| Welcome to eNewsletter |
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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| Ready, Willing & Able Buyer... Reluctance? |
What goes down has always come back up!
I'm seeing a lot of Buyer reluctance when it comes to making the decision to buy a home. The great irony of a Buyers' market is that even though there are incredible opportunities to buy, Buyer urgency has hit an all-time low. The media has blasted us with negative stories and uninformed advice, which has resulted in mass confusion on what is going on in the market.
When the market favored the Sellers, Buyers were buying everything they could at record pace. Prices were increasing and it was perhaps one of the most difficult times to find a deal. We are in a completely different market than we were just 12 months ago. Some Buyers try to wait and buy when market values hit rock bottom. With the volatility of interest rates and an eventual change in market conditions they could miss the opportunity all together. I can't predict what the market is going to do or when prices will stabilize, but I can tell you five reasons why you should seriously be looking to buy in 2009.
- 30-year fixed rates are 4.5 to 5.5%.
- Prices have dropped!
- Inventory is extremely high and Sellers are motivated.
- $7,500 tax incentive for first time home Buyers.
- Buyer reluctance! Use this to your advantage.
The volatility of the market we are in has happened before, and it will happen again. House values will most certainly continue to appreciate over time. Home ownership should be viewed as a long-term investment, providing both equity accumulation and tax benefits over time.
Here is a great quote from Gary Keller and Dave Jenks...
"It's one of the great paradoxical moments of any market and the herd instinct at its most pure. Reluctance in the face of great opportunity becomes an agonizingly defining characteristic of a shift."
"Once the market settles or shows any sign of improvement, opportunities start slipping away. The very moment Sellers no longer have to make concessions, they won't. And, since there is almost always group think at play with all of the waiting Buyers, the pent-up demand will show back up and Buyers may be faced with mounting competition for the best homes available."
In a recent survey of economists, 8 out of 10 believed homes prices will be higher in 5 years than they are today. Are you going to sit on the fence or take advantage of this opportunity?
If you are considering buying a home in Utah, contact me today to discuss how I can assist you on your quest to homeownership.
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| The Importance of a Buyer's Agent |
How many would enter a courtroom to defend oneself, knowing you would be going up against a trained prosecutor? Or how many would go into that same courtroom and ask the Prosecuting Attorney to defend you at the same time he or she is prosecuting you? Sound farfetched? There are some who wouldn't even consider fixing their own plumbing or electrical problem without consulting a licensed professional in the field.
And yet, when it comes to possibly the most expensive and important purchase of one's life (a home) suddenly the same person who wouldn't think of handling their own plumbing issue is willing to risk it all by becoming their own do-it-yourself Realtor. Buyers expect the Listing Agent, who has a fiduciary responsibility to the Seller, to represent them with the same care and concern. It can't and doesn't work that way.
Why would any Buyer consider being unrepresented or allow oneself to be represented by the Listing (Seller's) Realtor? The typical answer, I receive to this question, is "well, can't I save money, or buy the house for less, if I don't have my own Realtor?" The answer is no, at least not legally. That response indicates an incomplete knowledge of the Real Estate transaction process and a lack of awareness of the various and separate contracts involved.
When a Seller employs a Real Estate professional to sell his/her property, a contract called a Listing Agreement is drawn up. The parties to the contract are the Seller and Listing Brokerage. The future Buyer is not party to this contract in any way. This contract states all of the contractual obligations between Seller and Listing Brokerage. In this Agreement, the Seller has agreed to pay the Listing Brokerage a specified, negotiated Brokerage fee. Many times, the Listing Brokerage will offer and advertise to share a specified portion of this fee with the Brokerage who brings the Buyer. However, if a Buyer Broker is not involved, the entire Brokerage fee is kept by the Listing Brokerage. For a Buyer to ask the Listing Agent to alter that fee or in some fashion pay it to the Buyer would be interpreted as an illegal and unethical "kickback" and subject to legal action.
Also, by way of the Listing Agreement, the Listing Agent accepts a fiduciary and legal responsibility to represent the Seller to the best of his/her capabilities, and obtain the best price he or she can for the Seller.
The contract to sell the property is the Real Estate Purchase Contract (REPC). The parties to this contract are the Seller and the Buyer but not any Real Estate Brokerage. Any Brokerage fee being paid by a Seller is not discussed nor is it in any way a part of this contract. Incidentally, the Real Estate Purchase Contract has been revised, effective January 1, 2009. Many feel the new contract places more due diligence responsibilities on the Buyer than even before. The new contract's former Seller Warranties in section 10.2 of the REPC have been removed. Wouldn't you agree that before purchasing a home, it would be prudent on the part of a Buyer to not only have one's own representation, but to ensure that his/her Realtor is educated in all of these critical changes?
If you are thinking of buying a home, I'd love the opportunity to assist you. Throughout your search, I will do my best to make an often stressful process run as smoothly as possible. I will also put my expertise to use in helping to negotiate the best deal for you.
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| Mortgage Market Update |
The last half of 2008 was mired by the declining housing and mortgage industries. Lenders and mortgage companies were laying off workers at alarming rates. Then came November mortgage rates that were shaved by a full percentage point and actually hit 4.5% for three hours on December 17th. Rates continue to fluctuate. We find people are hesitating to refinance and purchase. Let me lay out a few reasons why I recommend getting off the fence:
- The credit crunch is still with us. Last week I barely squeeked out a funding before the lender ran out of funds and 40% of their scheduled fundings had to be postponed to the following month's end. This caused borrowers to go back to the closing table and resign their documents.
- We are good at floating while working on your loan. When the opportune moment arrives we can lock you, usually at a better rate than we quoted you up front. We have expensive and sophisticated software that lets us know, in advance, where rates are going.
- Lender's guidelines are continuing to change. These changes are, of course, intended to benefit the lender and not you. For instance, starting 1/1/2009, if you want cash-out of your home and are over 85% loan-to-value, you will need 2 appraisals performed resulting in extra closing costs. There are many other changes that can come about in 2009. Why take the risk of not qualifying then when you can now?
- Refinance and purchase activity has definitely heated up in the last month. You can avoid bidding wars and missed lock periods now. What about tomorrow?
Call us today at 801-266-2466 to get a personalized mortgage quote.
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| On average, owners who purchased their homes six years ago have seen the value of their home rise 24.3% during that time, despite recent price declines. |
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| ALERT! Purchases & Refinances |
Mortgage rates dropped to 5.00% this week on FHA & Conventional loans.
You could save yourself $100-$400 or more per month by refinancing. There's no telling how long this window of opportunity will last. Call us today at 801-266-2466 for a quote and to see how much we can save you!
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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.
| Month |
Month End
Listings |
| July |
34,391 |
| August |
34,275 |
| September |
33,695 |
| October |
33,069 |
| November |
32,241 |
| December |
31,845 |
Monthly Sales
This report shows you the last three 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 |
| October |
$111 |
72 |
| November |
$107 |
73 |
| December |
$103 |
76 |
| Utah County |
| October |
$95 |
98 |
| November |
$93 |
94 |
| December |
$88 |
93 |
| Davis County |
| October |
$93 |
82 |
| November |
$90 |
84 |
| December |
$89 |
79 |
Home Sales By Quarter
This report shows you the home sales over the first three quarters of 2008. 4th quarter 2008 numbers are not yet available and will be posted on our next newsletter.
| 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 |
| 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 |
| Davis County |
| 1st/2008 |
$249,800 |
784 |
2,280 |
| 2nd/2008 |
$248,100 |
985 |
2,148 |
| 3rd/2008 |
$238,200 |
919 |
2,116 |
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| Mortgage Rates Watch |
Today's Rates
| FHA/VA 30 Year Fixed |
5.000% |
| Conv. 30 Year Fixed |
5.000% |
| 15 Year Fixed |
4.750% |
| Line of Credit |
5.250% |
Rate Trends (Last 3 Months)
To get a personalized mortgage quote call us at 801-266-2466.
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| January Featured Listing |
$149,900 - New Price!
3 Bedroom Condo in West Jordan!
Main level living! Very clean 3 bdrm condo w/open floor plan. 2 covered patios, large tub in master bath. Plumbed for fireplace! Walk to clubhouse and new Falcon Ridge elementary school!
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| Happenings on zoomUTAH.com |
Terrain View
On the map view page on zoomUTAH.com you can now click on the Terrain button in the top right corner. This is useful for knowing the general physical landscape of an area of interest.
Archived eNewsletters
All of our past eNewsletters are accessible under the Newsletters section of the website.
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