So the average price of a home has increased in Salt Lake County from
$224,641 in 2005 to $298,214 by the end of the second quarter in 2007.
Seems like a substantial jump doesn't it? I'm sure that we have lost many of the buyers who would be available to purchase first time homes, because we don't have that many homes in the price range.
So you can imagine that areas like Rose Park, Glendale, parts of West Valley and Kearns will see prices continue to increase at a fairly good rate because there is a lack of inventory for affordable housing and a lot of competition for that limited supply. If you are an investor these areas should be good places to invest for longer term holding and appreciation. In fact, we just sold a home to a client of ours on Valentine St. in Rosepark (a phenomenal area for those who haven't visited it between 600 N.-1500 N. and 700 W.-1700 W.) and he had 6 applicants for rent within the first week. He rented it at $1200 per month and has a great tenant. Given the fact that he put 20% down, he has a nice cash flow position and an asset that is appreciating.
Utah currently has some of the lowest vacancy rates in history for tenant occupied properties. Therefore the demand is up and the rental rates go up along with demand. Also, Utah is still top in the nation in economic growth and population growth boasting the lowest unemployment rates in the nation as well, around 2.7%.
Just thought you may want to hear some news that would be pertinent to you, rather than all the doom and gloom we here in the national media.
Thursday, November 1, 2007
Wednesday, October 17, 2007
The Truth About Salt Lake County Real Estate Market
This is a letter that I sent out to my real estate clients. Because we've heard so much negative press about the real estate market on a National level, we wanted to have a better perspective of what is happening locally.
A Truthful Look at the Salt Lake County Real Estate Market-October 2007
Have you been watching and reading the Doom & Gloom Real Estate Reports on the news and in the paper lately thinking, “Oh My Gosh, this sounds bad, the real estate market must be suffering?” Well as your friend and expert in Real Estate I wanted to drop you a line and share with you the truth about our current real estate market.
There are many places in the U.S. where the real estate market has declined, with Detroit and in Florida being the hardest hit. As a result, mortgage lenders are adjusting their criteria on how they qualify buyers for loans. The mortgage guideline changes are nation-wide and will affect how our Utah buyers qualify for a mortgage loan.
The Fair Isaac Company, which is the company that establishes your credit score, is going to change the criteria they use to determine credit scores this year. They are going to add two more qualifying criteria that will cause buyers that have a history of judgments or bankruptcy on their public record, to be judged a bit more harshly in some cases. This means that if a buyer had marginal credit scores but could still get a loan in June, may not be able to qualify for a home loan at all at this time. In other words, the Disneyland of Mortgages, where if you could just fog a mirror you could qualify for a mortgage is gone. Now you have to have decent credit, not perfect credit, in order to qualify – and that is how it should be.
Even President Bush understands that there are many mortgages out there that have the potential to hurt a lot of American Families, as well as the lenders and our economy. He recently announced the HUD’s Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. There are particular guidelines that must be met but If YOU or someone you know is in this position, please CALL ME, I can put you in touch with someone who can help and explain the new programs to you!
Here is some really great news: Interest rates are at a 3 month low today on 30 year mortgage fixed rate being about 6.25% at an APR of 6.75%. There are some really positive things happening in our real estate and mortgage market. Yes, qualification has gotten a little tougher but there are still many loan programs available to meet a variety of financial needs. Lenders are also beginning to bring back much needed loan programs to help more borrowers qualify.
The truth in the Salt Lake market is that it is a buyer’s market in spite of our strong economy and low unemployment rate. Because of issues in the mortgage market, we have lost qualified buyers. This has resulted in more inventory or more homes for sale in the market place. Right now there are many builders, because of the tightening of the mortgage guidelines are without buyers for their newly built homes. Incentives are being offered at record discounts as well as price reductions to attract new buyers to their homes and compete with other builders in the area. Now is a better time to be a buyer than any other in the past 3 years! There are twice as many homes to choose from, and sellers are MOTIVATED to sell due to the increased competition and longer time to sell. For sellers, homes that are priced right will sell. They may not sell as fast as they have in the past while we were in a seller’s market. Well priced homes will always sell; it just may take a little longer. There will always be buyers looking for homes regardless of the market. Our expectations just need to be readjusted to current market conditions.
We have a strong Utah economy with good loan programs still available and even better interest rates. Loan programs are coming back and will strengthen our real estate market. We are still in great real estate market; so when you or someone you know is ready to make a move I am going to count on you to give me a call. Also, if you have ever thought about investing in rentals or flips, give me a call - Now is a GREAT TIME to get started!
A Truthful Look at the Salt Lake County Real Estate Market-October 2007
Have you been watching and reading the Doom & Gloom Real Estate Reports on the news and in the paper lately thinking, “Oh My Gosh, this sounds bad, the real estate market must be suffering?” Well as your friend and expert in Real Estate I wanted to drop you a line and share with you the truth about our current real estate market.
There are many places in the U.S. where the real estate market has declined, with Detroit and in Florida being the hardest hit. As a result, mortgage lenders are adjusting their criteria on how they qualify buyers for loans. The mortgage guideline changes are nation-wide and will affect how our Utah buyers qualify for a mortgage loan.
The Fair Isaac Company, which is the company that establishes your credit score, is going to change the criteria they use to determine credit scores this year. They are going to add two more qualifying criteria that will cause buyers that have a history of judgments or bankruptcy on their public record, to be judged a bit more harshly in some cases. This means that if a buyer had marginal credit scores but could still get a loan in June, may not be able to qualify for a home loan at all at this time. In other words, the Disneyland of Mortgages, where if you could just fog a mirror you could qualify for a mortgage is gone. Now you have to have decent credit, not perfect credit, in order to qualify – and that is how it should be.
Even President Bush understands that there are many mortgages out there that have the potential to hurt a lot of American Families, as well as the lenders and our economy. He recently announced the HUD’s Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. There are particular guidelines that must be met but If YOU or someone you know is in this position, please CALL ME, I can put you in touch with someone who can help and explain the new programs to you!
Here is some really great news: Interest rates are at a 3 month low today on 30 year mortgage fixed rate being about 6.25% at an APR of 6.75%. There are some really positive things happening in our real estate and mortgage market. Yes, qualification has gotten a little tougher but there are still many loan programs available to meet a variety of financial needs. Lenders are also beginning to bring back much needed loan programs to help more borrowers qualify.
The truth in the Salt Lake market is that it is a buyer’s market in spite of our strong economy and low unemployment rate. Because of issues in the mortgage market, we have lost qualified buyers. This has resulted in more inventory or more homes for sale in the market place. Right now there are many builders, because of the tightening of the mortgage guidelines are without buyers for their newly built homes. Incentives are being offered at record discounts as well as price reductions to attract new buyers to their homes and compete with other builders in the area. Now is a better time to be a buyer than any other in the past 3 years! There are twice as many homes to choose from, and sellers are MOTIVATED to sell due to the increased competition and longer time to sell. For sellers, homes that are priced right will sell. They may not sell as fast as they have in the past while we were in a seller’s market. Well priced homes will always sell; it just may take a little longer. There will always be buyers looking for homes regardless of the market. Our expectations just need to be readjusted to current market conditions.
We have a strong Utah economy with good loan programs still available and even better interest rates. Loan programs are coming back and will strengthen our real estate market. We are still in great real estate market; so when you or someone you know is ready to make a move I am going to count on you to give me a call. Also, if you have ever thought about investing in rentals or flips, give me a call - Now is a GREAT TIME to get started!
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