Utah Real Estate News

August 21, 2009

Utah Real Estate Lags Behind U.S. Trend

Utah seems to always follow the national trends by a few months. Traditionally, Utah real estate peaks are never as high nor are the lows as low as the national trends. Reports this morning showed the largest real estate gain in a decade. The seasonally adjusted rates showed a gain of 7.5% in July compared to the previous month. All regions in the country except the west showed positive gains.

By Region: (Source: National Association of Realtors)

• The Northeast surged 13.4 percent to an annual pace of 930,000 in July, and are 3.3 percent higher than July 2008. The median price in the Northeast was $236,700, down 15.0 percent from a year ago. 
• Existing-home sales in the Midwest jumped 10.9 percent in July to a level of 1.22 million and are 8.0 percent above a year ago. The median price in the Midwest was $157,200, which is 5.9 percent less than July 2008. 
• In the South, existing-home sales rose 7.1 percent to an annual pace of 1.95 million in July and are 5.4 percent higher than July 2008. The median price in the South was $164,500, down 7.1 percent from a year ago. 
• Existing-home sales in the West slipped1.7 percent to an annual rate of 1.13 million in July, but are 1.8 percent above a year ago. The median price in the West was $202,300, which is 28.0 percent below July 2008. 

August 14, 2009

Federal Reserve Declares Recession is Ending

In their policy making meeting this past Wednesday, the Federal Reserve declared the recession is ending and they would be returning to more normal practices.

The also indicated that they thought inflation would be under control for some time and that economic activity is leveling out.

The Federal Reserve indicated they would keep the short term interest rates near zero and would end it's policy of buying Treasury Bonds by the end of October. They have been doing this to keep the interest rates low.

They concluded that things are going according to plan.

August 13, 2009

Foreclosures up 7% in July

In July the number of U.S. home owners on the brink of foreclosures rose 7 percent over the June report. This was up 32% from July 2008.

According to RealtyTrac Inc over 360,000 home owners received foreclosure notices of default. That is approximately one in every 335 homes. This is the highest monthly level reported since RealtyTrac began publishing data over four years ago.

Banks across the country repossessed 8,000 more homes in July over June. The number of repossession increased from 79,000 to 87,000.

Historically, Utah real estate seems to always be a little behind the U.S. trends. However, Utah has ranked anywhere from 5th to 15th as the highest number of foreclosures during 2009. This means that there will likely be additional inventory for months to come as new foreclosures come onto the market.

If the number of foreclosures remains high, the prices of homes are not likely to increase substantially in the coming month.

August 11, 2009

Pending Home Sales are Up

According to the National Association of Realtors (NAR), pending home sales are up nation wide for the fifth consecutive month. This is the first time since July 2003 that sales have been up for five consecutive months.

Although these trends are also up in the Utah Real Estate market, the sales level in the west for June 2009 was 0.2% below June 2008. This means the total sales are lower than last year, but appear to be rebounding.

Lawerence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains. These include historically low interest rates, affordable home prices and a large inventory of homes. The greatest activity has been in lower priced homes, primarily because first time home buyers have decided this is the best time to buy a new home.

Act Soon to Take Advantage of the $8000 Tax Credit

It may take as long as two months to close on a home after signing a contract. So, first-time home buyers (or buyers that have not owned a home for the past three years) must act soon if they are to take advantage of the $8,000 tax credit. To qualify for this tax credit, the home must be closed by November 30, 2009.

August 7, 2009

Watch Out for Swings in Interest Rates

On Wednesday of this week, Taylor Bean Whitaker, one of the largest wholesale sources of financing was shut down by the FHA. Taylor Bean Whitaker had been servicing about 3% of the loans. This will probably cause some real swings in interest rates in the days ahead.

Mortgage Guidelines Have Changed

On July 30, 2009 the Mortgage Disclosure Improvement Act (MDIA) went into effect. This new law changes the Truth in Lending (TIL) disclosure guidelines. According to mortgage experts, there are two things buyers need to be aware know.

First, the lender cannot charge the buyer any fees until the buyer has received the TIL disclosures. If these are mailed to the buyer, there is a minimum 3 day waiting period. This also means the order of the appraisal will be delayed.

Second, if the fees change more than $100 or the Annual Percentage Rate (APR) changes more than 1/8%, the lender must reissue the TIL disclosure statements to the buyer. Again, there is an additional 3 day waiting period.

The bottom line is this: It will take more time to close your home than previously, so be sure to include this additional time in your overall plans. The good news is that there should not be surprises at the closing table.

August 6, 2009

Since January of 2009 in Utah County, the average number of sales of short sales and foreclosures has bounced between 25-30% of the total home sales.

One fact that stands out is that approximately 75% of all distressed properties in Utah and Salt Lake Counties have sold at or above list price.

What this may mean for the buyer is simple... if you find a distressed home (short sale or foreclosure) that you really like and is already well priced in the market, you need to consider a full price offer if you expect to get the home.

August 4, 2009

According to the National Association of Realtors (NAR), low mortgage rates have lifted housing affordability to an all time high. Sales are picking up in many areas.

Take Advantage of the $8000 Tax Credit

Buyers who have not owned a home for the past three years can still take advantage of the $8000 tax credit. However, this tax break expires at the end of November 2009. That means you have to close the sale of your home by then... so the time to look hard is now.

August 3, 2009

Utah County Real Estate Statistics - July 2009

For the month of July, there were 456 homes sold in Utah County. This included 68 short sales and 46 were foreclosures

American Fork had 23 total home sales for July. Three of these were short sales and one was bank owned.

July 1, 2009

Utah County Real Estate Statistics - June 2009

There were 475 total homes sold in Utah County during the month of June. This total included 81 short sales and 60 foreclosures.

There were 27 homes sold in American Fork. Of those 27 homes that sold, five were short sales and three were foreclosures. It was interesting to note that three of the short sales and two of the foreclosures sold at or above list price. This follows the same pattern for several months, i.e., that most of the short sales and foreclosures are selling at or above list price.