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Watch Justin on HGTV's Bang For Your Buck's See details here
WHY CLIENTS CHOOSE ME
1. Rated in the top 10% of agents nationwide
in sales. See my resume
2. 32 closed transactions 2010 vs the average
of 4 for most realtors. See my 2010 transactions.
3. Chosen as HGTV’s Utah Real Estate Expert
4. Full Time Agent, with a Full time team.
5. Certified Short Sales & Foreclosure Specialist with
the National Board of Realtors.
6. University of Utah graduate in Business Marketing.
Read more
Experience Knowledge Ethics
Compared to 2010, sales were nearly 9 percent higher, the result of increased homebuyer confidence, affordable home prices and record-low interest rates. Even though sales faltered during the spring, they picked up significantly at the end of the year.
Since July, monthly home sales have recorded double-digit gains compared to the prior year. Including the 9 percent increase from June, statewide sales have been up for seven straight months.
Among property types, single-family homes had the highest sales increases, up more than 10 percent compared to 1 percent for condos and townhomes.
The trend of rising sales should continue into this year. Pending sales, which measure contracts that have been signed to buy properties, were up more than 11 percent in 2011 compared to 2010.
The year 2011 was also significant because the market began to absorb excess supply. At the end of December, inventory levels were down nearly 24 percent. For the past 10 months, inventory declines have been in the double digits, with levels falling for more than a year. The number of homes on the market has not been this low since March 2007.
The effect of the steep inventory drop was to bring supply and demand more in line. The 20,243 homes listed for sale at the end of December represented a 7.2-month supply of inventory. That’s down more than 31 percent from the 10.5-month level in 2010. Traditionally, a market is balanced between buyers and sellers when the inventory represents a supply of about six months.
While prices remained weak in 2011, the reduced supply and increased demand suggest that trend will not continue. A new report from Fiserv and Moody’s Analytics this week predicts Utah home prices will have increased by the end of summer, with the state having the seventh-highest appreciation in the country.
The organization says from third quarter 2011 to third quarter 2012, Utah home prices will have increased 1.5 percent. During that same period from 2012 to 2013, Fiserv says values will be up 7.4 percent.
Of course, the forecast varies depending on the area. Fiserv says St. George will have the state’s strongest home price appreciation. By July, prices are expected to increase 4 percent from the previous year. Coming in second is the Logan metro area at 2.3 percent. In Ogden-Clearfield, Provo-Orem and Salt Lake, prices are expected to see slight increases, with no major Utah metro area forecasted to have a price decline
Read the full article here
utahhousingtracker.com
Appraisal issues – In many markets, we are still seeing declining values. Appraisers are in a difficult position, and with so many transactions (including seller’s concessions to assist buyers with closing costs) values aren’t always coming in at sales prices.
Short Sales not being approved by the current lender – With so many sellers owing more than their home is worth, buyers’ proposals need to be sanctioned by the lender (who will be receiving less than they are owed). Some of the offers are too low, but often, the lender isn’t local and they really don’t know what the property is worth today.
Bad pre-approvals from the loan officer – Today, loan officers who are not reviewing tax returns, analyzing bank statements, and asking for detailed explanations and documentation on credit blemishes, are truly hurting the customers. Issuing pre-approvals based on the representations of the customer is reckless and a cause for dismay later.
A lack of transparency – Whether it’s a seller or agent not disclosing property issues, or a buyer trying to sneak things by an underwriter, too many people think they can cut corners. That is not the world we live in anymore. Everything is uncovered. Being honest in the beginning, gives you the best chance to overcome obstacles.
It is clear by the numbers that closing loans can be more difficult today. However, with proper planning and integrity, many of the challenges can be dealt with early and successfully. Agents documenting values of the homes, loan officers doing complete reviews of the loan profile up-front, and everyone telling the truth helps get deals to a successful conclusion and avoids horror stories.
by Dean Hartman on January 26, 2012
Down Payment – You may have the required 10%-25% on the asking price of the home you are interested in but how you acquired it and how long you’ve had it could keep you from getting the home. Many times relatives offer young couples the down payment. Lending institutions take this into consideration when looking at the ability of a homeowner to keep up with mortgage payments. Saving the down payment over time lends to the credibility of money management.
Credit– Credit history is an ongoing process. Student loans are one of the first obligations a person may have as an adult. Late payments may have a bearing on your ability to acquire a home later in life. Credit scores are also affected by utility payments. Any recurring bill that is paid late may come back to haunt you even though your financial situation is now more sound. Your debt to income ratio ideally needs to be under 45%. Less than a 3 month asset reserve in a bank account will generally keep you from getting a home. Check your credit score with all 3 agencies and make sure there is nothing being reported incorrectly. You need to aim for a score of 660 or better.
Job Security – Your job history may be why you can’t get a home. Lenders look for stability. If you jump from job to job, regardless of monetary or career improvement, lenders see you as a financial risk. When the economy takes a downward turn, employers tend to retain employees with seniority. Also taken into consideration is the risk of the job.
Parent History – If your parents have a questionable credit history, you may be dealing under their shadow. If parents foreclosed, you may be affected. If they were late with mortgage or credit card payments, you may be looked upon as having the same traits. If you are asked information on parent particulars, you may need to look elsewhere for home financing.
Location – The location of a home may affect whether or not a lender is willing to risk mortgaging it. LNG routes, Super Site areas, fault lines, destructive weather patterns all have bearings on mortgage risks lenders are willing to take on.
Inspection – More and more, home inspections are being required to seal the closing deal. Hopes have been dashed to learn major expenses must be incurred to pass inspection for the approval of the sale.
Condition – Fixer-uppers may offer pricing that appears affordable. If you have no background of construction or home improvement projects completed, lenders are leery to finance such undertakings. They may require a lump sum amount be in an account to cover the improvements necessary to ensure the property does not result in a loss to the lender.
Liens – If you owned property before and were subject to liens for unacceptable reasons such as credit card debt or unpaid taxes, you may not get the home you desire. A current homeowner may also have substantial liens that need to be satisfied at closing either from the sale itself or as additional costs to the buyer.
History – The history of the home may be the deciding factor that keeps a lender from financing in your behalf. A murder, haunting, nearby sinkhole, or other less favorable activity, bear upon the lender’s willingness to finance such a home.
The Bank – Economic conditions and bank lending history may be the reason you can’t get a home. Banks may be leaning toward only very secure clients to up their lending credibility. If a bank turns you down, look to other options before you decide to settle on thinking you can’t get a home. FHA, VHA, or a first time buyer program offer other alternatives for which you may qualify.
If you can’t get a home loan with one lender, chances are good that another institution will also turn you down. You should take some time and work at increasing the good points that will work in your favor. Try again when your situation has improved.
by Ann Douglas
Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS THE TIME TO BUY A HOME! In a recent article, Homes – Buy Now!, Talbott simply explains:
“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.”
He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:
Home Prices Relative to Peak Prices During the Bubble
Home Prices Relative to Construction Costs or Replacement Costs
Home Prices Relative to Incomes and Rents
Home Prices in Real Terms, Not US Dollar Terms
Bottom Line -If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy.
by The KCM Crew
1. Buyers Will Return
In 2011, a lack of consumer confidence in the overall economy dramatically impacted the housing market. Buyers were afraid to make a purchasing decision on any big ticket item. By the end of 2011, consumer confidence began to return and sales increased. Economic conditions will continue to improve throughout 2012 and consumer sentiment will solidify. Once that happens, home buyers will realize that now is the time to buy.
2. Foreclosures Will Increase
The ‘shadow inventory’ of foreclosures which has been growing since the robo-signing challenges of late 2010 will finally be introduced to the market. Distressed properties sell at discounted prices. They will impact the housing values of the non-distressed homes in the area.
3. Prices Will Soften
As more and more foreclosures come to market, there will be greater downward pressure on the values of houses in the region. Foreclosures impact values of non-distressed properties in two ways:
They will eat up some of the buyer demand in the market.
They will impact the appraisal on ALL transactions in the area.
4. Short Sales Will Increase
As mentioned above, we strongly believe that home prices will soften through at least the first half of 2012. Falling prices will force more homeowners into a position of negative equity. Negative equity is one of the triggers that cause people to strategically default on their mortgage obligations. If this happens, there could be an increase in the number of foreclosures. However, we predict that banks will take preventative measures which will help many of these homes avoid foreclosure by easing the requirements in the short sale process for both homeowners and real estate professionals.
5. Great Agents Will Be VERY Successful
Real Estate professionals who have invested the money, time and energy to truly understand what is happening and why it is happening will separate themselves from their competition and do very well this year.
Those who take that next step of learning how to simply and effectively communicate the market to their clients will be seen as industry leaders. These experts will dominate their markets.
The most prevalent question and one that continues to permeate the industry is:
“Why should a seller go through the short sale process rather than letting their house be foreclosed upon?”
While we cannot speak to every client circumstance, we can say one thing with complete conviction. In almost all instances in which a potential seller is contemplating whether they should short sell their house or let it go through the foreclosure process, a short sale is the better option. The following are examples to consider:
Example A- Short Sale
Mr. Smith owns a home in which he has a mortgage balance of $220,000 and a current market value of $150,000. Mr. Smith has elected to short sell his property. His Realtor successfully obtains a buyer who puts forth an offer price of $120,000 (80% current market value according to Realty Trac Foreclosure Report 5/26/2011). After reviewing the buyers offer and the financial hardship information from Mr. Smith, Mr Smith’s bank agrees to accept the short payoff of $120,000 which would leave a deficiency balance of $100,000.
The transaction closes and is final. Mr. Smith then pulls his credit report 30 days after the transaction takes place. On the report he notices that the mortgage trade line states “Mortgage debt was settled for less than full” and the balance on the mortgage is $0. Mr. Smith is now on the road to financial recovery.
Example B- Foreclosure
For the ease of illustration we will use the same value and mortgage debt amounts as in Example A. However, Mr. Smith has elected to forgo the short sale process and let the bank foreclose on the property. The bank holding his mortgage facilitates the proper legal procedures to foreclose on the property, all of which are costly. Mr. Smith is notified and his property foreclosed upon of which is taken back by the bank to sell as an REO.
Six months later, the bank finally sells Mr. Smith’s home only they sell it for $90,000 (60% of current market value according to Realty Trac Foreclosure report dated 5/26/2011). Remember, as a short sale, the home would have sold for $120,000 keeping the deficiency to $100,000. In addition to the deficiency now being $130,000, the bank has elected to add on legal costs of $15,000 and asset preservation costs of another $5000 for a total deficiency liability of $150,000. Mr. Smith pulls his credit report 30 days after being notified that the bank has sold his property and of his liability.
On the report he notices that the mortgage trade line states “Foreclosure” and the balance is $150,000. Because of Mr Smith’s choice to choose foreclosure vs. short sale his road to financial recovery has taken a major detour. He not only has a foreclosure on his credit report but now has a much larger deficiency balance in which the bank, in most cases, will report on his credit report as a balance owed.
The Best Option is Clear
While the financial and credit advantages are clear when choosing a short sale over a foreclosure, other advantages are sometimes overlooked. The most important of all of them is maintaining the seller’s dignity and peace of mind. We have heard too many stories of families having to leave their homes because of a Sheriff’s order or some other type of legal action. The short sale process alleviates this negative social impact. The process puts the control back in the seller’s hands so that they can get back on the road to financial recovery and start providing for their families. In the battle of the two evils, a short sale always wins!!!
KCM Crew
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Saturday Dec. 10th at 1pm MST
#8, Provo, Utah
Median income: $66,200
Cost of living score (average=100): 90.2
Student-friendly rank: N/A
Independent business score (average=100): 101.3
Unemployment: 6.6%
#5, Ogden, Utah
Nasa Videographer / Flickr
Median income: $70,600
Cost of living score (average=100): 90.5
Student-friendly rank: N/A
Independent business score (average=100): 99.2
Unemployment: 6.9%
READ THE COMPLETE STORY HERE
$52k New on Market! This property is a dump and needs some LOVE. It has room to fix and sell for a profit or fix and rent for cashflow. Priced at $52k, After Repair Value is $100k. Let me know if you are interested! Thanks. http://ate.com/1065232
The following are the eight cities that topped Builder’s list, including projected housing permits in 2011 and 2012.
1. Minneapolis-St. Paul-Bloomington Minn.-Wis.
2011 Building Permit Forecast: 4,511
2012 Building Permit Forecast: 10,118
Home prices here are expected to rise 8 percent next year, the highest growth projected in the 100 cities analyzed. As a hub for medical technology and headquarters for several large companies, employment is expected to grow 2.5 percent in 2012.
2. Fort Collins-Loveland, Colo.
2011 Building Permit Forecast: 1,004
2012 Building Permit Forecast: 1,650
With Colorado State University the major employer here and often ranked as one of the best cities to live in the country, households are expected to grow by 2.7 percent in 2012 and employment is expected to grow 2.6 percent. Housing permits are expected to rise 50 percent as well, according to Moody projections.
3. Salt Lake City, Utah
2011 Building Permit Forecast: 1,294
2012 Building Permit Forecast: 1,181
With lots of high-tech businesses, Salt Lake City is poised to have some grains in employment and income in the coming year. After a drop in home prices, prices are expected to rebound and increase 4.7 percent next year.
4. Jacksonville, Fla. 2011 Building Permit Forecast: 2,284
2012 Building Permit Forecast: 4,363
Jacksonville has a strengthening employment picture, with a military presence and a growing financial services sector. Employment is expected to increase 3.2 percent in 2012. With stabilizing home prices already, prices are expected to rise 5 percent next year and housing permits are expected to double.
5. Miami-Fort Lauderdale-Pompano Beach, Fla.
2011 Building Permit Forecast: 2,708
2012 Building Permit Forecast: 7,522
This metro area is expected to reverse course with jobs forecasted to grow by 2.7 percent, home prices stabilizing, and housing permits expected to double. The rebound is expected to be mostly driven by two major projects, the CitiCentre and Resorts World Miami, are expected to add tens of thousands of jobs in coming years.
6. Charlottesville, Va.
2011 Building Permit Forecast: 634
2012 Building Permit Forecast: 798
The city is home to the University of Virginia and also continues to attract a surge in second-home buyers from the Washington, D.C., area. Home prices are expected to rise 1 percent in 2012 and median income is forecasted to grow by 3.7 percent.
7. Colorado Springs, Colo.
2011 Building Permit Forecast: 2,099
2012 Building Permit Forecast: 3,639
The biggest employers in Colorado Springs are military bases and the Air Force Academy, which are expected to see big growth when the troops from Afghanistan return. Home prices are expected to rise 2.6 percent, employment to grow by 1.4 percent, and households to increase by 1.8 percent in 2012.
8. Oklahoma City, Okla.
2011 Building Permit Forecast: 3,417
2012 Building Permit Forecast: 5,284
At 6.1 percent, Oklahoma City has one of the lowest unemployment rates in the country. Furthermore, the job market is expected to continue to rise there, and incomes are projected to increase 3 percent next year. While the area has a seen a drop in home prices recently, housing prices are projected to rebound and increase 2.6 percent as Oklahoma City’s low cost of living continues to attract businesses and new households.
- Plan cautiously. Make all the changes you want on paper; they're expensive later.
- Prioritize. Decide where to economize and where to focus your funds.
- Shop critically. Avoid one stop shopping; you may end u paying too much for the convenience.
- Stick to standard and stock choices. Find out how much special finishes and colors will add to your costs.
- Understand the differences in materials. Consider long term value as well as initial cost.
- Don't be swayed by status. Does that stylish product really suit your needs? And will you still like it next year?
- Refurbish and recycle. Can you reuse windows, doors, appliances, and other equipment instead of replacing them?
- Keep the structural framework. Before adding on, explore the more economical possibility of reconfiguring the existing space.
- Pay for professional advice: A skilled designer of architect can help stretch your budget.
- Do some of the work yourself but take care not to overestimate your zeal or skill.
I am always fascinated by mortgage underwriting “standards” when they don’t even take into account some very large variables that affect an applicant’s cash flow, and thereby, their ability to repay the loan or maintain a lifestyle they want:
Are you single or a family of six? Costs for food and clothing alone are very different.
Do you live in a state that requires State Income Tax or not? Another significant part of the equation.
How often do you like to eat out or vacation? Are you willing to sacrifice these things for a bigger or nicer home?
Falling in love with a home without considering the REAL impact on your lifestyle is a recipe for unhappiness….either in re-adjusting to a “lesser” home or disappointment over the lack of vacations or nights out.
My advice is to first work on your financing. Go the logic route. Find out what you can afford from a lender’s underwriting perspective, but then, spend some time considering the the cash flow realities of your choice. Work with your loan officer to make wise choices.
Additionally, your loan officer should be advising you on ways to properly represent and transfer your assets, how to explain and document your income, as well as, assisting you in methods to get your optimal credit score. This counsel can be invaluable in smoothing out some of the bumps in the mortgage process, besides giving you the best chance to get the most aggressive pricing available.
To me, the choice is crystal clear…the mortgage before the house!
by Dean Hartman - KMC
We believe very strongly that now is the time to buy a home. Some will say we are just saying this to create real estate transactions and commissions. Because of that, today we will quote what those outside the real estate profession are saying to the people who look to them for financial advice.
The Wall Street Jornal Last week, in an article entitled It’s Time to Buy That House, the WSJ told their subscribers:
“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”
In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers:
“Now could be the best time in history to buy a home.”
Forbes.com
In a report to their subscribers, Capital Economics reported that:
“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”
Why is this important? Last week, Forbes explained to their readers:
“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation).”
They went on to explain the advantages of homeownership during retirement:
“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…
At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage. How much less would you have to save for retirement if you didn’t pay the mortgage?”
Bottom Line....
When the iconic financial newspaper and the iconic financial magazine say that it now makes financial sense to purchase a house, perhaps it’s time to buy a home.
ShareShare As underwriting guidelines for lenders become more stringent, we need to re-examine what a good mortgage application looks like. As home buyers begin their search for a home, there are a few items they should be aware of that they can do to help get their loans approved (with the best possible terms), and, at the same time, lessen some of the stress that goes along with the mortgage process.
1. Income documents
Most lenders want to see a full month of paystubs and two years’ complete Federal Tax Returns. Assembling them ahead of time and holding on to every paystub you get is a good idea even before you find a home and/or submit your mortgage application because it will save you time later. Moreover, looking at those documents and being prepared to explain any deductions that show up is crucial. Child support, alimony, garnishments, and Unreimbursed Employee Expenses are often crippling factors that, if explained and dealt with upfront, can make your loan approval smoother.
2. Asset documents
Most lenders will scour your bank accounts for the two months prior to going to contract. They are looking for large deposits because large deposits can signal a new loan that wouldn’t show up on your credit report yet. What’s a “large deposit”? Typically, any deposit that would represent more than your income can support. If you make $5000 a month, after taxes you likely net $3800 (or $1900 a bi-weekly pay period). Therefore, deposits in excess of that will need to be explained and documented. Sold a motorcycle? Have a paid receipt and motor vehicle documents in place. Received a gift? You will need a Gift Affidavit, proof of the donor’s ability and transfer of the funds. Any and all questions should be discussed with your loan officer.
3. Credit Score Optimization
Do your best to curtail your use of credit as it relates to your available credit lines. Target a cap of 30% of usage of available lines to get the best scores. Do NOT cancel credit cards. That will lower your amount of available credit, thereby raising your percentage of usage. That will damage your score. Do NOT shop for a car, explore life insurance, apply for a new credit card or increase the limits on your current cards because the running of your credit by people in other industries will also lower your credit score. Most importantly, don’t do anything that will require having your credit run without first discussing it with a mortgage professional who knows the impact it could have.
4. Appraisal Concerns
It’s unlikely you will make an offer to purchase without checking out comparable home sales. It’s also likely you received that type of data from the real estate agent you are working with. Make sure your agent prepares the same information for the appraiser. Data about similar sales, similar homes currently on the market and maybe even cost estimates for any repairs or improvements anticipated can preempt future problems with appraised values and conditions.
Overall, it is recommended that you hold onto copies of everything financial, think before allowing your credit to be run and work with an agent and loan officer who can use their experience to put your loan application in its best possible light…as soon as you start thinking about buying a home.
by Dean Hartman on KMC
 |
| by The KCM Crew on October 7, 2011 |
But it's still a buyers' market, and many sellers are finding they have to put up some bargain prices to get their homes sold.
Like many other homeowners in Utah, Krista Numbers has learned that selling a home right now isn't all easy. "You're competing with a lot of things — like short sales, and bank-owned, and foreclosure — so you have to be aggressive," she said.
And that's what she did. Also a short sale, she put her home up for a bargain price and got a buyer in just a few days.
Numbers has no doubt it's a buyers' market out there, and that brings some hope for the future. "All across the valley we are finding that there are some fantastic homes out there," she said.
Overall, Utah Realtors say that's bringing a positive trend for Utah. While sale prices are still low, the increase in activity means there are signs that our local market is on the gradual road to recovery.
"We're seeing more confidence in the market, and we're seeing people get out there and take advantage of the positives out there — like affordability," said Deanna Devey, with the Utah Association of Realtors.
Realtor Vann Larsen says the good news is homeowners can make that quick sale if they're willing to face the facts.
"The sellers aren't going to get what they thought their home was worth a few years ago, but those values were inflated," he said.
That is the bad news. The median price for homes sold is down about 10 percent from last year.
Still, Numbers says if her family can just stick it out, things may work out better in the long run.
"The thing that I have definitely learned with this market is you have to roll with it. You're buying high and selling high, or you're in a market where you're gonna sell lower and you're gonna buy lower," she said.
There were also fewer homes on the market in August than a year ago. Overall, realtors say since prices didn't get as inflated as they were in other parts of the country, things are improving faster. Still, it's a buyers' market out there, as the conditions very slowly improve for sellers.
KSL - By Mike Anderson
Although the US Economy is still sputtering, the stock market is on a roller coaster ride and a recent report on the sale of homes in the US predicted that 2011 could be the worst year for new-home sales records in nearly 50 years, local Bank of Utah and Metrostudy experts say this has created a perfect opportunity to buy a home along the Wasatch Front. Apparently some Utahns are discovering this. A recent report by the Utah Association of Realtors showed that July home sales rose 16.4 percent higher than July’s 2010 sales. And, according to Metrostudy, a nationwide provider of primary and secondary market information to the housing industry, inventory for new single family homes under construction has increased 7.1 percent since last quarter, signaling a demand for new housing.
“Some people may have been hesitant to buy a home because of the instability of the national economy,” said Amber Wykstra, vice president and residential loan production manager for Bank of Utah. “But, certain favorable conditions in Utah’s housing market have created a great window of opportunity for those anticipating buying a new or existing home. If you have money for a down payment, good credit and a stable income, now is a great time to buy. Mortgage rates have been at record lows, homes are the most affordable they’ve been since 2004, and new home inventory is currently adequate, but these conditions will not stay this way forever.”
In recent weeks, a 30-year fixed-rate mortgage averaged 4.15 percent. Government-backed loans are also very low, averaging 3.36 percent for a 15-year fixed rate mortgage, and a five-year adjustable rate mortgage was recently as low as 3.08 percent. (Freddie Mac National Averages)
The National Association of Home Builders recently reported that Salt Lake City reached a seven-year high for home affordability. In the Salt Lake area, 79 percent of homes sold in the second quarter were within reach of families who make a median income. The Ogden-Clearfield and Provo-Orem areas were also rated as affordable based on mortgage rates, incomes and the median prices of homes. The median price for homes sold in Utah since January has hovered around $175,000. And, if you need to sell your existing home, keep in mind that Salt Lake is one of the top five housing markets in the nation, meaning that home values have dropped the least in Utah.
“Prices for homes will continue to be low for a time, added Wykstra. “However, economists are predicting that both lending rates and home prices will eventually rise, so the time to act is now. There are so many opportunities out there to work with a builder or take advantage of great prices on existing homes due to the lower prices and the number of foreclosure or short sale homes on the market.”
“There is a healthy balance of inventory of newly-built homes within the Greater Salt Lake Market (a seven-county area),” said Eric Allen, director for the Utah/Idaho Region of Metrostudy. “While the annual pace of new home starts for detached single family homes decreased 18.8 percent compared to last year at this time, it’s important to note that last year at this time the market was inflated due to the government tax credit; which means we are comparing inflated demand with today’s real demand, therefore resulting in a larger than expected decrease. Conversely, inventory for single family new homes under construction has actually increased 7.1 percent from last quarter, signaling that there is demand for new housing as builders continue to maintain a very low level of finished vacant home inventory. Of the 2,000 new single family homes currently in inventory, 28 percent are currently under construction and priced below $300,000, and only 18 percent of these homes are finished and vacant. New home inventory for homes above $300,000 is split with 31percent under construction and 13 percent being finished and vacant (with the remaining homes being models).”
“Based on the current pace of absorption, there is a four-month supply of single family homes under construction and only 2.1 months of finished vacant homes, added Allen. “The recent influx of 20 new companies bringing jobs and new residents to the state may deplete the current supply of new single family homes.”
According to Wykstra, if you’re building a new home it’s to your advantage to have your builder and lender work together. There are construction loans that require no down payment and the closing process is fast and easy for the home buyer and builder alike.
Mike Schultz, president of Castlecreek Homes commented, “Our customers have benefited greatly from local community banks, including Bank of Utah, that are willing to lend for construction loans with little or no money down. Their ability to lend has allowed buyers the opportunity to build a new home at a great price and has kept the market going.”
Utahpulse.com
The seeming contradiction wasn’t explained by the bank, though the halt in filing of notices of default in county property records apparently comes ahead of a pending agreement with the Utah Attorney General’s Office to end the practice state attorneys consider illegal.
Gary Ott, the Salt Lake County recorder whose office keeps official property records, confirmed Thursday that ReconTrust, the foreclosure arm of Bank of America, has not filed a default notice since earlier this month. That appears to mean the banking giant stopped the procedure after a letter from the A.G.’s Office saying that ReconTrust does not qualify to carry out foreclosures under Utah law.
North Carolina-based Bank of America did not return several emails seeking an explanation. Its attorney, William Boland, also declined to comment after a Thursday court hearing in Salt Lake City.
But in the hearing in federal court Boland said that a proposed class action lawsuit against ReconTrust and Bank of America should be dismissed because federal bank laws preempts a Utah law that says only Utah attorneys and title companies can carry out foreclosure filings and sales.
"Those laws allow ReconTrust to exercise the powers of foreclosure," he told U.S. District Judge Dee Benson.
Salt Lake City attorney Craig Smay, who filed the lawsuit, tried to counter Boland’s argument that because ReconTrust is competing with title companies for business federal law allows it to carry out foreclosures just like the title companies do.
Responding to a series of questions by Benson, Smay said ReconTrust is not a competitor to Utah title companies.
By Tom Harvey
The Salt Lake Tribune
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| Jan 23, 2012 |
| 10 Surprising Reasons You Can’t Get a Home |
| Jan 10, 2012 |
| When the Prophet Says Buy – BUY! |
| Read more |