LT Weese, from Northern Realty, Northern Utah’s largest independent real estate company, explains why the housing market is still strong in Utah.
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Myth #1 The Housing Market is BAD.
Patti T-Gard-801.663.6168-Northern Realty
There are two points I would like to address to counter this myth. First, according to the Forbes October 12, 2007 article “Best Cities for Jobs”, Salt Lake City boasts the top ranking in the US for Job growth and
Technology. SLC has developed into a more service-based economy and is showing signs of becoming the next silicon valley with its influx of tech sector jobs. We all know that where there is an increase in the job market, it will feed the real estate market.
The second point I’d like to bring up is that according to CNN Money.com The Salt Lake Metro market enjoyed a 3rd Qtr appreciation gain of 21.9% When we take a look at other areas across the Wasatch Front we can see appreciation levels that are still in the double digits up from last year. In Lehi, although actual sales dropped by 40%, the area is still appreciating 20% over last year. In Ogden homes jumped up 10% over last year and the average days on the market is 9 days fewer. Looking at Layton, homes there up 16% over last year at this time. Even with a 14% drop in actual sales, homes in Layton are selling an average of 10 days sooner than Lehi or even Ogden. You have to be able to understand that lack of sales volume does necessarily equal a “bad” market, “slower” yes, but not “bad”. If there is still a healthy appreciation level, the lack of sales might be something as simple as too much inventory and not enough qualified buyers. Bottom line, homes are still appreciating, and they are still selling, and as long as that continues, it’s a GREAT market.
>Myth # 2 It’s Better to Sell in Spring…….Yes and No
Eric Rodriquez-801.695.1048-Northern Realty
It depends on your future purchase and the county you’re living in. As far as Salt Lake and Davis counties go, if you’re wanting to move up in value it would be best to do it now. The reason I say that is, because the house your in now will be rising in price because of appreciation. Your higher end homes you may being trying to purchase will be rising at a higher dollar amount therefore creating a loss by waiting for spring. On the other hand if you’re planning on downgrading it may be beneficial to wait until spring because you will have the opposite effect of moving up in value. There are other factors to consider depending on your personal situation and counties.
EXAMPLE:
Your current home is $350,000, you may gain $26,000 by spring (7.5% appreciation), the home your wanting to purchase is $525,000 it will gain $40,000 by spring, which results in a $14,000 loss
Myth # 3 No Good Loans Available………THERE ARE GREAT LOANS IN UTAH
Wil Gaskin-801.628.1116-Northern Realty
In general, interest rates are running in the low 6% range which is historically low compared to the interest rates over the last 15 years. There are Federal Loan Programs such as your VA and FHA loans that are still readily available. First time home buyers can get loans through Utah Housing which is a FHA based program, and carries an interest rate that is generally .50% to 1 percent lower than the prevailing interest rate. It also has a zero down option which allows a first time home buyer to buy a home with no money out of pocket. In addition to the stated advantages of such loans as Utah Housing there are many city and county programs such as Own in Clearfield and Own in Ogden which are grant based programs. These programs have restrictions and of course today we don’t have time to go through them but they are all excellent loan programs in Utah. However it should be noted that the sub prime market has tightened its guidelines over the last year and your credit score is more important than ever when trying to purchase a home.
Northern Realty’s Shameless Plug!!!!
Northern Realty @ Layton Hills Mall-801.544.HOME
e have several large activities that we sponsor each year including car shows, golf tournaments, movie nights, haunted houses, and we are partnered this year with the Layton Hills Mall for Christmas. This year we are giving away a Nintendo Wii system and the Layton Hills Mall has chipped in a $1000.00 shopping spree. Santa will draw the names on Christmas Eve and you need not to be present to win, but you must be 18 to enter. Viewers need to contact Wil, Eric, or myself to get signed up for those drawings or do it in person at our offices, we are open M-Sat from 9am to 9pm.
I’d also like to invite your viewers to contact Wil, Eric, and I (Patti T-Gard) at 544-HOME, stop by at our offices inside Layton Hills Mall or visit www.NRUTAH.com if you have any real estate questions in general.
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