According to a recent report from Global Insight, an economic and financial analysis forecasting firm, current housing statistics indicate that now is the right to time to buy.
They claim that the U.S. housing market as a whole is undervalued by 3.8 percent. Global Insight analyzed 330 metropolitan areas in the United States and found that 241 metro areas experienced price declines in the third quarter of 2008 in comparison to 150 metro areas in the second quarter.
The markets that were hardest hit were in areas that were most overvalued three years ago. This study, a combined effort by HIS Global Insight and National City Corporation represented 78 percent of all existing housing units in the United States.
Low intrest rates and increased affordability make today's market a buyer's dream!
Source: Global Insight (12/03/2008)
Friday, December 5, 2008
Wednesday, October 29, 2008
Tips for avoiding foreclosure fraud
1. Contact your lender as soon as you become delinquent.
2. Seek the advice of a competent real-estate professional or attorney, recommended by someone you know and trust.
3. Do not transfer the title to your home to a third party.
4. Contact government agencies that can help you. They can be found at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
5. Report any person or company who guarantees they will solve your problem. You can report real-estate fraud to the Utah Division of Real Estate at 801-530-6747 or by filing a complaint form: www.realestate.utah.gov/complaint_form.pdf.
Source: Utah Division of Real Estate
2. Seek the advice of a competent real-estate professional or attorney, recommended by someone you know and trust.
3. Do not transfer the title to your home to a third party.
4. Contact government agencies that can help you. They can be found at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
5. Report any person or company who guarantees they will solve your problem. You can report real-estate fraud to the Utah Division of Real Estate at 801-530-6747 or by filing a complaint form: www.realestate.utah.gov/complaint_form.pdf.
Source: Utah Division of Real Estate
Reports of foreclosure fraud double
The number of reports of foreclosure fraud in Utah has doubled during the housing-market meltdown, and general complaints about real-estate schemes have increased 25 to 35 percent in the past year, the head of the state Division of Real Estate said Monday.
With so much turmoil, division director Mark Steinagel said his agency is offering advice to homeowners on how to avoid foreclosure scams, as the foreclosure rate in Utah has soared.
"A lot of the scams are repackaged schemes that have existed in the past," he said. "They're not new, but they are increasing in frequency."
A report this month from real-estate data firm RealtyTrac Inc. showed that the number of Utahns facing foreclosure increased by more than 136 percent in the third quarter of this year, compared with the same period in 2007. Utah had the 10th-highest rate of foreclosure filings in the nation for the third quarter of 2008, with 4,867 people receiving at least one foreclosure-related notice from July through September.
Steinagel said that while the number of homeowners struggling to keep their houses has increased drastically over the past year, so has the number of "fraudsters."
"They look for an opportunity, and they pounce on it," he said.
The crooks often hold themselves out as someone who can save people from losing their home. But in reality, the scam perpetrators are looking for vulnerable people, so they can "take their home or their money or their home equity," Steinagel said.
One of the main ways people can protect themselves is to verify licenses or credentials of people who offer help. If any red flags pop up, contact his agency, he said.
"If we are unable to take action against the person because what they are doing doesn't fall under our jurisdiction, then we have connections on the mortgage-fraud task force to do things," he said.
His division has compiled a list of the "Top Five Common Foreclosure Frauds." The top scam was people promising to save your credit by having you pay a fee and sign your home over to a third party. The scam perpetrators claim the foreclosure will be recorded against the third party. But in reality, the lender will record the foreclosure against the homeowner who does not pay as promised under the original mortgage.
Fraudsters also may offer to buy a homeowner's property and lease it back, with a promise the homeowner will have the option to buy it back. Fraudsters prey on trusting individuals to get access to their home equity, title, credit or money, the division said.
Crooks will sometimes say they have "a special relationship" with banks and can solve homeowners' problems quickly with no harm to their credit. Such claims are usually false, and there are no easy solutions to foreclosure, the division said.
Consumers also should be wary of offers of a "guaranteed short sale" that will "save" a homeowner's credit rating. Short sales can be a legal, effective method for preventing a foreclosure, but they are not guaranteed to be accepted by a lender, and they can affect a homeowner's credit.
Scam perpetrators sometimes urge homeowners to claim bankruptcy, the division said. But legitimate financial advisors typically recommend bankruptcy only as an absolute last resort, so consumers should weigh all alternatives before pursuing that option.
"One of the important things is for people to turn on their warning lights," Steinagel said. "When you're vulnerable, realize there are ways to protect yourself."
With so much turmoil, division director Mark Steinagel said his agency is offering advice to homeowners on how to avoid foreclosure scams, as the foreclosure rate in Utah has soared.
"A lot of the scams are repackaged schemes that have existed in the past," he said. "They're not new, but they are increasing in frequency."
A report this month from real-estate data firm RealtyTrac Inc. showed that the number of Utahns facing foreclosure increased by more than 136 percent in the third quarter of this year, compared with the same period in 2007. Utah had the 10th-highest rate of foreclosure filings in the nation for the third quarter of 2008, with 4,867 people receiving at least one foreclosure-related notice from July through September.
Steinagel said that while the number of homeowners struggling to keep their houses has increased drastically over the past year, so has the number of "fraudsters."
"They look for an opportunity, and they pounce on it," he said.
The crooks often hold themselves out as someone who can save people from losing their home. But in reality, the scam perpetrators are looking for vulnerable people, so they can "take their home or their money or their home equity," Steinagel said.
One of the main ways people can protect themselves is to verify licenses or credentials of people who offer help. If any red flags pop up, contact his agency, he said.
"If we are unable to take action against the person because what they are doing doesn't fall under our jurisdiction, then we have connections on the mortgage-fraud task force to do things," he said.
His division has compiled a list of the "Top Five Common Foreclosure Frauds." The top scam was people promising to save your credit by having you pay a fee and sign your home over to a third party. The scam perpetrators claim the foreclosure will be recorded against the third party. But in reality, the lender will record the foreclosure against the homeowner who does not pay as promised under the original mortgage.
Fraudsters also may offer to buy a homeowner's property and lease it back, with a promise the homeowner will have the option to buy it back. Fraudsters prey on trusting individuals to get access to their home equity, title, credit or money, the division said.
Crooks will sometimes say they have "a special relationship" with banks and can solve homeowners' problems quickly with no harm to their credit. Such claims are usually false, and there are no easy solutions to foreclosure, the division said.
Consumers also should be wary of offers of a "guaranteed short sale" that will "save" a homeowner's credit rating. Short sales can be a legal, effective method for preventing a foreclosure, but they are not guaranteed to be accepted by a lender, and they can affect a homeowner's credit.
Scam perpetrators sometimes urge homeowners to claim bankruptcy, the division said. But legitimate financial advisors typically recommend bankruptcy only as an absolute last resort, so consumers should weigh all alternatives before pursuing that option.
"One of the important things is for people to turn on their warning lights," Steinagel said. "When you're vulnerable, realize there are ways to protect yourself."
Tuesday, September 9, 2008
Why A Chicago Real Estate Developer Is Setting Its Sights On Salt Lake City
Salt Lake City might pale in comparison to the high-rise office towers of Chicago, home to three of the world’s 20 tallest buildings. But it is a Chicago commercial real estate development firm that has set its sights on Salt Lake City and will soon change the city’s skyline forever. It all started more than a decade ago when Ron Lunt found himself spending the night in downtown Salt Lake City after being bumped from a Delta flight. "The next day I was walking around downtown," said Lunt, a partner at Hamilton Partners, a Chicago-based commercial real estate developer. "At that time the American Stores building on Main Street was under construction and it looked pretty good. The One Utah Center looked nice, but there wasn’t a lot of other good office space downtown." When Lunt returned to Illinois he asked Bruce Bingham, also a partner at Hamilton, to research Salt Lake City’s market. "From what I saw we could certainly compete," Lunt said. "And my sense was that the market was in pretty good shape." In fact, at a value of $2.23 billion, 1997 turned out to be a record year for Utah’s commercial real estate scene, according to James Wood, director of the University of Utah’s Bureau of Business and Economic Research. Driving the city’s growth back then was the ambitious construction of the 21,000-seat Conference Center by the Church of Jesus Christ of Latter-Day Saints. In addition, construction had started on the Grand America, a 775-room five-star hotel that the Wall Street Journal touted as rivaling New York City’s best hotels. Today, with the ongoing construction of the $1.5 billion City Creek Center, a 20-acre mixed-use development of retail, residential and office space, 2008 is on track to setting a second-place finish in commercial valuation to 1997’s record performance year. Such activity prompted Hamilton partners to invest in Salt Lake City. Not only is the Chicago developer constructing a new office tower, but the company has purchased several downtown landmarks including the Broadway Centre at 300 South State Street, the Lollin and Kerrick buildings on Main Street, and the Newhouse and Boston buildings on Exchange Place. In fact, Hamilton Partners recently completed a $10 million renovation to the Boston Building, a 100-year-old tower that is considered one of Salt Lake City’s first skyscrapers. "We are very bullish on Salt Lake City," said Bingham, who is also the chairman of the board of trustees of the Downtown Alliance of Salt Lake City, a non-profit organization that represents more than 2,500 business and property owners in a 40-block area of the city’s central business district. "We believe that 222 South Main represents an element of the renaissance of Salt Lake City. Salt Lake City probably had its downtown heyday in the 1950s. It was really downhill from there." However, according to Lane Beattie, president and chief executive officer of the Salt Lake Chamber, the city’s restoration is in full swing. "Four years ago there were four projects in the downtown area approved or under construction," Beattie said. "Today there are 54 projects under construction including condos, warehouses, offices, restaurants and hotels. Those projects are in addition to the City Creek Center." Driving new population growth in the downtown area is the addition of 750 residential units in five new towers in the City Creek Center, according to a recent report by the Bureau of Economic and Business Research. Currently, Salt Lake City’s central business district has roughly 3,700 housing units, about 1 percent of Salt Lake County’s total housing inventory. The 3,700 housing units provide housing for roughly 7,500 residents. But the number of residents living in the
downtown area is projected to grow to more than 10,000 people by 2011, according to the BEBR report. Tom Colemere, principal broker of Colemere Realty Associates based in Salt Lake City and a member of the board of directors of the Salt Lake Board of REALTORS®, believes downtown Salt Lake City will have a completely different feel and look in the next three years.
"City Creek will change the face of Salt Lake City," Colemere said. "I don’t recall ever seeing that much activity in downtown Salt Lake City in my 25 years as a commercial broker." Barbara Johnson, a commercial real estate agent with NAI Utah, said downtown’s resurgence can be traced, in part, because of the LDS Church’s commitment in protecting its interests and keeping the area in order. "That is known and understood by businesses across the country," Johnson said. "They know that Salt Lake City will always be vibrant so they have a lot of faith and confidence in driving their business to a city such as Salt Lake." Johnson also attributes Salt Lake’s strong commercial growth to Gov. Jon Huntsman Jr., who has set economic growth at the top of his agenda." Huntsman has been so successful with bringing people and organizations together. That’s one of the major reasons that I see that is driving business," she said. "We’ve got an active government that is pro-business and will do everything they can do to get business to Utah. That is very helpful for the commercial market." Indeed, Utah consistently ranks at the top when it comes to business rankings. In July, Forbes magazine placed Utah at the No. 2 spot for "The Best States For Business." In a separate report in July, CNBC ranked Utah the No. 3 Top State for Business. Utah received high marks in the cost of doing business, its workforce, the economy, quality of life, and business friendliness. Last year the Boston-based Beacon Hill Institute ranked Utah the most economic competitive state in the nation. Those favorable business conditions are driving new job growth in Utah’s professional and business sector, which in June saw a 2.1 percent increase (more than 3,300 new jobs created) compared to last year, according to the Utah Department of Workforce Services. That is good news to commercial brokerage firms like CB Richard Ellis, the listing agent for 222 South Main, which has already signed three lease agreements in 222 South Main that secure more than 20 percent of the tower’s 425,000 square feet of office space. The building is expected to be completed in late 2009. "One of the things about this building that is so important is that it is designed by the world-renowned and internationally awarded architectural firm of Skidmore, Owings and Merrill," Bingham said. "On I-15 at night you see an orange triangle from the pyramid on top of the One Utah Center and you see some blue lines from the Wells Fargo Center. In between that there is going to be a white rectangle with a three-story glass veil at the top that is going to glow like a lantern at night. The architects who did this have designed a building that is going to be an icon and a real addition to the skyline."
Dave Anderton is the public relations director for the Salt Lake Board of Realtors
downtown area is projected to grow to more than 10,000 people by 2011, according to the BEBR report. Tom Colemere, principal broker of Colemere Realty Associates based in Salt Lake City and a member of the board of directors of the Salt Lake Board of REALTORS®, believes downtown Salt Lake City will have a completely different feel and look in the next three years.
"City Creek will change the face of Salt Lake City," Colemere said. "I don’t recall ever seeing that much activity in downtown Salt Lake City in my 25 years as a commercial broker." Barbara Johnson, a commercial real estate agent with NAI Utah, said downtown’s resurgence can be traced, in part, because of the LDS Church’s commitment in protecting its interests and keeping the area in order. "That is known and understood by businesses across the country," Johnson said. "They know that Salt Lake City will always be vibrant so they have a lot of faith and confidence in driving their business to a city such as Salt Lake." Johnson also attributes Salt Lake’s strong commercial growth to Gov. Jon Huntsman Jr., who has set economic growth at the top of his agenda." Huntsman has been so successful with bringing people and organizations together. That’s one of the major reasons that I see that is driving business," she said. "We’ve got an active government that is pro-business and will do everything they can do to get business to Utah. That is very helpful for the commercial market." Indeed, Utah consistently ranks at the top when it comes to business rankings. In July, Forbes magazine placed Utah at the No. 2 spot for "The Best States For Business." In a separate report in July, CNBC ranked Utah the No. 3 Top State for Business. Utah received high marks in the cost of doing business, its workforce, the economy, quality of life, and business friendliness. Last year the Boston-based Beacon Hill Institute ranked Utah the most economic competitive state in the nation. Those favorable business conditions are driving new job growth in Utah’s professional and business sector, which in June saw a 2.1 percent increase (more than 3,300 new jobs created) compared to last year, according to the Utah Department of Workforce Services. That is good news to commercial brokerage firms like CB Richard Ellis, the listing agent for 222 South Main, which has already signed three lease agreements in 222 South Main that secure more than 20 percent of the tower’s 425,000 square feet of office space. The building is expected to be completed in late 2009. "One of the things about this building that is so important is that it is designed by the world-renowned and internationally awarded architectural firm of Skidmore, Owings and Merrill," Bingham said. "On I-15 at night you see an orange triangle from the pyramid on top of the One Utah Center and you see some blue lines from the Wells Fargo Center. In between that there is going to be a white rectangle with a three-story glass veil at the top that is going to glow like a lantern at night. The architects who did this have designed a building that is going to be an icon and a real addition to the skyline."
Dave Anderton is the public relations director for the Salt Lake Board of Realtors
Wednesday, July 16, 2008
Home Buyers Hopeful About Market
An online survey of potential home buyers found that 44 percent believe the real estate market will improve once the new president takes office. In the meantime, 81 percent say they remain nervous about the current market.Respondents cite a variety of barriers to buying a home: 28 percent say they are stymied by the cost of a down payment; 20 percent are concerned about their income level, and 31 percent (39 percent in the West) say home prices are still too high.Practical reasons motivate these potential buyers. A quarter say they need more space; 17 percent have gotten married, had a baby or experienced some other life-stage change, while 9 percent want to downsize.Seventy-eight percent say they are willing to save or earn extra money for the down payment and are willing to compromise on amenities in their new home to make it more affordable.Harris Interactive conducted the survey for Move Inc., which operates Move.com and REALTOR.com.
Source: Move Inc.
Source: Move Inc.
Saturday, July 12, 2008
Bank of America CEO: Lenders Must Step In
The CEO of Bank of America Kenneth D. Lewis called on the lending industry to avoid foreclosure and “help borrowers manage through the current crisis.”
He told 175 California business and lending professionals at a conference this week that now is the time for the lending industry to "return to a more disciplined view of risk standards that will protect everyone from a repetition of what we are going through today."
Bank of America sidestepped the mortgage market meltdown by avoiding subprime loans, but it recently acquired Countrywide Financial Corp., the nation’s largest mortgage lender and a company that was whip-lashed by its subprime lending practices.
So far this year, Lewis says Countrywide has worked to help nearly 100,000 customers remain in their homes.
"If borrowers can afford to pay market rates and want to stay in their homes, we can and do work with them to make that happen, even when it means modifying the terms of a loan they can no longer afford,” he says.
Source: The San Diego Union-Tribune (07/08/08)
He told 175 California business and lending professionals at a conference this week that now is the time for the lending industry to "return to a more disciplined view of risk standards that will protect everyone from a repetition of what we are going through today."
Bank of America sidestepped the mortgage market meltdown by avoiding subprime loans, but it recently acquired Countrywide Financial Corp., the nation’s largest mortgage lender and a company that was whip-lashed by its subprime lending practices.
So far this year, Lewis says Countrywide has worked to help nearly 100,000 customers remain in their homes.
"If borrowers can afford to pay market rates and want to stay in their homes, we can and do work with them to make that happen, even when it means modifying the terms of a loan they can no longer afford,” he says.
Source: The San Diego Union-Tribune (07/08/08)
Builders Bank on Turnaround, Buy Up Land
Builders, including Lennar Corp, KB Home, Hovnanian Enterprises Inc, Meritage Homes Corp., are back buying and developing land again.
Lennar spent $162 million on new land in the second quarter and will spend at least $200 million more by the end of the fourth quarter, JP Morgan analyst Michael Rehaut wrote in a note to clients. KB expects to spend $300 million on land and $400 million on land development this year, Rehaut said.
Hovnanian is working on a land development joint venture, company spokesman Jeffrey O'Keefe says. And Meritage is "beginning to shift from defense to offense," looking to buy land in the second half of the year, wrote Wachovia analyst Carl Reichardt after meeting with Meritage management.
In theory, buying land now is a smart move, said Todd Lowenstein of HighMark Value Momentum Fund, which owns 187,000 shares of Pulte Homes Inc.
"You have to be a predator in these down markets to position yourself for the upturn," he said.
Source: Reuters News, Helen Chernikoff (07/10/08)
Lennar spent $162 million on new land in the second quarter and will spend at least $200 million more by the end of the fourth quarter, JP Morgan analyst Michael Rehaut wrote in a note to clients. KB expects to spend $300 million on land and $400 million on land development this year, Rehaut said.
Hovnanian is working on a land development joint venture, company spokesman Jeffrey O'Keefe says. And Meritage is "beginning to shift from defense to offense," looking to buy land in the second half of the year, wrote Wachovia analyst Carl Reichardt after meeting with Meritage management.
In theory, buying land now is a smart move, said Todd Lowenstein of HighMark Value Momentum Fund, which owns 187,000 shares of Pulte Homes Inc.
"You have to be a predator in these down markets to position yourself for the upturn," he said.
Source: Reuters News, Helen Chernikoff (07/10/08)
Monday, June 30, 2008
Riverton City Taxes go up!
By Amy Choate-NielsenDeseret News
Published: Sunday, June 22, 2008 12:10 a.m. MDT
RIVERTON — Hard times have fallen on Riverton.Like many other cities feeling the crunch of a faltering economy and skyrocketing fuel prices, Riverton is considering increasing property taxes by more than 200 percent to fill a gap in the city’s revenue caused by evaporating new construction.
Mayor Bill Applegarth trimmed about $700,000 from the 2007-08 budget, and five city employees — including the public works director — have been laid off, but still, the city needs an additional $1 million in revenue, Applegarth says. The city currently receives about $460,000 in property-tax revenue, which is roughly 2 percent of the total tax bill property owners in Riverton pay.
“Our problem isn’t expenditures, it’s revenue stream,” Applegarth said. “We’ve had, in the past, a high building rate of residents. The last fiscal year we were right around 1,000 residential building permits for the year. This year we’ll be right around 100 building permits. You can see that revenue stream has dropped a great deal.”
The city’s projections for sales-tax revenue is $700,000 short, and the city is running on a loss of about $1.5 million in new construction fees from its 2006-07 budget. All but $800,000 of the city’s rainy day fund has been tapped to supplement the 2007-08 budget, and Applegarth says he doesn’t want to deplete those funds any further.
The city commissioned a survey of 454 Riverton residents in April to gauge how receptive residents would be to a potential tax increase of about $8 a month — or $96 a year, for an average home valued at about $330,000 — on the city portion of property owners’ property-tax bill. About 59 percent of residents polled in the survey said they would be willing to pay the increase to keep the same level of city services, including 6 percent who said they would pay the increase if no other sources of revenue could be found.Applegarth is quick to point out that Riverton residents pay some of the lowest property taxes in the state — even if the increase is approved the city will still be lower than most of its neighbors — and he is emphatic that he hates suggesting raising taxes, but the mayor is comforted by the statistics of the survey.
“If I had not had the support of the people to increase property taxes I never would have taken that budget to the council,” Applegarth said. “We’re dealing with the people’s money and people need to make decisions on how they feel about services. … If (the survey) had come back that over 50 percent of us wanted to cut services, that’s what my budget would have reflected.”
Some residents are skeptical that a majority of residents would support such a dramatic tax increase — and that the city really needs the revenue. Resident Bill Cox says he thinks the survey of 454 residents was misleading and manipulative. His wife was one of the 454 polled, but he does not support a 230 percent increase.
“With the economy being so bad, I don’t think it’s the best idea,” Cox said. “I think operations need to pull back. If they can’t cover costs for essential city services, then they should go to the residents. But a 300 percent increase at once? That’s a lot.”The city will have one more public hearing on Aug. 12 before the new tax rate is approved by the city. In the meantime, each property owner should receive a property-tax notice in early August detailing how much the increase would cost them.
Former City Councilwoman Lisa Mariano says she can see how the increase will hurt, but she understands why the city would need to raise the tax.
“In terms of percentage, (the tax increase) looks huge, but in terms of money, that’s the least of my worries,” Mariano said. “I know no one wants to pay more than they have to right now, everything is tight, but everything is tight all the way around, and it’s tight on the council, too.”
Published: Sunday, June 22, 2008 12:10 a.m. MDT
RIVERTON — Hard times have fallen on Riverton.Like many other cities feeling the crunch of a faltering economy and skyrocketing fuel prices, Riverton is considering increasing property taxes by more than 200 percent to fill a gap in the city’s revenue caused by evaporating new construction.
Mayor Bill Applegarth trimmed about $700,000 from the 2007-08 budget, and five city employees — including the public works director — have been laid off, but still, the city needs an additional $1 million in revenue, Applegarth says. The city currently receives about $460,000 in property-tax revenue, which is roughly 2 percent of the total tax bill property owners in Riverton pay.
“Our problem isn’t expenditures, it’s revenue stream,” Applegarth said. “We’ve had, in the past, a high building rate of residents. The last fiscal year we were right around 1,000 residential building permits for the year. This year we’ll be right around 100 building permits. You can see that revenue stream has dropped a great deal.”
The city’s projections for sales-tax revenue is $700,000 short, and the city is running on a loss of about $1.5 million in new construction fees from its 2006-07 budget. All but $800,000 of the city’s rainy day fund has been tapped to supplement the 2007-08 budget, and Applegarth says he doesn’t want to deplete those funds any further.
The city commissioned a survey of 454 Riverton residents in April to gauge how receptive residents would be to a potential tax increase of about $8 a month — or $96 a year, for an average home valued at about $330,000 — on the city portion of property owners’ property-tax bill. About 59 percent of residents polled in the survey said they would be willing to pay the increase to keep the same level of city services, including 6 percent who said they would pay the increase if no other sources of revenue could be found.Applegarth is quick to point out that Riverton residents pay some of the lowest property taxes in the state — even if the increase is approved the city will still be lower than most of its neighbors — and he is emphatic that he hates suggesting raising taxes, but the mayor is comforted by the statistics of the survey.
“If I had not had the support of the people to increase property taxes I never would have taken that budget to the council,” Applegarth said. “We’re dealing with the people’s money and people need to make decisions on how they feel about services. … If (the survey) had come back that over 50 percent of us wanted to cut services, that’s what my budget would have reflected.”
Some residents are skeptical that a majority of residents would support such a dramatic tax increase — and that the city really needs the revenue. Resident Bill Cox says he thinks the survey of 454 residents was misleading and manipulative. His wife was one of the 454 polled, but he does not support a 230 percent increase.
“With the economy being so bad, I don’t think it’s the best idea,” Cox said. “I think operations need to pull back. If they can’t cover costs for essential city services, then they should go to the residents. But a 300 percent increase at once? That’s a lot.”The city will have one more public hearing on Aug. 12 before the new tax rate is approved by the city. In the meantime, each property owner should receive a property-tax notice in early August detailing how much the increase would cost them.
Former City Councilwoman Lisa Mariano says she can see how the increase will hurt, but she understands why the city would need to raise the tax.
“In terms of percentage, (the tax increase) looks huge, but in terms of money, that’s the least of my worries,” Mariano said. “I know no one wants to pay more than they have to right now, everything is tight, but everything is tight all the way around, and it’s tight on the council, too.”
Monday, June 23, 2008
Sunday, June 22, 2008
Short Sale/Foreclosures affect all Homeowners
A conversation that I had with a seller a few days ago led me to believe that a lot of people out there don't realize that short sales and foreclosures affect them as well. This homeowner trying to sell their home said that "We're not selling short sale or foreclosure so I don't have to price our home that way." What this person isn't aware of is, that whether we all like it or not, this does affect everyone's home values, including those not looking to sell their home. This affects those that are are trying to refinance or get a home equity loan.
It's important when selling one's home that it is priced "in the market" not "out of the market". Meaning that if it is priced too high (out of the market) it will not sell. Even if one is looking at the prices of their competitors. It's most important to look at the 'sold comparables'. That is what an appraiser is going to look at to put a value on a home.
Realtors do have access to this information to help put a value on a home. We do look at the sold, active listing comparables as well as under contract. We put all of this information together to help put a value on a home.
If anyone would like a free Comparative Market Analysis of their home please just call or email me. I will give you this information to help you know where the value of your home stands.
Thanks,
Becky
It's important when selling one's home that it is priced "in the market" not "out of the market". Meaning that if it is priced too high (out of the market) it will not sell. Even if one is looking at the prices of their competitors. It's most important to look at the 'sold comparables'. That is what an appraiser is going to look at to put a value on a home.
Realtors do have access to this information to help put a value on a home. We do look at the sold, active listing comparables as well as under contract. We put all of this information together to help put a value on a home.
If anyone would like a free Comparative Market Analysis of their home please just call or email me. I will give you this information to help you know where the value of your home stands.
Thanks,
Becky
Friday, June 20, 2008
Economic Spin: Why the Media Are Wrong About the Economy
This is just a portion of the full article on this subject.
Salt Lake REALTOR® June 2008
By Dave Anderton
The headlines are unavoidable. “Meltdown For Housing: Why The Worst Is Yet To Come,” screamed the cover story of a recent national magazine with a portrait of a red house melting into oblivion. “The Great American Slowdown” shouted the headline of another magazine. “Buyer and Seller Beware,” warned yet another. As the national media focuses on what is wrong with America, Utah economist Jeff Thredgold isn’t losing any sleep. In fact, Thredgold, who runs his own consulting firm and serves as an economic advisor to Zions Bank, believes the divide between the media’s take on the U.S. economy and the actual fundamentals has never been greater. America’s economic opportunities, Thredgold maintains, abound as much now as ever before. “The national media has led millions of Americans to believe that the economy is merely limping along, creating few quality jobs, and on the brink of disaster,” Thredgold writes in his latest book, “EconAmerica: Why the American Economy is Alive and Well. “Such negativity dominates the economic writing found in the nation’s bookstores. Books focusing on the demise of America; the coming debt crisis; the coming oil crisis; and the imminent dominance of China, Europe, or India are far too prevalent.”
Excerpts from the article:
Utah ranked No. 2 in the nation in house-price appreciation in the first quarter compared to year ago.
Our economy is three times the size of No. 2 Japan. It is four times the size of No. 3 and No. 4 Germany and China.
economists are “dialing back dire forecasts.”
The media drives negative news when it’s negative and drives positive news when it’s positive.
In Utah, every sector is doing well Manufacturing, surprisingly, is doing well.
After five consecutive quarters of posting the highest rates of house-price appreciation in the nation, Utah fell to the No. 2 spot in this year’s first quarter, according to a May report by the U.S. Office of Federal Housing Enterprise Oversight. For the three months ended March 30, Utah home prices appreciated 5.58 percent compared to the first quarter of 2007. When compared to the fourth quarter of 2007, Utah home prices declined slightly at 0.20 percent.
Wyoming saw the strongest house-price appreciation of all states at 6.34 percent. California ranked dead last, with home prices there dropping 10.58 percent. Besides California, 14 other states (including Nevada, Florida, Arizona and Michigan) saw home prices fall. Three Utah cities made the top 20 list of 292 U.S. cities showing the highest rates of appreciation. The Provo-Orem area was No. 6 at 6.76 percent. Ogden-Clearfield was No. 9 at 6.64 percent. Logan ranked No. 15 at 6 percent. Salt Lake City was No. 22 at 5.39 percent. St. George was No. 235, with home prices there dropping 3.65 percent.
Nationally, home prices were down 0.03 percent in the first quarter compared to a year ago and down 0.23 percent compared to the fourth quarter of 2007. James B. Lockhart, OFHEO director, said the national price declines bring positive and negative news. “For
homeowners and financial market observers, these declines spell further erosion in home equity levels and potentially more trouble for mortgage markets,” Lockhart said. “To prospective home buyers who have been shut out of homeownership because of affordability constraints, these declines may be welcome news, as are continued low mortgage rates.”
Top 10 U.S. Cities With Highest Rates of House Price Appreciation
Houma-Bayou Cane-Thibodaux, LA — 11.22%
Grand Junction, CO — 9.08%
Wenatchee, WA — 8.02%
Austin-Round Rock, TX — 7.74%
Billings, MT — 7.09%
Provo-Orem, UT — 6.76%
Anderson, SC — 6.73%
Mobile, AL — 6.64%
Ogden-Clearfield, UT — 6.64%
Hickory-Lenoir-Morganton, NC — 6.41%
Top 10 Economic Myths Perpetuated by the National Media
1. U.S. economic growth continues to be substandard.
2. We are losing our ability to “make things” in the
economy. We are rapidly approaching a time when
all we will do is serve each other hamburgers and
trade information with each other.
3. We have endured a “jobless recovery” in recent years.
4. We are losing high-paying jobs and replacing them
with low-paying jobs at Wal-Mart and burger joints.
5. We will be forever dependent on oil-rich nations.
6. Reducing the capital gains tax rate reduces tax revenue…
and vice versa.
7. We run a huge trade imbalance with the rest of the
world because we are not competitive.
8. Social Security will not be there for our children
and grandchildren.
9. As Americans, we have an insatiable appetite for
consumption… We save little for the future.
10. The stock market is overvalued.
Source: Jeff Thredgold
Dave Anderton is the public relations director for the Salt Lake Board of
REALTORS®.
Salt Lake REALTOR® June 2008
By Dave Anderton
The headlines are unavoidable. “Meltdown For Housing: Why The Worst Is Yet To Come,” screamed the cover story of a recent national magazine with a portrait of a red house melting into oblivion. “The Great American Slowdown” shouted the headline of another magazine. “Buyer and Seller Beware,” warned yet another. As the national media focuses on what is wrong with America, Utah economist Jeff Thredgold isn’t losing any sleep. In fact, Thredgold, who runs his own consulting firm and serves as an economic advisor to Zions Bank, believes the divide between the media’s take on the U.S. economy and the actual fundamentals has never been greater. America’s economic opportunities, Thredgold maintains, abound as much now as ever before. “The national media has led millions of Americans to believe that the economy is merely limping along, creating few quality jobs, and on the brink of disaster,” Thredgold writes in his latest book, “EconAmerica: Why the American Economy is Alive and Well. “Such negativity dominates the economic writing found in the nation’s bookstores. Books focusing on the demise of America; the coming debt crisis; the coming oil crisis; and the imminent dominance of China, Europe, or India are far too prevalent.”
Excerpts from the article:
Utah ranked No. 2 in the nation in house-price appreciation in the first quarter compared to year ago.
Our economy is three times the size of No. 2 Japan. It is four times the size of No. 3 and No. 4 Germany and China.
economists are “dialing back dire forecasts.”
The media drives negative news when it’s negative and drives positive news when it’s positive.
In Utah, every sector is doing well Manufacturing, surprisingly, is doing well.
After five consecutive quarters of posting the highest rates of house-price appreciation in the nation, Utah fell to the No. 2 spot in this year’s first quarter, according to a May report by the U.S. Office of Federal Housing Enterprise Oversight. For the three months ended March 30, Utah home prices appreciated 5.58 percent compared to the first quarter of 2007. When compared to the fourth quarter of 2007, Utah home prices declined slightly at 0.20 percent.
Wyoming saw the strongest house-price appreciation of all states at 6.34 percent. California ranked dead last, with home prices there dropping 10.58 percent. Besides California, 14 other states (including Nevada, Florida, Arizona and Michigan) saw home prices fall. Three Utah cities made the top 20 list of 292 U.S. cities showing the highest rates of appreciation. The Provo-Orem area was No. 6 at 6.76 percent. Ogden-Clearfield was No. 9 at 6.64 percent. Logan ranked No. 15 at 6 percent. Salt Lake City was No. 22 at 5.39 percent. St. George was No. 235, with home prices there dropping 3.65 percent.
Nationally, home prices were down 0.03 percent in the first quarter compared to a year ago and down 0.23 percent compared to the fourth quarter of 2007. James B. Lockhart, OFHEO director, said the national price declines bring positive and negative news. “For
homeowners and financial market observers, these declines spell further erosion in home equity levels and potentially more trouble for mortgage markets,” Lockhart said. “To prospective home buyers who have been shut out of homeownership because of affordability constraints, these declines may be welcome news, as are continued low mortgage rates.”
Top 10 U.S. Cities With Highest Rates of House Price Appreciation
Houma-Bayou Cane-Thibodaux, LA — 11.22%
Grand Junction, CO — 9.08%
Wenatchee, WA — 8.02%
Austin-Round Rock, TX — 7.74%
Billings, MT — 7.09%
Provo-Orem, UT — 6.76%
Anderson, SC — 6.73%
Mobile, AL — 6.64%
Ogden-Clearfield, UT — 6.64%
Hickory-Lenoir-Morganton, NC — 6.41%
Top 10 Economic Myths Perpetuated by the National Media
1. U.S. economic growth continues to be substandard.
2. We are losing our ability to “make things” in the
economy. We are rapidly approaching a time when
all we will do is serve each other hamburgers and
trade information with each other.
3. We have endured a “jobless recovery” in recent years.
4. We are losing high-paying jobs and replacing them
with low-paying jobs at Wal-Mart and burger joints.
5. We will be forever dependent on oil-rich nations.
6. Reducing the capital gains tax rate reduces tax revenue…
and vice versa.
7. We run a huge trade imbalance with the rest of the
world because we are not competitive.
8. Social Security will not be there for our children
and grandchildren.
9. As Americans, we have an insatiable appetite for
consumption… We save little for the future.
10. The stock market is overvalued.
Source: Jeff Thredgold
Dave Anderton is the public relations director for the Salt Lake Board of
REALTORS®.
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