Utah Real Estate Survival Guide

Helping You Navigate Our Local Real Estate Market

Archive for the tag “Home”

Paying for the Homebuyer Tax Credits – The Cost Runs Deep

In November of 2009, I wrote a blog post entitled Was the Tax Credit Extension a Good Idea?

Here is an excerpt:

In my opinion, tax credits have become subsidies distorting the real estate market. I believe that any further extension or expansion of this program, with the exception of those benefits due our military, will be counterproductive. I say it’s time to help homeowners. Figure out how to give them $8,000 so that they don’t have to sell as a short sale. There are a lot of well loved homes in excellent condition that would make ideal homes for new buyers, creating move up buyers for other homes, that can’t be sold now because the sellers are upside down in their mortgages. A short sale may benefit a new buyer, but it eliminates another (for two years at least). Why not consider helping sellers with a monetized tax credit so that they can sell their home at market value, stop or minimize short sales and foreclosures eroding property values, get buyers into “non-distressed” homes and turn that seller into another buyer, thus propelling the market forward.

Here is what I am experiencing today:

I have received numerous requests through the holidays for market evaluations from homeowners who either bought, or refinanced, during the past 3 years. What I’m finding is that the value of these homes is almost as upside down as those of homeowners who bought in 2006-2007. Artificially inflated home sales prices, driven by subsidized demand, and used by appraisers to substantiate further inflated home sales prices, is setting the stage for Round 2 of the Great Housing Crisis. Not only will the various homebuyer tax credits burden the Federal budget deficit for years, we have now created a situation where the same homeowners who benefited from $7,500 – $8,000 in “cash back after closing”, are going to be in the distressed property boat along with everyone in the coming tide of foreclosures. Good luck getting THAT money back.

The solution is simple stated. It’s about jobs. Always has been and always will be. How to create those jobs should be the domestic policy focus of 2011. Ideas?

Is It Finally Time to Buy ( or Sell ) a Home in Northern Utah?

Although it will be quiet through the week leading in to the new year, January 3rd, the first business Monday in 2011, will bring renewed activity to our real estate market. All indicators point to a January 2011 that will bring with it stabilization of home values and the quantitative beginnings of recovery in our local housing market.

With both home prices and interest rates at historic lows, it is a perfect time to buy.

With prices and rates bringing more buyers in to the market, it is a perfect time to sell.

Good News Report – Utah’s Unemployment Rate Remains Significantly Below National Average
Utah’s Employment Summary: November 2010

CNBC’s How’s Housing? Report

The news contained in this report is simply that 2011 will continue to be a strong buyer’s market. Sellers who have been holding off listing their homes for sale, anticipating real estate values to recover, are going to have to wait at least 12 – 18 more months to see any improvement. It is NOT going to happen this spring.

This is not necessarily bad news. If a seller is also looking to buy a home, then they should be able to take advantage of home prices comparable to those in 1997. Interest rates are still at or below 5%. Two historic conditions that may not present themselves again.

This is the time for savvy home owners, current or new, to take advantage of unprecedented opportunity in the housing market.

Click here to watch the How’s Housing? Video
Posted to: Mortgage and Real Estate Video News
Wednesday, December 22, 2010 10:08 AM
Discussing the state of the housing market and the impact rising interest rates are having on the housing inventory, with CNBC’s Diana Olick.

Key Bank Introduces New 100% Loan Product

I’m looking forward to a luncheon at Key Bank on Thursday, December 16th, as they introduce their new 100% financing loan product. .25% rate add, no mortgage insurance, 620 FICO score with no lates in past 12 months, income cap at $51,000. No first time homebuyer restrictions.

Hope this provides some of my clients with an option for financing that they wouldn’t otherwise have.

This is a conventional program that seems to offer a borrower more flexible guidelines to meet than Utah Housing, or even the standard FHA loan. Debt ratio not to exceed 42%. There is a minimum borrower’s investment of $500, which could be in the form of the buyer’s earnest money deposit.

Follow up to be posted.

Recovery? (via East Layton Real Estate News)

Recovery? This is one of the most basic home sales graphs but it really shows a great example of supply vs demand and how it affects price (when demand goes up so does price as inventory decreases). Look specifically at the 3rd 2009, as the number sold almost met the number listed prices roared up. When the market saw an increase in prices, everyone jumped to list their homes. Inventory went up and prices went back down. We are back down to what we were tw … Read More

via East Layton Real Estate News

Layton Real Estate Sales Snapshot 2009 vs 2010

October 2010 vs 2009: total number of homes sold in Layton down 32%, but price per square foot only down 7.5% … somewhat of a silver lining in the continuing storm cloud. November’s numbers are trending downward, however.
SalesPerMonth Report Explanation
This report shows sold property data for the search criteria in each month for the selected years back.
This is a description for each column header
Month – month for data
Count – numbers of homes sold for the month
Volume – total of sales prices
Med/avg OL – Original List Price – Original price based on CDOM
Med/avg Sold Price – Sale price (not adjusted for concessions)
Ratio of Med/avg SP to Original Price – Ratio as percent
Median/Avg Sq footage – total square footage
Median/Avg Price/sq. foot – Sale price per sq. footage
Median/Avg Beds – calculated using total beds
Median/Avg Baths – calculated using total baths
Median/Avg CDOM – Cumulative Days on Market

FHA/VA Rates Jump Today

For over a month, FHA and VA 30-year fixed mortgage rates have steadfastly held at 4%. Today, those rates jumped to 4.25%, most likely as fall out over the Fed’s $600 Billion Monetary Stimulus Plan initiated the day after the mid-term elections on Nov 2nd.

As a VA buyer who purchased my first home back in the early ’80’s when the “discounted” VA rate was 12%, and getting ready to refinance my current VA loan at at a 3% 5/1 ARM, I believe that a 4.25% 30-year fixed rate is still kinda sorta really good 🙂

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