’s busiest roads.
Now, the road reaching from South Temple to 12300 South is second or third choice to stretches with more lanes, better scenery or fewer lights.
Ted Knowlton wants to change that
Daybreak sold 375 houses in 2009
Standard Examiner
SOUTH JORDAN — Kennecott’s Daybreak community ranked sixth for 2009 home sales among leading U.S. planned communities, according to a Washington, D.C.-based real-estate firm.
February Marks Fifth Straight Month Of Increasing Home Sales
UtahBusiness.com
St. George Provo-Orem growing fast
Population » Salt Lake County now has more than 1 million residents
The Salt Lake Tribune
Did you know St. George and Provo-Orem are the nation’s second and third fastest-growing metro areas?
Only a Sunshine State city outshined Utah’s top gainers in population growth this decade.
Bank Foreclosures in UTAH, REO properties, Distressed home in UTAH
Sugar House project fizzles in foreclosure – Salt Lake Tribune.
If you have been wondering what is going on with the downtown Sugar House developments? Well, I know I have been wondering? Now we have a little more information to go off of. I am going to hope that one of these developers steps up and actually does something over there. Bad market or not, I have faith in the Sugar House potential. Great area, and if there is one thing I have learned through this whole mess the last couple of years, it is location, location, location. Plus I like Sugar House 
The article, mentions a new student housing development in Sugar House. I know the developers, and it is going to be a great project. Hopefully will bring more life to the area. Not to mention another 300 College Students roaming the area spending their parents money! I was a little dissapointed they didn’t mention the plans for the under ground tunnel from Sugar House park to the new development. It is planned to go underneath 1300 E. to the Park. Should be really cool for pedestrians to access the shopping and the park fairly easily. Way to go for thining outside the box.
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