Mark Alder

Salt Lake County Home Inventory November 2008

Home inventory levels are figured out by taking the number of homes on the market in a given zip code and dividing it by the number of homes sold in that zip code for the last 30 days. The answer will give you the absorption rate. Or the number of months it would take to sell the existing inventory at the current rate if no other homes came on the market.

Note: I do not include properties under contract in the calculation. And I round up for .5 and above.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

City	Zip	July, 2007	November, 2007	July, 2008	November, 2008
Draper	84020	10	20.2	14	22
Midvale	84047	3	9	8	12
Riverton	84065	8	21	12	13
Sandy	84070	4	19	9	13
West Jordan	84088	8	9	9	14
Sandy	84092	7	14	13	15
Sandy	84093	15	8	18	11
Sandy	84094	3	7	7	13
South Jordan	84095	9	19	16	22
Salt Lake City	84101	11	16	36	25*
Salt Lake City	84102	4	10	10	21
Salt Lake City/Aves	84103	7	12	16	22
Salt Lake City	84104	3	4	8	7
Salt Lake City	84105	6	9	8	8
Salt Lake City	84106	8	8	9	11
Murray	84107	4	7	9	13
Salt Lake City	84108	6	13	9	12
Salt Lake City	84109	6	21	19	13
Salt Lake City	84111	7	7	9	8
South Salt Lake	84115	4	5	12	10
Salt Lake City	84116	2	5	8	12
Holladay	84117	5	9	23	16
Taylorsville/Kearns	84118	3	8	8	12
West Valley City	84120	3	10	10	10
Cottonwood	84121	13	16	10	19
Taylorsville/Murray	84123	3	5	6	11
Holladay	84124	6	21	9	25
Average		6	12	12	14

From November 2007 to November 2008 home inventory levels remained relatively flat in Salt Lake County. November 2008 saw a average of a 14 month supply of homes while November 2007 saw a 12 month supply. This is actually good news for the market. It means that inventory levels are high but are not getting out of hand. It also means that homes are continuing to sell in Salt Lake County despite the nation’s worst housing market in decades.

*One zip code of concern is 84101. There has not been one home sale in this zip code in the last 30 days and only 1 in the last 60 days. This zip has 112 properties on the market. Most of them are downtown Salt Lake City condos in the $250,000 + price range. It is clear that buyers for these types are units are not making any moves right now. Hopefully the church is taking this into account when planning price ranges for its condos at the City Creek Development.

Utah Notice of Defaults October 2008

Unfortunately, Realty Trac reports that the Notice of Defaults for Utah returned to their July high with 889 filings, 3 filings shy of July's 892 filings. Given the lending environment, trends in other states, and this increase in NODs, it is looking like the Salt Lake market could be at least 9-12 months from prices bottoming out. As a seller, pricing right in order to avoid chasing the market is key. As a buyer, take your time and get signed up for automatic emails so you can track the market. By filling out this form , you can get customized automatic emails of the type of home you want. Some of the most popular searches are REOs and Short Sales . This means the system will autmatically send you all the REOs and Short Sales in your price and and in the neighborhood you would like. This easy way to track the market will have you on top of the best deals when the come on the market.

All data taken from the WFRMLS. Information reliable but not guaranteed. All rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell (801) 979 6275

Utah Notice of Defaults September 2008

Notice of defaults continued their upward trend after a August lull with 574 default filings for the month of September. Although this is a relatively high number, it is still less than July's dramatic jump to 892 filings. We can expect a portion of these loans to end up as foreclosures on the Salt Lake Market. Given the foreclosure time line, it is likely we will see a surge in foreclosures in Spring 2009

All data taken from the WFRMLS. Information not guaranteed. All rights reserved Mark Alder ©, a Salt Lake City Real Estate Agent cell (801) 979 6275

2008 3rd Quarter Numbers

The WFRMLS just released the 3rd Quarter 2008 market numbers. For a year over year comparison:

Single Family

1) Total units sold 2459. ↓ 12%

2) Average sales price $286,461. ↓ 7.49%

Condos

1) Total units sold 633 ↓27%

2) Average sales price $191,076 ↑ 1%

County Totals

1) Average time on market 68 days. ↑ 88%

2) Average asking price $336,110 ↓6%

The current market offers a smorgasbord of deals for the buyer with money to put down, good credit, and patience.  For first time homebuyers or those struggling with down payment and credit issues, your best bet is still going to be going FHA with a normal seller situation.  But for those with something to bring to the table, there is plenty to choose from.  Below is a sampling of the types of deals available and the benefits and risks of each.
 
REO
REO stands for Real Estate Owned property and it is property that is owned by the bank.  REOs are properties that have already been through the foreclosure process, to the auction, and are now offered back on the market.  Banks will hire REO specific real estate agents to help them sell  these properties.
 

 

Short Sale
Short Sales are properties where the seller owes more than the property is worth.  Instead of bringing money to the closing table in order to get out from under the property, the seller may be able to sell the home "short" or for less than it is worth.  This is where the buyer comes in and picks the home up at a discount often at 70%-80% of market value.  The key here is getting the bank to agree.
 
 

The Auction
You buy at the auction when a trustee fulfills his legal duty as part of the foreclosure process and offers the property for sale at a public auction to the highest bidder.  This can be a quick way to get a great deal.  But I would not do it alone the first time.  I recommend Vestus.com for help with this.

Pre-Foreclosure
In a pre-foreclosure deal, you negotiate directly with the seller to purchase the property from them before the property is foreclosed on them at the auction.  The seller will need enough equity in the home to make this kind of deal work.
 

If you need help getting started, contact me and point you in the right direction.  Or if you are ready to go and want lists of short sale and/or REO properties fill out this form and indicate they type of property you are looking for.  Thanks for reading!

All data taken from the WFRMLS. Information reliable but not guaranteed. All rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell (801) 979 6275