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.
- 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!
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.
SALT LAKE CITY — Rock-bottom prices and record low interest rates have not been enough to drive people back into the housing market.”The mentality of this generation is apprehensive,” said Colin Wright, CEO of Henry Walker homes. “Is this really a good deal, a good value?”This morning on Sunday Edition Bruce Lindsay discussed housing trends with developer and Adjunct Professor at the University of Utah, Colin Wright. He believes the younger generation will have much different housing needs and wants. They want smaller yards and shorter commutes, which will lead to more urban housing. Getting out of debt will be more of a status symbol than a big house, and energy efficiency will also be important.The important measuring stick right now is home prices. Thirty percent of homeowners in Utah have negative equity, and the starter home may have to become the dream home for a lot of families.”Weve lost that part of the market. They cant move up. They are stuck,” said Jim Wood, director of the Bureau of Economic and Business Research at the University of Utah.He has watched Utahs housing market closely and believes home prices have hit bottom. But, he adds, we are still years away from full recovery. Short sales are keeping prices down and discouraging people from entering the market.The mentality of this generation is apprehensive. Is this really a good deal, a good value?–- Colin Wright, CEO of Henry Walker homes.”Thirty to 40% of all homes sold are bank owned or short sales,” he said. “And those are distressed sales…Most people dont want to get in there until prices stabilize.”Unemployment and poor credit have also soured the housing market, but its causing a boom in the rental industry. “The apartment market is highly attractive right now,” said Kip Paul, executive director of Commerce Real Estate Solutions. “We are actually seeing prices exceed the peak from three years ago.”In the past year, all types of apartment units experienced increases in average rental rates. A three-bedroom unit now costs about $1100 a month, and Salt Lake County only has a 5.2 percent vacancy rate -5 percent is generally considered a tight market.”We are building more but not quite enough to keep pace with what the anticipated demand is going to be,” he said.And demand within the rental industry is also changing.”Over half of those renters are now in single family homes, condos, town homes. They are not in traditional apartments,” Wood said.If rental prices keep going up, homeowners will have more options to rent their home and cover their mortgage.
via Housing market at low, options and priorities have changed | ksl.com.
