Uncategorized November 16, 2012

SunCrest Market Update – October

Uncategorized November 7, 2012

Where are mortgage rates headed?

This is one of the most common questions folks ask me. Where are rates going? What will happen after the election? What will happen after the holidays? What will happen next year? Should I wait to see if they go lower? Should I buy now before the go higher? 

 

Below is a fantastic article I'd like to share with you folks. 

 

 The best people we can go to on this issue are the people who deal with it on a daily basis –The Mortgage Bankers Association (MBA). Here is what was reported by MarketWatch in a recent article:

“After reaching record lows in 2012, mortgage rates are expected to creep up slowly in the year ahead, the Mortgage Bankers Association predicted.

Rates on the 30-year fixed-rate mortgage are expected to average 3.8% in the fourth quarter of 2012, rising to 3.9% in the first quarter of 2013 and eventually rising to an average 4.4% by the fourth quarter of next year.”

If the MBA is correct, mortgage interest rates could inch up almost a full percentage point in the next year. Tomorrow, we will explain what that means to a potential buyer.

http://www.kcmblog.com/2012/11/06/where-are-mortgage-rates-headed-2/

Uncategorized October 26, 2012

A Step Ahead

Utah is a step ahead.

Our local market continues show improvement in just about every measure.

September data shows we are on track towards recovery.

·       Pending Sales: Up 22% from same period last year.

·       5 consecutive months of gains (first time since 2007 5 STRAIGHT gains!)

·       Median Sales Price: Up 10% from same period last year.

·       An average of 45 homes were sold per day in September.

·       Number of Homes Sold: Up 21% from last year.

 

Nationally, the National Association of Realtors are releasing numbers that also continue to show strong signs of recovery.

·       Pending Sales: Up 14.5% from same period last year.

·       Existing Sales: Up 10% from last year.

·       Median Sales Price: Up 11% from same period last year.

·       Less than 1 in 4 properties are distressed (Foreclosure or Short Sale)

 

In summary, both nationally and locally, housing is strong compared to recent years. No, we aren’t back to where we were, but were headed in the right direction. Interest rates remain attractive and low levels of inventory make it a great time to sell. Ask around, talk to your co-workers, friends, and family of anyone who have recently looked for a house and they’ll tell you how competitive it is. Multiple offers and homes selling at or above list are happening daily. The ship has sailed for those “killer” deals.

My take: Having the power of knowledge will help you maximize your profit in our competitive market. Make sure you have the right player on your team to help you sell for more and buy for less. 

Sources:

http://www.realtor.org/news-releases/2012/10/september-existing-home-sales-down-but-prices-continue-to-improve

http://www.realtor.org/news-releases/2012/10/september-pending-home-sales-show-slight-improvement

http://en.calameo.com/read/00161630611130b22e1c2

SunCrest October 18, 2012

SunCrest Market Update – September

SunCrest October 16, 2012

SunCrest Residents Q&A with Draper City

Draper City Representitives met with SunCrest Residents on Thursday, October 11th 2012. Below is a recap of the meeting. 

In addition to SunCrest residents others in attendance were our representatives to the HOA Paul Tonks, and HOA President Tod Bean, Suzanne Thomas, city manager Dave Dobbins and city councilmen Jeff Stenquist (who fielded the majority of the Q&A format)

TRSSD: 
At the last council meeting, the TRSSD fund was paying for the modification of the 4 way stop atop Traverse Ridge Road. Following the opposition and questions regarding this not being related to a higher elevation issue, the city council reversed their original use of the TRSSD Fund. Now general funds are being used to pay for the modification. Mr. Stenquist confirmed that the TRSSD is here to stay, there are no plans to abolish it. Draper City, as the new owner of the 2200 acres will not be paying into this fund. The funds are intended to be used for “higher elevation” issues. No definitive answer was given whether the TRSSD tax would be increased or decreased in the future. From the meeting, so far the majority is used and will continue to be used to snow plow and salt the roads. Funds have also been used to purchase a large snow thrower, install the blinking stop signs, and install the information sign as you start up Traverse Ridge Road. Decisions of the expenditure of the funds and how they are used are up to Mayor and City Council, but Mr. Stenquist reiterated its intent is for issues regarding higher elevation. Deer Ridge Drive was mentioned in the meeting, acknowledged that “its nearly gravel” but not definitive answer was given as to whether TRSSD funds would pay for it or general funds. Stenquist acknowledged its much-needed repair and that “right now we are trying to get as much life out of it as we can.” 

Conservation Easement: 
Many passionate SunCrest residents expressed their desire to get a guarantee from DC that the 2200 acres will remain as open space and be granted a conservation easement. Draper City indicted that this is their intent, but pointed out that 'we need to own the land before we can decide what to do with it"
Of the 2200 hundred acres DC is purchasing, their “intent” is only to have developments on lands already platted. Builder DR Horton has purchased platted lots from Zions Bank in various neighborhoods throughout SunCrest for an undisclosed amount. That deal was separate from this and DC was not involved. 

With the purchase, the SunCrest master plan as we knew it will be eliminated. The total number of rooftops is being downsized from an originally proposed maximum density of 3800 rooftops to the current 1140 rooftops plus development of another 300 to 400 homes. 
Mr. Stenquist talked about the difficulty that any developer who wants to build any homes in SunCrest other than what is platted because our water pipe is running at close to capacity and future development of homes would require another pipeline up the mountain at a cost to that developer. Mr. Steninquist added DC may partner with developers to sell off portions of the land, but not definitive answer was given as to how much and where, if any, and noted that issues that previous that would be purchaser MCO had with future development, others will continue to have (he gave the examples of water basins, roads, and water pipeline to name a few) 

Existing SunCrest Buildings: The SunCrest Clubhouse (fitness center, pool, village green park) belong to SunCrest HOA and will remain in the SunCrest HOAs ownership. The existing SunCrest market has been purchased by DC and no definitive plan was given for its use. The Welcome Center was purchased by DR Horton and will presumptively be used as a sale office showroom for their upcoming sales. 

Comcast: HOA President Bean confirmed that this purchase would have no effect on our agreement with Comcast. 

HOA: President Bean indicated that with the decrease in the current total number of rooftops, we are currently at the necessary 75% build out that our CC&R’s state that at this point, SunCrest residents can have full representation on the board. Membership and representation on the HOA is based on improved dwellings not ownership of unimproved land. 

Verizon Tower: Stenquist confirmed Verizon Wireless is beginning to build their tower. Improved cell service is critical to SunCrest residents and has long been a problem that we anticipate getting better with the tower.

Many residents in attendance talked about the importance of knowing what exactly would happen with the land. Stenquist said that residents would have an opportunity in the future to express their desires as to the many uses of the newly acquired property. The possibility of more parks, ball diamonds, a dog park, trails etc. were some suggestions residents would like to see incorporated for its use At this point, Mr. Stenquist reiterated Draper City’s intent is to preserve as much of the purchased acreage as open space with the exception of the already platted 200 units. Since DC technically does not own the land yet, Mr. Stenquist said nothing can be in writing but again focused on their intended plans. 

Uncategorized October 12, 2012

Fall Maintenance

Here are some helpful hints to get your home ready for Fall and Winter. 

Stabilize the mower/other gas powered yard tools- 

If your mower sits for months at a time, gas can deteriorate and damage internal engine parts. Purchase fuel stabilizer (about $10) and add to gasoline powered engines that will be hibernating for the winter. 


Bring in garden hoses- 

Leaving hoses attached can cause water to back up just inside the faucets. If this water freezes it can expand and cause a break or crack. 


Shut down the sprinkler system- 

Even buried sprinkler lines can crack. Turn off the main valve, shut off the controller, open drain valves. *If you dont have drain valves, a professional ($50-$150) can be hired to blow out the pipes with compressed air. 


Seal outside- 

Seal the outside of your home with caulk ($10). This is includes: between trim and siding, window and door frames, and where pipes and wires penetrate the home. 


Clear your gutters- 
Clear your rain gutters from debris and leaves that have gathered over the past few months. Clogged gutters can freeze and cause moisture damage. 


Direct drainage- 

Direct drainage away from your home. Having sloped drainage away from the home will keep the soil from soaking around the foundation. 


Trim plants and bushes- 
Trim plants and bushes to help keep moisture away from the home. Generally you want a 3 foot border from trees, plants and bushes. You'll also want to have at least a 1 foot border around the foundation. 


Tune up the furnace- 

Schedule an appointment with a local professional ($75-$100) to make sure your furnace is running properly and efficiently and free of carbon monoxide leaks. The money spent could save you hundreds and prevent a freezing cold house in the middle of Winter if it goes out. This is also a good time to clear our air ducts and change your furnace filter.

Check your fireplace – 

Look inside your fireplace and make sure the damper is functioning properly. Make sure its free of debris. Check for cracking and any unusual signs of damage. 

Check batteries in smoke & carbon dioxide detectors and replace as needed ($5-$10)

Change the direction of fans. This helps create an upward draft and redistributes the warm air.

Uncategorized September 28, 2012

September Headlines

 

Its hard not to notice all the headlines this month. Of 20 major metro markets evaluated, more than 3 quarters of those markets are showing increases in prices and decreases in inventory. This is having a positive influence on our housing recovery. Distressed property inventory is also decreasing, according the National Association of Realtors, now less than 1 in 4 properties are distressed (reo/short sales). As we continue to shed distressed inventory, we can continue to see signs of positive and upward trending housing recovery and prices.

 

Missed the headlines? No worries, here are 5 different publications from this month including our local Salt Lake publication. 

 

USA TODAY 

Uncategorized September 17, 2012

September – Time to Sell?

 

The above graph was taken from the National Association of Realtors and represents national numbers. Likewise, here in Utah, we are experiencing very similiar numbers. In second quarter of 2012, for the first time in 5 years, the median single family home price increase 6%(*slrealtor.com) year over year.

Our current inventory has continued to decrease from this same point last year. Salt Lake has maintained an under 6 month supply of housing inventory which is considered to be a "sellers market" level of inventory. This low inventory is causing an increase in prices, and in many cases, multiple offer situations for sellers. 

Also worth noting is the percentage of distressed property sales in continuing to decrease. This is important because when there is less distressed properties, median prices increase. 

So is now the time? The answer is, well, only you can answer that question. Some of you may be holding out to sell. You may be reading the headlines both nationally and locally that prices are rising every month and you may keep holding out. I understand the logic, but let me caution, we do have seasonal trends. Historically, we see an increase in prices in the first half of the year as opposed to the second half. We can continue to expect  to see a steady release of distressed inventory (what I mean is not just a bunch at one time) that may be coming as a comparable property. Who knows how many sellers who NEED (relocation, life event, bigger home, etc)  to sell within the next year may sell quickly at the first sign of decreasing prices?  What we do know now is: Low inventory, low rates, qualified buyers, and increasing prices.