Home Sales Expected to Improve in 2015, but Some Headwinds Still Remain

                                              

NEW ORLEANS (November 7, 2014) – Existing-home sales are expected to be higher next year and prices will remain at a healthier level of growth that benefits both buyers and sellers, according to an economic forecast at a residential forum during the 2014 Realtors^® Conference & Expo.

Lawrence Yun, chief economist of the National Association of Realtors^®, was joined onstage by Mel Watt, Director of the Federal Housing Finance Agency, who discussed issues preventing consumers from becoming homeowners, and Julián Castro, Secretary of Housing and Urban Development, who kicked off the forum with a video address.

Yun said existing-home sales this year got off to a slow start, but have recently shown stronger growth behind improvements in inventory, slower price gains and pent-up demand.
“The improving job market has consumers feeling more confident, and the rebound in home prices is building household wealth for homeowners and giving them the ability to sell after waiting the last few years,” said Yun.

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Rents are Shooting Up!

Renters Face Affordability Crisis

With increased competition for units, rents are shooting up, and the increases are biting renters’ wallets as they find themselves increasingly getting priced out of the market, with wages failing to keep pace.

When Will They Buy?
Renters May Grow by 6 Million in Next Decade
Top 10 Reasons Renters Keep Renting
14 Priciest Neighborhoods for Renters

Nationwide rents have risen about 6 percent from a year ago, due to rising demand and still-limited supply, CNBC reports. Renters in San Francisco, San Diego, Boston, Baltimore, Washington, D.C., and Chicago are paying more than 30 percent of their wages on a two-bedroom rental, according to an analysis by Trulia. Financial experts often recommend spending no more than 30 percent of wages on housing expenses.

Click here for entire report...

Daily Real Estate News | Monday, November 10, 2014

Definite Benefits of Home Ownership

The Benefits Of Home Ownership

The decision to purchase a home is exciting and a major investment for your future.  Because there is only so much of it to go around, real estate is the top choice for many investors and the desire for most families.  This article is designed to highlight some of the many benefits of home ownership and how buying a home can often turn the American Dream into a reality.

One of the most profitable markets in real estate is rentals, which means that many families are paying to live in a home that isn't their own.  In some cases, renting a home is necessary.  For all others, the money that would be spent on rent could instead be used to pay a mortgage.  In fact, monthly rent payments often exceed that of a typical mortgage payment.  One of the greatest benefits of home ownership is putting money into something that you can call your own and knowing that the monthly payments are going toward your home's equity.

Speaking of equity, many properties experience a growth in value as more development moves into the area or the economy strengthens through an increase in job opportunities.  If this happens, home values soar and owners can bask in the glory of their newfound profit.  When you purchase a new car, it depreciates the moment that you drive off of the lot.  When you buy a home, however, it has the potential to appreciate year after year.  There are few things in life that can offer you a return above and beyond your original purchase price, but a home can.

When you own a home, you will enjoy the freedom of decorating and making any changes that you choose without needing the permission of a landlord or property owner.  In addition, you may even be able to use your home's equity to finance some needed improvements and/or repairs.  In some cases, these changes may even increase the value of your home.  An upgraded kitchen or bathroom, hardwood flooring or an additional room are examples of changes that could result in added value.

Another advantage of home ownership is the tax benefits that are available.  The interest paid on a home mortgage as well as most property taxes paid are tax deductible.  For additional information on deducting mortgage interest and property tax, consult the IRS or a tax professional.

In addition to providing yourself and your family with a feeling of stability and permanence, home ownership can also help strengthen your credit profile through timely mortgage payments and a steady financial history.

Home Sales Report 3rd Quarter -Salt Lake County

SALT LAKE Q3 HOME SALES REPORT

Sales of single-family homes in Salt Lake County were down 3 percent in the third quarter (year-over-year), according to the Salt Lake Board of Realtors® Quarterly Home Sales Report.

In the first nine months of 2014 single-family home sales in Salt Lake County dropped 5 percent compared to the first nine months of 2013.

Other surrounding counties saw a rise in Q3 home sales: Davis County (up 10 percent); Tooele County (up 9 percent); Utah County (up 2 percent); and Weber County (up 10 percent).

“The slowdown in home sales in Salt Lake County is tied to the area’s higher median home price,” said Angie Domichel Nelden, president of the Salt Lake Board of Realtors®.

“Salt Lake County’s median home price in the third quarter was $257,000, considerably higher than Davis or Utah counties where the median home p rice was $230,000 and $243,000 respectively.”

In the third quarter the median home price in Salt Lake County increased to $257,000, a 1 percent rise compared to a median price of $255,000 in the third quarter of 2013 Courtesy of Salt Lake Board of Realtors® Oct. 28, 2014

Please contact me and I will send you a "FREE" Market Snapshot of all the homes that are for sale, under contract, Sold, Foreclosures, Short Sales in your neighborhood.

    Get a feel for the market!  

 
Home Selling Tips Every Seller Should Know

NEW LISTING - UNDER CONTRACT WITHIN 2 WEEKS AND SOLD!!!!

Buying a Home 38% Cheaper Than Renting – But How Risky Is It?

Though the gap is narrowing, buying costs less than renting in all 100 large U.S. metros. But uncertainty about future home price appreciation means buying isn’t always a safe bet.

Jed Kolko, Chief Economist Jed Kolko, Chief Economist February 26, 2014 Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing.

Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally, versus being 44% cheaper one year ago. The rent versus buy math is different in each local market. Buying ranges from being just 5% cheaper than renting in Honolulu to being 66% cheaper than renting in Detroit. 

But even for a specific market, the cost of buying versus renting depends on how much home prices rise (or fall) after you buy. Our model assumes conservative home price appreciation, but – as we all know after the last decade – home prices can unexpectedly rocket or plummet. This edition of Trulia’s Rent vs. Buy Report focuses on how different home price assumptions can affect the math for someone deciding to buy or rent today.  

To read entire report click here

SALT LAKE REALTORS MAGAZINE FEBRUAR 2014

CHECK OUT PAGE 28

Salt Lake Realtor Magazine

Publish at Calameo or read more publications.

US DEBT CLOCK

SMALL INVESTMENT . BIG RETURN

Doing some upgrading before selling your home?

Consult with your agent first

Twice recently I have been called by sellers who will be listing their homes and have been asked for advice on improvements they want to make.

This is a smart, proactive move on the sellers’ part as they want to make their homes as marketable as possible but do not want to over-improve and get little in return for their investment.

Real estate agents are in the trenches, see many, many homes, and are in sync with what appeals to buyers.  Where can you get better advice on what might be done and how it should be done to 
maximize the return on the investment made?

Two examples that came to mind were sellers I helped — one who made mistakes in upgrading and the other who did everything right.

Big investment, small return

The work was already done when I was called for the listing appointment.
The kitchen had been upgraded with high-end cabinetry, granite countertops, custom tile flooring and a SubZero refrigerator and Viking 6-burner cooktop. A dream kitchen for the owner.

However, this kitchen belonged in a house twice the value of their house. The house sold, but the sellers only recouped a small fraction of their kitchen investment.

Small investment, big return

A condo had a kitchen that was tired and worn out.
I recommended a kitchen makeover which cost $6 thousand; including stainless appliances.

The owner really thought there should be granite countertops.  I advised not to spend the money, but to get a laminate that had the faux granite appearance.
The kitchen came out beautifully and the condo sold quickly, for $20 thousand more than a comparable unit that had an original kitchen.

So, if you are thinking of selling your home and possibly making some improvements prior to listing, please contact a real estate agent FIRST who has a handle on the local market and knows the inventory.  It will be the best advice you can get and will likely put money into your pocket instead of taking it out.


by Barbara Altieri on Feb 17, 2014 • 7:05 am
SECB.com

Existing-Home Sales Drop in January While Prices Continue to Grow

Existing-Home Sales

Data

The Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes.

Latest News

WASHINGTON (February 21, 2014) Existing-home sales fell in January to the lowest level in a year-and-a-half, but ongoing inventory shortages continue to lift prices in much of the U.S.
Read the full news release
View supplemental market data (Excel: 29KB) Summary of December 2013 Existing Home Sales Statistics (PDF: 398 KB)

Lenders Rush to Unload REOs, As Home Prices Rebound

BANKS  UNLOAD REOs

The recovery in home prices this year is prompting banks to sell off their REO inventory at a brisker pace. Sales of bank-owned homes made up 10 percent of residential sales in November, the third consecutive month for increases in REO sales, RealtyTrac reports. 

"Lenders are taking advantage of this environment to unload more of their bank-owned inventory and in-foreclosure inventory at the foreclosure auction," says RealtyTrac's Daren Blomquist. "But as the backlog of distressed inventory available dries up in many of the markets with the most efficient foreclosure processes — namely California, Arizona, and Nevada, with Georgia not far behind — overall sales volume is declining and will continue to do so until more nondistressed sellers enter the market."

Rick Sharga, executive vice president at Auction.com, says his company is “seeing more properties sold at trustee sales, and we are seeing more properties that are coming from servicers priced to sell at trustee sales.” 
Previously, mortgage servicers would put foreclosed homes up for sale at the full value of the loan, CNBC reports. However, those homes would often land back at the bank as investors sought larger discounts. “Ironically, as prices are rising, servicers are discounting the homes more,” CNBC reports.

Source: “Sales of bank-owned homes surge,” CNBC (Dec. 20, 2013)
Daily Real Estate News | Thursday, December 26, 2013 

Monday February 17th, 2014 - President's Day

George Washington was the first president of the United States of America. His first term as president was from 1789 to 1793 and his second term from 1793 to 1797. Before he became president, he played important roles in the military, leading the American Continental Army to victory over the British in 1783. Washington is often seen as the father of the United States and is probably the best known American politician ever.
The likeness and name of George Washington can still be seen in many places in the United States. There is the portrait of him and three other American presidents carved into Mount Rushmore National Memorial in South Dakota. His image is also used on the one-dollar bill and the quarter-dollar coin. The capital of the United States, Washington D.C., Washington State and at least three universities are named after him.
Washington's Birthday was first celebrated as a holiday in the District of Columbia in 1880. It was made a federal holiday in 1885. The holiday was originally held on the anniversary of George Washington's birth, on February 22. In 1971, this holiday was moved to the third Monday in February.
This holiday is legally designated as "Washington’s Birthday". Though other institutions such as state and local governments and private businesses may use other names, it is the federal government’s policy to always refer to holidays by the names designated in the law.

Weekly Events in Salt Lake City and Beyond...

Weekly Event Update

February 4, 2014

EVENT SPOTLIGHT:

Cirque Ziva: Golden Dragon Acrobats February 6-8, 2014 De Jong Concert Hall - Provo Cirque Ziva, a technically innovative, beautiful new show from the artistic director of the Golden Dragon Acrobats, features a large, athletic cast and spectacular scenic and lighting elements. With superb artistic merit, high production values, and a solid commitment to cultural exchange, Cirque Ziva demonstrates why the Golden Dragon Acrobats have been recognized as the preeminent Chinese acrobatic company touring the United States. < More Info

FEATURED EVENTS:

Robert Burns Celebration: Moab Music Festival February 8, 2014 Grand Center - Moab     Christopher Layer and Kate MacLeod will host The 10th Annual Robert Burns Celebration with the Moab Community Dance Band. The sounds of the Scottish Great Highland Pipes, songs, poetry and the aroma of steaming haggis fill "The Great Hall" to celebrate the life and works of poet Robert "Rabbie" Burns. The event is free but donations are accepted at the door. Proceeds benefit the Moab Music Festival Educational Outreach Fund.   < More Info

Olympic Inspiration Day February 8, 2014 Discovery Gateway - Salt Lake City     Celebrate the start of the 2014 Winter Olympics and be inspired by local Olympic athletes during a meet and greet at the museum featuring, Paralympian Medalist Muffy Davis, Olympic Gold Medalist freestyle skier Nikki Stone, three-time Olympic freestyle skier Tracy Evans and bobsled Silver Medalist and head of the Utah Olympic Park's G-Force program Valerie Fleming. Create Olympic torches, mascot puppets and logos for helmets and skis, then get moving and complete a kid-sized, Olympic-themed obstacle course and receive your own medal!   < More Info

Jazz Reach Presents Metta Quintet February 10, 2014 Cache Valley Center for the Arts - Logan   A cohesive, tight-knit unit featuring some of today's most esteemed, creative artists, Metta Quintet is fueled by a collective, open-minded musical curiosity and dedicated to exploring new artistic territory while maintaining a passionate commitment to arts education, fostering new audiences and nurturing young talent.   < More Info