Posts Tagged ‘homes and condos in Salt Lake City’

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Using Zillow to determine real estate values in Salt Lake City and Utah

Wednesday, July 28th, 2010

Over the last few weeks, I’ve had a couple clients ask me what their home was worth.  In both cases I came up with a value for their home based on the most recent sales of homes nearest and most similar to their home.

One home is in West Jordan and I determined that it was worth about $195,000.  They checked on Zillow.com and Zillow said it was worth about $220,000.  The home is worth $195,000.

The second home is in Holladay and the owner was concerned because Zillow said their home was worth $275,000.  I did an analysis of their home and it is worth about $360,000.

Utah is a non-disclosure state meaning that the sale price of homes are not public record.  As a result Zillow isn’t very accurate in determining your home’s value in Utah.  Zillow is a great resource, just not for determining the value of Salt Lake City and Utah homes.

An experienced Salt Lake City Realtor can determine your home’s value, the level of inventory in your area and advise you on what to do to help get your home sold.

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

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Posted in Salt Lake City home values, Salt Lake City homes, Salt Lake City real estate, Salt Lake County homes and condos, Utah Homes | 1 Comment »

How much is that Salt Lake City home worth?

Friday, June 11th, 2010

There are some key items to consider when attempting to put a value on a home including square feet, condition and improvements, age, lot size and location. Values of homes vary greatly from Salt Lake City to Sandy and from Mill Creek to West Valley City and everywhere in between.

When I became a Salt Lake City Realtor in 1999, I thought I understood this, but I soon realized that values can vary not only from city to city, but from neighborhood to neighborhood.  The best example I can think of is the neighborhoods of Salt Lake City, but the same can be true in any area.

All of the various neighborhoods have values of their own and they can change in just a block or two.  The value in Liberty Wells is different from 9th and 9th.  Lower Sugar House is different from 15th and 15th.  15th and 15th is not the same as Harvard Yale.  In Rose Park values increase as you go North.  Upper Aves is not the same as Lower Aves or Federal Heights.  Condo communities across the street from one another can be different.  You get the idea.

When buyers go it alone without a Realtor, it’s risky business and this is one of the many reasons why.  You might think you know the value of that home, but do you really?  If you were off by just 3% on a $250,000 house, that’s $7,500.  Also, if the price was to high, the appraisal might fail during your attempt to buy that Salt Lake City home and then the transaction becomes really tricky.

There’s more to buying Salt Lake City homes than most people think.  Hiring an experienced Salt Lake City Realtor to help you with your home search and all the details, can make your home buying experience much more enjoyable and smooth.

Hire and experienced Salt Lake City Realtor, it’s worth it!

Kevin Coyle
Assocaite Broker, MBA
Kevin@SLCHomeBuyer.com
801-243-0699 (Cel)
SLCHomes Real Estate

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Posted in Salt Lake City home values, Salt Lake City real estate, Salt Lake City realtor, Salt Lake County homes and condos | No Comments »

Interest rates on mortgages remain stable in April 2010. Good news for buyers of Salt Lake City homes and condos!

Tuesday, April 27th, 2010

At the end of March 2010, the Federal Reserve ended their policy of buying mortgage backed securities to keep mortgage rates low.  I blogged about this on  March 29, 2010.  So far, this change in policy doesn’t appear to have affected interest rates.  Rates are still in the low 5% range for a 30 year fixed rate mortgage which is about where they were in March.

If interest rates start to climb, that would decrease the buying power for buyers of Salt Lake City homes and condos.  Let’s hope these low rates continue!

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

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

Salt Lake County home sales surge 31% over the past 6 months

Wednesday, April 14th, 2010

This news was just released by the Salt Lake Board of Realtors.  It looks like the federal tax credit is working!

Home Sales Surge 31% Over Past Six Months

Home sales in Salt Lake County are surging. Since October 2009, home sales have shown double-digit gains on a year-over year basis.

In fact, if you compare home sales from October 2009 through March 2010 with the same six-month period a year earlier, home/condo sales have climbed an astonishing 31 percent (5,230 sales vs. 3,990 sales)!

This year is indeed a turnaround from the past three years. The sales increases we’ve seen are in line with what economist James Wood predicted in a report commissioned by the Salt Lake Board earlier this year. Wood predicted that as many as 10,000 single-family homes could be sold this year in Salt Lake County, a nearly 10 percent increase compared to sales in 2009.

Much of the sales increases are due to low mortgage interest rates, more affordable home prices and the federal government’s home buyer tax credit.

These conditions continue to make this year the right time to buy a home. It’s a message all potential home buyers need to hear.

Salt Lake Board of Realtors in the News

REALTORS: Come In and Make Yourself At Home

The Salt Lake Tribune highlighted the successful statewide and national Open House event held on April 10.

“The events are coming at a time when single-family home sales in the Salt Lake City area appear to be perking up,” the Tribune reported.

Preliminary numbers from the Salt Lake Board of REALTORS for the first quarter of 2010 indicate that single-family home sales were up 21 percent, although the median price was down 10 percent — or $219,000 from $243,000 from the same period a year ago.
Dave Anderton, a spokesman for the Salt Lake Board, said the event today is being held in conjunction with a similar nationwide initiative promoted by the National Board of REALTORS.
“Open houses are popular with potential buyers and a good sales tool,” Anderton said. “People like to see what is available to them.”

The Golden State vs. The Best Managed State

California continues to teeter on the verge of financial collapse. The dire situation is forcing businesses and people to flee the Golden state and move to Utah, named the Best Managed State in 2008 by the Pew Center.

Bryan Kohler, CEO of the Salt Lake Board, highlighted the economic advantages Utah offers to businesses and peopl in an April 1 column in City Weekly.

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Posted in Salt Lake City homes, Salt Lake City real estate, Salt Lake County homes and condos | 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 »

Salt Lake City condos harder to finance due to elimnation of spot approvals on FHA loans

Tuesday, March 2nd, 2010

FHA loans have been the recent choice for low down payment residential buyers offering loan programs that require just 3.5% down.  Recently FHA decided that they will only lend on condos that are on the FHA approved condo list.  FHA use to allow for spot approvals if a condo was not on the list and this policy changed in February 2010.

So now buyers of condos not on the FHA approved list will need to go with a conventional loan and unfortunately that means a bigger down payment and higher credit requirements.  I’ve checked with lenders I frequently work with and 10% down is a possibility if you have really good credit, but it’s not easy to find and many lender require 20% down for a Conventional condo loan.

This will decrease the number of buyers for condos in projects that are not FHA approved which will most likely effect values in these condo projects.  FHA approved condos may end up actually benefiting from this and there may be more demand for inexpensive single family homes too, but that’s yet to be seen.

The Salt Lake City real estate market is constantly changing.  If you need help with the purchase of a Salt Lake City home, condo or duplex, contact me.  I’ve been a local Realtor for 10 plus years and over the last year, 80% of my client have been 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, 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 Condos: Which SLC Condos are on the FHA Approved Condo list and why is this so important?

Friday, December 11th, 2009

Because of FHA we still have low down payment options, 3.5% down, for the purchase of owner occupied homes and condos in Salt Lake City and across the nation.  There has always been a list of condominium projects that were FHA approved and if the condo you wanted to buy was not in an FHA approved condo project, FHA would allow spot approvals, but that’s about to change. 

 

Spot approval will be eliminated February 1, 2010.  Now the only way to buy a condo with an FHA loan, is if it’s on the FHA approved condo list.

 

 

Low down payment owner occupied Conventional Loans require at least 10% down and good credit.  With FHA, you can buy that condo with 3.5% down if it’s on the approved list and meets the other FHA requirements.

 

  

So is the condo you want to buy on the FHA approved condo list?  Here’s a link to the list:

 

https://entp.hud.gov/idapp/html/condlook.cfm

 

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 FHA Loans, Salt Lake City condos, Salt Lake City real estate, Utah 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 condos: New FHA Financing requirements for condos go into affect November 2, 2009.

Tuesday, October 6th, 2009

FHA has delayed the changes to the requirements for financing condos out to November 2, 2009.  The date was October 1, 2009.

This will still likely have a negative effect on the value of Salt Lake City Condos, but some condo projects will be effected more than others.

I recently put a value on a condomimium in an upscale condo project where units are selling for $250,000 to $325,000 and noticed that all of the units that sold in that complex this year were purchased with conventional financing.  It seems like a unit in that complex would be effected less by these changes.

Time will tell how the value of Salt Lake City condos are effected by these changes.  Some projects will be effected more than others.

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Salt Lake City condos: New FHA Financing requirements for condos go into affect October 1, 2009. What are they and how will they affect the value of Salt Lake City condos?

Wednesday, September 9th, 2009

Starting October 1, 2009, HUD has new rules for FHA loans that will change the playing field for condo buyers, sellers and builders.  I just read the letter from HUD to FHA lenders and appraisers (MORTGAGEE LETTER 2009-19) along with some blogs on how this will affect the condo market.

 

The reason this is such a big deal is that right now an FHA loan is the only way to buy a Salt Lake City condo or home with a low down payment of 3.5%.

 

Here’s an overview of some of the requirements that a condo project will require to be eligible for FHA financing starting October 1, 2009.  I’ve made a few comments:

 

1.     At least 50% of the total units must be sold prior to endorsement of any FHA mortgage on a unit.  This will affect new construction!

2.     At least 50% of the units must be owner-occupied or sold to owners who intend to occupy the units.  There have always been owner-occupied rules for FHA.

3.     Projects of four or more units will have no more than 30% of total units insured by FHA.  Projects with three or less units will have no more than one FHA insured unit.  This is a big change!

4.     No more than 15% of total units can be in arrears (more than 30 days past due) of their condominium association fee payment.  Seems to make sense to me.

5.     No more than 25% of property’s total floor area can be used for commercial purposes.

6.     One investor may own no more than 10% of units.  This applies to developers/builders that rent vacant and unsold units.  This makes sense.

7.     For two and three unit projects, no single entity may own more than one unit; all units and common areas must be 100% complete; and only one unit can be conveyed to non-owner occupants.

8.     A current reserve study must be performed to assure that adequate funds are available for the funding of capital expenditures and maintenance.  A current study must be no more than 12 months old—if recent events or market conditions have affected the finished condition of the property that information must be included.  When reviewing the study, consideration must be given to items that have been replaced after the time that the reserve study was completed.  This makes sense to me.  Why should we lend money to buy condos in a condo project that isn’t properly managed?

9.     No more FHA Spot approval on individual condo units in non-FHA approved projects.  The project is either FHA approved or it’s not.  Seems like this is a safe approach for a big organization like HUD.

 

These new rules will most likely have a short term negative effect on the value of Salt Lake City condos and condos across our nation. 

 

 

New construction condos will be affected the most because 50% of the units will need to be sold before the condo project could become eligible for FHA financing.

 

Builders will need to make sure they have a way to finance the first 50% of the condo units they sell.  The builders will need to go out and find financing for their units and then once the units are half sold, FHA financing becomes available if they are approved.  This puts a lot more risk on the builders and their lenders and less on FHA/HUD.

 

These new rules will likely reduce the number of risky condo projects and the overall number of new condo projects being built.  Long term, condo inventories will decrease which should push values up.

 

Also, if you can’t buy a condo, you can still buy a single family home with an FHA loan.  Short term this could have a positive effect on the value of single family homes in Salt Lake City because more people will buy homes instead of condos.

 

During the last housing boom in Salt Lake City, 2005-2007, the value of homes out paced condos until the gap was big enough to pull condos up.  The same thing could happen again.

 

So short term the FHA loan changes for condos will probably have a negative effect on values, but long term this will probably lead to decreasing condo inventory which could have a positive affect on the value of existing condos.

 

This also could result in new loan products for condos with low down payments.  Also, FHA may modify these new rules as they see how it affects the condo market.  Rules can be changed.

 

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 85% of my clients have been Buyers of homes and condos in Salt Lake.

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, Salt Lake City condos, Salt Lake City real estate, Salt Lake County homes and condos, Utah Homes | No Comments »

Salt Lake City homes and condos: Great Interest rates, Tax Credits for first time home buyers, Great Deals and Many Salt Lake City homes to choose from!

Friday, August 28th, 2009

So far this year, 85% of the clients I have worked with, have been Buyers.

 

All of them learned the market and then found the home or condo that they were looking for in the area that they wanted to live.  A couple of the Salt Lake homes and condos were unique properties that are hard to come by.

 

All of the clients got a fair deal on the home they chose.  A few of the clients got a great deal and went into their new Salt Lake home or condo with instant equity.  One client in particular went in with 20% equity if you compare the purchase price to appraisal.  Those deals aren’t easy to come by, especially on a dream home like this client bought.

 

All of the clients got an amazing interest rate.  Rates have been between 4.5% and 5.5% for most of the year.

 

All of the first time home buyers are getting a tax credit of $8,000.

 

History shows that the price of Salt Lake real estate goes up and down.  We’ve been going down for over 2 years now and eventually it will go back up.

 

History also shows that interest rates go up and down and right now they are very low.

 

One last thing I want to mention.  I was in a seminar last week and one of the big Utah home builders announced that they are going from 19 housing subdivisions in Utah to 40  by the first quarter of 2010.  They also said they are downsizing their homes, which makes sense.  I asked them who their economist is and they weren’t forthcoming with that information, but it made me think.

 

If you plan on spending the next 5 to 7 years in Salt Lake, you might want to start thinking about buying Salt Lake City real estate while it’s still a Buyer’s market and rates are low. 

 

If you already own a home, the gap in price between the home you own and the home you dream about is smaller than it was a couple years ago.

 

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 homes and condos in Salt Lake.

 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, Utah Homes | 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 »

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