Sales for Salt Lake County (homes/condos) in the 2^nd Quarter of 2010 experienced a 7% increase from the same period last year. Prices, however, declined, 7.6% from the 2^nd Quarter of 2009. The last half of 2009 reported the largest percentage decline in prices since the housing downturn began in 2007. The good news is that price declines seem to be leveling off. The increase in sales can be attributed to the $8,000 tax credit, stimulating the number of sales. It will be interesting to see if the trend continues next quarter. I will report these numbers as soon as they are out in October.

Did you or someone you know miss getting in on the tax credit? Want a better reason to purchase now than when we had the $8,000 tax credit? Interest Rates! With interest rates at historic lows, the value of your buying power is 3 times the value of the $8,000 credit. Rates are almost 1% lower than when the tax credit was offered. If you borrow $200,000 now at 4.75%, you have $21,222 more buying power than at 5.75%! If you missed the tax credit, don?t miss the low interest rates, call me today to get started looking for your new home.

Looks like home prices in the 1st quarter of 2010 increased slightly from the 4th quarter of 2009. The number of sold units was down from the 4th quarter 2009, but slightly higher than the 1st quarter of 2009. The number of listings also increased from the 4th quarter of 2009, which saw the lowest level in at least 6 years. Interest rates are still low, and the tax credit will probably keep home sale steady through the 2nd quarter of this year.

Home owners who fall behind on their mortgages will most likely be approached by people offering to help them save there homes from foreclosure by a loan modification program. In the past, these people didn’t have to be licensed by the state of Utah, they could just get a Notice of Default list from the recorders office and start contacting homeowners. a lot of home owners would get swindled out of their money and some got swindled out of their homes!

This year the Utah State Legislature requires anyone offering to help with a Loan Modification or Foreclosure Rescue Service be a Mortgage Licensee or hold a Utah Real Estate license. You can find the names of licensed Mortgage and Real Estate people at the Department of Commerce website.

The following are NOT allowed:

• Request or require a person to pay a fee before executing a written agreement defining the services you will provide.
• Require a person to forfeit the fee if the lender forecloses on the property within one year from the date on which you and your client execute the written agreement for services.
• Suggest to a person that you have a spe­cial relationship with his or her lender or loan servicer.
• Falsely represent or advertise that you are acting on behalf of a government agency, a lender or loan servicer, or a nonprofit or charitable institution.
• Recommend or participate in a foreclosure rescue that requires a person to transfer title to you or to a third party with whom you have a business relationship or finan­cial interest.
• Advise a person to make a mortgage pay­ment to anyone other than his or her loan servicer.
• Tell a person to refrain from contacting his or her lender, loan servicer, attorney, credit counselor, or housing counselor.
• Effective May 11, 2010, engage in fore­closure rescue or loan modification without offering in writing to the client a right to cancel the agreement within three business days after the day on which he or she enters the agreement.

Source: Utah Division of Real Estate First Quarter, 2010

A great video from Mortgage Success Source about how mortgage interest rates change. This complex issue is broken down to understandable bite size pieces.

The contest between Utah skiing and Lake Tahoe for the Roaming Gnome is over, and the WINNER is Utah!! According to The Salt Lake Tribune, Utah won by a slim margin, but it is still a win. The Travelocity Gnome will be coming to Utah for his next ski vacation. Sources have it the the Gnome will be arriving sometime tonight or tomorrow.

Let’s role out the red carpet Utah, welcome the Travelocity Roaming Gnome!! You will love what we have to offer!

For all the Home Buyers sitting on the fence waiting for property values to decline, down to the last penny, you should be watching the Fed and it’s plan to stop buying mortgage back securities at the end of March, 2010. Since last year, the Fed has pumped over a trillion dollars into the purchase of mortgage backed securities to keep interest rates low for home mortgages. Because the plan to purchase these securities ends March 31, 2010, financial gurus think that interest rates will go higher because the demand for these securities will drop.

My friends over at Keeping Current Matters has a great breakdown of the arguments of what might happen to rates.

Fed Mortgage Backed Securities Purchases by Month

Photo Credit Chart

Just Reduced! Great condo home in the Gateway project of Salt Lake City.

If you’ve tried to buy a foreclosed home within the last 6 months, you found that if you were using an FHA loan, you were unable to get financing because of the requirement that limited FHA from insuring homes owned less than 90 days by the current owner. Most of the affordable homes were purchase by investors and then placed back on the  market in less than 90 days. Home buyers were unable to purchase these home because of the 90 day seasoning requirements.

To fix this problem, HUD Secretary Shaun Donovan said:

“As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.”

This change in policy is only temporary and will expire one year from the starting date of February 1, 2010. There are also some restrictions. To read more about this click here.