Chris Sloan Tooele Real Estate

Home Affordability Increases On Weak Retail Sales Data

Utah Home affordability improved again Wednesday after the government reported worse-than-expected results for April's Retail Sales.

In Utah, Mortgage rates edged lower for the third consecutive day.

The impetus for the rate rally this week may be a long-awaited stock market correction. After touching multi-year lows in mid-March, the Dow Jones added 30 percent going into last Friday.

It has since lost close to 300 points and as those dollars leave the stock market, they're finding their way toward bonds.

The demand is pushing bond prices up which, in turn, causes rates to fall.

Yesterday morning, the Utah rally in rates picked up steam on the heels of April's Retail Sales report. With figures off a half-percent from March and roughly 7 percent from 2008, investors are concerned that consumer spending may not be as strong into the summer months as previously expected.

Consumer spending is important because it comprises two-thirds of the economy and is believed to be the way out of the current recession. Spending in Utah, particularly in the major population areas like Salt Lake, Utah, and Davis counties remains fairly constant and indicate the strength of the Utah Market.

If expectations of a recovery caused mortgage rates to rise recently, it makes sense that a revision of those expectations would cause rates to fall.

So you had better be prepared to make your move if you are looking to buy a new home in Utah, and want to take advantage of all of the incentives available.

Markets are fickle, however, and the slightest bit of "good news" could pump cash back into stocks at the expense of bonds. Until then, however, enjoy the low rates -- they may not last long.

In the meantime, if you are preparing to search for a Utah home, check out our home search page on our web site. You will have access to almost all of the MLS listings in the State of Utah.

What Does It All Mean In Tooele ? Can I Buy A House ?

The Federal Open Market Committee voted to leave the Fed Funds Rate unchanged today within its target range of 0.000-0.250 percent. The Fed also reiterated its plan to support the mortgage market to the tune of $1.5 trillion.

I read these press releases every day or so and generally walk away shaking my head wondering what it all means for the 556 people trying to sell their Tooele home and the approximately 50 people that will actually buy a home in Tooele, Stansbury, or Grantsville each month.

I've tried to simplify, but I still don't relate.

In its press release, the FOMC noted that the economy may still be contracting, but that it's not happening with the same speed as in prior months. Household spending is stabilizing and financial markets are "easing".

Nevertheless, threats to the recovery are everywhere with the following items on the Fed's short list:

• The growing ranks of unemployed workers
• The reduction of housing wealth nationally
• Reduced inventories and investment from business

Furthermore, the FOMC fingered today's inflation levels as too low to support economic growth. This justifies the Fed's plan to hold the Fed Funds Rate near zero percent "for an extended period".

For home buyers and refinancing homeowners, today's press release was not favorable.

After the Fed's announcement, stock markets rallied on the idea that the worst of the economy really is over and that led to a broad bond market sell-off. Mortgage rates spiked in response, adding as much as 0.125 percent, in some cases.

The FOMC's next scheduled meeting is June 23-24, 2009.

There, I feel better now !

So having said all this, and not having moved forward, LET ME TRY THIS !!

IN TOOELE UT, HOMES ARE AVAILABLE, INCENTIVES ARE PLENTIFUL, AND INTEREST RATES ARE NEAR AN ALL TIME LOW! NOW IS THE TIME TO BUY !!!

If you would like to see those 550 + Condos and houses for sale click on Tooele Homes For Sale.

If you want to know how much they are worth, how to buy them, what to look out for, why you need representation, who you might want to borrow the money from, and where to go for the best Real Estate deal for your situation, then visit our website @ Tooele Real Estate. Or just call us at 435-840-5029.

We love to talk about Tooele Valley and Real Estate.

Source

Parsing the Fed Statement
The Wall Street Journal Online
April 29, 2009
http://online.wsj.com/public/resources/documents/info-fedparse0904.html

Not About Utah Real Estate, or Tooele Houses, or Stansbury Condos!!

OK, Berna made me do it.

Ever watchful of her families safety and with an insatiable need to share, I was told no more blogging about Tooele Real Estate until all of our friends heard about this product.

Sure, you've got a fire extinguisher at home, but if you ever had a fire, would you know what to do with it?

Like any tool, reading the directions can only get you so far. If you've never "pulled the pin" and discharged a fire extinguisher before, fighting an actual fire can be a frightening initiation.

For non-firefighters, there's an alternative. It's an aerosol spray from the First Alert company called the Tundra Fire Extinguishing Spray and it's billed as an intuitive fire safety product.

According to a First Alert product fact sheet, aside from its ease-of-use, the Tundra product boasts several advantages over traditional fire extinguishers:

1. Tundra sprays for 32 seconds -- double a traditional fire extinguisher
2. Tundra spray covers 3 times more surface area than a traditional extinguisher
3. Tundra cleans up with a damp sponge

The Tundra Fire Extinguishing Spray is recommended for cooking fires, electrical fires and household fires involving wood, paper and fabrics. You can buy it at most hardware stores or for cheap at Amazon.com.

OK I did it, and hardly a peep about Tooele Real Estate.

Yes Berna, I FEEL BETTER !!!

President's Message:
Chris Sloan

April celebrates the 41st anniversary of the passage of the 1968 federal Fair Housing Act, which makes illegal any discrimination in the sale, lease or rental of housing.

The act was passed to ensure that all Americans have equal access to housing of their choice.

As we commemorate this historic legislation, which protects your right to live where you want, it is a great time to review what protections you have under the Fair Housing Act.

In the sale and rental of housing, the law prohibits various actions based on race, color, religion, sex, national origin, handicap or familial status (including children under the age of 18 living with parents or legal custodians, pregnant women and people securing custody of children under the age of 18), according to the U.S. Department of Housing and Urban Development. These seven characteristics are known as protected classes.

As we discuss the protections provided under the act, keep in mind however, that while most housing is covered, there are a few exceptions to the general rules, so make sure to visit www.hud.gov for more information about the exemptions. One such exemption is senior communities that can lawfully refuse to sell or rent housing to families with minor children, according to HUD. In general, the law prohibits someone from refusing to rent or sell housing based on any of the above seven characteristics.

The following activities are also illegal based on a person's protected class, according to HUD

§ Making housing unavailable

§ Setting different terms, conditions or privileges for the sale or rental of a dwelling

§ Providing different housing services or facilities

§ Falsely denying that housing is available for inspection, sale or rental

§ Persuading homeowners to sell their houses at bargain prices by suggesting that people of a particular protected class have moved or will move into the area

§ Denying anyone access to a facility or service related to the sale or rental of housing

If you are shopping for a home, you have the right to expect that housing will be made available to you without discrimination. The National Association of Realtors provides a list of items buyers should expect when purchasing a home:

§ Housing in your price range made available to you without discrimination

§ Equal professional service

§ The opportunity to consider a broad range of housing choices

§ No discriminatory limitations on communities or locations of housing

§ No discrimination in the financing, appraising or insuring of housing

§ Reasonable accommodations in rules, practices and procedures for persons with disabilities

§ Non-discriminatory terms and conditions for the sale, rental, financing or insuring of a dwelling

§ To be free from harassment or intimidation for exercising your fair housing rights.

On the flip side, if you are selling your home or acting as a landlord, you also have obligations to not discriminate in the sale or rental of property. For example, HUD says someone selling a home cannot "make, print or publish any statement, in connection with the sale or rental of a dwelling, that indicates a preference, limitation or discrimination based on race, color, religion, gender, disability, familial status or national origin." Because you may be unfamiliar with the law's expectations, it is a good idea to work with a Realtor who is knowledgeable about fair housing compliance. Realtors are firm advocates for fair housing and have continually worked over the years to try to eliminate housing discrimination. If you have any questions about fair housing, ask your Realtor. If you dont have a Realtor contact me thru my website Tooele Homes For Sale.

In fact, every Realtor pledges to abide by a code of ethics that specifically prohibits discrimination in all aspects of the real estate business. For more information about fair housing laws or to submit a housing discrimination complaint, visit the U.S. Department of Housing and Urban Development's Web site, www.hud.com.

Examining Short Sale Myths :

President's Message :
Chris Sloan

Some of the hottest topics in real estate today deal with the buying and selling of short sales and foreclosures. From clients, neighbors and the media, I am constantly answering questions about the number of distressed properties on the market and how to get the best deal on them.

During these conversations, I've realized there is a lot of misinformation about this topic. Some consumers believe it is impossible to buy a short sale while others think nearly every home on the block is in foreclosure. Today I'll dispel some of these myths and present information about what you can really expect in Utah's current real estate market.

Let's start with some definitions. A short sale occurs when a property owner needs to sell their house but owes more than the property is worth. This situation most often happens when the home's value has fallen and the owner has no equity in the property. Instead of going through a lengthy and costly foreclosure process, banks will allow the homeowner to sell the home for less than the mortgage amount. Not only can the lender save money, but the homeowner receives a less severe mark on his or her credit report.

A foreclosure is defined in a variety of ways. It can be a foreclosure filling, where it is publicly recorded that the homeowner is in default or that the home will be sold at an auction. It may be an actual foreclosure where the lender has gone through the process and now owns the property and is selling it through a real estate broker or at an auction.

With those definitions in mind, let's look at some of the common myths:

Myth 1: The market is saturated with foreclosures.

While Utah's foreclosure rate has been on the rise, it still remains lower than the national rate. In fact, in the latest statistics from the Mortgage Bankers Association, Utah had the 17th lowest foreclosure rate at 1.79 percent, well below that national rate of 3.30 percent. That means only about 7,900 of the 440,841 loans in Utah were in the foreclosure process at the end of the fourth quarter - certainly not the majority of homes. The foreclosure rate is often confused with the delinquency rate, which tracks mortgages at least 30 days past due. At 6.06 percent, Utah's was the 13th lowest in the U.S., with the national rate at 7.88 percent. Although the delinquency rate signals homes headed toward foreclosure, keep in mind that not all the homes will go through the foreclosure process. Homeowners may be able to negotiate a payment plan with their lender or sale the property through a short sale.

Myth 2: The majority of properties for sale are short sales.

A recent article said between 50 and 75 percent of homes on the market today are short sales - a figure that is simply too high. Statistics from the Wasatch Front Regional Multiple Listing Service, which tracks the majority of homes listed and sold in Utah, show only 16 percent of all homes for sale in the four Wasatch Front counties and Tooele are short sales. That means if you are looking to buy a short sale, there are definitely opportunities. Consumers should know, however, that short sales are not the only option in today's market. The majority of homes for sale are by traditional sellers.

Myth 3: Short sales never make it to the closing table.

From December 2008 through February 2009, 429 short sales were sold in the four Wasatch Front counties and Tooele, according to WFRMLS statistics. A recent article said only about 10 percent of short sale attempts actually make it to closing; however, the reality is that there are a number of buyers competing for short sales and only one will be able to purchase the property. A statistic from the California Association of Realtors suggested the short sale success rate was closer to 50 percent.

Myth 4: Short sales can be bought for bargain basement prices.

Although short sales can be great deals, a bank won't approve an offer that is significantly below market value. Lenders are trying to minimize their losses, and although they will sell competitively priced real estate, they require purchase prices to be in line with current market values. Your Realtor will be a great resource in helping you determine what price a bank will likely accept - a step that will save time for both you and the bank. For more information about short sales, contact your local Realtor or find one at UtahRealtors.com. There are many Realtors who specialize in short sales who would be happy to help you navigate the ins and outs of these complicated transactions.