This uptick in home prices has been driven by stronger home sales numbers, which were up over 8% to 1,037 homes sold. Also having a positive impact on the Salt Lake resale home market is the relatively low number of homes listings currently on the market, especially when you take short sales and bank owned properties out of the equation. While short sales can offer great value for money, many people don’t want to go through the pain of making an offer, which can take many months to be approved by the bank. This means that buyers looking in the more desirable areas often face competition, and can even find themselves in a multiple offer situation (we haven’t seen those for a while).

For more detailed information on quarterly Salt Lake City Home Prices you can visit our website, where you can perform Salt Lake MLS searches to help you find your next home.

Owner financing is where instead of the buyer having to quality for a mortgage, the mortgage is supplied by the home seller and mortgage payments are made to the seller rather than a bank. The first thing to point out is that these types of loan are difficult to obtain because those few sellers who could use this type of financing are often reluctant to do so. After all they are trying to sell a home usually with the intent of buying another home, and carrying two mortgages given the current lending standards is very difficult.

If you are a home seller and are considering owner financing there are a few things to consider. While it does not usually matter if you currently have an outstanding loan on a property, the current lender may be able to call the loan (ask for it to be paid off), due to an alienation clause. Also you will need to check the credit of the buyer and ask for a decent sized deposit in order to protect your equity. Needless to say always consult a professional before committing to anything.

This data is very encouraging, with all the indicators heading in the right direction. Out in the market we are seeing far more activity, especially in the traditional high demand areas like the Avenues and Sugarhouse. We are even seeing far more multiple offer situations and homes selling within just a few days of coming onto the market.

Total Sales 809
Average Sale Price $209,743
Average Sq. Ft. 2,404
Price Per Sq. Feet $87
Days on Market 124

Please visit my website for more information on the Salt Lake Housing Market.

The FHA will also raise fees for the upfront mortgage premium by 0.75%, to a total amount of 1.75% of the loan amount.

So what does this mean? Consider a home buyer who wants to take out a loan for $200,000, with a 3.5% down payment. After the down payment the loan amount would be for $193,000. The FHA upfront fee will increase from $1,930 to $3,377, which is usually wrapped into the total loan amount. In total, the increases would mean an extra $25 per month.

Also note that these fees also apply to people wanting to refinance.

The FHA is increasing these premiums for a couple of reasons. First of all they need the money to recover their depleted reserves. FHA mortgages have become more popular in recent years because they require a smaller down payment and a lower credit score. These rate increases are designed to make FHA loans less attractive, and make conventional loans more attractive (at least to those who qualify).

Total Sales 730
Average Sale Price $206,869
Average Sq. Ft. 2,341
Price Per Sq. Feet $87.60
Days on Market 133

You cann find more info on the Salt Lake Housing Market on my other blog. I have also posted the latest annual Salt Lake Home Prices on our website.

Total Sales 849
Average Sale Price $220,708
Average Sq. Ft. 2,492
Price Per Sq. Feet $88
Days on Market 129

While we are seeing stronger Salt Lake home sales, year on year prices are still dropping, even if at a lower rate than declines seen over the past few years. In fact since Feb this year, prices have remained around the same level, which continue to provide some reassurances that we may have seen the worst of the housing market.

Total Sales 849
Average Sale Price $216,163
Average Sq. Ft. 2,438
Price Per Sq. Feet $88
Days on Market 121

In the third quarter there were 2.64 new home permits per 1,000 existing homes in the Salt Lake Metro area. The two best areas were both in Texas, Houston 3.68 permits and Dallas 3.41 permits.

Those areas are that are now recovering are ones that experienced a combination of a milder recession, and a growing population (both things found in Salt Lake).

Even with this recent recovery, home building levels are still only a fraction of those seen in the mid 2000’s.

Fueled by companies like Home Depot, Goldman Sachs and Boeing expanding their presence within the state, Utah is producing strong business growth and a declining unemployment rate. Companies are attracted by Utah’s low energy costs, attractive corporate tax rate and high number of young well educated people.

Technology companies seem to be particularly attracted to the area, with Oracle, Adobe, eBay and Electronic Arts all expanding into Utah over the last few years.

With Salt Lake home sales up, and prices over the last several months appearing to stabilize, there are some signs we are starting to see the bottom on the market. Having said that only time will tell if this is the bottom, or just a pause on the way down.

Total Sales 971
Average Sale Price $216,563.16
Average Sq. Ft. 2,411
Price Per Sq. Feet $89
Days on Market 116