Serving Salt Lake's GLBT community since 1992
and the rest of the alphabet too.

 

While the rest of the nation falters and slips into depreciation, the Salt Lake market remains steady and strong.

Strongest in the Nation----One of Ten Rising -in-Value Real Estate Markets---- $1.5 Billion Downtown Rising project---- 4% to 103% Appreciation in 2007.
These recent headlines and more gives local market watchers valid hope that we will not see the rollback that most of the nation is experiencing. Click here for a media article on this anomaly. Or here.
The why can be attributed to a few simple truths:

1. Home prices in SLC never experience the hyperinflation of other markets and therefore will have a much more modest price correction if any.

2. Very low unemployment, very low vacancy rates, a net population gain from job seekers/transferees and finally a historically high birth rate keeps a positive demand on housing availability.

3. Because SLC's appreciation happened later than the rest of the nation, home owners had time to refinance away from deadly adjustable mortgages and avoid foreclosures

That being said, homes were on the market longer in January (statistics are always released several months later) than they were a year ago (58 days as opposed to 41) and the number of sold properties is down from 1145 to 552. As of February there were 6798 active residential listings in Salt Lake county, an increase of 381 over January's numbers. Buyers are much more cautious and hesitant now as a result of the national media barrage of negative news. Sellers are sensing spring is in the air and new listings are starting to increase. While we all love to speculate on the causes for the swings in the market, the interest rates certainly aren't scaring anyone away. Even with the overblown analysis of each bump and grind in the Federal Reserves endless dance, today's interest rates are absurdly low when compared to what home buyers were accepting 10 to 15 years ago.

The average sales price this January increased $11,000 over last year to $266,517 for a home in Salt Lake county. The average seller is only coming down 2.7% from their final list price. The key word here is average. Last year my clients purchased or sold homes from $90,000 to $636,000. Ask me for a personalized statistical report for your specific neighborhood of interest.

Home and condo prices in Salt Lake are still much more affordable than most western metropolitan areas. A modest two bedroom prewar bungalow can still be had for around $175,000 and apartment style two bedroom condos downtown are available in the $130,000 to $150,000 price range. Studios start at about $70,000. Of course you might need a basic toolbox and a years subscription to Dwell, but in the end you will be assured of a fair equity position. Historic Victorian and Tudor styles in the Avenues district start at about $275,000. For great views of the city, valley or mountains you could live a little higher on the foothills for around $400,000. If you choose the western suburbs, that same $400,000 will get you double the square footage, triple the yard size and half the age for your money.

Condos are the linchpin of downtown living. If you want to be in the scene and have walk-ability to all of life's necessities; arts, eats, malls, parks, clubs and light rail then come on down. Prices range from $200 to $500 per square foot depending on design and location. These units are small and efficient but feature elements that are the epitome of style. Its hard to get into some of the more popular buildings and even pre-construction sales are still strong. Among the choices are many buildings that will retain and grow in value and some that will not. Having spent a lot of time showing and researching these projects I can help you sort out cool from crap.

For buyers, this is a great time to make a move. Sellers have lost a bit of their cockiness. There are potential pitfalls of course and a good agent will help you buy at a price based on today's market reality. A buyer armed with a loan pre-approval and an informed agent (such as, ahem, myself...) can write a very good offer -- and may even receive concessions in closing cost or loan points. It is essential that you be pre-approved for a loan before looking. One note of caution; real estate listings in this area include basements in the total square feet and can be somewhat confusing. Call me to help interpret what the numbers and the local hyperbole really means.

For the time it takes to compose an e-mail you can have a ticket to buy. A few of the reputable lenders that have worked hard for past clients are: Steve Hansen of Security National Mortgage, Julie Brizzee of Citywide Home Loans and Aaron Butler of Silver Ridge Mortgage. A quick e-mail to any of these folks can get you a no obligation pre-approval that will help you solve the "how much" part of the puzzle.

For Sellers, correctly pricing and marketing your property will save you from the dreaded cycle of price reductions and desperation. In this market, length of the listing is inversely proportional to the sales price. As a seller you will be competing with over 6000 active listings in Salt Lake County. It can take some detailed research to determine the market pressures on your neighborhood. I have several marketing plans, at different price points. One of them is perfect for you. Contact me to discuss which option will work best for your situation.

For Investors, vacancy rates are 4.5% with the average overall rental rate of $733 per unit or $0.88 per square foot. Salt Lake county saw a 8.8% increase in rents for 2007. The average studio apartment is at $465, a 2 bed/1 bath at $705 and 3 bed/ 2 bath at $961. These numbers are based on large multiunit apartments. Homes, duplex's and condos will rent for considerably higher. This lower than average vacancy rate may be attributed to Utah's aggressive job growth rate(3.6%), population growth(3.2%), very low unemployment rate(3.2%) and hesitant buyers delaying a purchase to wait and see where the market goes. With tighter loan restrictions fewer buyers with lower qualifications are able to buy. This is pushing rental demands from the bottom up. Buying or selling an investment property whether a single condo or multiunit building involves a careful analysis of many factors including net operating income, capitalization rate, 1031 exchange timing, money cost and others. Call me for a plan of action.

And remember...

Whether you're moving up, moving in or just moving on, call me today!

Brad Dundas, P.C.
Stonebrook Real Estate
6375 South Highland Dr.
Salt Lake City, Utah 84121
bradley@xmission.com
Phone: 801.550.0330 FAX: 801.463.6114

Copyright © 1996 Revised 04/2008 Brad Dundas