As Utah Sellers Begin to Think ‘Sellers’ Market’…

Supply of Utah Homes for Sale Struggles to Keep Pace

So the market’s recovering, interest rates are low, and you think you’re finally ready to buy a home? Not so fast. Buyers across the country are running into a new roadblock: there don’t seem to be enough homes for sale and buyers are finding homes sold old multiple offers on homes within hours of hitting the MLS.

Anyone who has looked at entry- to mid-level homes for sale in  Salt Lake County neighborhoods, probably knows what I mean. Mortgage rates remain near historic lows, and as the prices of homes for sale continue to rise, fears that we could soon see a repetition of a real estate equity loss seem increasingly unlikely.  

Why the lack of inventory? There are several reasons. Buyers may be ready to buy again, but some sellers are still not in a position to offer their Utah homes for sale. When the housing market collapsed seven years ago, some homeowners’ equity loss was such that they remain unable to sell. Prices may be on the rise, but some need more time to return to pre-crash values.

Buyers always want to buy at the bottom, but sellers want to avoid selling there. Buyers are watching that bottom fade into the distance, but some sellers, pleased to watch their homes growing in value, are content to wait longer. 

NAR says that there were just 1.93 million existing homes for sale on the national market in March, down nearly 17% from the prior year. In a well-balanced market, what had been a six month’s supply fell to just 4.7 months’ worth.  Nationally, homes for sale now stay on the market for just 62 days, down from a median of 91 days only last year. Glenn Kelman, CEO of an online national real estate brokerage, put it succinctly: "Somebody rang a bell and said the boom is back, and nobody wants to be late to the party."

Homeowners who have been thinking about selling are increasingly liking what they see in today’s market — including the prospects for trading up. Even those whose previous evaluations were unsatisfactory are finding it worth another look. 

If you would like to find out what your home is worth today, give me a call!, I'd be happy to research and provide a free CMA on your property.  To search for homes, go to www.Homes4SaleUtahRealEstate.com.

Utah Real Estate Market Balancing Act: Rates vs. Rises Mortgage

Area Real Estate Market Watchers Find Another Surprise

When the Wall Street Journal or Forbes run mortgage rate stories as their lead items, those of us who keep an eye on our local real estate market pay close attention. I frequently share what they say here. But when even the non-financial outlets like USA TODAY and the cable TV news channels give top billing to real estate market news, it’s a real attention-grabber.

That’s what happened last week. USA TODAY’s online headline focused on the 15-year fixed mortgage rate, “at a record low 2.61%.” The cable news channels talked about record low rates, too (although if you hit the ‘pause’ button long enough to read the TV graphics, you saw that the national average for 30-year loans was still a shade away from the actual record low).

 Never mind that; it’s still surprising that mortgage rates continue to linger at such tempting lows. 

The reason is hardly a secret: the Federal Reserve is holding rates down to energize the real estate market — a key element of the overall economy. Yet, with existing home sales notching up in the first quarter at the briskest pace in four years, you would have thought that mortgage rates would have been loosened up at least somewhat. And with new home sales doing their best since 2008…

Of course, it doesn’t matter what anyone expects: the results of dipping mortgage rates is just plain good news for everyone in the Salt Lake real estate market: buyers and sellers alike. Those low mortgage rates act to offset the rising U.S. house price index. The result for buyers is a more valuable home without the expected increase in the monthly payment. What more of an inducement to enter the real estate market could there be?

In short, if you’re considering whether it’s time to buy (or to sell your current home and trade up without busting the household budget), last week’s national and local market signs are even clearer than they have been recently. 

There are definitely opportunities out there! Why not give me a call for an up-to-the-moment real estate market evaluation in Utah's Salt Lake City and Beyond?

Weekly Events in Salt Lake City and Beyond...

Weekly Event Update

April 30, 2013

EVENT SPOTLIGHT:

Stand-Up Comedy Headliners Patrick Keane & Todd Sawyer May 3-4, 2013 Egyptian Theatre- Park City Stand-Up Comedy with headliners Patrick Keane and Todd Sawyer. Comedy can make light of the everyday absurd. Enjoy the humors of Park City nightlife with a cold beer and some hearty laughs. < More Info

FEATURED EVENTS:

Black & White: Exploring the Tones & Colors of Our World May 9, 2013 Jeanne Wagner Theater - Rose Wagner Performing Arts Center     The Mundi Project is proud to present Black & White -"Exploring the Tones and Colors of Our World." Take a musical journey around the globe and experience classical piano and chamber repertoire from the works of Liszt, Granados, Chopin, Gershwin and Wild, to name a few. Performances will be intertwined with elements from various cultures, while traversing through negative and positive space by way of a "multi-media fusion" of storytelling, art displays, dance and a LED light sculpture. A multi-art image transmission will be created by founder, Hana Janatova which will explore the colors and cultures of our world we share. < More Info

Paramore May 6, 2013 The Great Saltair - Magna The energetic alt-rock band Paramore will delight the audience when their tour in support of their upcoming self-titled album rolls into the Saltair Ballroom. < More Info

Les Misérables May 3-June 1, 2013 Simmons Pioneer Memorial Theatre - University of Utah In 2007, PTC's production of  Les Miserables  played for 10 sold-out weeks. Now the epic musical masterpiece is back! Victor Hugo's story of Jean Valjean, an escaped prisoner who redeems his life through selfless acts of love even as he is pursued by the implacable Inspector Javert through some of the most tumultuous years in French history, has thrilled millions of theatergoers all over the world. < More Info

Part 2 — Top 6 Mistakes For Local Sellers to Avoid

Previously, we cited three of the most common mistakes sellers make after listing their property for sale. Here are three more:

 

Proper Insurance

When you have a property for sale, it’s more important than ever to see that your homeowners insurance is up to date. It is highly unlikely that someone will have an accident on your premises, but the increase in the number of visitors makes it prudent to be well covered. Of course you will want to mitigate obvious potential hazards like broken glass or exposed nails — but should also have a foolproof system for making pets a non-issue during showings.

Contractual Terms

With your property for sale, it’s only natural for your primary focus to be on the bottom line: the sale price. When an offer arrives with the right number, it’s tempting to sign on the dotted line and be done with it. But there is more to a purchase offer than just the price.

An offer is a contract, and as such, all its terms are equally binding. For instance, there is the matter of the closing date: sellers who accept an offer without paying enough attention to it can be left scrambling for temporary housing when that date arrives. 

Contingency Removal

Removing the inspection and loan contingencies on time are key events in the buy/sell timeline – yet these deadlines can easily slip by unnoticed. The wording of the clauses is important, too, because a buyer can have the right to withdraw an offer if he or she is not satisfied with the outcome of an inspection or a loan rate they deem acceptable. Failure to make sure a buyer removes contingencies on time can turn a ‘sold’ property into a property that’s still for sale.

Aligning yourself with an experienced agent is the simplest way to remain aware of these and other common legal miscues — and how to avoid them. With your property for sale, you become a single-purpose business enterprise, and your agent’s knowledge should be a key business asset.