UTAH HAS STRONG ECONOMIC FUNDAMENTALS

The Utah real estate market is stable, and buying a home here is an excellent long term investment.

As a realtor I want to expose the truth about the strength and stability of the Utah housing market.  I want to show that our market is different and that the doom and gloom reported in the national media is not representation of our local conditions.  Nobody knows Utah real estate like a Utah Realtor.

Our Fundamentals Are Strong

1. Utah has demand for homes

In 2007, Utah had a record population growth of nearly 85,000 people, which translates into about 25,000 to 30,000 new households.  With the state expected to add another 84,000 people to the population in 2008, this growth is forecasted to continue into next year and beyond.

2. Utahns are employed.

About 52,500 new jobs were created in Utah over the past year, and wages have been growing between 5 and 10 percent.  Utah unemployment has averaged about 2.6 percent over the last year, nearly twice as good as the U.S. average of 4.6 percent.

3. Affordable loans are avaiable

Mortgage interest rates are at historic lows, hovering around 6 percent.  Conventional financing is readily avaiable for qualified borrowers, and FHA loans are becoming popular for those with less than perfect credit.  Even jumbo loan rates are edging downward.

OUR MARKET IS HEALTHY

Utah home appreciation continues to outperform that of any other state i the counrty.  With home prices increasing 12.9 percent over the past year, compared to the national increase of 1.8 percent during the same period, Utah has consistently led the U.S. in home price gains.

I was reading in the Daily Herald the other morning when I came across an article that lists the top 10 reasons to buy real estate right now.  These reasons are vaild and current.  I thought it was a great artcile and wanted to include a few of them in this post.

1. Selection, selection, selection.  There are about 4,650 resale homes on the market in Utah County.  Regardless of the price range a buyer desires, there are plenty of houses from which to choose.  Just a few years ago the resale inventory dropped below 2,050 units.  A buyer was forced to make compromises if they were going to locate the home of thier dreams.  There is a great selection of attached homes, condos, and townhouses.  You can find large lots, small lots and a lot that will accomodate your boat or RV.  There are lots of options in this market.

3. You can make an offer.  A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table.  Today the sell price vs. price ratio is about 99% for residential properties.  A seller will not be insulted if you make them an offer.

7. Repiar requests are welcomed.  After a buyer comtemplates a home inspection, they are allowed to submit a repair request to the seller.  In the past a seller might insist the home was sold ‘as is’.  Some homes are still sold ‘as is’, but priced accordingly.

10. Real Financing is available.  The ‘wink, wink’ zero down, no doc, adjustable, sub-prime loans are gone.  Fixed rates are back, FHA financing, fisrt time homeowner bond programs, special loans for teachers and police officers are back in business.  It’s a great time to buy real esate.

 I have included the link to the whole article. Top 10 Reasons  Please call me if you have any questions about any of the items listed in the list.

The holidays are almost here.  Only 46 more shopping days left.  I have searched the web and found some great articles with several helpful tips on how to survive the holiday season.  There is a great article on Holiday Procrastinators. Last minute shopping tips.  

Shopping online is a great way to get your holiday shopping done.  You won’t have to wait in lines, worry about parking or spend time in the post office trying to get all your purchases shipped. Simpler online gift ideas. However, when shopping online you must be careful.  I have linked a great article about online shopping safety.  Online shopping warnings. 

  The Holiday can be great fun but they also bring great stress.  Family and Social obligations.  Be sure to keep your holiday simple and enjoyable.  Also, be sure to take time to take care of yourself.  Here are some great tips for staying healthy for the holidays.  Staying Fit for the Season.

 How many shopping days do you really have left.  Visit the US Post Office website to view a calendar to find out when the last avaiable date is to ship your holiday gifts. It will show you dates for Military, Europe, South and Central America and within the US.

It feels like at least once a week, I open my homepage and there is some headline or another that is talking about the National Market and how bad it is.  I don’t understand how they can write things like that.  The National Market is made up.  Different states and different counties have uncommon markets.  What is going on in Utah is very different from what is going on in Florida.  The market in Utah County is different from the market in Wasatch County.  The market in Springville is different from the market in Alpine.

So all those headlines about the National market and the drop it is taking isn’t altogether true.  If you want to know what the market is doing. Please call your local agents.  Talk to a professional who knows your area.  Preferably a season agent who has seen both a slow and a quick pace market.  They can tell you what is really going on and how changes are going to affect you.

Every Month the Utah County Board of Realtors provide statistics so we can really see what the market is doing.  I have linked the Monthly statistics for April so that you can see for yourselves the numbers and what is happening in each city of Utah County.  Post your questions or ideas about what you think the market is doing and is going to do.

A study provided by Murray Consulting - Harris Interactive has asked consumers what the most important service their real estate agent can offer them.  Here are the following results.

Most Valuable Services BUYER’S expect from their Realtor.

Showing the Home, discussing with consumer 21.4%

Managing all aspects to close the transaction 19.3%

Negotiating the offer to purchase 19.1%

Providing guidance, choosing homes to see 11.9%

Information on house and neighborhood 10.4%  

Most Valuable Services SELLER’S expect from their Realtor

Effective marketing of the home 25.0 %

Negotiating all aspects of the offer 16.0%

Settlement services and closing the transaction 15.3%

Competitive Market analysis and setting the price 15.0%

Qualifying buyers and managing the showings 14.1 %

Preparing the home for sale 9.4 % 

 Let us know what you think are the most important services a realtor can provide.

As we have already posted, we know that the real estate market is changing. But not just, in price values. There are several different areas changing, one of them includes Home Owners Insurance Policies.

Last year home owners insurance regulations changed. The old regulations kept track of the claims according to the owners. Now when you purchase a home the policy would change according to the new owners. However, the new regulations keep records of all claims made on the home. If you purchase a home with several claims already made, they carry over to your new policy.

A good way to reduce the claims on your insurance is to purchase a home warranty every time you purchase a new home. Home warranties cover the home for the first year of ownership and can be extended for an aditional fee. When there’s an issue you make the through the home warranty instead of insurance company. This gives you one year for any problems to occur that you can claim without having them add up on your insurance policy.

A basic Home Warranty Plan costs $275.00. Covered items include central heating(furnace), water heater, kitchen refrigerator, oven, range, and cook top, interior plumbing, and garbage disposal, interior electrical system, built in dishwasher, garage door opener, and ductwork. Upgraded Home Warranties can go as high as $450.00 they can cover iadditional tems such as the washer and dryer, Built in whirlpools, Central vacuum systems, Well Pumps, central a/c units and others.

It has always been a good idea to purchase a home warranty plan. However, with the new insurance regulations it is an even better idea to make sure that a home warranty is included in the purchase. In the standard Utah Real Estate Purchase Contract (REPC) there is a specific section included for Home Warranties. Most sellers are willing to pay for the Home Warranty.

We have had great success with clients who have filed cliams. Usually it is $50-100 per claim. I had a client a few years ago who purchased their in the winter and once the spring thaw came they had a frozen hose bib that burst. At the same time the water heater went out. This $1000 problem only cost $100. Thankfully we asked the seller to include the warranty. We recommend one in every purchase.

Every year, the number of real estate agents increases.  It feels like almost everyone has a brother, cousin, friend or in-law who is a Realtor.  The industry competition is rising.  But what does it take to be a successful and professional real estate agent?  Owning my own Real Estate Company has given me lots of experience with professional agents and brokers.  I’ve listed a few qualities that I think make a professional agent.

The first is good COMMUNICATION with all parties.  I need to initate and return calls.  For me personally, it is important to be able to listen to my clients needs.  If I am aware of what is truly important to my clients, then I am in the best poisition to serve their needs.  Also, it is important  to help them identify thier true motivations, so they can make difficult decisions more readily.

It is also important to be able to tell my clients what I know and not just want I think.  I am constantly searching for new information to help my clients.  Utah Real Estate is constantly changing, it’s vital to stay updated and educated.  I want to provide the most resources I can, allowing my clients more options.

On of the most imporant qualities of a professional real esate agent is HONESTY.  In a recent artivle by Kano Ayala, 10 reasons are listed as to why people fail.  Shadiness is number 10.  He states “Ture, some people make money being shady, but they’re not really successful.  They are failures of the worst kind.”  I’ve been selling real esate in Utah County for 6 years.  In this business, agents have a reputation for being shady, dishonest and can’t be trusted.  A good agent will avoid mistakes and should be honest at all times.  Most errors, mistakes or misrepresentations can be avoided with good communication and attention to detail.

Please feel free to share any experiences that you have had while working with a realtor.

As your real estate agent, I want to inform you about a goverment released report.  We all know that real estate has recently appreciated but by how much?  Utah has had the highest home price appreciation in the fourth quarter of 2005 and the fourth quarter of 2006.  The office of Federal Housing Enterprise Oversight’s House Price Index has released statistics that show a rate of 17.6 percent appreciation in the Utah metro areas.  Utah County especially the Provo-Orem area was ranked third in the Nation with a rate of 19.92 percent appreciation.  Salt Lake City came in fourth with a rate of 19.76 percent appreciation.  Please post a comment and let us know what you think.

Over the past couple weeks we have been looking at the benefits of blogs and how they can help us keep in touch with all of you. Here are a few things that we hope to keep you updated on as we start blogging; Real Estate in Utah and mainly Utah County, property values, National Real Estate News, Local Resources, Property Listings, remodeling idea’s, curb appeal, decorating tips and more. The best part of blogging is that you, our clients can tell us what you would like to hear about from us.