The real estate market continues to rally — and interest rates on mortgages are extraordinarily low. As always, my goal is to provide updates and information that will add value to your business. It’s always a pleasure to help.

Sincerely,

Aaron Butler
aaron.butler@academy.cc

Weak Economic Growth Helps Mortgage Rates
	Highlights	Average 30 yr fixed rate		Stocks (Weekly)
	The Unemployment Rate fell to the lowest level since July 2009 The Core PCE inflation index rose at a tame 1.3% annual rate Consumer Confidence dropped to 53 from 63 last month The Fed’s Duke suggested that Fed MBS sales are a long way off
		This week: -0.05%		Dow: 9,700 -400
		Last week: -0.05%		NASDAQ: 2,100 -100
After dropping to the lowest level in decades last week, mortgage rates fallen even further. Weak economic data from the US, Europe, and China caused investors to question the pace of the global economic recovery. Slower economic growth was positive for mortgage rates and negative for the stock market. Friday’s important Employment report reflected a slowly improving labor market. The economy lost -125K jobs in June, which was very close to expectations. The figures include a loss of -225K census workers who completed their temporary assignments. The private sector added 83K jobs. The Unemployment Rate fell to 9.5% from 9.7% in May, but this was due to 650K people leaving the labor force. The labor force consists of everyone in the US who either has a job or is looking for one, and the Unemployment Rate measures the percentage of the labor force without jobs. There was mixed news in the housing sector last week. May Pending Home Sales declined 30% from April, as many buyers rushed to sign contracts ahead of the April 30 deadline to qualify for the home buyer tax credit. On a more positive note, the “close-by” deadline for the home buyer tax credit has been extended to September 30. Although the tax credit is not available for new contracts signed after April 30, extremely low mortgage rates and high home affordability levels make conditions very favorable for home purchases.

]]> http://utahcribs.com/real-estate-market-update-for-salt-lake-city-real-estate/feed/ 0 http://utahcribs.com/may-2010-existing-home-sales-are-better-than-the-headlines-suggest/ http://utahcribs.com/may-2010-existing-home-sales-are-better-than-the-headlines-suggest/#comments Wed, 23 Jun 2010 15:50:28 +0000 utahcribs http://utahcribs.com/?p=1236 Josh Mettle Blog – Josh Mettle.

This is a great article written by a good friend of mine Josh Mettle. He is one of the top producing Loan offiers in Salt Lake.. Great info..

Existing Home Sales dropped in May for the first time in 3 months but still managed to post its second-highest since November 2009, buoyed by the expiring federal tax credit program.

An “existing home” is a home that cannot be considered new construction; a resale of an existing home.  Existing Home Sales fell 2.2 percent in May.

The press is calling the drop in sales “unexpected” anddisappointing, but a deeper look at the data shows the news isn’t as bad as it first appears.

First, on a regional basis, sales were mostly solid. Only the Northeast region posted a loss. The West even managed a gain.

• Northeast : -18.3 percent
• Midwest : 0.0 percent
• South : +0.5 percent
• West : +4.9 percent

Second, the supply of homes for sale dropped to 8.3 in May and, because home prices are based on supply and demand, this is a positive for pricing.

By comparison, in 2008, the average existing home inventory was 10.4 months.

And, lastly, in May, first-time home buyers represented 46 percent of all buyers. The number was likely buoyed by the tax credit program but that doesn’t damper the fact that first-time buyers provide a support floor for the housing market.

First-time buyers in Salt Lake enable “existing owners” to move-up to bigger homes, which, in turn, trickles up to the mid-size and jumbo markets.

Analysts expected more from May’s numbers and that may explain why the reaction to the data is generally negative.  However, in many cities, home resales did just fine.

Tags: Existing Home Sales, Home Supply

Home prices slide due to the expiration of the first time home buyer tax credit. Apprently it did inflate the number of homes selling over the last 6 months.

Interesting time, who would have thought? The big questions is, do you think they will bring the tax credit back now that they realize things are pulling back again?Some say they will, others say they should stop writing checks they can’t cash..

In Salt Lake County, for example, nearly one-quarter of all residential listings are short sales, which involve properties being offered by those who owe more than their properties are worth, known as being under water.

via Cumbersome short sales often the only route for a home seller in trouble | The Salt Lake Tribune.

Interesting times, when I hear comment like above on a daily basis. All I have to say is don’t always beleive it. There are some great deals out there, and the best thing to do it get a hold of a true professional that knows exactly what they are doing. They will help point you in the right direction. To often these articles don’t pain the entire picture..

There are some new programs coming out every day to try and help homeowners that are struggeling to make their payments. It is important to understand your options. In an economy where things are unknown, the best advice I could give someone would be to seek a professional. Get some referrals and seek out someone who really understands your options. Often times, there are ways to prevent the worst case scenario’s..

Some interesting news about foreclosure’s in UTAH.. I would say the most important aspect of this article is to show what is happening and where it is happening. A lot of people would like to know the statistics, where here they are..

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..

I think everyone should check this out.. Some local artists from Salt Lake City, UTAH.. I think it is really important to support local artists, so if you can make it stop by.. You will be amazed at the talent..

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.

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