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.
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.
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:
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
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.
Hey everyone, here is my weekly update for upcoming events in the Salt Lake City, UTAH..
Mar. 31 Cymbals Eat Guitars | Kilby Court Gallery
Mar. 31 Michael Bubl | E Center | Buy tickets
Apr. 03 We Shot The Moon | Kilby Court Gallery
Apr. 05 MUSE at THE E CENTER 04/05/10 | E Center | Buy tickets
Apr. 05 Muse | E Center
Apr. 08 Passion Pit | In the Venue
Apr. 10 Miike Snow | Urban Lounge
Apr. 12 OwlCityTour | The Great Salt Air
Here is another deal of the day. This will go fast, so if you are a first time home buyer looking for a home in Sandy, UTAH take a look at this. All of these homes are going fast. We do not have time to wait on the sidelines while these come and go. This is a great opportunity for a first time home buyer looking to get into the upper East Bench of Sandy Utah for an affordable price. This does not come around very often so let me know if you are interested.
10244 S. Flanders Rd. 1666 E.
List Price $186,000
2 car garage
2082 Sq. Ft.
If you want more info drop me an email or give me a call and I will send it your way, no pictures available at this time..
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.
