Neighborhood Advocate Newsletter
Utah's Premier Real Estate Newsletter Fall, 2007

 
Market At A Glance

On September 18th the Federal Reserve cut the Short term interest rate by 0.5%. What does that mean to you the home buyer/home owner? I want to try and dispel some of the misconceptions about Interest Rates!

We all wish that the rate cut directly affected the Mortgage interest rates by causing them to drop. In fact, history shows that almost half of the time the 30 year mortgage rates go up in response to a short term rate cut by the Fed. That is exactly what happened in response to the most recent Federal Reserve Short Term Rate Cut. Since the Fed made their 0.5% cut, the long term mortgage interest rates have risen, on average, about 0.1%.

You can benefit from the Fed dropping the interest rate however! We have seen a drop in the interest rates of Home Equity Lines of Credit and Construction loans that are tied to the Prime Rate. Let's all hope that the Rate cut impacts the economy enough to tease the mortgage rates lower in the near future!

Jason Blood - zoomUtah.com Loan Officer

Market Watch

A news report from the Office of Federal Housing Enterprise Oversight (OFHEO) states that, "Significant price declines appear localized in areas with weak economies."
  • In August, 2007 Utah had the 2nd lowest unemployment rate in the nation.

  • The largest over-the-year percentage gains in employment were reported in Utah (+4.5 percent)

Most media would like the buyers and sellers to believe we are in a market where prices are dropping. There were price drops in many areas that were once the center for the housing booms, but in most areas, prices have stayed steady or increased.
  • Utah had the highest appreciation in the nation between the 2nd quarter of 2006 and the second quarter of 2007. The appreciation was 15.3%.
The percent change in house prices ending June, 2007 were as follows.

Metropolitan Area National
Ranking
Quarter 1 Year 5 Year
Provo-Orem, UT 2 3.48 18.21 49.32
Salt Lake City, UT 3 2.90 16.03 58.22
Ogden-Clearfield, UT 4 3.19 15.22 40.41

The Market At A Glace: The differences between last years "hot market" to this year "slow market".

  August 2007 August 2006
Listing Price $295,149 269,698
Selling Price $289,104 $265,728
Days on Market 35 Days 27 Days

As you can see, the homes are selling for significantly higher in August, 2007 than in August, 2006. The time it takes for a home to sell is nearly identical.

It doesn't get any more clear than that. The numbers don't lie. Utah still has a great Real Estate market, and there has never been a better time to buy. Inventory is up, so buyers will have many options to chose from when looking for their next home.

For Utah Real Estate Assistance Call 801-792-5040 Courtesy of: zoomUTAH.com
Investment Spotlight

"The sign on the door of opportunity reads push"

These are exciting times for the opportunist who knows when the time is right to take advantage of certain investments, including Real Estate. For the astute investor the time has never been better. They buy during a so-called buyers market, and sell during a sellers market. (Imagine that!!)

The majority of the market listens to the gloom and doom everyday by the media, and therefore let great opportunities pass them by.

I was fortunate enough to be selling back in the seventies, when interest rates, unemployment, and inflation, were all in the double digits!!!

Again the savvy investors were looking for the best buys, while the average investors were running for the hills. Do you think those that were scared of what the market was going to do (the media said it was going to get worse - much like today) and sold their properties just to get out of the investment, would like to have those properties today for what they sold them for? You bet they would. Will those people who are panicked today, down the road, regret not holding on and seeing this correction on an upswing? You bet they will!!

Today is the time to be an astute investor. The financial gains will be great, but the lifestyle is better. You have to realize that the lifestyle that you've always wanted is now affordable, something I can't promise next year.

Real Estate has always been the best hedge against inflation. President Roosevelt said, "That the best investment on earth was the good earth itself."

Real Estate has always stood the test of time.


HOME TIP OF THE MONTH: That Smelly Garbage Disposal: Grind up half a lemon, orange or grapefruit in the disposal as you run hot water down the drain.
Winterize Your Home!

It is that time of year again. Let's start preparing our homes for the winter. Here are some tips that will help ensure the safety and efficiency of your home during the cold winter months.

  • Make sure your furnace is in good working order. Check the pilot light and filter in a system fueled by gas or oil. Replace the filter if needed. Confirm that the gas pipe isn't leaking or loose.

  • Have your heating ducts cleaned. Not only will dirty ducts bring in pollutants, but it could also obstruct the air flow and significantly decrease the efficiency.

  • Maintain the gutters. Remove any leaves or damaged branches that might stop the flow of water. Water could get stuck in the gutters and freeze causing damage to the roof, siding, or gutters.

  • Maintain steps and handrails. Repair broken steps and secure loose handrails. Broken steps are easily hidden beneath snow, which could cause a dangerous fall. Similarly, a person slipping on ice will grab a handrail for support.

  • Shut down sprinkler systems and outside faucets. Sprinkler systems must be shut off and blown out. If water is left in the system, it will likely freeze and cause major and expensive damage. It is best to consult an industry professional to assist you with your sprinkler system.


zoomUTAH.com
Oquirrhs Ski Resort Proposed
- Jeremiah Stettler

Step aside, Alta and Snowbird. A west-side ski resort is coming.

In the rolling canyons southwest of Magna, Kennecott plans to tap the greatest snow on Earth to create the Oquirrh Mountains' first ski resort. While the copper company and land developer has set no timetable for the project, officials say the snow conditions and slopes are promising for Deer Valley-like terrain just seven miles west of Highway 111 in a region known as Soldier Flats.

It's not a matter of if, says Jim Schulte, Kennecott's vice president of long-range planning, but when.

"It's certainly skiable terrain," Schulte said, "and a lot of it."

Salt Lake County leaders stood at the site of the proposed resort Tuesday - during a tour of Kennecott's wider west-bench development plans - and gazed up at north-facing peaks streaked with crimson leaves and fresh patches of snow.

From a base elevation of 6,200 feet, the Oquirrh resort would rise to 9,350 feet. By comparison, Snowbird soars from 7,760 feet to 11,000 feet, and Park City goes from 6,900 feet to 10,000 feet.

One crest at Kennecott's planned resort overlooks the "Little Valley" flats, where the company plans to build more than 10,000 homes as a secluded mountain community above Magna.

The resort is part of Kennecott's grander vision for the west bench. South Jordan's Daybreak was just the beginning. The company plans to develop 41,000 acres of hillside neighborhoods and businesses. That's enough to cover the valley's east side from 1100 North to 14600 South, stretching from 900 East to the east bench.

What excites ski-industry watchers is the prospect of a first-ever resort on the Salt Lake Valley's sprawling west side.

"They could easily do it," said Nathan Rafferty, president and chief executive officer of Ski Utah, a marketing association representing Utah's ski and snowboard industry. "I don't know that it's the kind of resort that would compete with the Snowbirds, Altas and Deer Valleys of the world, but it would be something that would benefit Salt Lake."

Rafferty said the resort, by attracting west-siders, probably would complement, rather than compete, with the rugged and revered Wasatch ski areas. But Kennecott officials hope for a bigger hurrah and its location should help - at least with tourists. "It's the closest ski resort to an international airport in the world," Schulte said, noting that it would rise just 18 miles from Salt Lake City International Airport.

Kennecott continues to study snow depths at the proposed Oquirrh Mountain resort, which probably would include two ski areas in Soldier Flats - one visible from Little Valley, the other secluded to the south.

While Schulte wouldn't go into details about the snow depths, he said the early measurements appear "pretty attractive."

Salt Lake County Councilwoman Jenny Wilson joined her colleagues Tuesday for lunch in the rocky basin below the proposed resort. She marveled at the terrain. "You would create a niche," Wilson told her Kennecott guides, "that we don't have."

For Utah Real Estate Assistance Call 801-792-5040 Courtesy of: zoomUTAH.com