Chris Sloan Tooele Real Estate

UAR Presidents message 1/3/2009

The Utah Real Estate landscape in 2009

President's Message

Chris Sloan

As we begin this new year, I am excited to share with you my perspectives on Utah Real Estate and housing. If you're looking to buy or sell a home within the next year, I hope these weekly columns can provide some help as you look to conduct this significant transaction.

With 2008 and its economic roller coaster behind us, we are now wondering what the new year will bring. My clients in particular are wondering what they can anticipate with regard to Real Estate in 2009. Here are four things I think we can expect to see in the next 12 months:

1. A bottom in home prices

More and more there seems to be a buzz among economists and others that housing prices will finally see a bottom in 2009. Experts disagree about the timing of the bottom, but some predict the low could come as early as the middle of the year.

In a speech to the National Association of Home Builders in October, Mark Zandi, chief economist and co-founder of Moody's Economy.com, said home prices will stop falling in July 15, 2009. And more recently after the Federal Reserve's unprecedented rate cut a couple weeks ago, stock market guru Jim Cramer said on his CNBC show, "Mad Money," that he believed home prices would see the bottom at the end of June. Others are saying the bottom will come closer to the end of the year as long as the economy doesn't have a weaker-than-expected performance.

Regardless of the predictions, one thing is sure: The bottom will vary depending on your state, city and neighborhood. That why it's a great idea to contact a local Realtor if you're thinking about getting in on this market cycle. He or she can brief you about local market conditions in the areas in which you are interested.

2. Low home prices and low interest rates

This is an unprecedented buyer's market. In 2008, just about every home-buying factor turned in favor of buyers: Mortgage interest rates hit lows not seen in decades; reductions in home prices increased affordability; a large selection of inventory meant plenty of choices and lots of negotiating power; and the government created its own buying incentives, including a $7,500 tax credit for first-time buyers.

These advantages will continue into 2009, with prices and mortgage rates possibly inching even lower. But serious buyers won't want to wait until the last minute to start the purchase process. Because house hunting and qualifying for a mortgage take longer these days, you may want to start shopping for a home now while the deals are still plentiful. Those interested in the tax credit will also want to avoid procrastination because this incentive is set to expire June 30.

3. Strict lending standards

The days of easy money are gone and are unlikely to return anytime soon. If you're applying for a mortgage, expect to have an excellent credit score, money saved for a down payment and lots of documentation for your employment and financial information. You'll also want to conduct a careful review of your finances to determine what payment you can comfortably afford.

If you don't meet conventional lending standards, consider getting an FHA loan. The government-backed mortgages have smaller down payment requirements and cater to those with less-than-perfect credit, although good credit is still required. Other local programs, such as those offered through Utah Housing Corporation, provide down payment and closing cost assistance to qualified buyers. For more information on these types of programs, visit the Utah Bankers Association's HomeSweetHomeUtah.org Web site.

4. Government action

President-elect Obama has already signaled that helping the housing market and the economy will be a top priority for his administration. So far, there has been talk about creating and preserving jobs as well as preventing more foreclosures from coming onto the market.

Trade groups, such as the National Association of Realtors, are also calling on Congress to include housing assistance in any future economic stimulus package. The NAR plan aims to increase home-buying demand by having the government buy down interest rates, increase FHA and conforming loan limits, and eliminate the repayment feature on the first-time home buyer tax credit and expand it to all buyers.

While the exact government action remains to be seen, one thing is clear: With or without additional stimulus, this is a once-in-a-lifetime market for home buyers. To find a Realtor who can help you take advantage of today's opportunities, visit UtahRealtors.com.

Just think about it, a new year just around the corner, and still time to buy a New Home in Stansbury Park.

I know, you can't believe you can select a neighborhood, pick a floor plan apply for financing, and close your new home in time for a New Years housewarming.

I didn't either but then I looked at the "shadows" post on Cories blog and saw what Richmond America was doing over on that side of the mountain, and got pretty excited.

If they can do it we can do it! BETTER ! We've got them beat hands down. In all four categories.

FINANCING:
Sure they have a special 4.5% FHA financing option with an interest rate on a 30 year mortgage. (5.1434% APR) but so do we. What they don't have is 100% financing available throughout Tooele County.

QUICK CLOSING:
I don't know why I let the fact that it's only a couple of weeks from the end of the year. (or the beginning of a new one if you folks are on straight commission prefer). We'd be happy to let Richmond America do the heavy lifting, but remember were the guys that took only 7 days to get a client moved in. From start to finish. (with the help and service of a fantastic local lender). It can be done.

NEIGHBORHOOD:
Are you kidding? It's Stansbury Park. Lake, boats, Golf, parks, playgrounds; A sophisticated, rural community thats lets you commute to the Airport, or Airport Industrial area in 20 freeway minutes. Downtown Salt Lake? Tack on another 10...... No contest.

NEW HOME SELECTION:
This could be a problem. But it would be a problem anywhere. If professional designers said dark marble tops look better than wood grain laminates, then you might not like the decor. If you had your heart set on a sea foam green carpet for your New Home, my bet is that the builders people thought a darker color was more practical. Just remember that these New Homes were outfitted by professionals with an eye for color and functionality, and to please the majority of the people that visit the Model Home. It can't be too bad.

So here's what we've got to choose from.

Stansbury Park New Homes For Sale: (Ready to go)

Stansbury Place has three new homes to choose from.

The Alexander II is 2150 sqft home with 4 bdrms, 2.5 bths and a 2 car garage. Priced @ $259,920.

The Chamberlain II is 2550 sqft, has 4 bdrms, 2.5 bths w/ a 3 car garage for $324,707.

The Lincoln II has 4 bdrms, 2.5 bths, a 3 car garage in 2700 sqft for $329,589.

Starside II has one new home for sale.

The Bryce is a 1600 sqft Rambler that sells for $254,990, and has 3bdrms, 2.5 bths w/ a 2 car garage.

Picket Lane II has a couple of new homes ready for delivery.

The Cedar @ $225,759 is a 1200 sqft 2 bdrm 3 bth Rambler w/ a 3 car garage.

The Winter is ready for $235,870 w/1500 sqft, 3 bdrm, 2.5 bths, and a 3 car garage.

Not a bad selection to choose from.

If your interested, give us a call, @ 435-840-5029. We'd love to introduce you to the folks at Richmond American Homes. If you are working with another Realtor, call them and get out there to the Stansbury Park Models. But as usual I recommend that when thinking of buying a New Home you have your own agent. It's FREE and just makes good sense. Read new home agent.

To see all of the homes for sale in Tooele County as well as Stansbury Park, stop by our web site, Tooele Homes and see what else is available. You'll get photos, maps, prices and valuable information about all of the homes listed in Tooele.

In the meantime, let us help you celebrate the New Year when you buy New Home In Stansbury Park UT.

It seems that with me it's always Real Estate even when I'm not in Tooele checking my "Homes For Sale" signs, filling brochure boxes or at the Tooele Courthouse researching Foreclosures and Pre-Foreclosed homes from the County records. If I'm not in Tooele I'm attending a meeting.

Even though they are about Real Estate, they are pretty boring, and don't cover any information I can pass on to our clients about how to buy a house, or how to search the MLS to find homes for sale in Tooele.

So I don't post about them much. I rarely think you'd be interested.

Yesterdays meeting was different though. It was the Utah Association of Realtors (UAR) annual statewide summit.

Every year Real Estate Brokers from all over the state meet to discuss Economic, Legal, political and Educational topics and how they pertain to our business.

Since the meeting was poorly attended I thought I would e-mail some thoughts I had about it to the various board presidents around the state.

When I reread what I was sending, I realised that I have some pretty hard core readers here that are interested in much of what we talked about. So I'm posting a bit about it. If you find it interesting great ! If you don't, dont worry I wont be doing this often

Next week it will be back to how many homes are for sale in Stansbury Park, and are Short Sales selling better in Tooele or Grantsville UT?

Here goes !!!

Good morning, all!

As I didn't see many of you at yesterday's Broker meeting, I thought I'd give you a quick overview of what was discussed.

As you might guess, the topic was the economy, both present and future.

We had Howard Headlee from the Utah Bankers Association. He stressed that Utah banks were very strong, especially compared to others around the country. He also mentioned that the TARP money (the 700B bailout) is just now hitting the market. He said that banks won't lower their lending standards, but that there is money out there to lend. He said the residential lending market is going "back to basics". Development money will be extremely limited until existing inventory is at a more realistic level, and that commercial money will be on a "case by case" basis. I thought he had the line of the day when he described our lowering membership numbers as a "flight to quality". I agree that the best Realtors will still be standing when the dust settles.

Bill Erickson, President of Utah Housing also talked about some of the programs they have, as well as the Guv's new Housing Action Coalition.

We then heard from 3 different economists that were basically singing the same tune. Unemployment is up, and will continue to rise for the foreseeable future. They all seem to agree that we are in a recession (shocker!). They also all seem to agree that we are looking at 3rd to 4th quarter 2009 before we start to see an upturn in the economy. The good news is that even with a flattening of in-migration, we are still creating around 13,000 new households per year through "natural" factors. This is Utah, after all! Most agree that these cycles generally have a 3-4 year "life" and depending on how you measure, we are in year 2 or 3. They anticipate that Fannie/Freddie will start buying up more mortgage backed securities helping recapitalize the lending market, which will help us all a ton.

It was an excellent meeting. If you have any specific questions, let me know and I'll do my best to answer them.

In addition, podcasts of all of the presentations will be available on the UAR website (www.utahrealtors.com) in the next couple of days. I'd urge you all to take the time to watch and listen to what they have to say. It wasn't great news, but it was very valuable info.

Sorry for the length of this message but it was a 3 hr meeting and had multiple economists! Have a great day!

Chris Chris Sloan
Branch Broker
Group 1 Real Estate
tooelehomes4sale.com
(435)840-5031

So there you go. Now you know , It's about Real Estate even when I'm not in Tooele.

We got some great leadership tips at our latest conference. Most were obviously business related, but as I was driving home it occured to me that perhaps these lessons are better applied in our homes and with our families. I promised myself I would share them.

UAR Leadership Tip

Achieving Extraordinary Results

The most important quality of leadership, the one quality for which you want to be known, is extraordinary performance. With the goal of achieving extraordinary results.

These results then serve as an inspiration to others to perform at equally exceptional levels.

People ascribe leadership to those men and women who they feel can most enable them to achieve important goals or objectives. (Source: 1000Ventures)

Do you have your goals set for the coming year?

Your goals for yourself, your business, and your Association need to be taking shape in your mind, if not on paper.......... WRITE THEM DOWN OR THEY DON'T EXIST!

Enough work stuff.

It's the best holiday of the year this week.

How can you beat getting together with family and friends, eating too much watching football, then eating some more?

In all seriousness, I hope you all take a moment this week and think about the things you are thankful for this year.

It's very easy these days to dwell on the negative things we are inundated with on a constant basis. Like the economy. Just remember, as bad as ours seems, 99% of the rest of the world would trade places with you in a minute!

Stress? Go for a walk (or take a nice long drive!) and get some perspective. I'm thankful for my friendship with all of you, and the opportunity I have to associate with such "Eagles". Anyone can hang out with the chickens...

.By the way, does anyone know the words to "Utah Man"?

Have a great week and an amazing holiday! Chris

What a difference 48hrs can make!

First of all, let me state that I'm an avid sports fan. Always have been, always will be.

My wife, on the other hand, is not.

Saturday night found me at the Energy Solutions Arena, home of the Utah Jazz. I was being the good husband, accompanying my wife to the Coldplay concert she's been waiting for for 3 years. Nothing against Coldplay, but my tastes tend more toward Boston, Journey, Styx, The Eagles, etc.

Saturday nights show absolutely turned me around. They played with such energy and passion that I couldn't help becoming a fan. It was a great evening, one I'd repeat in a heartbeat.

Fast forward 48hrs.

Same venue. I was being the good dad, accompanying my son to watch his (and my) favorite team, the Jazz, playing the Chicago Bulls, a sub .500 team. Should be a rout, right? Let me tell you, I've never been so bored in my life, and most of the crowd that bothered to show up obviously felt the same way. The most excitement in the place was during the jump roping performance during halftime.

If not for my son, I'd have probably walked out very early. I guess I was spoiled by the "glory days" of the Jazz, but there was none of the energy or passion I'd seen two nights earlier, either from the performers or from the crowd. I left Saturday night craving more, and I left last night relieved that Larry Hughes hit the game winner at the buzzer to save me from overtime. Yeah, the game was that close and it was STILL a snoozer! I think I'll stick with the college sports as I've been threatening to do every time I see an NBA game.

My advice to you in this time of dwindling entertainment dollars is to blow off a major league game and take in a good concert! Now if you'll excuse me, I have to load the new Coldplay album into my ipod...