Fannie Mae changes its loan-buying rules, while FHA steps up to the plate.
Historically, many people have avoided FHA loans due to two big factors: a 1.5% up front funding fee, and (for most people) monthly mortgage insurance for at least two years. But now, other factors are involved that can make FHA loans look quite attractive.
Fannie Mae, the kinda sorta government/private company that buys loans just announce they're not going to buy loans with credit scores under 580. They've also just announced their fees for a person with a score between 660 and 680 will be 1.5%, double that of a person with a score of 720 or above. Couple that with the extra interest rate they're charging for that credit score difference and suddenly FHA looks pretty competitive.
And don't forget the luxury market. In Salt Lake City, Utah the FHA loan limits recently increased from $363,000 to $729,000! Holy moly! Now luxury buyers can buy with only 3% down! Who else is offering that?
I'm not saying that all this is good in the long run. But maybe it is. If our economy is truly teetering, maybe a little intervention will keep it from going over the edge.
So here's my prediction. Government insured FHA loans will become a significant player in the home loan market this spring. Before you knock it, try it. I've got a personal home loan at 5.375% I just secured a coulpe months ago. And yes, it is FHA <GASP>!
High on the hill with the celebrity types in Arlington Hills
High above the University of Utah next to the Avenues and Upper Avenues lies Arlington Hills, a luxury neighborhood with a few celebrities. Arlington Hills offers a variety of home styles, while prices range from roughly $500,000 to $1.5M, with the occasional modern mansion or spanish villa selling for 2, 4, or even 6 million dollars.
Many homes in Arlington Hills have paroramic views of the valley from downtown Salt Lake City to the beautiful Wasatch Mountains. It is a stabil neighborhood of residents who usually settle there for many years.
Up here it's high enough to rise above the smog and get some clean air, some clean living, and some perfectly manicured yards. And yes, you might even see an old Mercedes or Volvo heading down the street, along with some new ones!
Pure as the driven snow? Hardly.
Salt Lake City gets a bad rap, and it makes me sad. Heck, I moved here with no intentions of staying (I only wanted to ski the Greatest Snow on Earth) and 17 years later here I am. Why, you ask? I thought you might.
Well, Salt Lake City is quite liberal and diverse. From domestic partnership benefits and gay representatives to just about any religious group you can imagine there truly is something here for everyone. We have a world class symphony. Our arts and law and medical programs are some of the best. Dining out has grown exponentially in the last two decades, and there's more nighttime theater/shows/dancing/singing/acting/drinking than you can shake a stick at.
Salt Lake is young. Utah has the youngest population of any state, with the highest family size per household. A city full of young professionals is a city poised for growth. The average home price is still below the national median, at least statewide.
Yeah, I thought it was just a church on the edge of a salty, brine shrimp-filled lake on the edge of a dusty desert. I thought I'd have to wear a shirt at the local swimming pool. I thought I'd have to drive to Wyoming or Nevada to get a beer. Boy was I wrong!
Here's a photo of a friend "baptizing" me near the fountains of the world headquarters LDS Temple. (Mormon Temple)
Welcome to Salt Lake City!
Too close to call?
I've always loved the neighborhood around 9th and 9th. It's one of Salt Lake's great walking communities with locally owned shops and some great food, coffee, and movies.
So what's going on with real estate in that area? Let's start with some County statistics and narrow it down from there.
First, the market seems to be in a correction period. In the last quarter of last year, homes dropped back down to the first quarter prices. Nothing major. Here's the graph:
Now if we narrow right in on the 9th and 9th area, comparing year-to-date numbers from last year and this year. The values seem to concur with the county graphs and trends. Last year, 32 homes sold in the 9th and 9th area from January 01 to March 21. This year, only 16 have sold in the same time period. Sales levels have esentially returned to 2005 levels, when the market was considered a "Fair market."
With more listings on the market and half the number of sales it follows that prices are dropping, time on the market is increasing, and fewer people are selling their homes.
It's taking more marketing than ever to sell a home, yet the 9th and 9th area does attract a diverse crowd. There's not another neighborhood like it in all of Salt Lake.
Now is the time for all good men to come to the aid of their party.
It happened almost everywhere. FHA loan limits went through the roof, and conventional followed. But not for long...these loan limits are set to expire by the end of the year.
In Salt Lake City, the new FHA loan limit is $729,750! You can also get loans for duplexes, triplexes, or more, with a much higher loan limit. The new loans should allow more qualifying people to get into homes, and with better loans. Better loans are better for our economy due to extra money it keeps in homeowners pockets. Of course, they like to spend it, too!
This means basically two things:
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Get my performance guarantee. I sell nearly 20 homes each year, with 85% of my business coming directly from past clients and referrals. Call anytime for a quick chat or schedule a time to meet. I'd be happy to help!
In 1990 I moved to Salt Lake City from Cleveland, Ohio. I came here for the skiing, the good schools, and the "western lifestyle." I thought I'd just ski a few years and then move somewhere else. I stayed. Salt Lake is insanely affordable to fly in and out of. Traveling to San Diego, San Francisco, Ireland or the U.K. are some of my favorites. I've even made some international friends that have come to Utah to visit some of our National Parks, see Las Vegas, and even drive up to Yellowstone.
When I'm not working at Fantis Group, some of my other interests include snow skiing, golf, piano, wine tasting, dining out, wake boarding and reading about outer space or world history. Oh, and I read technical manuals. (I'm a detail oriented guy.)
I'm dedicated to moving Salt Lake City real estate forward through excellent service and outstanding results. I believe in working hard and tending to the details. Too many times, I see people end up in situations they could have avoided with some qualified, experienced help. My hope is to help reach out to those people before it's too late.
When it comes to Salt Lake City homes for sale, you can count on us! More than 85% of my business involves repeat clients and referrals. It seems I always meet new Salt Lake home buyers and sellers through the internet, too.
Take a moment to visit Saltyhomes.com - Salt Lake Homes for Sale. I think you'll find it very helpful, and the best home search site for Salt Lake City. It's very user-friendy, and offers features none of the other top sites in town are currently offering.
I specialize in helping buyers and sellers in existing homes for sale on the east side of the Salt Lake Valley, with a special focus on areas from Holladay to Sugarhouse (Sugar House) and Harvard Yale to the Avenues, the University of Utah, and downtown Salt Lake real estate. My typical clients are educated, have interests in the arts and outdoors, and want to live in an area that has easy access to all of those things. Many are relocating from other states into unknown territory. Another characteristic of many of my clients is the desire to experience the diversity that Salt Lake has to offer.
My team of REMAX agents is qualified and experienced in Salt Lake, Utah, and Davis counties. Each year I publish a report (30,000 copies) about the Salt Lake County real estate market and trends. You can view that report on my website www.fantisgroup.com.
Laura Polacheck (Avenues)- “I felt like I was Tony’s only real estate client because of the amount of time he spent and care he showed about finding the right house for me in Salt Lake City. There was no question that he had my best interests at heart. It was like looking for a house with your best friend.”
Scott Helferty (Capitol Hill)- "Tony has a skillful and personal way of finding people the home they want in downtown Salt Lake City."
Ross Raaberg (Avenues)- "What makes Tony so good is his ability to listen and understand his client's needs combined with a thorough understanding of the market and neighborhoods. For me, this resulted in finding the perfect home in a very short amount of time. Tony's Salt Lake City real estate expertise exceeded all my expectations and proved to be invaluable."
Bill Battersby (Sugarhouse)- "I first met Tony at a PSIA ski clinic. I mentioned that sometime in the summer I'd be looking for a house in Salt Lake City for my kids to live in while attending the U of U. I told Tony to stay in touch. Well, amazingly he did. Summer came and he called. Tony worked his tail off to find a place that fit my requirements The Utah real estate market was unbelievably hot and things were selling before the signs were in the ground. Tony was very persistent and found that perfect house that fit my purpose within 2 weeks. He was knowledgeable, reliable, and prompt. I would definitely recommend him...and I have."
Wendy Billings (West Valley)- "Thank you so much for taking the time with me to find my perfect Utah home. Seemed as if you knew my wants and needs almost immediately. I am so thankful that I had you as my buyer's agent and Realtor. I felt at ease with the whole process, start to finish. There were no hidden 'anythings' and I understood the whole process on my first home purchase. Thank you Tony for all that you did for me. I could not be happier."
John Kippen (Sugar House)- "Tony really listened to my wants and needs, then helped me get the home I really wanted for a very good price. He was an excellent communicator, and was available when I needed him. I have already recommended him to several friends. I am very happy!"
Larry Penman (San Diego / Salt Lake City) - "About four years ago my partner and I wanted to buy investment property in Salt Lake City. We conversed with Tony over the phone and set a date to visit. He had a number of places for us to view, and by the end of the day we had made a selection, and we faxed him an offer the next day. We were able to close the deal from out of town. Since then we have purchased and sold another property with the help of Tony. If you have ever tried purchasing or selling a property from afar your would understand the value of a good agent like Tony."
Drs. Bob Mazzola and Kristin Dascomb (Salt Lake City) - "Simply the best! We were lucky enough to be introduced to Tony through one of our professors at LSU New Orleans, who has been friends with Tony for years. We must admit the thought of moving across country from New Orleans to Salt Lake City was quite intimidating. We had to find a house quickly, with limited time during our visits. Tony made this process effortless! He shows you homes you want to see, unlike other Realtors who just want to make a sale. In addition, if he sees something wrong with a house, he lets you know rather than mask problems. Once we purchased our home, he had us set up with landscapers, locksmiths, etc. who had the house move-in ready as we pulled up to it in our U-haul! As I said, effortless! Tony is perfectionist who makes you and your concerns priority one and is not satisfied unless you are… period. We have referred 2 friends at the U to him already who had the same experience. Richard Jones (Radiology) had to sell his condo quickly, Tony had it sold in two days. Michael & Jessica Karge (Anesthesia) also worked with him and had an excellent, professional experience. If you want worry free, comprehensive service from a relocation specialist, there is no substitute for Tony Fantis.
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