Archive for the ‘Market Conditions’ Category
Tuesday, January 11th, 2011
Today, James Wood, the Director of the University of Utah’s Bureau of Economic and Business Research released his 2011 Salt Lake Housing Forecast. Wood discusses each of the negative aspects of our current economy which have pushed us to such a reduced demand for homes in Salt Lake County. He pointed to the declining number of jobs, consolidation of households, reduction of migration, increase in foreclosures, and the negative equity situations of many home owners as the causes of our current market.
After outlining the negative circumstances of our current economy, James Wood directs our attention to the best market indicators for forecasting the future of the market in Utah. Now that prices have come down to the most affordable prices we have seen in some time, improvements in the unemployment rate (including very positive projections by the Dept. of Workforce Services), and “pent-up housing demand,” Wood predicts we will see prices stabilize considerably this year and the number of home sales will continue to increase.
While most of the forecast weighed me down with all the negative circumstances leading to our current market conditions, Wood’s final statements were positive yet realistic for the direction of our community’s future market.
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Tuesday, May 25th, 2010
The National Association of Realtors released first quarter home price statistics for 152 metropolitan areas showing that 91 of those areas saw increases in sales prices as compared to the same quarter last year.
(more…)
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Wednesday, December 2nd, 2009
In Utah, fewer homeowners are underwater when it comes to the value of their homes, according to a new report by American First CoreLogic. At the end of this year’s third quarter, 18 percent of Utah residential properties (40,801) with a mortgage were in negative equity — meaning borrowers owed more on their mortgage than their home was worth. (more…)
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Tuesday, November 24th, 2009
According to an Associate Press article, home sales rose 10.1% nationally in one month, from September of this year to October, and up nearly 36% since things hit bottom in January. The article gives the bulk of the credit for such a climb to the approaching expiration of the $8,000 tax credit offered by the federal government. Additional props are given to lower home prices and other federal programs to lower mortgage rates. During the month of October, some areas of the country reported bidding wars on properties. (more…)
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Monday, November 2nd, 2009
The US Department of Commerce released an advanced estimate of the GDP for the third quarter of 2009 on Friday. This report estimates the Gross Domestic Product (the output of of goods and services produced in the US) to be up 3.5 percent, the first increase in over a year. (more…)
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Wednesday, October 7th, 2009
Yesterday, Builder Magazine released their Healthiest Housing Markets Research Report and Salt Lake City was ranked #8 in the Nation. (more…)
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Thursday, May 28th, 2009
A new report from the American Legislative Exchange Council (ALEC) offers a roadmap to recovery based on economic performance trends from states over the last 10 years.
Author Dr. Arthur B. Laffer and his co-authors, Stephen Moore, senior economics writer at The Wall Street Journal, and Jonathan Williams, director of the Tax and Fiscal Policy Task Force for ALEC, found that, “states with a high and rising tax burden are more likely to suffer through economic decline, while those with lower and falling tax burdens are more likely to enjoy robust economic growth.”
TOP FIVE STATES BOTTOM FIVE STATES
1. Utah 46. New Jersey
2. Colorado 47. Maine
3. Arizona 48. Rhode Island
4. Virginia 49. Vermont
5. South Dakota 50. New York
See the article here.
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Thursday, April 2nd, 2009
Money Magazine had an interesting article it posted today about when home prices are going to hit bottom. This article mostly covered the national scene, but they provided a great link to a page specific to Salt Lake City.
Before I go on with the article they published, I want to discuss a little about their SLC specific predictions. According to their Real Estate 2009 List, Utah could be in a pretty good situation compared to other areas of the country. In 2008 our median home price was $230,000 with a 3.5 rating on the affordability index. We have only been in our “decline” for about a year.
The good news to buyers and sellers its that when we hit “bottom” home values will go as low as they were in 2006. That seems pretty good considering other places have home values plummeting to levels that haven’t been witnessed in decades. SLC will be set back only a few years.
Back to the article titled “When home Prices Hit Bottom”, they make a very good point. For years, REALTORS® were telling you “Your home is your biggest investment”. While this is true, your home is also your primary residence. Many agents I know, myself included were quick to point out that “yes, it is an investment, but it is also a place to live, so don’t try to use it to make money, use it to provide a roof over your head and a place to house your family”.
The article provides some advice for buyers, sellers, and investors of when they should buy and sell based on the statistics they see. While the article offers some good advice, it is important to remember these are just suggestions. Some of the factors that decide what a seller or buyer can and can’t do are out of their control.
Overall, I suggest taking a look at it. The article can be found here on Money Magazine’s website.
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Thursday, March 19th, 2009
I’m often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don’t know where the bottom is until you see it in the rear view mirror, meaning until you’ve missed it!
Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!
While a home is a major investment, it is also the center of your personal life. It’s important to live in a home that reflects your taste and values, yet is within your financial “comfort zone.” To that end, it may be more important to lock in today’s relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.
Please give me a call if I can be of any assistance in determining how much home you can afford in today’s market.
Posted in Buying, Market Conditions | No Comments »