Locally, the story is similar. In the Ogden-Clearfield area, 74.4% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the area’s median income of $68,500. That’s up 5% from the previous quarter and up 13% from the same period a year ago.
In Provo-Orem, 65.3% of all homes sold were affordable to families earning the median income of $62,900. That’s up 12% from the previous quarter and up 21% from the same period a year ago.
In Salt Lake, 65.9% of all homes sold were affordable to families earning the median income of $67,800. That’s up 7% from the previous quarter and up almost 20% from the same period a year ago.
For complete details on the report, click here: http://www.nahb.org/page.aspx/category/sectionID=135
Also, last week I shared with you the importance of our upcoming short sale training. Well this week I came across this article which I think helps to further paint the picture for you: http://rismedia.com/2009-05-18/distressed-properties-and-first-time-home-buyers-the-recipe-for-real-estate-recovery/
I’d also like to share a couple of other stories of interest from the week:
- http://rismedia.com/2009-05-20/buyer-interest-in-foreclosures-spikes-says-survey/
- http://www.nytimes.com/aponline/2009/05/19/us/politics/AP-US-Economy.html?_r=2&scp=17&sq=housing&st=nyt
Finally, many of you have asked me questions about the potential changes in the $8,000 tax credit (http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument). Essentially the U.S. Department of Housing and Urban development announced that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 first-time homebuyer tax credit as a down payment. FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible buyers to access the funds immediately at the closing table. Here is a CNN Money article which explains some of the details: http://money.cnn.com/2009/05/18/real_estate/tax_credit_as_downpayment/index.htm?postversion=2009051912
While it is an exciting turn of events I would caution you that the execution of this is quite complicated and it may take some time before it becomes a reality. HUD will authorize lenders, non-profits and certain agencies to provide a bridge loan which will then be reimbursed at the time of tax refund. These players are not yet identified. Again, an exciting turn of events but the execution and timing of it have yet to be fully outlined. Watch for more to come.
And with that update in tow, let’s take a look at this week in real estate:
- Davis County— In Davis County Agents are seeing increased traffic through open houses. Buyers seem to be getting more excited about interest rates and are asking more questions about if it’s a good time to try to make a move. Excitement is building for the community yard sale taking place June 6 at North Davis. Several clients have been dropping off items to donate and agents are getting leads from contacting past clients about the event.
- Salt Lake County North—Our Salt Lake office reports that the market is a little slower this week but activity is still good at open houses. Buyers are putting many homes under contract and then withdrawing from the deal during the due diligence either due to physical conditions or low appraisals. Many of our buyers are also getting beat out on short sales due to multiple offers. These buyers are starting to understand they need to be aggressive on their offers to get them accepted in the lower price ranges. Our Union Heights office reports more activity. There is increased activity in almost all price ranges. We are having a very active market with more and more multiple offers. Our Sugar House office reports that sales are occurring in price ranges from $100,000s to mid $400,000. Most are in the $200,000 to $300,000 range.
- Salt Lake County South—The market trend is, "Tell your buyers to hurry and buy before they miss out!" Seriously! 90% of the short sales have 3-4 offers and some close to acceptance from the bank due to three months plus long wait. I think the inventory is just starting to weed out. Buyer's Agents are first asking if we have any offers? Agents are also calling back to get more details after a showing. For $215K I've had on an average two showings a day. Buyers have more realistic news about the market, are getting financing in order; before making a decision to choose a Realtor or see homes. I have noticed the last five listing appointments I have done this week have actually had solds and under contracts for the CMA, where the three months prior, most of the market areas I searched did not. I was lucky to find three good sold and under contract comps. That means more things are selling. With my 20 listings, I have gotten a lot more showing calls the last two weeks. Our Draper office reports two closed sales - 1 buyer controlled and 1 seller controlled in a multiple offer situation.
- Salt Lake County West—Our West Jordan office reports that our office has a large number of short sale offers hanging out there waiting for bank approval. This prompted a look into the actual percentage of active listings that are listed on the MLS as short sale in the cities in the south west part of the Salt Lake Valley. The data represents single family and condo listings. The percentages are: Herriman 35%, Riverton 25%, South Jordan 23%, West Jordan 19% and Taylorsville 19%. That does mean, however, that 76% of the active listings in those cities combined are NOT short sale.
- Tooele County—Our Tooele office reports that accepted offers have slowed but are still higher than first quarter. Closings are up slightly. Agents are busy but having a difficult time putting transactions together.
- Utah County—The market is definitely changed for the better. Agents that I have not seen with business for a long while are doing business. Experienced Agents are doing significantly more business.
- Weber County—One of our under contracts was at $422,500 just under the $500,000 Previews (luxury listing market). Agents are reporting higher activity on their listings with more showings and offers. We're still off 2008 numbers for April, but only by 4% compared to 50% in January. Average sales price is up over 2008 numbers slightly.
As we head into this long, three day weekend I’d like to wish everyone a very happy Memorial Day weekend. Enjoy your time with BBQs, sunshine, maybe a little swimming and (hopefully) a home sale or two.
Until next week,
Make it a great one,
Dan Christensen
President
Coldwell Banker Residential Brokerage Utah
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