You can find us @
www.saltlakecountyrealestatecbrb@blogspot.com
Saturday, December 12, 2009
Monday, September 21, 2009
Coldwell Banker Sales Stats
Coldwell Banker Residential Brokerage Utah
2008 Sales Volume Over $1.5 billion
Number of Sales Associates Over 900
Number of Offices 15
Number of Closed Listings Sold Over 2,700
Number of Buyer Controlled Sales Over 3,000
Number of Closed Buyer Controlled Sales
and Total Closed Listings Sold Over 5,700
Number of $500,000 + Homes Sold Over 400
$500,000 + Sales Volume Over $343 million
Million Dollar Plus Homes Sold Over 75
Million Dollar Plus Sales Volume Over $119 million
Coldwell Banker Real Estate Corporation
2008 Sales Volume for U.S./Canada $226.3 billion
Number of Sales Associates 105,000
Number of Offices 3,500
NRT Incorporated
2008 Sales Volume (pro forma) $131 billion
Number of Sales Associates 56,000
Number of Offices 835
2008 quotables
Source: Coldwell Banker Residential Brokerage
2008 Sales Volume Over $1.5 billion
Number of Sales Associates Over 900
Number of Offices 15
Number of Closed Listings Sold Over 2,700
Number of Buyer Controlled Sales Over 3,000
Number of Closed Buyer Controlled Sales
and Total Closed Listings Sold Over 5,700
Number of $500,000 + Homes Sold Over 400
$500,000 + Sales Volume Over $343 million
Million Dollar Plus Homes Sold Over 75
Million Dollar Plus Sales Volume Over $119 million
Coldwell Banker Real Estate Corporation
2008 Sales Volume for U.S./Canada $226.3 billion
Number of Sales Associates 105,000
Number of Offices 3,500
NRT Incorporated
2008 Sales Volume (pro forma) $131 billion
Number of Sales Associates 56,000
Number of Offices 835
2008 quotables
Source: Coldwell Banker Residential Brokerage
THE TOP 5 REASONS YOU KNOW YOU’VE CHOSEN THE WRONG REAL ESTATE AGENT
There are so many Realtors® out there, how do you choose the one
that’s right for you? The key to getting the best agent is to select one with
the right mix of knowledge, skills and personality. Here are my top five
ways to know if you have chosen the wrong agent.
Reason #5: Your agent isn’t Internet savvy. While full-service
brokerages make buying or selling a home easier and more cost effective,
the Internet is an important weapon in a marketing arsenal. Most firms
have a home searching tool on their website so buyers can easily look
for homes with the specific characteristics they are interested in. Many
websites will even notify agents and clients when a home matching those
characteristics goes on the market. If your agent isn’t using the Internet as
a primary search tool, it may be time to find a new one.
Reason #4: You’re so stressed out that you feel like you should get the commission, not your agent. There’s no way to avoid a certain amount of anxiety when it comes to buying and selling a house, but a good Realtor can make the experience much less stressful. The right agent will use his or her skills and expertise to take care of the many nagging details and help make the transaction as smooth as possible. As your go-to person, your agent should be returning your phone calls and e-mails thoroughly and promptly. Relieve yourself of the added stress if your agent isn’t doing all they can to make your life easier.
Reason #3: Your new agent asks for directions to your town. Like politics, all real estate is local. It’s important to choose an agent who knows your city and neighborhood inside and out. If you’re buying a home, your agent should be able to tell you about the schools, local services and attractions, and even what other homes in the neighborhood have sold for. When it comes time to sell, pay attention to the for sale signs in your neighborhood. Are you seeing the same
agent’s face or name over and over again? If so, that’s likely the person to go to.
Reason #2: When you ask your agent how he plans to market your home, he responds, “This baby will practically sell itself!” The fact is, homes do not sell themselves – or at least not typically for the best price. Gone are the days when multiple offers came in within a day or two of a home going on the market. These days, agents must have extensive marketing strategies. A good agent’s marketing plan will include all possible channels to sell your home; ads, open houses, the Internet, etc. They may also think outside the box and include creative tools such as “staging” which is the process of spending a little money to improve the overall appearance of the home, which may pay off many times over in the sale price. In the end, if your agent truly has your best interest in mind, you’ll see it in their marketing plan.
And the number 1 reason you know you’ve picked the wrong agent: She dropped off her card at your house and you hired her on the spot. Like any other major decision in your life,you have to do your homework before selecting a Realtor. Ask friends, family members and neighbors – anyone you know – if they can recommend a good agent. Take the time to interview two or three agents and be sure to call thir references. This is a decision that will affect your future for years to come.
If you’re buying, you want to make sure your agent can help get you the most for your money. If you’re selling, you want your agent to help you get the most money possible for your home. Before making a commitment, make sure you know what your agent can do for you.
Taking the time to find the right Realtor may seem like a lot of work, but it is well worth the trouble. The time you put in at the beginning will more than pay off down the road.
Chris Jensen - Ogden Standard-Examiner Saturday, August 15, 2009
that’s right for you? The key to getting the best agent is to select one with
the right mix of knowledge, skills and personality. Here are my top five
ways to know if you have chosen the wrong agent.
Reason #5: Your agent isn’t Internet savvy. While full-service
brokerages make buying or selling a home easier and more cost effective,
the Internet is an important weapon in a marketing arsenal. Most firms
have a home searching tool on their website so buyers can easily look
for homes with the specific characteristics they are interested in. Many
websites will even notify agents and clients when a home matching those
characteristics goes on the market. If your agent isn’t using the Internet as
a primary search tool, it may be time to find a new one.
Reason #4: You’re so stressed out that you feel like you should get the commission, not your agent. There’s no way to avoid a certain amount of anxiety when it comes to buying and selling a house, but a good Realtor can make the experience much less stressful. The right agent will use his or her skills and expertise to take care of the many nagging details and help make the transaction as smooth as possible. As your go-to person, your agent should be returning your phone calls and e-mails thoroughly and promptly. Relieve yourself of the added stress if your agent isn’t doing all they can to make your life easier.
Reason #3: Your new agent asks for directions to your town. Like politics, all real estate is local. It’s important to choose an agent who knows your city and neighborhood inside and out. If you’re buying a home, your agent should be able to tell you about the schools, local services and attractions, and even what other homes in the neighborhood have sold for. When it comes time to sell, pay attention to the for sale signs in your neighborhood. Are you seeing the same
agent’s face or name over and over again? If so, that’s likely the person to go to.
Reason #2: When you ask your agent how he plans to market your home, he responds, “This baby will practically sell itself!” The fact is, homes do not sell themselves – or at least not typically for the best price. Gone are the days when multiple offers came in within a day or two of a home going on the market. These days, agents must have extensive marketing strategies. A good agent’s marketing plan will include all possible channels to sell your home; ads, open houses, the Internet, etc. They may also think outside the box and include creative tools such as “staging” which is the process of spending a little money to improve the overall appearance of the home, which may pay off many times over in the sale price. In the end, if your agent truly has your best interest in mind, you’ll see it in their marketing plan.
And the number 1 reason you know you’ve picked the wrong agent: She dropped off her card at your house and you hired her on the spot. Like any other major decision in your life,you have to do your homework before selecting a Realtor. Ask friends, family members and neighbors – anyone you know – if they can recommend a good agent. Take the time to interview two or three agents and be sure to call thir references. This is a decision that will affect your future for years to come.
If you’re buying, you want to make sure your agent can help get you the most for your money. If you’re selling, you want your agent to help you get the most money possible for your home. Before making a commitment, make sure you know what your agent can do for you.
Taking the time to find the right Realtor may seem like a lot of work, but it is well worth the trouble. The time you put in at the beginning will more than pay off down the road.
Chris Jensen - Ogden Standard-Examiner Saturday, August 15, 2009
GOING GREEN: 10 TIPS TO MAKE YOUR HOME MORE ECO-FRIENDLY
Living in an eco-friendly, energy
efficient home is not only good for
the environment, but also for our
pocketbook. “Green” homes can save
us money in the long-run, as well as
saving natural resources for our planet.
While the best way to have a green
home is to buy one that was built that
way, there are lots of things you can do
to make your existing home more ecofriendly
– and save you some green at
the same time!
What constitutes a green home? In general, it’s a
home that uses less energy, less natural resources and
fewer toxic chemicals. It may have been constructed
with environmentally sensitive and sustainable building
materials, include eco-friendly furnishings, promote
healthy indoor-air quality, and feature water and energy
efficiency.
So if you want to “regreen” your existing home, where
do you begin? Here are 10 things you can do right now:
Start with an “energy audit.” Homeowners should start
with an energy audit done by their local utility company
or some independent energy consultants. You can also
visit Home Energy Saver, a web-based energy audit site,
at http://hes.lbl.gov. Audits can help pinpoint problem
areas and measure energy savings after you improve your
home’s efficiency.
Put a damper on things. An open damper in a fireplace
can increase energy costs by 30 percent, and attic doors
and dryer vent ducts are notorious energy thieves. The
National Trust for Historic Preservation says the best way
to counteract this is by installing fireplace draft stoppers,
attic door covers, and dryer vent seats that only open
when your dryer is in use.
Become a draft dodger. One of the easiest ways to
save money around the house is to seal off drafts. The
U.S. Department of Energy estimates that this alone
can reduce energy usage 5-30 percent. Keep doors and
windows airtight by weather-stripping or caulking the
cracks. And don’t forget to insulate the attic, basement
and crawl space. About 20 percent of energy costs come
from heat loss in those areas.
Install a programmable thermostat. A programmable
thermostat costs less than $50, is easy to install, and will
pay for itself in one year through energy savings. By
maintaining more constant heating and cooling levels,
and automatically turning down the heat at night, the
average family will save $150 a year, according to the
EPA.
Paint a masterpiece with healthier paints. Conventional
paints contain solvents, toxic metals and volatile organic
compounds (VOC) that can cause smog, ozone pollution
and indoor air quality problems with negative health
effects. These unhealthy ingredients are released into
the air while you’re painting, while the paint dries and
even after the paints are completely dry. Opt instead
for zero- or low-VOC paint, made by most major paint
manufacturers today.
Fix those leaky faucets. A dripping faucet or pipe joint
can really add up to substantial water waste. One faulty
faucet wastes 3 gallons of water per day, according to the
U.S. Geological Survey. Sometimes a leak is just a matter
of a quick tightening with pliers or a pipe wrench. Other
times a leak may be more complicated. In those cases it
is worth calling a plumber. Not only will you see lower
water bills over time, you decrease the risk of mold, a
serious threat both to home value and indoor air quality.
Install low-flow showerheads and toilets. Older toilets
waste large amounts of water. This is like flushing money
down the drain, no pun intended! More than 30 percent
of indoor residential water comes from toilets. New, lowflow
models now use less than a gallon of water per flush
vs. five gallons on older models. You can also save water
and money, and still have ample water pressure, with
a low-flow showerhead, which can slash bathing-water
consumption 50 to 70 percent.
Let there be (energy-efficient) light. Compact
Fluorescent Light bulbs (CFLs) use 66% less energy than
a standard incandescent bulb and last up to 10 times
longer. Replacing a 100-watt incandescent bulb with a
32-watt CFL can save $30 in energy costs over the life of
the bulb.
Buy Energy Star Appliances. When buying appliances
– anything from dishwashers to refrigerators to ovens –
look for the blue-and-white Energy Star label. It assures
you that the appliance is at least 10 to 50 percent more
efficient than standard models, depending on the type of
product. That means lower energy bills and less pollution.
A home fully equipped with Energy Star products will
use about 30 percent less energy than a typical house,
saving $600 a year. Go to www.energystar.gov to see
qualified products and learn more.
Don’t forget your yard. You may be surprised, but
planting trees can make a difference in our energy usage.
Evergreen trees on the north and west sides of your house
can block winter winds, and leafy trees on the south and
west side provide shade from the summer sun. And while
we’re on the outside of the house, remember to use light
paint for your home’s exterior. Lighter colors reflect heat
better than darker ones.
Chris Jensen - Ogden Standard-Examiner Saturday, September 5, 2009
efficient home is not only good for
the environment, but also for our
pocketbook. “Green” homes can save
us money in the long-run, as well as
saving natural resources for our planet.
While the best way to have a green
home is to buy one that was built that
way, there are lots of things you can do
to make your existing home more ecofriendly
– and save you some green at
the same time!
What constitutes a green home? In general, it’s a
home that uses less energy, less natural resources and
fewer toxic chemicals. It may have been constructed
with environmentally sensitive and sustainable building
materials, include eco-friendly furnishings, promote
healthy indoor-air quality, and feature water and energy
efficiency.
So if you want to “regreen” your existing home, where
do you begin? Here are 10 things you can do right now:
Start with an “energy audit.” Homeowners should start
with an energy audit done by their local utility company
or some independent energy consultants. You can also
visit Home Energy Saver, a web-based energy audit site,
at http://hes.lbl.gov. Audits can help pinpoint problem
areas and measure energy savings after you improve your
home’s efficiency.
Put a damper on things. An open damper in a fireplace
can increase energy costs by 30 percent, and attic doors
and dryer vent ducts are notorious energy thieves. The
National Trust for Historic Preservation says the best way
to counteract this is by installing fireplace draft stoppers,
attic door covers, and dryer vent seats that only open
when your dryer is in use.
Become a draft dodger. One of the easiest ways to
save money around the house is to seal off drafts. The
U.S. Department of Energy estimates that this alone
can reduce energy usage 5-30 percent. Keep doors and
windows airtight by weather-stripping or caulking the
cracks. And don’t forget to insulate the attic, basement
and crawl space. About 20 percent of energy costs come
from heat loss in those areas.
Install a programmable thermostat. A programmable
thermostat costs less than $50, is easy to install, and will
pay for itself in one year through energy savings. By
maintaining more constant heating and cooling levels,
and automatically turning down the heat at night, the
average family will save $150 a year, according to the
EPA.
Paint a masterpiece with healthier paints. Conventional
paints contain solvents, toxic metals and volatile organic
compounds (VOC) that can cause smog, ozone pollution
and indoor air quality problems with negative health
effects. These unhealthy ingredients are released into
the air while you’re painting, while the paint dries and
even after the paints are completely dry. Opt instead
for zero- or low-VOC paint, made by most major paint
manufacturers today.
Fix those leaky faucets. A dripping faucet or pipe joint
can really add up to substantial water waste. One faulty
faucet wastes 3 gallons of water per day, according to the
U.S. Geological Survey. Sometimes a leak is just a matter
of a quick tightening with pliers or a pipe wrench. Other
times a leak may be more complicated. In those cases it
is worth calling a plumber. Not only will you see lower
water bills over time, you decrease the risk of mold, a
serious threat both to home value and indoor air quality.
Install low-flow showerheads and toilets. Older toilets
waste large amounts of water. This is like flushing money
down the drain, no pun intended! More than 30 percent
of indoor residential water comes from toilets. New, lowflow
models now use less than a gallon of water per flush
vs. five gallons on older models. You can also save water
and money, and still have ample water pressure, with
a low-flow showerhead, which can slash bathing-water
consumption 50 to 70 percent.
Let there be (energy-efficient) light. Compact
Fluorescent Light bulbs (CFLs) use 66% less energy than
a standard incandescent bulb and last up to 10 times
longer. Replacing a 100-watt incandescent bulb with a
32-watt CFL can save $30 in energy costs over the life of
the bulb.
Buy Energy Star Appliances. When buying appliances
– anything from dishwashers to refrigerators to ovens –
look for the blue-and-white Energy Star label. It assures
you that the appliance is at least 10 to 50 percent more
efficient than standard models, depending on the type of
product. That means lower energy bills and less pollution.
A home fully equipped with Energy Star products will
use about 30 percent less energy than a typical house,
saving $600 a year. Go to www.energystar.gov to see
qualified products and learn more.
Don’t forget your yard. You may be surprised, but
planting trees can make a difference in our energy usage.
Evergreen trees on the north and west sides of your house
can block winter winds, and leafy trees on the south and
west side provide shade from the summer sun. And while
we’re on the outside of the house, remember to use light
paint for your home’s exterior. Lighter colors reflect heat
better than darker ones.
Chris Jensen - Ogden Standard-Examiner Saturday, September 5, 2009
Why Now May Be a Good Time to Move up to a Larger Home.
You’re beginning to feel a little cramped in that starter home that looked so perfect several years ago. There just aren’t enough bedrooms anymore, or adequate storage space, or a big enough back yard for the kids and the dog to play. Or maybe there is another one on the way – a baby, not a dog!
Many residents are facing a similar dilemma these days. While that tiny bungalow made perfect sense back when you bought it, you are quickly realizing that you have long since outgrown your home. The logical answer would be to move up to a larger property, but many homeowners fear that the soft housing market would make buying that dream home difficult if not impossible.
Surprisingly this may actually be a great time to move up – precisely because of the housing slowdown. Yes, home sales and prices have been sluggish for the past couple of years. And chances are that your home isn’t worth what it was at the peak of the market two or three years ago. But savvy homeowners are beginning to discover that the math actually works in their favor when they move up to a more expensive property.
It’s true that you probably won’t get every dollar you would like when you sell your existing home. Depending on the price range and location there may be a larger than normal inventory of properties on the market and fewer qualified buyers. So, of course, prices need to be competitive in order to sell. Valuations have dipped in many communities, in some cases back to levels of six or seven years ago.
Now for the good news: That larger, more expensive home that you’ve had your eye on has probably dropped even more – in some cases, much more – than your current home. So the difference between your existing home and the next one is probably much less of a step up than you might have imagined. And if you’ve been in your home for more than just the past few years, there’s the possibility that you’ve built up equity that could be used to buy a larger home.
Plus those individuals who are in starter homes are finding that thanks to the $8,000 first time home buyer credit there is increasing demand for homes like yours. As such, homes at this price point are selling more quickly, sometimes with multiple offers.
Walter Maloney with the National Association of Realtors said it’s important for homeowners to do the math. “Obviously, if you’re selling for less than you could have gotten two years ago, you’re disappointed, but you really need to look at your bottom line,” he said. “If you’re trying to trade up, whatever you’re going to trade up to is going to sell at a discount, too. You need to look at your net.”
Let’s look at the example used in an April 23, 2009 MSNBC article entitled Math smiles on move-up buyers. The article reported, “Chris and Lori Kristen got $20,000 less than they might have in 2007 when they sold their Seattle condo earlier this year, but they purchased this suburban home for $425,000--$86,000 less than the home’s peak value.”
The article went on to report, “Their mood brightened when they began shopping in the spacious neighborhoods of this suburb northeast of Seattle and found a 3,000-square-foot, four-bedroom split-level on a half-acre of towering fir trees that they wound up buying for $425,000. That’s $86,000 less than the $511,000 peak value placed on the home by real estate Web site Zillow.com, $64,000 below the original asking price of $489,000 and even well below the final asking price of $438,000.”
Getting into a larger home isn’t the only reason consumers typically think about moving up. Others consider “trading spaces” because of job relocations or a desire to get into a certain neighborhood or simply because they’ve been pining after that dream home. While the savings on the purchase price of a larger home is a benefit, there are a number of other reasons why the soft housing market may work in your favor right now:
• Strong buyer’s market at upper-end. There just is not as much competition for more expensive homes as there is in the entry level market. Much of the home sales this year have been low-priced and distressed properties. “This year’s peak home buying season is suffering from the absence of move-up buyers,” said Jim Gillespie, chief executive officer of Coldwell Banker Real Estate Corporation. Less competition can mean lower prices and greater bargaining power for those individuals who can afford to make the jump.
•Mortgage rates are still near historic lows. Traditionally, low interest rates make homes more affordable. While it is easy to lament the recent decline in your existing home’s value, interest rates may play an even greater role in how much home you may be able to afford when it comes time to moving up. According to Melissa Wright of Axiom Financial, a one-percent hike in interest rates can increase monthly mortgage payments just as much as a 10 percent increase in price. He went on to note: “With 30-year fixed rate mortgage hovering in the low 5 percent range, buyers may be able to stretch their housing dollars further than they think.”
• Record affordability. According to the National Association of Home Builders August 19, 2009 article entitled Housing Affordability Continues to Hover Near Highest Level in 18 Years, “Bolstered by affordable interest rates and low prices, nationwide housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.” The article went on to report, “The HOI showed that 72.3 percent of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5 percent during the previous quarter and up from 55.0 percent during the second quarter of 2009.”
• Entry level homes are in greater demand. The hottest segment of the housing market this year has been the low-end. In some cases, there are multiple offers for the best properties. Adding to the demand is the $8,000 federal tax credit for first-time buyers that’s due to expire before the end of the year. So while you may have outgrown that little bungalow, there are lots of potential buyers who would be interested in moving in when you’re ready to trade up.
• Housing market showing signs of improvement. While no one can say for sure whether we’ve bottomed out, there have been many encouraging signs in recent months that the housing market is stabilizing and perhaps turning the corner. In its August 21, 2009 report entitled Strong Gains in Existing-Home Sales Maintain Uptrend, the National Association of Realtors reported, “For the first time in five years, existing home-sales have increased for four months in a row, according to the National Association of Realtors®.” The article went on to report “Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004 and the last time sales were higher than a year earlier was November 2005.” It may be a good idea to think about trading up while it’s still a buyer’s market.
Making the decision to move up to a larger home is just the beginning, of course. There are a myriad of issues that go into selling your existing home and getting into that larger move-up property. That’s where a professional Realtor can help. Working with a seasoned agent who knows your market may be the best move you’ve ever made!
Please call me today.
Charise Gilbert
Coldwell Banker Residential Brokerage
801.651.0944 (Direct)
801.486.2777 (Fax)
charise.gilbert@utahhomes.com
www.utahhomes.com/charise.gilbert
Many residents are facing a similar dilemma these days. While that tiny bungalow made perfect sense back when you bought it, you are quickly realizing that you have long since outgrown your home. The logical answer would be to move up to a larger property, but many homeowners fear that the soft housing market would make buying that dream home difficult if not impossible.
Surprisingly this may actually be a great time to move up – precisely because of the housing slowdown. Yes, home sales and prices have been sluggish for the past couple of years. And chances are that your home isn’t worth what it was at the peak of the market two or three years ago. But savvy homeowners are beginning to discover that the math actually works in their favor when they move up to a more expensive property.
It’s true that you probably won’t get every dollar you would like when you sell your existing home. Depending on the price range and location there may be a larger than normal inventory of properties on the market and fewer qualified buyers. So, of course, prices need to be competitive in order to sell. Valuations have dipped in many communities, in some cases back to levels of six or seven years ago.
Now for the good news: That larger, more expensive home that you’ve had your eye on has probably dropped even more – in some cases, much more – than your current home. So the difference between your existing home and the next one is probably much less of a step up than you might have imagined. And if you’ve been in your home for more than just the past few years, there’s the possibility that you’ve built up equity that could be used to buy a larger home.
Plus those individuals who are in starter homes are finding that thanks to the $8,000 first time home buyer credit there is increasing demand for homes like yours. As such, homes at this price point are selling more quickly, sometimes with multiple offers.
Walter Maloney with the National Association of Realtors said it’s important for homeowners to do the math. “Obviously, if you’re selling for less than you could have gotten two years ago, you’re disappointed, but you really need to look at your bottom line,” he said. “If you’re trying to trade up, whatever you’re going to trade up to is going to sell at a discount, too. You need to look at your net.”
Let’s look at the example used in an April 23, 2009 MSNBC article entitled Math smiles on move-up buyers. The article reported, “Chris and Lori Kristen got $20,000 less than they might have in 2007 when they sold their Seattle condo earlier this year, but they purchased this suburban home for $425,000--$86,000 less than the home’s peak value.”
The article went on to report, “Their mood brightened when they began shopping in the spacious neighborhoods of this suburb northeast of Seattle and found a 3,000-square-foot, four-bedroom split-level on a half-acre of towering fir trees that they wound up buying for $425,000. That’s $86,000 less than the $511,000 peak value placed on the home by real estate Web site Zillow.com, $64,000 below the original asking price of $489,000 and even well below the final asking price of $438,000.”
Getting into a larger home isn’t the only reason consumers typically think about moving up. Others consider “trading spaces” because of job relocations or a desire to get into a certain neighborhood or simply because they’ve been pining after that dream home. While the savings on the purchase price of a larger home is a benefit, there are a number of other reasons why the soft housing market may work in your favor right now:
• Strong buyer’s market at upper-end. There just is not as much competition for more expensive homes as there is in the entry level market. Much of the home sales this year have been low-priced and distressed properties. “This year’s peak home buying season is suffering from the absence of move-up buyers,” said Jim Gillespie, chief executive officer of Coldwell Banker Real Estate Corporation. Less competition can mean lower prices and greater bargaining power for those individuals who can afford to make the jump.
•Mortgage rates are still near historic lows. Traditionally, low interest rates make homes more affordable. While it is easy to lament the recent decline in your existing home’s value, interest rates may play an even greater role in how much home you may be able to afford when it comes time to moving up. According to Melissa Wright of Axiom Financial, a one-percent hike in interest rates can increase monthly mortgage payments just as much as a 10 percent increase in price. He went on to note: “With 30-year fixed rate mortgage hovering in the low 5 percent range, buyers may be able to stretch their housing dollars further than they think.”
• Record affordability. According to the National Association of Home Builders August 19, 2009 article entitled Housing Affordability Continues to Hover Near Highest Level in 18 Years, “Bolstered by affordable interest rates and low prices, nationwide housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.” The article went on to report, “The HOI showed that 72.3 percent of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5 percent during the previous quarter and up from 55.0 percent during the second quarter of 2009.”
• Entry level homes are in greater demand. The hottest segment of the housing market this year has been the low-end. In some cases, there are multiple offers for the best properties. Adding to the demand is the $8,000 federal tax credit for first-time buyers that’s due to expire before the end of the year. So while you may have outgrown that little bungalow, there are lots of potential buyers who would be interested in moving in when you’re ready to trade up.
• Housing market showing signs of improvement. While no one can say for sure whether we’ve bottomed out, there have been many encouraging signs in recent months that the housing market is stabilizing and perhaps turning the corner. In its August 21, 2009 report entitled Strong Gains in Existing-Home Sales Maintain Uptrend, the National Association of Realtors reported, “For the first time in five years, existing home-sales have increased for four months in a row, according to the National Association of Realtors®.” The article went on to report “Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008. The last time sales rose for four consecutive months was in June 2004 and the last time sales were higher than a year earlier was November 2005.” It may be a good idea to think about trading up while it’s still a buyer’s market.
Making the decision to move up to a larger home is just the beginning, of course. There are a myriad of issues that go into selling your existing home and getting into that larger move-up property. That’s where a professional Realtor can help. Working with a seasoned agent who knows your market may be the best move you’ve ever made!
Please call me today.
Charise Gilbert
Coldwell Banker Residential Brokerage
801.651.0944 (Direct)
801.486.2777 (Fax)
charise.gilbert@utahhomes.com
www.utahhomes.com/charise.gilbert
Are We Moving Towards a Housing Recovery?
“We have enough cumulative signs now that we’ve come through the worst and not only are things less bad, we’re starting to see pockets of improvement.” Those are the promising words of Charles Schwab Chief Economic Strategist Liz Ann Sanders during her July 28, 2009 interview with Diane Sawyer on ABC’s Good Morning America.
Sanders was responding to Standard & Poor’s/Case-Schiller’s latest Home Price Index which revealed that though housing prices were down nationally 17.9% since June 2008, the rate of home price deterioration has in fact slowed and the Standard & Poor’s/Case-Schiller home price index saw its first monthly gain in the three month period ended in May, from the same period ending in April.
Sanders went on to note, “You have to go through less bad on your way to good.” This viewpoint certainly concurs with what we’re seeing locally as well. While there are many more “bargains” now than at any time in the past few years, the latest numbers show that prices may be stabilizing—but we don’t anticipate that we’ll suddenly see giant leaps in home prices anytime soon.
What we do know is that the housing market was the first to enter the down market and probably will be the first to emerge from it. But it all takes time.
To emphasize that point, Sanders noted, “We’re not going to go into positive gain territory anytime soon but we were looking at declines down in the 18 to 19% so they’re getting a little less bad and that’s just a sign that the turn has come in so I do think prices are bottoming here. It’s not universal but broadly, nationally you can say that. There is still going to be some pockets of weakness but also some pockets of significant strength.”
Locally in pockets along the Wasatch Front there has been a surge in home sales over the last several months. In fact, in its July 28, 2009 Decline in home sales along Wasatch Front slows, ABC 4 reported that, “The decline in home sales along the Wasatch Front is starting to slow. The Salt Lake Board of Realtors released new statistics Tuesday that have a bit of good economic news in them. There were 5,428 single-family homes sold in the second quarter in Salt Lake, Davis, Utah, Weber and Tooele counties. That’s only down about 2% from the same time last year. And, in Utah County, home sales were actually up nearly 15%.”
The reported continued, “The Salt Lake Board of Realtors says buyers have been motivated to buy new homes by the lower prices and government incentives.”
So what does all of this mean for today’s buyers?
The latest news shows that prices may be stabilizing but they’re likely to remain at these levels for some time.
The Wall Street Journal Reporter Nick Timiraos wrote in his July 29, 2009 blog posting What the Case-Shiller Numbers Mean for Home Buyers, “A purchase could make sense for borrowers who plan to live in their home for a long time now that prices are more in sync with incomes.”
What should we watch for?
During the Good Morning America interview, Sanders, and Mike Santoli, an associate editor of Barron’s, both provided their key vital signs to watch for in calling for a recovery. Among them:
Liz Ann Sanders’ Three Improving Economic Vital Signs to Watch For:
• Index of Leading Economic Indicators, which has
enjoyed three months of increases
• New unemployment claims are down 93,000; “We’ve
never still been in a recession when we’ve seen that
kind of drop,” said Sanders.
• The spread between short term (set by the Fed) and
long term interest rates (driven by the market) is
widening; these numbers are telling us that the
economy is recovering
Mike Santoli’s Three Improving Economic Vital Signs to Watch For:
• Dow above 8,000; if it stays above 8,000, Santoli noted,
this would be a good indicator that we’re on the road
to recovery. As an aside, the week ended July 31, 2009,
we danced over the 9,000 mark, closing Friday, July 31
at 9,171, making it the best July for the Dow in over
20 years, according to CNNMoney.com’s July 31, 2009
article Dow ends best July in 20 years.
• Santoli concurred with Sanders’ new unemployment
claim indicator
• Back to school retail sales; Santoli stated that this is a
check on consumer psychology; Santoli noted that we
should watch sales reports from companies like Target
and Wal-Mart to report to determine if consumer
psychology is improving.
In the end, what all of this information is telling us is that though we are starting to show signs of improvement, we probably won’t see huge surges in home prices any time soon. Home prices seem to be realigning more closely with incomes in most markets. With mortgage rates remaining attractive, the $8,000 first time home buyer tax credit that is on the table until November 30 and foreclosures on the decline, the key signs are finally pointing in the right direction.
If you are ready to make an informed decision about real estate, please contact me today.
Charise Gilbert
Coldwell Banker Residential Brokerage
801.651.0944 (Direct)
801.486.2777 (Fax)
charise.gilbert@utahhomes.com
www.utahhomes/charise.gilbert
Sanders was responding to Standard & Poor’s/Case-Schiller’s latest Home Price Index which revealed that though housing prices were down nationally 17.9% since June 2008, the rate of home price deterioration has in fact slowed and the Standard & Poor’s/Case-Schiller home price index saw its first monthly gain in the three month period ended in May, from the same period ending in April.
Sanders went on to note, “You have to go through less bad on your way to good.” This viewpoint certainly concurs with what we’re seeing locally as well. While there are many more “bargains” now than at any time in the past few years, the latest numbers show that prices may be stabilizing—but we don’t anticipate that we’ll suddenly see giant leaps in home prices anytime soon.
What we do know is that the housing market was the first to enter the down market and probably will be the first to emerge from it. But it all takes time.
To emphasize that point, Sanders noted, “We’re not going to go into positive gain territory anytime soon but we were looking at declines down in the 18 to 19% so they’re getting a little less bad and that’s just a sign that the turn has come in so I do think prices are bottoming here. It’s not universal but broadly, nationally you can say that. There is still going to be some pockets of weakness but also some pockets of significant strength.”
Locally in pockets along the Wasatch Front there has been a surge in home sales over the last several months. In fact, in its July 28, 2009 Decline in home sales along Wasatch Front slows, ABC 4 reported that, “The decline in home sales along the Wasatch Front is starting to slow. The Salt Lake Board of Realtors released new statistics Tuesday that have a bit of good economic news in them. There were 5,428 single-family homes sold in the second quarter in Salt Lake, Davis, Utah, Weber and Tooele counties. That’s only down about 2% from the same time last year. And, in Utah County, home sales were actually up nearly 15%.”
The reported continued, “The Salt Lake Board of Realtors says buyers have been motivated to buy new homes by the lower prices and government incentives.”
So what does all of this mean for today’s buyers?
The latest news shows that prices may be stabilizing but they’re likely to remain at these levels for some time.
The Wall Street Journal Reporter Nick Timiraos wrote in his July 29, 2009 blog posting What the Case-Shiller Numbers Mean for Home Buyers, “A purchase could make sense for borrowers who plan to live in their home for a long time now that prices are more in sync with incomes.”
What should we watch for?
During the Good Morning America interview, Sanders, and Mike Santoli, an associate editor of Barron’s, both provided their key vital signs to watch for in calling for a recovery. Among them:
Liz Ann Sanders’ Three Improving Economic Vital Signs to Watch For:
• Index of Leading Economic Indicators, which has
enjoyed three months of increases
• New unemployment claims are down 93,000; “We’ve
never still been in a recession when we’ve seen that
kind of drop,” said Sanders.
• The spread between short term (set by the Fed) and
long term interest rates (driven by the market) is
widening; these numbers are telling us that the
economy is recovering
Mike Santoli’s Three Improving Economic Vital Signs to Watch For:
• Dow above 8,000; if it stays above 8,000, Santoli noted,
this would be a good indicator that we’re on the road
to recovery. As an aside, the week ended July 31, 2009,
we danced over the 9,000 mark, closing Friday, July 31
at 9,171, making it the best July for the Dow in over
20 years, according to CNNMoney.com’s July 31, 2009
article Dow ends best July in 20 years.
• Santoli concurred with Sanders’ new unemployment
claim indicator
• Back to school retail sales; Santoli stated that this is a
check on consumer psychology; Santoli noted that we
should watch sales reports from companies like Target
and Wal-Mart to report to determine if consumer
psychology is improving.
In the end, what all of this information is telling us is that though we are starting to show signs of improvement, we probably won’t see huge surges in home prices any time soon. Home prices seem to be realigning more closely with incomes in most markets. With mortgage rates remaining attractive, the $8,000 first time home buyer tax credit that is on the table until November 30 and foreclosures on the decline, the key signs are finally pointing in the right direction.
If you are ready to make an informed decision about real estate, please contact me today.
Charise Gilbert
Coldwell Banker Residential Brokerage
801.651.0944 (Direct)
801.486.2777 (Fax)
charise.gilbert@utahhomes.com
www.utahhomes/charise.gilbert
Q & A with Axiom Financial
Representatives of Coldwell Banker Residential Brokerage recently spoke with Melissa Wright, the President of Axiom Financial to discuss the recent fluctuations with interest rates and what this might mean for today’s buyer.
Q. What has happened with interest rates in the last month?
A. “In the last month we’ve seen rates go up as high as a full percent, then come down .50%. They’ve fluctuated dramatically over the past month, however, we are still near a 38 year low.”
Q. We are in the middle of a recession. Why is the Federal Reserve raising rates?
A. “Actually, The Federal Reserve isn’t raising rates. What has happened is Wall Street is concerned about the trillions of dollars being injected into the US economy via the Economic Stimulus Plan. They believe it will eventually lead to an improving economy, however, they also fear it will lead to inflation. Wall Street is always looking three to six months in the future in order to hedge its bets on a variety of investments, stocks, bonds, etc.
“About one month ago, many on Wall Street became convinced that we were going to recover from the recession later this year. They were seeing ‘Green Shoots’ of economic recovery everywhere they looked. As a result of that expectation, the stock market rallied, and the bond market sold off at a record pace. Mortgage bonds are the prime mover on mortgage rates. Rates shot up 1.0% in three weeks.
“Wall Street changes its theories on our economic future practically at the drop of a hat. Over the past week or so, Wall Street has decided that the recession is more severe than they had previously thought. Now they have concluded that we will not experience an economic recovery this year. As a result of this, the stock market sold off, and the bond market rallied. This dynamic action pushed rates lower. Rates have come back down approximately .50% from the 1.0% increase we previously had last month.”
Q. There are a lot of homeowners out there who may not currently be in trouble on their home mortgage but they would still like to refinance. What do you recommend for those individuals whose loan to value ratio has been compromised due to the current recession and/or they are nearing the end of their Adjustable Rate Mortgage (ARM)?
A. “Due to Obama’s Foreclosure Prevention’ plan, those individuals who have a Fannie Mae or Freddie Mac loan may be in a good position to refinance now. Both Fannie Mae and Freddie Mac have created some refinance options for their mortgage holders, even if they have zero equity remaining in their property. In some cases, leniency on credit and income may be considered for those that qualify for these exceptional programs.
“The real challenge is for those mortgage holders who have Jumbo loans. There are no government loan programs that help these people get leniency on refinancing if they lack sufficient equity, income or credit. The only option for these individuals is to contact their loan servicer directly to discuss a loan modification.”
Q. What message would you like to send to potential buyers?
A. “Now may be a great time to buy. Homes have depreciated significantly in some parts of Utah. It’s the biggest correction in home values in modern history.
“With current 30 year loan rates in the 5.0% to 5.50% range, these rates are still historically low. The combination of low interest rates and lower home prices indicates that this may be a good time to buy, especially for first time home buyers who may qualify for an $8,000.00 tax credit that has limited availability in 2009.
“If you are ready to buy a home, please contact an Axiom Financial Loan Officer to get properly pre approved to purchase a home. We do expect to see continued volatility in interest rates for the rest of this year. It would be wise to lock your rate in when you get an accepted offer on a property. This will protect you from the rate possibly rising as your transaction goes through the 30-45 day escrow process. In this current market, you might get a .125% fluctuation in interest rates on any given day. This is due to the daily economic news that ends up influencing the stock and bond markets. This is what moves mortgage rates up and down. The bottom line is there is more upward pressure on rates than there is downward pressure right now.”
For additional answers, please contact:
Casey Bauer
Axiom Financial
801-550-6120
casey@axiomfinancial.com
Q. What has happened with interest rates in the last month?
A. “In the last month we’ve seen rates go up as high as a full percent, then come down .50%. They’ve fluctuated dramatically over the past month, however, we are still near a 38 year low.”
Q. We are in the middle of a recession. Why is the Federal Reserve raising rates?
A. “Actually, The Federal Reserve isn’t raising rates. What has happened is Wall Street is concerned about the trillions of dollars being injected into the US economy via the Economic Stimulus Plan. They believe it will eventually lead to an improving economy, however, they also fear it will lead to inflation. Wall Street is always looking three to six months in the future in order to hedge its bets on a variety of investments, stocks, bonds, etc.
“About one month ago, many on Wall Street became convinced that we were going to recover from the recession later this year. They were seeing ‘Green Shoots’ of economic recovery everywhere they looked. As a result of that expectation, the stock market rallied, and the bond market sold off at a record pace. Mortgage bonds are the prime mover on mortgage rates. Rates shot up 1.0% in three weeks.
“Wall Street changes its theories on our economic future practically at the drop of a hat. Over the past week or so, Wall Street has decided that the recession is more severe than they had previously thought. Now they have concluded that we will not experience an economic recovery this year. As a result of this, the stock market sold off, and the bond market rallied. This dynamic action pushed rates lower. Rates have come back down approximately .50% from the 1.0% increase we previously had last month.”
Q. There are a lot of homeowners out there who may not currently be in trouble on their home mortgage but they would still like to refinance. What do you recommend for those individuals whose loan to value ratio has been compromised due to the current recession and/or they are nearing the end of their Adjustable Rate Mortgage (ARM)?
A. “Due to Obama’s Foreclosure Prevention’ plan, those individuals who have a Fannie Mae or Freddie Mac loan may be in a good position to refinance now. Both Fannie Mae and Freddie Mac have created some refinance options for their mortgage holders, even if they have zero equity remaining in their property. In some cases, leniency on credit and income may be considered for those that qualify for these exceptional programs.
“The real challenge is for those mortgage holders who have Jumbo loans. There are no government loan programs that help these people get leniency on refinancing if they lack sufficient equity, income or credit. The only option for these individuals is to contact their loan servicer directly to discuss a loan modification.”
Q. What message would you like to send to potential buyers?
A. “Now may be a great time to buy. Homes have depreciated significantly in some parts of Utah. It’s the biggest correction in home values in modern history.
“With current 30 year loan rates in the 5.0% to 5.50% range, these rates are still historically low. The combination of low interest rates and lower home prices indicates that this may be a good time to buy, especially for first time home buyers who may qualify for an $8,000.00 tax credit that has limited availability in 2009.
“If you are ready to buy a home, please contact an Axiom Financial Loan Officer to get properly pre approved to purchase a home. We do expect to see continued volatility in interest rates for the rest of this year. It would be wise to lock your rate in when you get an accepted offer on a property. This will protect you from the rate possibly rising as your transaction goes through the 30-45 day escrow process. In this current market, you might get a .125% fluctuation in interest rates on any given day. This is due to the daily economic news that ends up influencing the stock and bond markets. This is what moves mortgage rates up and down. The bottom line is there is more upward pressure on rates than there is downward pressure right now.”
For additional answers, please contact:
Casey Bauer
Axiom Financial
801-550-6120
casey@axiomfinancial.com
Subscribe to:
Posts (Atom)
Posts
