Posts Tagged ‘Add new tag’

Is it a good time to buy Salt Lake City homes as an investment?

Friday, November 11th, 2011

When there are fewer home buyers, there are more renters.  When the demand for rental units increases, so does the cost to rent.  With increasing rents, decreasing home prices and low interest rates come cash flowing properties for rental property investors.

 

This year I have seen many entry level single family homes in Salt Lake City and the surrounding suburbs, that will cash flow with 20% down.  It’s the first time I’ve seen this scenario in a very long time and it’s due to higher rents, lower home prices and low interest rates.

 

As this trend continues I”d expect that this will contribute toward an  increased demand for Salt Lake City homes.

 

Kevin Coyle

SLC Homes

M: (801) 243-0699

E: Kevin@SLCHomeBuyer.com

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Utah is a stand out among economic national rankings!

Friday, February 4th, 2011

In 2010 Utah made high honors on many national rankings:

  • #1 “Best States for Business” (Forbes)
  • #1 “Most Fiscally Fit State” (Forbes)
  • #1 U of U “Research Institution for Startups” (Association of Universtiy Technology Managers)
  • #1 “Best Quality of Life” (Business Facilities Magazine)
  • #2 “Best Education Climate” (Business Facilities Magazine)
  • #5 Salt Lake City “Best cities for the next Decade” (Kiplinger)
  • #9 Utah “States that will create more jobs annually through 2015 (IHS Global Insights)

Wow!  Utah and Salt Lake City in a postive economic light!

The Salt Lake County real estate market has been declining for over 3 1/2 years and at some point prices will stop dropping and the market will flatten out, but it’s highly doubtful that this will happen in all areas at once.  Some price ranges and areas will recover before others due to inventory levels and demand for housing.

I expect the first time buyer to lead the recovery.  It’s not rocket science, just simple supply and demand economics.  Without first time home buyers, those sellers can’t move up, and so on, and so on.

The areas that will recover first will most likely be those where you can’t build a house without tearing one down, have the highest appeal and are within the price range of many first time home buyers.  Established Salt Lake City neighborhoods will most likely leed the recovery.

Interest rates are still very low and have been hovering around 4 3/4% for a 30 year mortgage.  It’s a good time to be a Salt Lake City home buyer!

Kevin Coyle
REALTOR  Principal Broker  MBA
SLC Homes
801-243-0699 (Phone)
Kevin@SLCHomeBuyer.com

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Posted in Salt Lake City homes, Salt Lake City real estate | No Comments »

More on financing Salt Lake City Condos

Thursday, March 11th, 2010

After writing last weeks Blog entry, I started wondering what percentage of Salt Lake condos actually sold FHA in the last 6 months.  So I went to the Wasatch Front MLS and did a little research.  I chose to evaluate three areas and price ranges.

Area and price range 1 is Salt Lake City, all prices, because SLC has the highest density of condos in the area.  I did a search for condos sold from Gateway to 700 East and from South Temple down to 600 South in all price ranges.

Area and price range 2 was Salt Lake County under $250,000

Area and price range 3 is Salt Lake County above $250,000

Area 1 Salt Lake City all prices:

In the last 6 months, 137 downtown Salt Lake City condos sold and I have listed the way they were financed below:

42% Conventional Loans (57 condos)
29% FHA Loans (40 condos)
27% Cash (37 condos)
2% Other (3 condos)

29% of these condos sold with an FHA loan.  This is a substantial amount and if FHA condo financing was eliminated, this would be bad, but FHA loans for condos aren’t going away, they only eliminated spot check approvals for non-FHA approved condos.  So there will still be a percentage of condos that will be financed with FHA loans, it’ll just be a smaller percentage.  So downtown Salt Lake City looks better than I thought it would.

Area 2, Salt Lake County under $250,000:

In the last 6 months, 913 Salt Lake County condos under $250,000 sold and I have listed the way they were financed below:

25% Conventional Loans (226 condos)
60% FHA Loans (545 condos)
11% Cash (100 condos)
4% Other (42 condos)

60% had FHA financing.  This is significant!  Due to this high percentage, if I was buying a condo in suburban Salt Lake County outside of downtown Salt Lake City under $250,000, I’d be buying one that is in an FHA approved condo complex, even if I wasn’t doing an FHA loan.  I think I’d look at single family homes too.

Area 3: Salt Lake County over $250,000:

In the last 6 months, 85 condos sold and I have listed the way they were financed below:

55% Conventional Loans (47 condos)
15% FHA Loans (13 condos)
25% Cash (21 condos)
5% Other (4 condos)

Here only 15% of condos in Salt Lake County over $250,000 sold with an FHA loan.  This is probably due to the fact that condos over $250,000 aren’t typically bought by first time buyers and therefore the buyers have more of a down payment.  This looks pretty good.

If a condominium project wants to be FHA approved, they can fill out the paper work and try to get FHA approval.  The process takes at least 60 days and can take longer.  Applying doesn’t guarantee approval either.

So it appears that the elimination of spot approvals for FHA condo loans will have the greatest effect on suburban Salt Lake County condos outside of downtown Salt Lake City, under $250,000.  As you can see from the numbers, there are a lot of condos effected by this.

If I was buying a suburban Salt Lake County condo under $250,000, I would buy one in an FHA approved complex even if I wasn’t doing an FHA loan.  Until there are low down payment Conventional loans for condos or FHA reinstates spot approvals, non-FHA condos under $250,000 in our area will be hard to sell.

The Salt Lake City real estate market is constantly changing and having an experienced Realtor to be your guide can make your home search a lot more enjoyable.  If you need help with the purchase of a Salt Lake City home, condo or duplex, contact me.  I’ve been a Salt Lake City Realtor since 1999 and over the last year, 80% of my clients were buyers!

Kevin
Kevin Coyle
Associate Broker, GRI, MBA
Kevin@SLCHomeBuyer.com
801-243-0699 (Mobile)
SLCHomes Real Estate

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Posted in FHA Loans, Kevin Coyle, Salt Lake City condos, Salt Lake City real estate, Utah Condos | No Comments »

Utah still growing fast! Long term outlook for Salt Lake City real estate market is good!

Tuesday, January 26th, 2010

I was down in Sandy last week right before sunset at a friend’s house with a view.  I noticed that the gap between Herriman, Riverton and South Jordan has shrunk quite a bit over the last 10 years, filled in with homes and businesses.  Most of that growth occurred prior to Summer 2007 while the market was booming.

According to the 2010 Utah Econocmic Summary put out by the Governor’s office, the state of Utah had the second fastest population growth rate in the nation, at 2.1%. 

This growth is second only to our neighbor to the East, Wyoming.  In 2009, Utah had a population of 2.8 million.  Wyoming had only about 532,000 people.  The average U.S. state is growing at a rate of 0.9%.  Utah is more than double that!  So we’re growing pretty fast.

The projections for population in Utah by 2020 is 3.7 million people.  The average person in Utah is 27 years old. 

Considering that between 75 and 80% of Utah’s population currently live on the Wasatch Front and about 35% of the population live in Salt Lake County, it seems like our long term outlook for the value of real estate in Salt Lake and the Wasatch Front is good, because demand will likely be there.

Eventually young people buy homes and the first time home buyer creates more opportunities for current home owners to move up or down.  In time our down market will change and demand for Salt Lake City homes will increase. 

Right now a smart buyer can get a lot home for the money compared to a few years ago and finance that Salt Lake City home at historically low interest rates.  It’s also possible to get up to an $8,000 tax credit.

One last thing and this is important.  The average person lives in their home for 5 to 7 years which from now would be 2015 to 2017.  So let me ask you 3 questions:

Do you think prices will be higher in 2015?

Do you think interest rates will be lower?

Do you think the federal government will be giving tax credits up to $8,000 if you buy a home?

The Salt Lake City real estate market is constantly changing.  Having an experienced Salt Lake City Realtor to be your guide can make your home search a lot more enjoyable.  If you need help with the purchase of a home, condo or duplex, contact me.  I’ve been a Salt Lake City Realtor since 1999 and over the last year, 80% of my clients have been buyers.
Helping Salt Lake home buyers is my thing, so send me an email or give me a ring!

Kevin

Kevin Coyle
Associate Broker, GRI, MBA
Kevin@SLCHomeBuyer.com
801-243-0699 (Mobile)
SLCHomes Real Estate

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Posted in Home Buyer tax credit, Kevin Coyle, Salt Lake City homes, Salt Lake City real estate, Salt Lake County homes and condos | No Comments »

Salt Lake City Homes: The Home Buyer Tax Credit has been extended for First Time Home Buyers and expanded to Repeat Home Buyers

Monday, November 9th, 2009

The $8,000 First Time Home Buyer tax credit has been extended.  In addition to the extension, an additional tax credit for Repeat Home buyers has been added up to $6,500.  The deadline for these two programs is to have a home under contract by April 30, 2010, and close it by June 30, 2010.  The First Time buyer’s has to have not owned a home which was a primary residence for the last 3 years.  The Repeat Home Buyers have to have lived in there home (primary residence) for at least 5 consecutive years of the last 8 years.

 

Also part of this bill, is an extension of the tax credit for military personnel that have served at least 90 days outside of the United States.  The deadline for this part is June 30, 2011.  This bill also contained a provision to extend unemployment by 14 weeks in all states and additional 6 weeks on top of that in states where unemployment exceeds 8.5%.

 

For details on the tax credits, go to: http://www.federalhousingtaxcredit.com/

 

If you need help with the purchase of a Salt Lake City home, condo or duplex, please contact me.  I’ve been a Salt Lake City realtor for over 10 years and this year so far, 80% of my clients have been Buyers of homes and condos in the Salt Lake City metro area.

 

Kevin

 

Kevin Coyle

Realtor, Associate Broker, MBA

SLCHomes Real Estate

Mobile: 801-243-0699

Office: 801-466-8977

Kevin@SLCHomeBuyer.com

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Posted in Home Buyer tax credit, Salt Lake City homes, Salt Lake City real estate | No Comments »

Salt Lake City homes and condos: Find out what areas have the most short sales in Salt Lake County

Wednesday, August 26th, 2009

I was searching for homes today on the Wasatch Front Regional MLS for one of the Buyers I’m working with and noticed a neighborhood that had an extremely high percentage of short sales.  41% of the homes in that neighborhood are short sales.

 

It made me stop and wonder about how many short sales are in other areas of Salt Lake County.  Here are the results of that search which includes Salt Lake County homes and condos in all price ranges.

                                               

City                                                       % short sales of Active listings

Salt Lake Aves/Cap Hill                                           3.9%

Salt Lake Central City/South Salt Lake                  10.6%

Salt Lake East City/Mill Creek                                  5.3%

Salt Lake Rose Park/Glendale                                  24.4%

Holladay/Cottonwood Heights                               10.6%

Murray                                                                         9.8%

Midvale/West Sandy                                                 15.6%

East Sandy                                                                  14.5%

Draper                                                                          23.5%             

West Valley City/Kearns/Magna                             27.4%

West Jordan/South Jordan/Copperton                   24.8%

Riverton/Herriman/Bluffdale                                     31.1%

 

Salt Lake County                                                       18.6%

 

*All data taken from Wasatch Front regional Multiple Listing Service on 8/26/09 on Salt Lake County homes & condos.

 

One thing that intrigued me was the closer you get to downtown Salt Lake City, the fewer short sales there are overall.  Yes, I live downtown, but that’s not why I was so intrigued. 

 

I have a theory.  During our last housing boom in Salt Lake County, 2005-2007, the areas that the majority of the residential new construction homes and condos were built were further away from downtown Salt Lake where the vacant land exists which is on the South and West side of Salt Lake County.

 

By early 2005, the cost of new construction in Salt Lake County was much greater than the cost to buy an existing home of comparable size and location.  This was due to the escalating cost of land, building supplies and a tight labor market.  Also during this time, money was easy to borrow regardless of your credit score so there were plenty of people who could buy.

 

The cost of existing homes in those areas quickly adjusted upward as a result of the increasing cost of new construction creating instant equity for those who bought before 2005.

 

But by 2007 there was 12 months of inventory in new construction, which is primarily located in the South and West part of Salt Lake County.  Then in August 2007 our banking crisis started which led to higher credit standards for home loans and fewer low down payment loan programs.

 

Two things I think happened here are there are many people who bought later in the boom and have now lost their job or had some other hardship.  If they bought with nothing down, and most did, they are upside down on their mortgage.  Short sale! 

 

The other thing I think happened is many people had their home value increase by $50,000 or more in less than a year and took some of their equity out to improve their home, buy toys or pay off other debts. Short sale! 

 

Eventually some of the short sales sell, some owner get loan modifications and some homes go into foreclosure. 

 

There are more theories that can be drawn from the varying percentage of short sales and if you look at smaller areas, some areas are higher and some are lower.

 

This something to consider when buying Salt Lake City homes and condos.

 

If you need help with the purchase of a Salt Lake City home, condo or duplex, please contact me.  I’ve been a Salt Lake City realtor for over 10 years and the majority of my clients are buyers of Salt Lake City homes and condos.

Thanks!

Kevin Coyle

Associate Broker, MBA

SLCHomes Real Estate

Mobile: 801-243-0699

Office: 801-466-8977

Kevin@SLCHomeBuyer.com

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Posted in Kevin Coyle, Salt Lake City condos, Salt Lake City homes, Salt Lake City real estate, Salt Lake County homes and condos, Short Sales, Utah Homes | No Comments »

Salt Lake City homes and condos: Are residential Short Sales harder to buy than non-short sale homes and condos in Salt Lake County?

Tuesday, August 18th, 2009

It seems like every buyer I meet wants to know about short sales and for good reason, they are a big part of the inventory of homes and condos in Salt Lake.  Most people think short sales are a great deal and some short sales are, but most are a challenge to buy.

 

Over the last few months, short sales on homes and condos in Salt Lake County have been harder to buy than homes and condos that are not short sales.  The table below compares homes and condos in Salt Lake County that are listed on the Wasatch Front Multiple Listing Service.  It shows the number of homes and condos that are Active, Under Contract and Sold in the last 90 days and compares short sales vs. non-short sales.

 

                                                Short Sales                     Non-Short Sales

Listing Status              Volume / % vs. Actives        Vol / % vs. Actives

Active Listings for sale           1,410                                       6,238  

Under Contract                          254 / 18%                             1,408 / 23%

Sold in the last 90 days             329 / 23%                             2,868 / 46%

*Data taken from Wasatch Front regional Multiple Listing Service on 8/18/09 for Salt Lake County homes and condos.

 

As you can see, a much lower percentage of short sales have been successfully sold over the last few months.  There are many reasons for this.

 

One is the length of time that the buyer must wait to buy most short sales.  The Buyer makes an offer to the Seller, a deal is struck and it is submitted to the bank.  A “short sale addendum” is used in the negotiation between Buyer and Seller which gives the lender third party approval.  This is used because the lender and mortgage insurance company have to agree to take a loss.  This is where the process typically slows down.  It can take weeks, months, and sometimes it never happens.  And it can get more complicated if there is a second mortgage.

 

So the Buyer is waiting for a response from the lender.  During this time there is the risk that other offers will be made on the property because it’s a long process. 

 

Some Buyer’s have a time frame in which they hope to move into their new home due to a lease expiring, a new job starting or some other reason.  With a short sale, it’s hard to know how soon you’ll be able to accomplish your move.

 

Finding a home you like is a challenge on its own.  Short sales frequently add to this challenge.  This is something to consider when buying Salt Lake City homes and condos.

 

If you need help with the purchase of a Salt Lake City home, condo or duplex, please contact me.  I’m an experienced Salt Lake City realtor and the majority of my clients are buyers of Salt Lake City homes and condos.

 

Kevin Coyle

Associate Broker, MBA

SLCHomes Real Estate

Mobile: 801-243-0699

Office: 801-466-8977

Kevin@SLCHomeBuyer.com

 

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Posted in Salt Lake City condos, Salt Lake City homes, Salt Lake City real estate, Salt Lake County homes and condos, Short Sales | No Comments »

How to Buy a Salt Lake City Home, Condo or Duplex if you lack the Down Payment and Closing Costs

Thursday, July 23rd, 2009

Just a few years ago there were many ways to buy a Salt Lake City home, condo or duplex with no money down.  You could borrow 100% of the money you needed to purchase the home.  At that time, the market was going up and lenders were loose with their money.  Times changed quickly and those home loans are gone.

 

So how do you buy a Salt Lake City home, condo or duplex if you lack the down payment and closing costs?

 

FHA loans only require 3.5% down for the purchase a home, condo or duplex as long as the buyer intends to move in and occupy the home as their primary residence.

 

FHA also allows for a family member to gift all or part of the down payment and closing costs.  So if your mom, dad, grandpa, grandma or other family members are doing well, they can give you a gift for all or part of the down payment and closing cost for the purchase of your Salt Lake City home, condo or duplex.  It has to be a gift, not a loan.

 

Also, if you don’t have the closing costs, they are frequently negotiated into the deal so that the Seller pays all or part of the Buyer’s closing costs.

 

Regarding Salt Lake City condos, the condo project must be FHA approved to qualify for an FHA loan.  FHA might do a spot approval if the condo is not FHA approved, but that isn’t a sure thing.

 

And I mention again, the buyer must move into the home and occupy the property as their primary residence.  If you’re an investor breaking the rules and get caught, FHA will call the loan due and mess up your life, so please don’t do that.

 

If you need help with the purchase of a Salt Lake City home, condo or duplex, please contact me.  I’m an experienced Salt Lake City realtor and the majority of my clients are buyers of Salt Lake City homes and condos.

 

Kevin Coyle

Associate Broker, MBA

SLCHomes Real Estate

Mobile: 801-243-0699

Office: 801-466-8977

Kevin@SLCHomeBuyer.com

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Posted in FHA Loans, Kevin Coyle, Salt Lake City condos, Salt Lake City homes, Salt Lake City real estate | 2 Comments »

Business Week article (6/18/09) on Salt Lake City Real Estate and Housing Market

Sunday, July 5th, 2009

This is a reprint of the Business Week article which I contributed too.  Young Buyers June 18, 2009, 5:00PM EST

Salt Lake City: A Still-Hot Housing Market

Millennials, their baby-boomer parents, and even retirees are keeping demand—and prices—high

Salt Lake City is one of the fastest-growing metropolitan areas in the country. But unlike other booming locales, Salt Lake has a largely homegrown citizenry—locals account for 88% of population growth. “Salt Lake City has a high rate of natural increases,” says Robert E. Lang, director of urban affairs and planning at Virginia Polytechnic Institute. “It’s a big family-friendly kind of place.”

The result is that Salt Lake City has a large and expanding pool of ready home buyers: Millennials, the generation born from the early 1980s to the ’90s. Utah, where the Salt Lake environs account for the bulk of the state’s residents, is the country’s youngest state, with a median age of 28.7 years, compared with 35.3 years for the country as a whole. Raleigh, San Antonio, and Colorado Springs also have youthful populations, whereas states such as Iowa, North Dakota, and Pennsylvania are aging fast.

The Millennials, aka Generation Y, will be one of the most powerful demographic forces to enter the housing market in the years to come. By some estimates, they’re expected to account for a third of all home buyers by 2015. They’re already out in droves, taking advantage of the $8,000 federal tax credit for first-time home buyers. “A huge cohort of first-time buyers will be in the market in the next five years,” says David W. Berson, chief economist at PMI Group (PMI), a company that covers banks against borrower default.

Gen Y buyers already have helped prop up the housing market in Salt Lake City. Home prices rose 51% from 2003 through 2008, compared with a roughly 2% drop for the U.S. as a whole. The young buyers’ impact is reflected, in part, in the type of sales: The low end of the market, say local real estate agents, accounts for much of the activity, while some multimillion-dollar homes have been sitting vacant for more than a year. Many properties “weren’t available to first-time home buyers a year ago,” says Kevin Coyle of SLCHomes Real Estate in Salt Lake. “With the downturn, they can now get something they can afford.”

When Gen Yers James and Carleigh Naylor got married last October, the couple moved into a dingy basement apartment they rented from an elderly man who lived upstairs. “It wasn’t glamorous,” says 24-year-old James, who works as a cabinet maker at his father’s shop. Earlier this year the young couple decided to buy their first home, a two-bedroom, one-bath on a cul-de-sac on the south side of town. They beat out six offers with a bid of $137,000—still well below the $230,000 median home price in Salt Lake.

Like many first-time buyers, the Naylors are tapping the new government programs designed to spur home sales. Along with the tax credit, they qualified for a federally backed mortgage, which requires less money up front. And a gift from relatives covered their closing costs and down payment. Says James: “We’re hoping to use this house as a stepping stone to get us into the next house three or five years from now.”

Salt Lake City, Utah

In a state where the median age is 28.7 years, Gen Y’s first-time buyers are propping up the home market

POPULATION

1,067,722

2007 MEDIAN HOME PRICE

$238,020

2008 MEDIAN HOME PRICE

$230,000

Numbers reflect metropolitan area; Data: Fiserv

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Posted in Kevin Coyle, Salt Lake City condos, Salt Lake City homes, Salt Lake City real estate, Salt Lake City realtor, Utah Homes | No Comments »