Salt Lake

Stress tests are in; ten of the nation’s nineteen largest banks will need to raise a total $74.6 billion Incapital. The stress test revealed that banks like Goldman Sachs and JP Morgan seemed to be better positioned than CitiGroup and bank of America. At this point, according to Kiplinger, “the stronger banks will actively do what they can.”

To return any money borrowed fro the government to get out from under restrictions on dividends and executive compensation. Their ability to sell common stock to investors or raise capital with so-called mandatory convertible preferred shares which credit will continue to be tight for awhile on a brighter note, however, the real estate sector of our economy continues to show some positive signs- a good symbol that the programs that the government has put in place are helping. USA reported, “more homes for sale are attracting multiple offers as buyers pursue lower price homes and banks low ball asking prices to attract competing bids on foreclosures.”

It is exactly what we’ve seen locally, first time entry level home buyer market is fueling this recovery. It’s something that Coldwell Banker forecasted and it’s finally coming to fruition now lets take a look in my expert market area; salt lake city area our salt lake office reported that sales are strong as buyers are gaining confidence in the market and seeing many of the buyers taking advantage of the stimulus grants for the first time home buyers and the state home run grant. With the inventory shrinking we are seeing multiple offers that are closer to list price stabilizing the market. An estimate 20% of our sales are currently short sales or REOs and as this inventory is removed from the market we should see prices start to rise in the coming months. Coldwell Banker Union Heights office is reporting more activity Wach week. There is increased activity in almost all price ranges. Our sugar house office reports that the market seems to be steadily picking up thanks to low interest rates. Buyers are starting to jump off the fence. We may see more investor activity with the new home path loan. Spread the word…no pessimism allowed…the market is changing….we will recover !!!!

Homes sold in the Salt Lake County continued to climb in March of 09. There were 713 homes sold compared to 585 sold in the previous month. While this is encouraging news on a month-to-month basis, home prices continue to fall. The price per square foot is falling into the double digits for the first time since January 06.

Preliminary results for House Hunt’s national first quarter survey show that sellers out number buyers two to one. First time home buyers are accounting for 65% of existing homes transactions. Nationally, existing homes sales in February increased 5.1% over January. However the nation’s inventory of unsold homes remained at 9.7 months in February. A six month supply is considered balanced between supply and demand.

I believe that with first time home buyers becoming the major source of buying power in the country and our state. Hopefully the “trickle” up effect will start to take place. With lower priced homes being bought up by first time buyers the seller will now become the buyer and so forth and so forth. It may be a slow climb out of the slow down but I believe that we are on our way !!!!!

I have sold quite a few Salt Lake City foreclosed homes recently and can testify that there are some smokin’ deals out there right now. I think banks have finally awakened to the fact that the Salt Lake City foreclosed houses they now own and are sitting vacant have got to be sold. Stability in the housing industry must be reached before the economy can recover. Interest rates are at the lowest amount since 1971 and a public opinion poll says that 53.7% of the public still believe real estate is the best long term investment to make.

Some of the good news is that the stock market is up 20% from its low, rock bottom November 20th date, the credit market is freeing up some money, and bank loans to businesses are up. Still, with that being said, many people still owe more than their house is worth and Salt Lake City foreclosures are still on the rise with so many people being unemployed. People still are worried about job stability and fear making a change. Foreclosures are at a record high in our nation and in Salt Lake City.

United Way in Salt Lake City has a Neighbor to Neighbor help line for emergency help for people facing foreclosure in Salt Lake City.  Many people wait too long to get help on Salt Lake City foreclosures. There are credit agencies out there who can help give credit counseling if you find yourself in trouble or facing a foreclosure. Another alternative are the many short sales that are showing up on the market. In November 75% of homes sold were priced under $300,000 with homes in the $200,000-$250,000 selling the fastest. Again, with interest rates so low and many homes on the market, it’s a Great Time to Buy.

Our economy is certainly changing, so some people may wonder if this is a good time or a bad time to buy a home in Salt Lake City, Utah. Whether you are buying a home in Salt Lake City, Utah for the first time, upgrading, or downsizing as many of the “baby boomer” population are, this question is of utmost importance. Buying a house in Salt Lake City that is too much can be dangerous in any market and result in being “house poor”. As an agent, I worry about my clients becoming overextended. Buying a home is usually the biggest investment people make in Salt Lake City, Utah. It can often be an emotional purchase so it is important to stay focused and look only within the range you feel comfortable paying without overextending your budget. It’s a great idea to talk to a mortgage lender who can counsel you in preparing to buy a house. If you are able to comfortably make a mortgage payment and purchase a home in Salt Lake City that suits your needs, then you won’t be stressfully impacted if prices rise or fall. Buying a home for less than you can qualify for can leave room for unforeseen expenses, trips, entertainment and fun.  Here is a great link that may answer some of your questions about buying a home in Salt Lake City, Utah.

When you decide to buy a home in Salt Lake City it’s so important to work with a Real Estate Agent you feel has your best interests at heart. In most cases Real Estate Agents are paid by the seller, so typically there will not be a charge for an agent’s services to you when you buy a home in Salt Lake City, Utah. If you choose an experienced agent, they will be able to effectively communicate the entire home buying process clearly to you.

Another important aspect of home buying is having adequate inspections completed on the house you are purchasing. After an offer has been accepted, your agent will keep you informed of all of the timelines. Inspections will need to be performed, including an appraisal for the lender. It’s a good idea to start asking friends and family for recommendations for inspectors in advance of buying a home in Salt Lake City. Find out how much experience an inspector has and what their background is. See if they have referrals. What is their price and what does that include? Structural inspectors have been trained to look for problems and defects that a house may have had in the past or ones that are current. They will go under the house, up in the attic and check for defects that are not noticeable at first glance. After all inspections are completed, you will need to line up homeowner’s insurance and also do a final walk-through. The entire process of buying a home can be rewarding and exciting if you are prepared and ready and if you are working with an agent you trust.

Buying a house in Salt Lake City, Utah can often have tax advantages and with interest rates down and inventory up -what better time to buy? Be sure to give me a call with any questions you might have.

Salt Lake City, Utah is often referred to as having the best snow on earth for all winter activities. Salt Lake City has a wide variety of fine restaurants and cultural activities. Many residents and visitors enjoy Salt Lake City’s winter activities including snowboarding and skiing. To learn more about Salt Lake City, click here.