The last couple of years have seen a strong Salt Lake Real Estate market with prices seeing double digit increases and strong demand for all types of property, particularly in the lower end of the market.
One of the reasons for such a strong demand was the reemergence of the investor. This was particularly evident in the $100,000 to $200,000 price range, where it was often difficult for people trying to get on the property ladder. The competition was fierce with homes selling within days of coming on the market, often resulting in multiple offer situations.
Now Salt Lake did not have the glut of foreign buyers seen in places like Los Angeles and New York (I have seen some stats that say the Chinese were responsible for $8.2 billion worth of U.S. property purchases in 2012), but we did have an influx of investors from other parts of the U.S.
In the last quarter of 2013 things started to change. The market slowed; there were fewer home sales and some areas even saw their median sales price dip. Some people put this change in the market down to the rise in interest rates, but one of the reasons was that investor sales seemed to have slowed.
So why have investor sales dropped? Well investors are bottom feeders, and rely on plentiful short sales and bank foreclosures. When the market improved these types of sales became fewer and fewer, taking away their opportunity for investment properties.
Of course this change is not bad news for everyone. The slowing of the market means that it’s now easier for first time home buyers to purchase. Because they don’t have to compete with investors there is less change of multiple offer situations and more change they can purchase the home they are looking for.
ActiveRain recently conducted a poll among Realtors to find out what they thought were the three biggest mistakes made by home sellers. The results of this poll are shown in the below graphic.
* Please note that Realtors were asked to choose their top three choices from a total of 11 options. This means that the total percentages add up to 300% rather than 100%.
1. The number one option chosen by Realtors was that the property was overpriced. Now we all what to get the most for our home, but if a property is overpriced it doesn’t matter how nice the home is, the chances are it’s not going to sell. A properly performed comparative market analysis carried out by a Realtor will be able to tell you if your home is overpriced when compared to current listings and recent sales.
2. The second biggest mistake was ‘Showing Availability’. When selling a home Realtor’s must have access to show the property whenever required. If a property is not available for showing when requested, they may not choose to show at a different time, particularly when there are lots of homes to choose from. Of course it may not be the property owners who make showing availability difficult; it is particularly common when the home is occupied by renters who have a vested interest in making sure the property does not sell.
3. Cluttered Space. There are lots of reasons why a home should be de-cluttered before putting in on the market. The fact is that a lot of buyers cannot visualize a space, and this becomes even more difficult when the space is cluttered. Less clutter makes a space look bigger, and it also shows that the sellers care about the homes appearance and are therefore more likely to take good care of the property.
4. Unpleasant Odors. The most common odor complaints are pet and smoke smells, but it can also include food smells, trash (make sure those trash cans are empty), and damp smells. It can also include too much air freshener.
2013 continued to see improvement in the Wasatch Front real estate market, at least until the 4th quarter when the market took a breather.
Salt Lake County returned the best figures, with single family homes increasing 15.57% and condos 11.73%. This is especially pleasing for the condo market, which had been lagging that of single family homes. Condo sales were exceptionally strong with sales increasing over 26%.
Salt Lake County Single Family Homes
Median Sales Price: $245,000 up 15.57%
Total Sales: 11,710 up 5.86%
Salt Lake County Condos
Median Sales Price: $145,250 up 11.73%
Total Sales: 1,598 up 26.12%
Utah County Single Family Homes
Median Sales Price: $229,000 up 13.37%
Total Sales: 5,172 up 9.32%
Utah County Condos
Median Sales Price: $128,000 up 11.30%
Total Sales: 531 up 6.41%
Davis County Single Family Homes
Median Sales Price: $219,000 up 9.5%
Total Sales: 3,850 up 15.89%
Davis County Condos
Median Sales Price: $130,000 up 13.04%
Total Sales: 129 up 14.16%
For a more detailed breakdown of the local real estate market performance, including details of performance per zip code please visit our Salt Lake County, Utah County and Davis County home prices pages.
Tags: Davis County, Davis County Home Prices, Home Prices, Home Sales, Homes Sold, Salt Lake County, Salt Lake County Home Prices, Salt Lake Housing Market, Salt Lake Real Estate, Utah County, Utah County Home Prices
Salt Lake County home prices were a sea of green in the 3rd quarter 2013, with the median price for a single family home rising from $217,900 a year ago to $254,500. The 16.80% median sales price rise was on the back of strong home sales that were up 5.91%. Those homes that sold, were selling really fast, taking just 19 days to sell, that’s nearly 30% faster than the same time last year.
While the vast majority of areas saw their median home price rise, the best performing were Salt Lake City 84102, Holladay 84117 and Murray 84107.
Best Performing Areas
Salt Lake City 84102 up 37.92%
Holladay 84117 up 30.36%
Murray 84107 up 26.25%
Just two zip codes saw a declining median sales price, Sandy 84093 and Draper 84020.
Worst Performing Areas
Sandy 84093 down 3.85%
Draper 84020 down 0.38%
Even with these very impressive increases we did see a slow down towards the end of the quarter, when interest rates spiked and the government shutdown took place. Since then interest rates have come off their highs and government employees have returned to work. We will have to wait and see what impact this will have on the market.
You can visit our website to see a full breakdown by zip code of the Salt Lake County Housing Data.
Home prices are on the rise, and inventories are very low. That makes now a great time to get your house in great condition to command a good price.
Get more money to put toward your next home purchase. Implement these tips to get your home ready to sell quickly at a great price and be ready to find your next place.
1.Make sure you have great curb appeal. Mow your lawn, weed your garden, and clean it up. Do any minor repairs that you can that affect the
approach to your home. Do the same out back. A poor first impression will make buyers more critical on the inside, looking for flaws.
2.De-clutter the inside of your home. Less clutter and neatness signal good care and give the impression of more space. Consider renting a storage unit to store some furnishings and seldom used items to free up space.
3.Make a list of things that bother you about the house, and look for creative ways to fix them inexpensively.
4.Start doing your homework on home values, and consult an experienced realtor for advice. In a low-inventory market, the right home at the right price can sell quickly at a good price. While the realtor is not an interior designer, a good one will know the basics and which glaring problems will cost you in getting the selling price you want.
5.Work out a budget you can invest in repairs and maintenance. Things like painting in a neutral color are relatively inexpensive, especially when you do-it-yourself, and make the space look brighter, cleaner, and more appealing to a wider range of buyers.
6.Have an interior designer do a staging consultation. Depending on your budget, there are designers that will do a walk around consultation and provide a list of suggestions for inside and out. Many will be low cost/no cost, such as rearranging furniture, painting, adding pillows, and re-purposing accessories and wall décor into different places. Look for one that will help you prioritize your list and get the most return from your money.
7.Don’t take any of the staging or cleaning ideas personally. Your home has taken on your taste and is a reflection of you. However, to sell well, it needs to have broad appeal. Not every buyer will have your imagination or design aesthetic.
8.Get pre-qualified for a new mortgage. Most people’s credit and income improves over time, so you are likely to be able to afford more now. Plus, you’ll learn how much you need to make for your down payment to move into the type of home you prefer.
Selling your home is tiring and emotional. It’s also hard work, keeping your home spotless each day for prospective buyers. Dealing with the ups and downs of your mixed feelings can be much easier if you sell quickly at the right price for your needs. Do your homework, make the right improvements that deliver return, and get ready to move to your next home.
Do you need to know the money that you’ll net from your current home to know your buying power for your next home? Call The Libin Group at Veritas Funding and we’ll help you get a clear picture of what to expect at 801.639.9000. Visit utahloanplan.com to learn more!
The true impact of the government shutdown seems not to be that great at the moment (although try telling that to the people who have been sent home), but is really an unknown entity, and the true effect be only start to be seen after a more lengthy period of time. One of the areas impacted that most people will not realize is mortgage applications. Some might say what have mortgage applications got to do with the government. Well it appears that the key area impacted is to do with the IRS and the issuing of tax transcripts. This is required by the secondary mortgage market for all loan applications, and at the moment the IRS has stated that they will process any forms, thus holding up mortgage applications until the service is available again. Here is a summary of implications for the mortgage market:
1. The IRS has indicated that it will not process any forms, including the issuance of tax transcripts, while the government is shut down. Mortgage Companies are required by the secondary market to supply a verified tax transcript on every loan transaction. If a borrower’s tax transcripts have not already been received, there is the likelihood that this would delay loans in process until this government service is available.
2. In some cases, the mortgage lender will not be able to verify social security numbers which could delay the mortgage process should there be any reason to verify a social security number. This won’t impact most transactions, but there may be a need to verify social security numbers when discrepancies surface in the documentation we collect.
3. There is likely to be limited FHA staff available to respond to questions, emails or other correspondence. However, we do expect that FHA’s automated systems should be functioning and available which will allow us to perform many of the critical mortgage functions like insuring loans, paying mortgage insurance premiums, and issuing FHA case numbers on new FHA loan applications.
Please note that each mortgage application situation is different and you should contact your mortgage broker to find out what if any impact the government shutdown will have on your individual situation.
The latest home data released by RealtyTrac show that homes entering foreclosure status dropped 44% in August when compared to last year, and 8% when compared to July 2013. The continued recovery in the national housing market and its associated rise in home prices mean that less people are underwater with their mortgage and fewer homes are entering foreclosure.
While the Utah housing market is recovery nicely, Utah is actually relatively high in the foreclosure ranking, coming in at number 8 in the country for August. One in every 697 homes entered the foreclosure process in August, compared to 1 in 824 in July (when we were 10th in the nation). So why is Utah heading in the wrong direction? Well one reason could be that the recovering market means that banks are feeling an increased willingness to foreclose on properties. After all, just like non distressed home sales, it’s far easier to sell a home in a market that is heading upwards than it is in a market that is in a downtrend. It also means that banks can recoup more of their loss.
The Salt Lake Housing Market continued to surge ahead in the 2nd quarter 2013, with the median home price rising to $249,900, an increase of 17.32% over the last 12 months. Home prices for single family homes have now increased for 5 straight quarters, with the last quarter being the strongest of all, returning a gain of 10.14%. Clearly we cannot keep going at this pace for any length of time, given that if we compounded the gain seen in the last quarter over a full year we would see a return of over 40%, which is unsustainable.
$249,900 – 2nd Quarter 2013
$226,900 – 1st Quarter 2013
$220,000 – 4th Quarter 2012
$217,900 – 3rd Quarter 2012
$213,000 – 2nd Quarter 2012
$190,000 – 1st Quarter 2012
The current rise in home prices has been driven by a shortage of home listings, and the good news is that we are starting to see more homes come on the market, which could ease the current inventory levels. We have also seen an uptick in mortgage interest rates, which impacts home affordability. The short term impact of higher interest rates could actually have the opposite effect, forcing buyers off the fence and into the market or it could put some buyers off buying altogether. Only time will tell what impact these rate rises will have, and it must be said that even with the recent rises interest rates are still at historically low levels.