The following graph show the quarterly statistics for Salt Lake County real estate.

Single Family

Condominiums

The number of condominium sales have risen sharply in the 2nd quarter of 2009 as well as median sales prices.  Prices for condominiums are almost back to pre-market correction prices! Single family numbers have risen in the 2nd quarter, but median prices are still drifting lower.

We should have 3rd quarter statistics which will be interesting to see. Check back soon!

This report was generated automatically by the Wasatch Front Regional MLS on 07/23/2009 at 02:57 PM

The Salt Lake Board of Realtors just release the sale numbers for April 2009. Here is their press release:

26 May 2009 (Sandy) – The Salt Lake Board of REALTORS® said today that existing home and condominium sales in Salt Lake County in April climbed 16 percent over March sales. Sales were down 17 percent compared to April 2008.

In April, there were 844 homes and condos sold in Salt Lake County compared to 730 sales in March. In April 2008 there were 1,018 homes and condos sold.

The median price of homes and condos sold in April was $220,000, down 1 percent from $222,200 in March and down 6 percent compared to a median price of $234,900 in April 2008.

The median sales price of all homes and condos sold in Salt Lake County peaked in June 2007 at $243,700. When compared to April 2009, the median sales price has fallen 10 percent.

Read complete text here.

According to Altos Research, an online statistical graphing company, the median price for homes in Salt Lake City has stabilized during the month of May 2009. See the following graphs below:

The median price per square foot is also stabilizing:

Average days on Market has increased slightly, but still lower than it was the latter part of 2008:

Inventory of homes on the market has come down from a few months ago:

If you are thinking of buying a home in the next 6 months, what are you waiting for? Get off the fence and get moving! The time is now, if you wait another day because you are afraid, or waiting for the bottom, or just a procrastinator,  you will miss the best buying opportunity in a generation! 

Here are a few reasons to get moving now (no pun intended).

Sellers are highly motivated.

They have been through the ringers and are literally making deals to get rid of their homes. They see no light at the end of the tunnel, it looks bleak. Plus there is a glut of Short Sales and Bank Owned properties to be had. The best investing advice is; “when everyone in running, BUY, when everyone is coming, SELL”! Well, everyone is running… but not for long!

Stimulus money.

The government is serious about getting this economy moving again, for housing, there is the $8,000.00 tax credit for first time home buyers. Even if you are not a first time home buyer, this will start the “move up” market. Utah has a $6,000.00 grant for buying a new home in Utah, expected to be signed by the Governor soon. This will help about 1600 buyers and almost eliminate about 1800 new homes currently sitting vacant. This, in turn should bring life back into the construction industry. So if you are a first time home buyer and want a new home, you could qualify for $14, 000 to purchase a home!  

Finally, Interest Rates.

At decade lows, hovering around 5%,  and according to the Washington Post, could fall another 1/2 percent soon.

The Federal Reserve yesterday escalated its massive campaign to stabilize the economy, saying it would flood the financial system with an additional $1.2 trillion… 

The decision by the Fed to buy government bonds and mortgage-related securities is designed to lower borrowing costs for home mortgages and other types of loans, thereby stimulating economic activity…

Earlier purchases pushed rates on a 30-year, fixed-rate mortgage down by about one percentage point, and analysts said that yesterday’s announcement could reduce mortgage rates by another half of a percentage point… 

People will look back at this as the window of opportunity that comes along once in a lifetime, question is, did you take advantage of it? Or are you going to be the one that wished they had!

Images; majesticoakproperties.com, hatcityblog.blogspot.com

Just released;  4th quarter real state statistics for 2008. This includes the counties of Salt Lake, Davis, Tooele, Utah, and Weber. These are provided by the Salt Lake Board of Realtors and have not been made available to the media as of this posting.

Summary of Results:

• Salt Lake County: Median Price; $239,500, down 0.17%
• Davis County: Median Price; $216,900, down 3.58%
• Tooele County: Median Price; $188,000, down 1.05%
• Utah County: Median Price; $230,000, down 2.50%
• Weber County: Median Price; $167,000, down 0.54%

These changes were significantly less compared to 3rd Quarter 2008.

What does this mean?

This shows that prices in most counties around the Wasatch Front have slowed their descent; it does not mean they have stopped going down. As I have said before, buying a home is not always about how much a homeowner can make on a home, it’s about a place to live, nest, shelter, and a place of rest. Either you are renting or you are owning. If your horizon is 3 years or more, buying is the logical choice.

5 Biggest Real Estate Myths:

There is a storm brewing over who to crown as king of the online home value estimate race. Over at Sellsius Blog and also at The Front Steps Blog there were reps from both Cyberhomes and Zillow fighting it out through the written word in cyberspace. It was bloody. Most of the arguments came down to  the AVM’s (automated valuation model) of each of the two companies. Who won? Keep reading…

What Do AVM’s Have to Do with My Homes Value?

Well, not much! It seems that with ALL the objective value of these AVM’s and their algorithms, it doesn’t much help the value of an individual home owner. You see, the appraisers and Realtors had it right all along, nothing can quite beat the value of going to the home, looking inside, seeing the street and neighborhood of the home, and comparing it to the other comparable homes sold in the neighborhood, then coming up with a objective and SUBJECTIVE analysis of the property. There is NO other way to do this.  All the AVM’s and algorithms in the world cannot give you this kind of human, hands on analysis of a your home.

Zestimate; $1 Million

How accurate are Cyberhomes and Zillow in Utah Real Estate Estimates?     

Utah is a non-disclosure state. That means that when someone sells their home in Utah, the sold data is NOT recorded in the public record. Companies like Zillow and Cyberhomes usually rely on valuations from the county assessors office for the data they use to generate these values. Many of the assessors offices in Utah in 2008 were inundated with property valuation disputes, because of inaccurate assessments perceived by property owners; and rightfully so. Other states like California record sales prices in the recorded data, so it is easier for third party sources to gather more accurate sales information based on sales in a particular area, and come up with a more accurate valuation. But if you read comments about the accuracy from home experts in these areas they agree, the data is still woefully inaccurate.

Can These AVM’s come close to the value of my property?

The answer is yes. They can come close. But is that what you are looking for when you want to sell your home? Do you want to market your property based on a guess? A guess can cost you tens of thousands of dollars, or more! If you want entertainment, go to these sites and get your valuation; if you want to sell you home, call a professional that is experienced in your area. They will go inside your home and look at the amenities, see the street and neighborhood, compare other homes that sold, and how those homes and features compare to yours. Finally, they will come up with a value that is UNIQUE to you and your situation. Call your local Realtor and get the facts, whether you hire one or not, isn’t this a better way to go?

The Winner?

YOU!

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• Objective and Subjective Value

Salt Lake Board of Realtors lost approximately 2,600 members from 2008 numbers as a result of hard economic times in the real estate market. This number represents 30% of the associations membership as of December 31,2008; which was the deadline to pay the required fees to continue membership. Other associations around the state are expected to post similar numbers. 

Why is this a good thing?

During the real estate heyday of a few years ago, anyone that had a pulse was getting their real estate licence. Everyone had a relative or neighbor, friend or foe that had a licence. It was a financial smorgasbord of real estate money making bliss. As we know, this didn’t last. 

Most of the people that jumped in the business to catch the money train, ended up being poor contributors to our profession as Realtors. The weeding out process began in 2008, and now, those Realtors that survived, are the Realtors that were here before the bubble, or were taking the profession seriously from the beginning. They weren’t in in for the fast buck, but for what it represented as the profession it was meant to be.

How does this benefit the consumer?

The remaining Realtor members are the most successful and best educated of the last 10 years. They have paid the price of a successful career through customer service, education and community service. They have created a client base based on referrals and repeat business, and are in the profession for the long term, through all the market cycles, and are committed to the best in service for their clients. These, the Realtors left standing after the storm, are only the strongest, best positioned to meet the challenges of the coming recovery. These are the people you should be seeking as a future buyer or seller.

image teqware.com

What happened to real estate sales for November 2008 in Salt Lake County?

According to the Salt Lake Board of Realtors, the number of homes and condominiums (units) sold in November 2008 was 576 units. In November of 2007 there were 924 units sold, that’s a decrease of 38%. Another statistic to note was that median price INCREASED by 4% to $229,900 from $221,300 in ‘07.

How can home prices be going up when all the indicators, and may cities home values, are going down?  Well, most of the homes sold, 75%, were under the $300,000 price point, only 10% of the homes sold were above $500,000. The big difference between this year and last year is that interest rates last year were a full 1% higher. Usually when interest rate go down, people can afford more, so they usually purchase a more expensive house. Plus when interest rates are lower more people can afford to buy, so you see more entry level buyers come into the market, thus the large margin of home buyer’s in the entry level price range. When interest rates rise, people can afford less, and there are less buyer’s in the buyer pool, so more inventory means prices tend to go down.

It also might mean that prices in Salt Lake County have stabilized and may start to rise. It also might be temporary, prices should stabilize, then rise for a period of 4 to 6 months before we can claim victory over declining home prices. See my post on when it is a good time to buy to learn more about if you should wait.

What are your thoughts?

 

photo by shutter stock

 

A home is a place of residence or refuge.^[1] It is usually a place in which an individual or a family canrest and be able to store personal property. Most modern-day households contain sanitary facilities and a means of preparing food.  Wikipedia 

 

Where does it say that a home has to make its owner a bazillion dollars OR is of no use in a declining market? With all the talk these days about the housing bubble and home values, to buy or not to buy, I want to look at the issue from another angle.

People NEED a place to live, shelters from the weather, a place to raise a family, to store their things, create memories. There are 2 options; you are either the owner of your domicile, or a renter/tenant of your domicile.  Why own? First, it cost less to own than rent. Second, payments stay the same monthly (fixed rate over 15 or 30 years) eventually the mortgage is paid off. Third, the tax benefits from owning. Finally, after it is paid, there is a nice little nest egg, and even if it’s worth nothing, you have a place to live!

Let’s look at the last few years and why people are in such a huff over the real estate market. Without going into the details of what and why we had a real estate bubble (there are hundreds of articles out there to read), prices have fallen drastically in some markets of the country, BUT NOT ALL markets! Yes if you purchase 2 years ago and HAVE to sell now, you could loose money. But how many people have to do this? Don’t most people live in their homes at least 5 to 7 years? The problem with the last few years is that some people where caught up in the lure of rising prices and speculation, the upward spiral continued to feed on itself. The mantra for home ownership became, how much can I make on my home? And should I buy 2 more?  But is this what home ownership is all about? For some, yes, for investors, for sure, but for most people, no way!  Owning a home is about shelter, raising a family, security from the weather and the world? Why hasn’t this been the mantra of late? How can we bring this mantra back?

We bring it back by talking about all the reason for home ownership; what are the basic tenets of home. Reinforce the definition of HOME at the beginning of this blog, ask the question, where are you going to live and why would you wait to buy home? Taking this basic premise of home ownership, is it good to own in any market? Must you make money on your home every year? Is the requisite for home ownership to turn a profit?

I would like to take this opportunity, the beginning of the New Year, 2009, to educate and change the mantra of what it means to be a homeowner. Show that it is good to buy a home almost anytime.