| Welcome to eNewsletter |
Happy spring and welcome to our monthly eNewsletter - coming to you each month with the latest happenings in the Utah real estate market.
We are local real estate professionals. In this increasingly complex market, it is our duty to keep you informed with current industry issues and market conditions. If you have any real estate needs, call or email us anytime.
Regards,
zoomUTAH.com
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| Real Estate & Economic Outlook Seminar |
What is really going on in the Utah Real Estate market?
We're inviting you to a special workshop, co-sponsored by the Utah Chapter of the Financial Planning Association, and of course, zoomUTAH.com.
You'll get valuable tips from various experts on such topics:
- Utah's Economic & Real Estate Outlook
- Home Grants, Tax Credits and 100% Financing Options
- Improving Your Credit Scores
- Cash Flow Management & Cutting Your Debt Strategies
- Recovering your Stock Market Losses - Based on Last 9 Recessions
Be prepared to take a lot of notes! Whether you're a first time home buyer or a seasoned real estate investor, you do not want to miss this free seminar.
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| Utah Housing Grants |
There is a great deal of opportunities in real estate grants available to thousands of citizens who, unfortunately, are completely oblivious to the fact that these government programs even exist, and a great portion of those who do know are unaware that they may qualify. There are federal, state and city grant programs available to those who qualify.
Have you heard about the new $6,000 Home Run Grant? The Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who purchase a newly-constructed, never-occupied, primary, single-family residence in Utah. You don't even need to be a first time home buyer and this grant may be combined with the federal First Time Homebuyer Tax Credit for $8,000. There were 1,666 Home Run Grants available, and at the time of this writing, the available grants remaining sits at 1,416. I don't anticipate this grant will last much longer than this summer, so don't delay!
In addition, there are many other city grants available. Here is a quick view of some of the city grants available to those who qualify.
- Sandy: $10,000
- Kearns: $10,000
- Magna: $10,000
- Taylorsville: $5,000
- West Valley City: $5,000
- West Jordan: $5,000
- Utah County: $5,000
- Tooele County: $2,000
- Ogden: $5,000
- Davis County: $2,000
Whether you're an investor or just looking for your piece of the American dream, now is the best time to get the best deals on real estate in over twenty-six years. Real estate grants can be a tremendous tool in achieving these goals. As a local Realtor®, I'd be happy to assist you in finding a home and assisting you in obtaining any grant programs available to you.
Call me today at 801-999-8005 to discuss what grant programs may work for you!
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| The Importance of a Home Inspection |
One of the most critical decisions for a Buyer, when one is under contract to purchase a home, is whether or not to have a professional inspection performed on the property by a licensed Inspector. As far as the Real Estate Purchase Contract is concerned, this topic comes under what is termed as the Buyers Due Diligence.
The items which typically are investigated for their integrity by a professional inspector relate to an evaluation of the physical condition of the property. The items are not limited to but do include the following: the condition of the roof, walls, and foundation, the condition of the plumbing, electrical, mechanical, and heating and air conditioning systems and fixtures, and the condition of all appliances.
The cost of a professional inspection varies depending on the complexity of the inspection and the square footage of the property. However, typically a Buyer purchasing a single family residence can expect an out-of-pocket cost of $300-$400 for the inspection. Most inspectors will provide a very comprehensive written report of the findings of the inspection as well as beneficial advice for ongoing maintenance. Many inspectors will provide photographs in the report which focus on any problem areas.
A professional inspection can provide invaluable information and peace of mind when making one of the most significant purchases one will make. However, for many of us, $300-$400 is not an insignificant out-of-pocket expense. Therefore, in the past, some Buyers have justified the forgoing of an inspection based on the fact that the Real Estate Purchase Contract contained a number of Seller warranties which survived closing. Others were content to have an astute friend or relative look the property over, rely on their own conclusions, or just hope that nothing dramatic will surface in the future.
However, the Utah Division of Real Estate has made changes to the Real Estate Purchase Contract effective January 1, 2009. These changes warrant serious consideration to a thorough inspection and would be deemed an important and wise investment. The Seller warranties which formerly survived the closing of the contract no longer exist! The Buyer now acknowledges and agrees in reference to the physical condition of the property, that the Buyer is purchasing the property in its "As-Is" condition without expressed or implied warranties of any kind! Therefore, it is incumbent on a Buyer to take advantage of the Due Diligence period by completely inspecting and evaluating the condition of the property to determine if one should elect to proceed with the purchase of the property or not.
If a Buyer relies wholly on his/her own judgment, the tendency is to locate problems which are easily observable and cosmetic in nature. Some of the most serious and potentially expensive issues are not easily visible. A professional licensed inspector has the expertise, experience, and equipment to detect issues which could later be unpleasant surprises. Therefore, even though it is not inexpensive and is an out-of-pocket expense, we highly recommend as part of your Buyer Due Diligence, that to invest in an inspection by a certified, licensed inspector, is money well spent.
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| Home Insulation Program - Update |
Last month we announced a program that would allow all homeowners (that use Questar as their gas company) to get more insulation in their home at no net-cost to them.
Due to the overwhelming response we've received on this program, we felt it necessary to update you. Questar has released a statement that they will only offer this rate of $.35/ft until May 1st, 2009, after which it will be reduced to $.20. ALL WORK MUST BE COMPLETED BY MAY 1, 2009, to receive the current (and best) rebate from Questar Gas.
If you are interested in getting additional insulation in your home at no net-cost to you, YOU MUST ACT - TIME IS RUNNING OUT! Spread the word to your family and friends!
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| Mortgage Market Update |
The mortgage market got a breath of fresh air from Obama's Federal Reserve in the last month. As you know, from prior newsletter articles, the Fed has committed to purchasing $500 Billion in mortgage-backed securities between January and June of 2008. These purchases are intended to keep mortgage rates in a range of about 4.875% and 5.5%. Well, the Fed has committed another $750 Billion to the purchase program in an effort to help rates stay in this range through all of 2009. Remember, the Fed is mostly purchasing Fannie Mae 5-5.5% coupons which relate to mortgages in the 6%-6.5% range. The President of Freddie Mac came forth publicly last week and announced that the public should not be looking for rates to go down much lower than what we are currently seeing in the market.
The most significant development for this month's article is the Housing Affordability Index (HAI). This is an index created in 1970 by the National Association of Realtors (NAR). The HAI is at all time lows. Simply put, it's never been more affordable to own a home than it is right now! Let's look at what components go into the Index so we can touch and feel its true meaning. The HAI measures whether a typical family can qualify for a mortgage loan on a typical home. A typical home is the National median priced, existing single family home as calculated by the NAR. A typical family is one earning the median family income as reported by the U.S. Bureau of Census. The prevailing mortgage interest rate is the effective rate closed on loans on existing homes from the Federal Housing Finance Board. These components are used to determine the median home family and what they can qualify for on a mortgage on a typical home.
Now, how do we interpret this index? We start with the value of 100 which means this family, with a median income, has exactly the amount of income to qualify for a mortgage on a median priced home. An index above 100 signifies that the family earning the median income has more than enough income to qualify for a home loan on a median priced home (assuming a 20% down payment). For example, a composite Housing Affordability Index of 120 means a family earning the median family income has 120% of the income necessary to qualify for a conventional loan covering 80% of the median price on an existing single family home. An increase in the HAI then shows this family is more able to afford a median priced home. This index only assumes the qualifying ratio of 25%. This means that the monthly principal and interest payment cannot exceed 25% of the median family home income. (Hint: we can qualify you at up to 40% in some circumstances)
Now that you understand how the index works, let's delve into some statistics. This is where your heart starts beating faster as you understand our unique opportunities in today's housing market. In 1970, the composite HAI was at 147.3. Since 1970, the index has been as low as the 60's (meaning home buyers lacked ~ 40% of the income needed to qualify for a purchase on a median priced home). The January '09 composite index initially came in at 166.8 and last week was revised to 172.6. February's preliminary figures are at 173.5. What does this mean? It's the most affordable time since 1970 to buy a home! This data doesn't take into account the recent drop in interest rates, so we'll probably see an even better February revision. Please click for stats directly from the NAR website.
If Rip Van Winkle fell asleep in 1970 and awoke today, he would be amazed how affordable everything is. Look at the current affordability on construction materials and labor, home furnishings, interest rates, rate buy-down costs, availability and inventory of homes, not to mention sellers willingness to pay closing costs, $6000 Home Run Grant for down payment, $8000 tax credit, I could go on and on. If you're not absolutely convinced that now is the time to buy, then allow me to put the cherry on the cake.
Our housing market is fast approaching the bottom of the U or V, which signifies the graphic shape and turnaround of our housing market. We are currently on the left side of the U or V. This is significant, in that, the mentality of a Seller is currently...how low will values go...I need to get out of this home...I will do anything and give up whatever I have to sell. As soon as we transition slightly to the right side of the U or V, the Seller's mentality will switch to...maybe I don't have to pay closing costs...time is on my side...values are increasing...So, If You Snooze, You Lose.
Call me at 801-949-4872 to discuss how I can assist you with your mortgage needs.
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| Did you know zoomUTAH.com averages over 5,000 Real Estate searches every day from our members? Wow! |
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| Recent Market Trends |
Active Listing Inventory
This report shows you how many active listings were on the market at the end of each month. Inventory has been slowly getting absorbed which means we are headed for a more stable market. Over the next few months we wouldn't be surprised to see listings go up however, which is usually the case in spring and summer.
| Month |
Month End
Listings |
| October |
33,069 |
| November |
32,241 |
| December |
31,845 |
| January |
30,969 |
| February |
30,816 |
| March |
31,009 |
Monthly Sales
This report shows you the last 3 months price per square foot averages on sold homes as well as the average days on market for their respective counties.
| Month |
Avg $ Per Square Ft |
Avg Days on Market |
| Salt Lake County |
| January |
$102 |
84 |
| February |
$103 |
89 |
| March |
$98 |
89 |
| Utah County |
| January |
$85 |
86 |
| February |
$85 |
85 |
| March |
$85 |
95 |
| Davis County |
| January |
$85 |
95 |
| February |
$88 |
87 |
| March |
$88 |
82 |
Home Sales By Quarter
This report shows you the home sales in 2008 by quarter. *1st Quarter 2009 data will be released shortly.
| Quarter |
Avg Sold Price |
Total # of Homes Sold |
Total # of Homes Listed |
| Salt Lake County |
| 1st/2008 |
$268,200 |
2,340 |
8,215 |
| 2nd/2008 |
$274,300 |
3,238 |
8,143 |
| 3rd/2008 |
$266,700 |
3,098 |
7,697 |
| 4th/2008 |
$261,700 |
2,114 |
5,411 |
| Utah County |
| 1st/2008 |
$245,900 |
923 |
3,947 |
| 2nd/2008 |
$250,400 |
1,233 |
4,115 |
| 3rd/2008 |
$250,000 |
1,365 |
3,323 |
| 4th/2008 |
$246,400 |
946 |
2,695 |
| Davis County |
| 1st/2008 |
$249,800 |
784 |
2,280 |
| 2nd/2008 |
$248,100 |
985 |
2,148 |
| 3rd/2008 |
$238,200 |
919 |
2,116 |
| 4th/2008 |
$231,200 |
677 |
1,597 |
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| Mortgage Rate Watch |
Today's Rates
| FHA/VA 30 Year Fixed |
5.250% * |
| Conv. 30 Year Fixed |
5.250% * |
| 15 Year Fixed |
5.000% ** |
*APR of 5.500%
**APR of 5.250%
Rate Trends (Last 3 Months)
To get a personalized mortgage
quote call us at 801-949-4872.
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| April Featured Listing |
Murray, UT
$285,000
Professional Finish - Great Location
100% completed almost brand new condo close to amenities, schools, and freeway access. 4 bedrooms, 4 bathrooms, & 2 car garage. Large walk-in closets and tons of storage. This unit has the most FINISHED square footage for the price, in the whole neighborhood. Priced to sell, don't miss out!
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Sponsored By:
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