Did you receive your property tax bill a few weeks ago and thought the value was too high? Your chance to appeal the value is September 15, 2013, or 45 days from mailing the notice. I am including the link to the appeals for to the Board of Equalizations website so you can start the process. If you need sold comparable homes go HERE and fill out the information about your home, and I will get a market analysis to you within a day. Remember, the comparable properties must be as close to January 2013 as possible to be acceptable for appeal.
There is a shortage of home inventory Salt Lake County….. Today, looking at the inventory of homes and condos for sale there are 4267 units. Also today, there are 2248 home and condo units Under Contract. A rule of thumb to measure the health of the market is supply and demand. Supply and Demand is snapshot of the current market and how long would take to absorb the current inventory. A healthy market will have an absorption of 5 to 6 months of inventory. This supply and demand ratios keeps prices in check. If there is not enough inventory for the number of buyers, prices will increase. If there is a glut of inventory and not many buyers, prices will decrease. See chart below.
Based on the figures I gave you about the snapshot of todays market, we have approximately 2 months of inventory! This is at the extremely low range of the spectrum, which has and will cause extreme upward pressures on home prices. The chart below come from the National Association of Realtors for May of 2013. This reflects a national trend.
So what does this mean for a buyer or a seller, and what is expected in the coming months? Today, the sellers have the upper hand in the negotiations process. There will be little, if any room for a buyer to negotiate in price. There will most likely be multiple offers on the same home. The only thing that is keeping home prices from heading back to pre-bubble prices is the role of Appraisers and banks. They allow certain appreciation levels on sold comparable properties, so we are seeing small steps in appreciation based on what banks will allow. The second reason, that will play a larger role, is the negative equity home owner. The current negative equity loan count from Fannie May for April of 2013 is approximately 10,400,000 units. These are homes that are essentially locked up from the market pool because buyers are waiting for the market to improve before they even think of selling. So as prices appreciate, more and more of these homeowners will start putting there homes on the market. This should ease the upward pressure as time goes by.
Currently, in Salt Lake County, the negative equity is approximately 25% according to Zillow. See the interactive map below for other counties along the Wasatch front. When will this negative equity number be absorbed? Experts don't have a timeframe, and only say that the inventory in dwindling monthly. So stay tune for more updates as we see changes in our local market…. I will report it here.
The news lately has been filled with housing price appreciation… With all the numbers flying around it's hard for the average person to make sense of what this all means. How does this affect me?! There are a few of scenarios you need to understand. First, is year over year price appreciation, second, price appreciation from the bottom, third, the number of units sold and lastly, prices as compared to the top of the market.
If you've been following the news, just about every week there are articles about how prices are up. A lot of these numbers are year over year appreciation for a particular month, say June, compared to June of the previous year. They also like to throw in the number of units sold, this is the number of units sold year over year, or sometimes month over month. If you don't read the article carefully, these numbers can be very confusing and misleading.
The following chart shows the median price of a home at the top of the market in Salt Lake City only. It shows the median home price at the peak of the market at $223,751. Four years later in 2011 we saw the lowest median price of $177,204. (these numbers are year over year starting in January and ending in December, except 2013 which will be year to date, June). A price drop of 20%. Some parts of Salt Lake County experienced closer to a 40% price drop, mostly newer construction south and west of the city center. See chart below.
Something I want to point out in this chart is where housing prices are so far in 2013. They are 10% lower than they were at the peak.
Below is an example comparing the number of housing units sold. This graph shows that the peak of the number of units sold was in 2005. A full 2 years before we started to see the housing prices start to fall. As you can see there was a 48 percent drop in the number of units sold, NOT price change…. this is big difference.
I also want to show you how housing prices in other parts of the country compare to Salt Lake City's. The following charts show the 20 city Case Shiller index. As you can see, every single city is still below their peak home prices, even though some have experienced over 20% appreciation!
Here is a map of the 20 city index for better visual comparison on which parts of the country are fairing better.
So, the question in the title of this blog is did you miss the housing price bottom? Yes you did…. The good news is that the market is far below the peak prices we saw back in '06 and '07. Should you be considering purchasing if you have been on the sidelines waiting? That depends on your situation, and only YOUR situation.
If you have any questions or comments, please let me know below…. What's the best situation for you now? Call or email me and we can schedule an appointment to review what is best for you.
"Doug Duncan,the Chief Economist at Fannie Mae said “I don’t think the Fed ultimately would be troubled with a 6.5 percent mortgage rate".”Frank Nothaft, Freddie Mac’s Vice President and Chief Economist,said this. “As the economy continuesto improve we expect to see continued upward movement in long term interest rates.” “At today’s house prices and income levels mortgage rates would have to be nearly seven percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.”
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Notice the highlighted comment: "Professionally landscaped, Park like setting" This must be one of those low maintenance landscapes that you pave over… saves on water!
What has your Realtor done for you today?
Today is July 17, 2013. This listing shows about 8 inches of snow in the yard. it didn't snow last night! Today it is predicted to be 100 degrees, I'm sure this snow will melt… question is, will this seller get an updated picture?
What is your agent doing for you today?!
|Salt Lake City Homes for Sale and Sold, June, 2013|
Salt Lake City, UT Homes for Sale have seen steady price improvement month to month as well as year to yearas inventory levels remain at all-time lows.
The Numbers Month to Month and Year to Year
The median sales price for Salt Lake City, UT Homes for Sale was $259,950 in June 2013 compared to $254,900 during May 2013 and $211,900 June 2013.
The number of Salt Lake City, UT Homes for Sale that sold was 363 in June 2013 vs. 387 in May 2013 and 349 that sold June 2013.
There are 526 Salt Lake City, UT Homes for Sale that are in contract which represents 62% of the overall available inventory of 835 homes.
A few highlights of the current Salt Lake City, UT Homes for Sale are shown below and represent a nice cross section of properties available, in contract and that have sold.
This Months Most Expensive
The most expensive of all Salt Lake City, UT Homes for sale this month is listed at $2,795,000 and includes 6 bedrooms, 8 bath and has 6899 sqft. What I loved about this home is the swimming pool and private back yard(schedule a showing). Circle Way
This Months Least Expensive
The least expensive of all Salt Lake City, UT homes for sale came in at $89,900 and would be a great home for a first time homebuyer or an investor looking for a rental property with positive cash flow. It has 1 bedrooms and 1 bath with 1128 sqft and could use a little updating (schedule a showing).
This Months Must See
There were some great Salt Lake City, …
|Below are highlight properties for Salt Lake City Homes for Sale and Sold, June, 2013. See more at the full report:|
|See the Full Salt Lake City Homes for Sale and Sold, June, 2013|
|Information valid as of July 16, 2013. Please contact us for the most current information and status of these properties.|
I'm starting a new MLS Fail section because I want to show sellers what to avoid when listing their home with an agent. Please look at the agents past marketing samples and make sure they use a professional photographer, or you may end up with something like this:
I see examples everyday that I can't believe are real…. but they are… and remember, this costs you money!