Salt Lake like most part of the country is experience it's fair share of the slowing real estate market.  The winter months add to the slower market movements, but there is no question that the real estate industry is taking a hit right now.  Here are a few numbers as of January 8, 2008.  The SFR's (Single Family Residence) sold in the past 30 days in Salt Lake County equal 468!  The county currently has 6,810 units on the market to be sold (Figures come from the Multiple Listing Service for Salt Lake County).  That equates to a monthly inventory of 14.55.  Tough to be in real estate right now?  Not if you are a buyer.  These are great times to make a lot of money in the industry. 

You need good credit and cash!  Yep cash is king.  Contrary to all the get rich quick schemes out their saying: "Your best friend is OPM (Other People's Money)  I would venture to guess that their are 1,000's of bankrupt, depressed, and angry people out there who succumbed to the mentality of the: "Get Rich Quick" idea.  I'm not saying it can't be done.  I'm a big believer that you place your own limits on your potential, but the fact is that so many of us (me included), fail at the one guiding principle of: "being prepared".  Those that succeeded were very well prepared or extremely lucky.  Do you want to risk everything on luck, or do you want to be prepared. 

Anyway, I do not want to get on my soapbox right now.  The market in Salt Lake is still alive and kicking (just not kicking very much right now).  Buyers, it is a great time to buy, and this year we will see interest rates drop, the Fed scrambling to avert a recession, and hopefully create opportunities for us all to profit and do well in real estate.

How many times have you heard the term "CDO's" or Collateralized Debt Obligations?  I think I've heard that term 6 times this week alone.  Amazing!  These are creative debt instruments that banks have come up with to make the whole lending arena easier and more fluid.  The down side is that these little guys are now wreaking havoc through our entire industry.  I finally saw a headline article in the Wall Street Journal today (12/21/07) titled: "Fraud Seen as a Driver In Wave of Foreclosures"  You're kidding right?  How on Earth did they come up with that one?  How many of us Real Estate Professionals figured that one out a long time ago?  Sorry, I just get bent out of shape when we finally see a headline like that one months and months after the fact.

For those of you out there who are wondering what is going on with the billions and billions of write-offs in the industry, let me be the first or possibly the 5th person to say that I do not think there is anyone out there who can foresee the future.  There have been great debates on both sides of the great question: "Is a recession inevitable?".  I don't know if a recession is due, but I do know that these write-offs are not finished yet!  The good news is that prior to 2007 our great Residential Real Estate Economy was approaching 20+trillion in value.  Obviously that numbers has declined during 2007, but remember how many billions make up just one trillion!  Although these billions represent a substantial amount in write-offs and will utlimatley effect even the equity markets, our Residential Real Estate Market is very robust!

 

Salt Lake City, Utah:  Draper, a city just outside of Salt Lake is giving some great Christmas gifts by way of real estate.  I have a client on the lending side of my business looking at purchasing a home from a Lender on a Short Sale.  The home is in a location that is famous right now for mortgage fraud, and the lender is looking to just get rid of the property.  The home was purchased 12 months ago using 100% financing (Yep one of those!)  The two liens totled $680,000 the 1st was $544,000 and the 2nd was $136,000.  Now the short sale price is: $300,000.  That's right!  All the bells and whistles are on this home.  It is fully loaded and ready to show off.  My client is even asking for seller paid closing costs.  We'll see if he gets it.  Anyway, the home should have no trouble appraising for $475,000 which is what I comped it at. 

 There are some good deals out there for those who hold the cash or the credit to buy.  Get with your local real estate professionals and have a Merry Christmas this year!!!

Interesting question.  There are some great debates over this issue with respect to our industry (REAL ESTATE).  There is probably little doubt that the Fed will lower the target for the Fed Funds by 1/4 percent (possibly by a 1/2%).  What does this mean for us in the real estate industry?  Hopefully with the lower short-term rates, this will help those with short-term financing tied to the prime rates.  In the end remember that the Fed plays a role in helping maintain a good supply of money in the market, but the market is driven by supply and demand.

Indirectly we hope to see a reduction in long-term interest rates and creating more money for the real estate market.  According to an article on CNBC today, the CEO's of both Fannie and Freddie are not expecting the market to pull out of the current situation until 2010. 

For us as agents that means a weeding out, and a better conviction to making the calls and driving business (Lead Generation).  The current situation will create an interesting dynamic, that to a large extent we have seen in our market before, but will add some new twists on how to compete and be profitable.

The good news is that buyers and sellers will need our services more now than in the past.  Buyers will need professionals to help them find and price homes reasonably.  Buyers remember you should never pay more than the current market.  Sellers, you'll need help in determining where you need to be to sell.  This current market will only get better for the professional who is not afarid to work!  Good Luck!

With approx. 23,000 homes to sell in Utah currently, Buyers are holding all most every card possible (Data from the MLS and estimated FSBO activity).  This is a great time to buy.  

I was helping with a buyer currently that has decent income, but credit was the issue for him.  It is important to remember that even in good times like these for the buyers, they need to have their house in order (figuratively speaking).   There are great deals available and banks will be increasingly helpful during the entire winter.  

As most of you are aware this is the slow time in our industry and to make it worse banks are having to take back too much inventory!  The new proposed legislation will help banks minimize this with freezing interest rates.  So many of these homeowners that are forced to sell, will be able to hold on to their homes for the short term.  It's impossible to see how this will effect the market, so be cautious with this information.  It may be a good thing and help to stabilize the market, or it could have an adverse effect and hurt the free market by imposing governmental restrictions.  Time will tell.  

Utah is still a great place to live and with the winter in full swing now, the snow season is looking great!!! 

As for the Winter forecast, due to the high volume of listings on the market the winter will appear to be exceptionally long, but keep in mind units are still selling and yes homeowners are very overpriced on their respected properties given the market as a whole.  This equates to longer days and market and for a lot of Utah sellers this will mean no home sales. 

Price those homes to sell and they'll sell!  For pricing homes correctly click here.

Have a great Holliday Season! :)

 

I wanted to send this one out with a shout of Praise!  I have to say that I have seen my share of dishonest people in new construction.  At times it can be like the mechanic you can not trust!  What do you do?  Well I have to share a tale of a great Contractor here in Utah called: Columbus Homes.  My wife and I purchased a wonderful home from this builder.  Steve Petersen is the owner and was the sales agent when my wife and I purchased the home.  Columbus homes was just 2 years old at the time.  It had already seen some great growth given the pick-up in the Utah Real Estate Market in 2004.  I met Steve in July of 2005 and boy what an experience.  I sensed greatness from the beginning.  Steve Petersen is the type of individual that understands how to treat the client!  He was involved as much as he could in the customer service aspect of his business.  He took great care in the subs he would bring on board.  Most of them emulated his overall mission for his homebuyers/investors.  Builders around the nation could learn great things from him.

As fate would have it, the market turned in 2007 and like a lot of his peers Steve had to close his doors.  I'm certain that this short-term setback will only fuel the fire this man has to build homes.  For all of you looking to build in Utah, be sure to look up Steve Peterson! 

Steve,  Thank you for all that you have done, and good luck in your future endeavors.  Success will always follow you!

As a professional agent I see tremendous value in getting to know and working with contractors in the area.  It is always benifical to agents to know the entire market (re-sale, new, FSBO, etc.)

The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent's knowledge of the overall market and what's selling - or not selling - will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won't leave money on the table.

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity (click here).

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It's important that you not confuse value with cost - in other words, how much you value your home versus what buyers are willing to pay for it. Don't place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

Buyers you are in luck!  This is the time to be buying a home.  Buyers are able to get the greatest bang for their buck right now!  Bank-owned property is at an all-time high, sellers are having their properties sit on the market for months and months (some even a couple of years!)  Act now.  Click herefor some great tips on buying.  Get with a great professional that can help you negotiate, and you'll be amazed at what you can get in the market now!  This market is very volatile, take advantage now and thank me later! :)

Tomorrow is the Thanksgiving Season celebrated around the country.  What a wonderful occasion.  This is the time to give Thanks.  I can think of no better gift than the gift of thanksgiving.  We as agents should always remember to give thanks.  To those of you who do not subscribe to the "Secret" or have not heard of the Law of Attraction, I wanted to paste a quote from Rhonda Byrne Creator of: "The Secret".  This is a wonderful gift to each of us this Holiday season.  Let's all commit to finding 100 things to be grateful for this Thanksgiving:  Remember, "Without each other what are we?".

"Two words which will change your life!

There are two words that, when spoken, have the most unfathomable power to completely change your life. Two words which, when they pass your lips, will be the cause of bringing absolute joy and happiness to you. Two words that will create miracles in your life. Two words that will wipe out negativity. Two words that will bring you abundance in all things. Two words which, when uttered and sincerely felt, will summon all the forces and vibrations in the Universe to move all things for you.

The only thing standing between you, happiness, and the life of your dreams, are two words...

THANK YOU

Gratitude is one of the easiest and most powerful ways to transform your life. If you become truly grateful, you will magnetize absolute joy to you everywhere you go, and in everything you do. In fact, without gratitude, nothing can ever change. Your life will change to the degree that you use gratitude and begin to feel grateful. If you are just a little bit grateful, your life will change a little bit. If you are very grateful, your whole life will change. If you live gratitude every single day, you will become one of the greatest human beings on the planet, and the light of your life will uplift our world.

The greatest human beings who have ever lived showed us the way with gratitude, and by their example became shining lights in our history. Einstein said "thank you" hundreds of times every single day! Ancient wisdom dating back thousands of years gave us the truth about gratitude. Every single religion speaks of giving thanks. All the sages and saviors of the world demonstrated the use of gratitude in all their teachings.

Of the thousands of letters we receive from people whose lives have become miracles after experiencing The Secret, every single one of them has made gratitude their way of life. It is impossible to be negative when you are giving thanks. It is impossible to criticize or blame when you are feeling grateful. It is impossible to feel sad when you are in gratitude. Most people are sporadically grateful, however, to change your life with gratitude, a new way of learning how to be truly grateful is what will bring unlimited happiness into your life.

So how do you live in gratitude? Begin your day by feeling grateful. Be grateful for the bed you just slept in, the roof over your head, the carpet or floor under your feet, the running water, the soap, your shower, your toothbrush, your clothes, your shoes, the car that you drive, your job, your friends, your refrigerator that keeps your food cold. Be grateful for the weather, the sun, the sky, the birds, the trees, the grass, the rain, and the flowers. Be grateful for the stores that make it so easy to buy the things you need, the restaurants, the utilities and services and electrical appliances that make your life effortless. Be grateful for magazines and the books that you read. Be grateful for the chair that you sit on, and the pavement that you walk on. Be grateful for your favorite music that sweeps you away, and for movies that make you feel good. Be grateful for your phone that connects you with people, for your computer, for the electricity that lights up your life. Be grateful for air travel that flies you everywhere. Be grateful for the roads and traffic lights that keep the traffic in order. Be grateful to those who built our bridges. Be grateful for your pet, for your child, for your loved ones, for your eyes that enable you to read this. Be grateful for your imagination. Be grateful that you can think! Be grateful that you can speak. Be grateful that you can laugh and smile. Be grateful that you can breathe! Be grateful that you are alive! Be grateful that you are You! Be grateful that there are two words that can change your life!

Thank you! Thank you! Thank you!

The more that you practice gratitude the more deeply you will feel it in your heart, and the depth of the feeling is the key. The more deeply and sincerely you feel it, the more you will bring absolute bliss and happiness on every single subject. Watch what happens in your life when you practice gratitude every single day and in every single moment and in every opportunity that you can. Remember, if you are criticizing, you are not being grateful. If you are blaming, you are not being grateful. If you are complaining, you are not being grateful. If you are feeling tension, you are not being grateful. If you are rushing, you are not being grateful. If you are in a bad mood, you are not being grateful.

To understand the power and the magic of gratitude, you have to experience it for yourself. So why not begin by deciding to find 100 things a day to be grateful for? As you practice gratitude every day, it won't take long before gratitude is your natural state of being, and when it happens you will have unlocked one of the greatest Secrets to Life.

This week the United States is celebrating giving thanks with Thanksgiving Day. To inspire everyone to use gratitude, not just for one day but for every single day, The Secret is giving away 9,000 special edition Secret Gratitude Journals, which are beautiful, leather-bound journals. This gift is one journal per person, and the only cost for you is shipping.

For The Secret Gratitude Journal gift, click here.

There is just one other thing that I want you to know about Gratitude.....

When you are giving thanks, you FEEL GOOD! "

As a real estate professional (For more on my background click here), I am always interested in giving good information to my clients.  I have found over the years that many are confused with the terms: "List" and "Sale".  I would like to give an explanation to these two terms here.  Let's start with Sale, this is the actual price your home will sell for in the market.  It is the price at which a reasonable buyer will pay for your home.  List means the price you as a property owner would like to get!  I must be clear that the terms are not the same, although the List price and Sale price can often be the same number (Not always).  In a tight market like the one we are in currently (As of November 2007), the List price and Sale price can be significantly different.  For example there was a seller in my market that started to sell his home for $725,000 11 months ago.  He is still trying to sell that home, but he has come down to: $579,000 currently, and the home has not sold yet!  These are examples of List prices (We have not seen the Sales price since he has not sold it!).  What amazes me, and maybe I'm the only one that experiences this, is property owners often mistake List Price for Sales Price.  What do I mean by this?  Sellers often see what Professional Real Estate Agents are selling property for and they think that is what homes are selling for.  This type of think is flawed given that the sales prices can be as much as $30,000 or more less than the List prices (This is very common in a tight market.)  This is where a professional agent can advise and be of service for pricing your home!  For more click here. 

So there you have it!  Make better decisions, with the knowledge that List does not equal Sale (Although in some cases they are the same number!).  This will help you in pricing you home!  Good Luck!