Did You Miss the Housing Price Bottom in Salt Lake City?

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.

 

Posted on August 2, 2013 at 8:41 pm
Marvin Jensen | Category: home appreciation, Home Buying, Market Conditions, statistics | Tagged , , , , ,

Thinking of Making an Offer on a Short Sale? What You Need to Know

house-floatingAre you looking to buy a new home? Are you thinking that now’s a great time to find bargains? That’s true, but it pays to know a little about the seller’s situation before you make an offer.

If a home is being sold for below what the current seller owes on the property-and the seller does not have other funds to make up the difference at closing-the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You’re a good candidate for a short-sale purchase if: Continue reading

Posted on January 4, 2010 at 2:12 pm
Marvin Jensen | Category: Short Sales | Tagged , ,

Utah Home Run Grant 2 is Now Here!

homegrantseal2The wildly successful Home Run Grant for buyers who purchase new construction is back! There are a few changes to the program, like the amount for each grant and what properties qualify.

According to The Utah Housing Corporation these are the people who qualify:

A total of approximately 1,950 grants of $4,000 each will be available. Only one grant can be used for the purchase of each home and can only be issued to persons who did not obtain a grant under the previous $6,000 Home Run Program. Home Run 2 Grants are distributed on a first-come, first-served basis to fully-qualified home buyers. The approximate number of remaining grants is posted at all times on Utah Housing web page at Utah Housing Corporation.

The Home Run 2 Grant is a mortgage assistance program that grants $4,000 to home buyers who wish to: (A) have a new home constructed, (B) have a partially-constructed home completed, or (C) purchase a newly-constructed home. It must be the primary residence of the home buyer. Homes that have been previously occupied do not qualify.

To learn more about this exciting program click here. Don’t wait if you missed the first one.

Posted on September 4, 2009 at 11:29 am
Marvin Jensen | Category: Home Run Grant Program | Tagged , , ,

A Revolution—Is Your Realtor Using Outdated Media to Sell Your Home?

The social media revolution is a phenomenon that has gone viral! The old ways of marketing your home is NOT effective anymore! If your Realtor is using newspapers, printed flyers outside in flyer boxes, or uses those hideous free real estate magazines to market your home, your pouring your money down the drain. Print media is ineffective and out dated.

Watch this incredible video to see what I’m talking about. Then contact me about a marketing plan for the new generation of media that will find buyers for your home!

Posted on August 18, 2009 at 9:41 pm
Marvin Jensen | Category: Buyer, Green, Marketing, Realtor, Social Media | Tagged , , ,

Housing Affordability Surges to Highest Level in 18 Years

house-web4According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) the nationwide housing affordability jumped 10% during the first quarter of 2009, the highest level since the series began 18 years ago. The HOI showed that 72.5% of all new and existing homes sold in the first quarter  of the year were affordable to families earning the national medium income of $64,000. The affordability index for the first quarter of 2008 was just 53.8%.

See entire article here: Housing Affordability Surges to Highest Level in 18 Years | RISMedia

Posted on May 19, 2009 at 3:45 pm
Marvin Jensen | Category: statistics | Tagged , , ,

Use Your $8000 First Time Home Buyer Tax Credit at Closing.

hud_logo

UPDATE: September 16, 2009:

The Utah Housing Corp has implemented a program to loan money for the $8,000.00 first buyer tax credit to use at closing. The program is called Equity Now and has some conditions. To find out more, click here. Although there are proposals in congress to extend the tax credit, it is still expected to expire November 30, 2009.

UPDATE: August 6, 2009:

To monetize the $8,000 at closing, a bridge loan must be obtained through the state housing finance agency. In Utah it would be the Utah Housing Authority. As of this morning, they are still NOT offering to monetize the tax credit.
As of mid-2009, more than a dozen state housing finance agencies (HFAs) were offering bridge loans to prospective buyers, and many more were planning to do so. Currently, the following states have programs in place: Colorado, Delaware, Idaho, Kentucky, Missouri, Nebraska, New Jersey, New Mexico, Ohio, Pennsylvania, Tennessee, Texas, and Virginia.

Since the program is over November 30th, 2009, you have to wonder if they will be doing this at all. I will keep checking with them and updating here if there are any changes.

UPDATE, May 29,2009: It’s official from HUD’s Shaun Donovan, the hold on this program is now over:

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to “monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.

Don’t wait until you file your taxes to receive the Federal Stimulus money of $8,000. Housing and Urban Development Secretary Shaun Donovan announced that buyers can monetize their proceeds for a down payment through participating banks.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

First time home buyers in Utah who purchase a new construction home or condominium can also take advantage of the Utah’s Home Run Program that allows buyers of new homes a $6,000 grant at closing. With these 2 combined programs, home buyers who qualify can receive $14,000 at closing to purchase their home. With rates hovering in the mid 4% range and prices at 5 year lows, what are you waiting for?

image: hud.gov
Posted on May 16, 2009 at 10:01 am
Marvin Jensen | Category: Home Run Grant Program, HUD, Tax credit | Tagged , , , , ,

Utah's $6,000 Home Run Grant Working as Planned

20090427__homerungrants_04282

UPDATE: September 4, 2009 – Utah has come out with a new grant program, Utah Home Run Grant 2, click here for details!

UPDATE: June 11, 2009 – Utah’s Home Run Grant Program is Officially out of money. Those that received the money, congratulations, those that didn’t, stay tuned… I will have some inside news later…

New home sales have been spurred by Utah’s Home Run Grant program that provides $6,000 to home buyers that purchase a new constructed home in Utah. To date, the Home Run Program has awarded 530 grants to homebuyers, about $3.2 million in all, according to The Salt Lake Tribune. The program was funded with  $10 million from the federal stimulus money. There are are still about 1100 grants to give away to homebuyers, don’t wait too long to get yours! Click here for details.

Posted on April 28, 2009 at 2:45 pm
Marvin Jensen | Category: Home Run Grant Program | Tagged , , , ,

Thinking of Buying a Home? WHAT are You Waiting For?!

majesticoakproperties.com, hatcityblog.blogspot.com

Posted on March 18, 2009 at 10:46 pm
Marvin Jensen | Category: Buyer, home ownership, Market Conditions | Tagged , , , , , , ,

Utah Legislature offers New Home Buyers a $6,000 Grant!

capitoldomeA bill in the Utah legislature, Senate Bill 260, would give first time Utah Home Buyers a $6,000 down payment grant. This money would come from the federal stimulus package as a 10 million dollar grant to distribute for housing assistance. The money would go to more than 1,600 buyers on a first-come, first-served basis. 

Realtors and economists say this program could really help the housing market. The University of Utah’s Bureau of Economic and Business Research told the Standard Examiner the program could create 8,000 jobs in Utah’s housing sector and add $27 million in income tax revenue for the state.

This would help with the number of new homes that have been sitting on the market the last few years. If the bill is passed, it would be administered through the nonprofit Utah Housing Corporation.

Posted on March 10, 2009 at 2:42 pm
Marvin Jensen | Category: Buyer, Taxes, Utah | Tagged , ,

IRS Allows First Time Homeowners to Take Tax Credit in 2008!

IR-2009-14, Feb. 25, 2009

taxdayWASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit,” said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year. 

Source; Internal Revenue Service – check with your tax professional for further details, this is not tax advise!

 

Posted on March 4, 2009 at 9:53 am
Marvin Jensen | Category: Buyer, Taxes | Tagged , ,