Home prices continued their upward trend in 2014, albeit at a slower pace. The median sales price for a single family home increased to $255,000, a 4.08% increase over 2013. This is the third year in a row prices have increased but there were signs of the home price appreciation slowing. For a start homes took approximately 50% longer to sell in 2014, and the total number of homes was slightly down. The more expensive and high demand areas certainly slowed in 2014, with the Avenues only showing a 1.26% increase and the two Holladay zip codes down 2.76% and down 9.04%. While the areas in the southwest of the valley that had been lagging behind (Riverton, Herriman and South Jordan) saw some of the strongest gains. For more detailed price information view Salt Lake County Home Prices by Zip Code.
Salt Lake County Single Family Homes 2014
Condo median sales prices showed stronger appreciation, climbing just over 6%. But the underlining data also showed signs of a slowdown, with 6% fewer homes sold and the time taken to sell a condo increasing 13.16%.
Salt Lake County Condos 2014
Even with the slowing trend the Salt Lake County housing market was still pretty strong. When interest rates climbed in the middle of the year this defiantly had a negative impact on the market, but when they again relaxed towards the end of the year, the market picked up again.
The start of 2015 continues to show signs of a strong market. There is currently very little inventory and so homes are selling fast, especially below the $200,000 price.
Have you ever watched HGTV’s show Property Brothers, or any other similar show on flipping properties? You must have thought to yourself at least once: “I wish I had the money to purchase a fixer upper for that cheap, and renovate it into an awesome home!” Good news, you actually can.
The loan program that can help you do this is called the Fannie Mae HomeStyle Renovation Loan, and it is equally friendly to owner occupied homes as well as investment properties.
The HomeStyle Renovation Loan is essentially like any other Conventional mortgage, except it will allow you to purchase a property AND roll renovation costs into the loan amount. Instead of financing based on the current property value, the loan amount is based on the “after improved” future value.
Intrigued? I know I was.
Every home in need of TLC that you will be looking at now has the potential to become your dream home, or even your dream investment property.
Not only can you upgrade the kitchen and bathrooms, but repair contingencies that used to prevent regular financing will no longer ruin a good deal (no more “cash-only” offers on foreclosed properties!). Best of all, you will get a great deal when offering any seller the convenience of not having to pay for required repairs.
Here are some examples of home improvements allowed by the HomeStyle Renovation Loan:
- Kitchen and Bath remodel
- Roof repair
- New permanently affixed appliances
- Structural alterations or additions
- Upgrades to central air/heat, plumbing and electrical systems
- Moisture or termite damage repair
- Addition or replacement of exterior decks, patios and porches
- Improvements for energy conservation purposes
- Major landscaping and permanent hardscape such as walkways, driveways, retaining walls and fences
The home improvements not allowed by the HomeStyle Renovation Loan are essentially:
- Items that will not increase the value of the subject property
- Improvements that are not permanently attached to the property
- Improvements for business or commercial purposes
- Energy efficient repairs which would require additional inspections (there are specific “energy efficient mortgages” for that purpose).
As for the process of purchasing a home with the Fannie Mae HomeStyle Renovation Loan – it is not that complicated. Here are the steps you will need to take:
- Make sure you have at least the minimum down payment required: 5% on a primary residence (can be gifted, or come from a city grant), 10% on a second home and 15% on an investment property.
- Submit your application to the lender, along with any other required documentation (income, assets etc.)
- Get a General Contractor and have him prepare a bid. You will need your real estate agent’s help in identifying which home improvements will increase the home value the most. For example, adding a pool if the home is located in a modest neighborhood will not give you the boost in property value that you are looking for.
- Pay for an appraisal, and keep your fingers crossed. As long as the “after improved” value of the home supports the contractor bid, you are good to go.
- Close on your loan, and let the General Contract do his thing.
- Move in, or rent it out – depending on what your goals are.
Don’t work with any real estate agent. Work with someone that knows what are the available options and how to create more opportunities for you.
Contact a real estate agent familiar with the Fannie Mae HomeStyle Renovation Loan, and move into your dream home sooner rather than later.
Most people sell their home during the warmer seasons, when the months start to warm up, so does the real estate market. But is this the best time to sell, well it may be the busiest, but there are some advantages to selling during winter that you may want to consider.
While the summer months are the busiest for the real estate market, it also means that there is lots of competition out there, with buyers able to choose from a large selection of homes. While the number of buyers diminishes during the winter months, those that are out there are serious buyers.
There are of course some things you need to watch out for and some things you can do to make the most of season. Here are just a few considerations when you stage your home for a wintertime sale.
Of course it’s going to be cold outside, so you need to make your home warm and inviting. Before showings crank up the heating (but not too high) and make your home look and feel nice and cozy. When buyers walk in from the cold the first thing they should say is, “it’s nice and warm in here”.
Bring in a little bit of summertime by introducing some indoor greenery, with some well-kept plants (no sad looking or dying plants) and maybe some flowers.
Make sure your home is well lit. Put on all the lights, and if you have a dark corner consider purchasing a lamp. The days are short and dark so you should ensure is not. If at all possible show your home during daylight hours, especially if you home features lots of natural sunlight. Keep those blinds and curtains wide open to let in as much light as possible.
If it’s the holiday season then don’t be afraid of holidays decorations, just don’t go over the top. Limit those flashing lights and go for a more refined classic look.
Keep the outside walkways clear of snow and ice. Not only is it dangerous and a liability, but it does not create a very good impression when buyers have to trudge through several inches of snow in order to get to your door. And remember showings can happen at any time so keep on top of the snow and don’t leave it until the Realtor calls to schedule a showing.
Of course a messy outside can mean a messy inside, make sure you keep your floors clean, invest in some inside/outside entry mats if you don’t have them, and ask your family members to take off their shoes when coming inside. If you want to stop buyers from creating a mess then invest in some disposable shoe covers and a polite sign asking visitors to use them. Rather than putting buyers off, this actually shows you care about the interior.
By following some of the tips above, there are plenty of ways that you, as a seller, can use the season to your advantage, rather than a disadvantage.
The median home price for a Salt Lake County single family home hit a new record high in the third quarter 2014. The new median home sales price stood at $257,900, beating the old record of $256,000 last seen in the 3rd quarter 2007.
Even on the back of this record high we are starting to see a change in the market. Home prices rose just 1.34% compare to the same time last year, and we are starting to see a fall in the number of homes sold. The number of homes sold in the quarter stood at 3137, which was a decline of just over 5%.
Here are a list of the best performing areas and worst performing areas in the quarter.
Best Performing Areas
Holladay 84121 – Up 26.27%
Salt Lake City 84111 – Up 19.07%
Riverton 84065 – Up 14.75%
Salt Lake City 84116 – Up 13.02%
Worst Performing Areas
Murray 84107 – down 18.61%
Holladay 84117 – down 18.50%
Taylorsville/Murray 84123 – down 10.21%
Salt Lake City 94102 – down 5.96%
So what does this mean? Well it means we are entering more of a balanced market rather than the seller’s market we have seen over the last couple of years.
So what about the condo market? The median sales price for condos is also nearing record highs, with the 3rd quarter sales price of $161,000 (up 11.03%) just below the record of $162,113 seen on the 2nd quarter 2009. Just like the single family home market condo sales are slowing, with 411 units sold, a decline of 12.55%.
Best Performing Areas
Holladay 84117 – up 44.71%
Salt Lake City 84108 – up 33.94%
Salt Lake City 84111 – up 26.34%
West Valley City 84119 – up 20.26%
Worst Performing Areas
Salt Lake City 84106 – down 17.12%
South Jordan 84095 – down 10.84%
So what for the future? We are now heading into the slowest period of the year for real estate, and we really will not know what the market outlook is until we see the results for the first 2 quarters in 2015. At the moment we are a balanced market, this could be a pause or it could be more of a longer term trend.
Selling your home can be a stressful time, so just image the prospect of selling an entire estate. While it can be a relatively fast and simple process, if the deceased was not organized, it can be a very slow and painful process.
Estates come in all shapes and sizes; it could be anything from a mobile home, to a multimillion dollar mansion. No matter what form the estate comes in, the goal is the same, the property is to be disposed of according to the deceased’s will and Utah law.
One of the complications with selling property which has been left by the deceased is that it needs to go through the probate process. This process ensures that there is an orderly and legal transfer of the property and that any outstanding bills and taxes are paid. This process can be a simple process, or it can get very complicated depending upon the complexity of estate and what planning was done by the deceased.
There can be many parties involved in the estate sales process. There are the heirs, attorneys, Realtors, estate sales companies, auction houses. All these parties must work together during the process.
One thing is for sure, you need an experienced Realtor who is used to working with estate sales, and can coordinate with all the necessary parties to ensure that the process runs as quickly and smoothly as possible.
If you need to sell a property as part of an estate sale, then you can find out more information by visiting our Salt Lake Estate Sales website.
By: Clint Womack, Owner of Vintage Lending
I received a bachelor’s degree in sports medicine from Northern Arizona University. I originally planned to become a surgeon and then had second thoughts. Instead of medicine, I decided to follow the path of my father and grandfather and started my own business. I am a third-generation business owner and have no regrets. In 2007 I started C&E Financial Group Inc in Orange County, California. We operate under the trade name of Vintage Lending. We originate residential mortgage loans in seven western states (CA, CO, ID, OR, TX, UT, WA). We have a team of over 20 professionals who are well trained and with years of experience.
No two loans are the same because no two people are the same. Each loan is slightly different and must be custom fit to each individual client. It is critical that you meet with a mortgage professional that is well versed in the nuances and variations of the hundreds of different loan programs available. We will review your individual scenario and present you with your best loan options.
Mortgages are complicated financial instruments so there are lots of different questions that come up regularly. A common misconception is that the APR is the same as the actual interest rate. The APR is only used for comparison purposes, it is not the actual interest rate. The actual interest rate is what appears on the promissory note and is used to calculate the monthly principal and interest payment. As the APR gets closer to the actual interest rate, the closing costs get lower.
The Internet is a good place to begin your research. However, nothing can replace a conversation with a mortgage professional that is well versed in the various mortgage programs and works with them on a daily basis. Start your research on the Internet, then give us a call for a free evaluation.
What are two or three of the most common types of loans that people apply for and the main benefit of each one?
30-year fixed rate mortgage. The benefits are that the rate is fixed for 30 years and that the principal and interest portion of the monthly payment can never change. This is one of the most popular loan programs and allows people to budget around a fixed mortgage payment.
10/1 ARM (adjustable rate mortgage). This loan usually has a lower interest rate than the 30-year fixed mortgage and the initial rate is fixed for 10 years. This is a great loan program for someone who doesn’t plan to be in the home for more than 10 years. With a lower rate than the 30-year fixed rate mortgage, the 10/1 ARM allows you to save extra cash with a lower monthly payment for the first 10 years.
15-year fixed rate mortgage. This will have a lower interest rate than the 30-year fixed rate mortgage and the mortgage will be paid off in half the time. The interest paid over the life of a 15-year fixed mortgage is dramatically lower than that of a 30-year fixed mortgage. This is a great loan program for people who can afford a higher monthly payment. We also offer a few $0 down loan programs and another program that only requires 0.5% down.
What advice would you give to prospective home buyers who want a lot of flexibility with their mortgage?
I would recommend a 30-year fixed rate mortgage with 0 points. This allows you to keep your monthly payment manageable but also allows you to pay extra at any time. By doing a 0 points loan, you can refinance or sell the home at anytime and don’t have to worry about losing the money that you paid for points on the previous loan.
Our toll-free phone number is (877) 933-7627. Email me at clint@VintageLending.com and visit our website: www.VintageLending.com. We also host a talk radio show about real estate and finance: Womack Radio.
The second quarter 2014 saw the median home price for a Salt Lake County single family home get to within $1,000 of the record high of $256,000, which was last seen in 2007. The actual price appreciation for the quarter was pretty modest, increasing just 2%. This was on the back of declining home sales data where the number of single family home sales fell 9.53% to 3245 homes sold. The median time taken to put a home under contract was 26 days, which is a strong number and the sign of a good housing market.
A total of 21 zip codes saw its single family home median sales price increase, and 8 zip codes saw a decrease. The best performing area was the Salt Lake Avenues area 84103 which increased an impressive 22.19%. Other areas that saw good increases were 84104 up 13.75% and the South Salt Lake area 84115 up 14.15%. The worst performing areas were Draper 84020 down 11.22% and Holladay 84117 down 21.58%.
The sale of condominium units also experienced a small increase in median sales price, going from $149,500 to $154,000. The number of condominium units sold was slightly down falling from 452 to 440 units and the median days on market climbed from 28 to 39 days.
A total of 9 zip codes saw its condo median home sales price increase and 5 zip codes saw a decrease. The best performing areas for the condo market were West Valley City 84119 up 23.44% and Cottonwood 84121 up 20.91%. The worst performing areas were the downtown area 84101 which was down 25.13% and the Avenues area 84103 down 17.10%.
Even with declining home sales and the increase in time on market, it was still a pretty good quarter for the housing market. There does seem to be a slowdown in first time home buyer activity which could impact market conditions if it continues. Interest rates remain low and attractive for buyers, but a sudden increase again could also impact the market.
Tags: Condominiums, Cottonwood, First Time Home Buyers, Home Prices, Home Sales, Homes Sold, Housing Market, Salt Lake County Home Prices, Salt Lake Home Prices, Salt Lake Housing Market, Single Family Homes, The Avenues, West Valley City
Utah was named the 3rd best state for doing business, a two place improvement over last year’s 5th place. The CNBC yearly study takes into several categories to come up an overall score depicting the best states in which to do business. Here is how Utah did in each category.
Cost of Doing Business 16th
Quality of Life 15th
Infrastructure & Transportation 28th
Technology & Innovation 18th
Business Friendliness 4th
Cost of Living 20th
Access to Capital 1st
Utah did pretty well in all categories with the exception of education and transportation. The large class sizes and small budget severally impacted the education score, dropping 7 places from 39 to 46. The same drop was seen in transportation which fell from 21st to 28th. Looking on the positive side the economy ranking went from 10th to 6th, which is not really surprising given Utah’s 3.8% unemployment rate. There were also improvements for Quality of Life (+6), Cost of Doing Business (+5), Workforce (+7), Innovation (+5), and Access to Capital (+6).
For more information on how they came up with these rankings and to see how other states performed you can visit CNBC Top States For Business.
When you are considering starting a remodeling project one of the things that you may want to consider is which ones will pay off, and which ones are really not worth the money. A recent Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com) provided a great interactive map detailing the Cost vs Value analysis for some of the most common projects by geographic area.
The analysis comprises of 35 different projects, ranging from adding an addition story to replacing a garage door. The projects are also split into mid-range to upscale projects. For example, a mid-range siding replacement refers to a vinyl replacement material while the upscale siding replacement refers to a fiber cement material.
According to the report the mid-range Salt Lake City UT project that returns the most is replacing the garage door (this is also the cheapest). The average job cost for this project is $1,426, and the cost recouped is 93%. The project that provides the poorest return is a home office remodel which while costing $26,107, only returns 31.1% of the investment. *
When we look at upscale Salt Lake City UT remodeling projects replacing the siding with fiber cement costs $12,047 and typically returns 91.3% of the investment. But if you remodel a bathroom ($48,678) you can typically only expect to get 51.9% of your money back when you sell. *
As you can see from the above examples from an investment point of view none of the remodeling projects return more than the cost, so does this mean that all remodeling projects waste of time? Of course not, in some cases remodeling makes perfect sense.
For example, if your kitchen is really dated and run down it may make perfect sense to replace/update it before you sell. This is for a number of reasons:
1. In order to make your home more attractive to buyers you may have to list your home below other comparable listings (those with updated kitchens) in your area.
2. Most buyers want to move into a home where they don’t have to do any work. So even with a lower listing price, buyers may well be put off by the thought of having to renovate the kitchen.
3. You may receive lower offers based on the fact that the buyer needs to budget for a new kitchen. So even though you are listing for less than other homes, because the kitchen needs to be remodeled, buyers may still think that they can low ball an offer.
There are some things you need to avoid when you are considering a remodel. One of these is over renovating/under renovating for the size/price of the home. For example, if your home is worth $150,000, it makes no financial sense at all to spend $70,000 on a top of the line kitchen remodel. On the other hand if you home is worth $700,000 you don’t want a $5,000 kitchen.
So the thing to take away from this analysis is that when you are considering a remodeling project, don’t expect to make a financial gain on your investment when it comes time to sell your home.
* ©2014 Hanley Wood LLC. Complete data from the Remodeling 2014 Cost vs Value Report can be downloaded free from www.costvsvalue.com