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2017 Home Sales Could Break Record p. 12
Disruptive Housing Trends p. 20
THE BEST OF CITY & MOUNTAIN LIVING FOR THEM $500 CITY CREEK GIFT CARD FOR YOU City Creek homeowners enjoy doorstep access to world-class shopping and the new Eccles Theater. Start showing your clients the magic of City Creek Living today. Receive a $500 City Creek gift card as our thanks upon closing when your client goes under contract between January 1 and June 30, 2017.
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Major RPAC investors celebrate Rogue One premiere. p. 10
Table of Contents Features 10 Rogue One Movie Night 12 Good Times Continue for the Salt Lake County Housing Market James Wood 20 7 Surprising Trends That Could Disrupt the Housing Market in 2017 Clare Trapasso
30 A Sense of Direction Marcus Jessop
Columns 7 La Niña and Leaking Roofs
Troy Peterson – President’s Message
Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move
On the Cover: Troy Peterson, left, Kenny Parcell, James Wood, Lawrence Yun, and Curtis Bullock at the 2017 Housing Forecast Breakfast. Photo: Dave Anderton Photo left: Dave Anderton
This Magazine is Self-Supporting Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.
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February 2017 volume 77 number 2 The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.
IVORY MAKES THE RIGHT MOVE EASY FOR BOTH YOU AND YOUR CLIENT Ivory Homes offers more choices than anyone with over 60 home plans to choose from and 40 model homes to visit for a better sense of all the possibilities. With more than 65 neighborhoods across the Wasatch front and back, we have a variety of beautiful locations to ďŹ t every lifestyle. And, if your client wants to get into their new home right away, we have hundreds of move-in ready homes completed or already in the works.
Let us help you and your clients make all the right moves in 2017. Visit any of our 40 model homes or online at:
IVORYHOMES.COM
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Salt Lake
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President Troy Peterson Equity Real Estate
Directors
First Vice President Adam Kirkham Summit Sotheby’s International Second Vice President Scott Robbins Coldwell Banker Residential Treasurer J. Scott Colemere Colemere Realty Associates Past President Cheryl Acker Utah Key Real Estate CEO Curtis A. Bullock
M. Brock Andersen Berkshire Hathaway Kimberly Farber-Bowen IMPOWER Real Estate Brian Gottfredson Coldwell Banker Residential Alicia Holdaway Equity Real Estate Mike Morgan Realtypath Mary Olsen Utah Key Real Estate Jodie Osofsky Utah Key Real Estate Steve A. Perry Realtypath Michael Rowe Berkshire Hathaway Randal Smith Equity Real Estate Matthew Ulrich Ulrich Realtors®
Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com
Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Patrick Witmer Sales Staff Paula Bell Karen Malan Paul Nicholas
Office Administrator Cynthia Bell Snow Office Assistant Jessica Snow Administrative Assistant Ruth Gainey
Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.
La Niña and Leaking Roofs I
t’s been a phenomenal year for snowfall and precipitation across the Wasatch Front and Utah’s mountains. January precipitation levels are off the charts, with most mountain areas reporting double or even triple the amount of precipitation of last year at this same time, according to the Natural Resources Conservation Service.
The rain, snow, and wind have left some recent homebuyers facing leaky roofs. Some are wondering why, after passing a home inspection, their roofs are having issues. Leaking roofs are usually the result of broken shingles from high winds and heavy rains. Your roof may have been okay when it was first inspected, but this year’s extraordinary winter conditions may have cracked your shingles. In addition, ice dams can loosen shingles and cause water to back up underneath the shingles and into your house. Some homeowners are blaming Realtors® for these problems. However, the blame should be centered on this year’s extreme winter conditions. Last year’s El Niño translated into this winter’s La Niña, bringing higher than average precipitation to Utah. According to Al Rickard, a certified master inspector with All-Points Home Inspections, gutter maintenance is key to keeping your roof in shape. Keeping your gutter properly cleaned and maintained and utilizing gutter heat tape will help prevent ice dams and damage to your roof. Rickard said some of the more modern roof designs with fancy dormers can contribute to ice dam problems. Sometimes during a home inspection there is no visible evidence that a roof may leak. Other issues affecting a roof are whether flashings were installed properly and gutter drainage. An inspection is a snapshot in time and can only determine what is happening at that moment and whether there was evidence of previous issues. Fred Larsen a certified inspector and owner of Pillar to Post Home Inspectors, suggests hiring a qualified roofing contractor knowledgeable about ice dams. Larsen said ice dams are mainly caused by issues in the attic rather than the roof itself. Lack of insulation and proper ventilation are the culprits. If your roof surface stays cold, ice dams don’t form. Larsen also suggests throwing ice melt on the edges of an ice dam as a temporary solution. Bottom line, if your roof has issues, get it fixed. On a positive note, the skiing has been fantastic!
Troy Peterson 2017 President
OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005
February 2017 | Salt Lake Realtor ® | 7
Happenings
In the News Non-HomeOwners in West Least Optimistic About Buying
Housing Forecast is Strong Nearly 800 people attended the Feb. 3 Salt Lake Housing Forecast breakfast. Several hundreds of other Realtors® watched the event through a live webcast at slrealtors.com and on Facebook (@slrealtors). Home sales in Salt Lake County in 2016 were the third highest in history. If you missed the event, you can still watch it and download the report at http://slrealtors. com/2017-housing-forecast/.
Pictured: Brandan Critchley (left), Ed Blake, Steve Barrus, Elaine Barrus, Margo Lewis, Heather Nelson, Jodie Osofsky, Veronica Gill, and Ben Doyle (front row).
Realtors® Renovate Habitat Home Thank you to Salt Lake Realtors® who helped in January in renovation efforts of a Salt Lake Valley Habitat for Humanity home. The home is being purchased by a single mom with two children.
8 | Salt Lake Realtor ® | February 2017
Existing-home sales increased 3.8 percent to a 10-year high in 20161, but affordability pressures, student debt and possible confusion about down payment requirements prevented many aspiring homeowners from reaching the market, according to recent consumer insight from the National Association of Realtors®. According to the findings, respondents last year maintained a favorable view about homeownership, with over 90 percent of homeowners and roughly eight out of 10 non-homeowners each quarter indicating that owning a home is part of their American Dream. However, despite these positive feelings, optimism about it being a good time to buy diminished among non-owners. The percent share who believed it was a good time to buy declined from 63 percent in the first quarter to 55 percent in the fourth quarter. Lawrence Yun, NAR chief economist, says the desire to own a home and the ability to do so are not on the same wavelengths for many households. “Nearly all nonhomeowners said they want to own a home in the future (87 percent), but it’s evident that higher rents and home prices — up 41 percent in the past five years — along with limited entry-level supply and repaying student debt have combined to make buying a challenging goal,” he said. “It’s also little surprise that non-owners in the West — where price appreciation has been the strongest — were the least optimistic about buying.”
FOR EVERY SEASON, FOREVER MEMORIES. At Victory Ranch, year-round recreation and amenities await those seeking a Park City vacation home to call their own. It is a place for your family to escape the everyday, and where great moments in the great outdoors become memories to treasure for a lifetime.
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Come summertime, our Rees Jones Golf Course challenges your game while a 4,000-acre backcountry offers miles of mountain biking trails, yurt camping and 5-stand shooting. Hit the legendary slopes of Park City and Deer Valley in the winter or fly fish along the Upper Provo year-round.
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6,700 Pristine Acres Near the Legendary Ski Resorts of Deer Valley and Park City • 18-Hole Rees Jones Golf Course • The Post Clubhouse & Pool • The Barn Activity Clubhouse & Spa • Ski-in/Ski-out Park City Clubhouse • World-class Fly Fishing • Freestone Lodge Riverside Dining • 20 Miles of Hiking and Mountain Biking Trails • 5-Stand Shooting • 4x4 ATV Adventures • Jordanelle Water Sports • Backcountry Yurts
Realtor Incentive Program Ask about our 3% broker commission on cabin & custom homes sales. Call 435.785.5000 Find yourself at VictoryRanchUtah.com Homesites from $475,000, Cabin Homes from $1,695,000 Victory Ranch does not discriminate on the basis of race, color, religion, sex, handicap, familial status, or national origin. Read the property report for Victory Ranch before signing anything. No federal or state agency has judged the merits or value, if any, of property in Victory Ranch. Access to golf and other amenities is restricted to Victory Ranch Club members and subject to applicable membership fees and other limitations. Each office is independently owned and operated.
Rogue One Movie Night
M
ore than 500 major investors to RPAC enjoyed a private screening of Rogue One on opening night at the Megaplex Jordan Commons Theater in Sandy. The Salt Lake Board of Realtors ® thanks all those who invested in RPAC in 2016. More than $300,000 was raised. Forty percent of members invested at least $15 or more. In 2016, 140 major investors each invested $1,000 or more. The Realtor® Party is strong because of this continued support. Thank you!
10 | Salt Lake Realtor ® | February 2017
Photos: Dave Anderton February 2017 | Salt Lake Realtor ® | 11
Photo: www.istockphoto.com/GreenPimp
Good Times Continue for the Salt Lake County Housing Market Housing market in 2016 was the best year in a decade. Home prices rise above pre-recession levels. By James Wood | Ivory-Boyer Senior Fellow, Kem C. Garder Policy Institute, University of Utah ® Commissioned by the Salt Lake Board of Realtors
S
alt Lake County’s residential market had its best year since 2006. Superb fundamentals—strong job growth, increased net in-migration, low mortgage rates, and solid wage gains—supported increased levels of sales activity and pushed up single-family
12 | Salt Lake Realtor ® | February 2017
and condominium prices to all-time highs. Prices are above pre-recession levels and have finally fully recovered from the Great Recession. The following summary of statistical highlights captures the strength of the 2016 market.
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A summary of the county’s 2016 sales statistics show: • 13,600 single-family sales, an increase of 1.3 percent. • $4.5 billion in single-family sales, an increase of 10 percent. • 4,300 condominium, town home and twin home sales, an increase of 12 percent. • $927 million in condominium, town home and twin home sales, an increase of 20 percent. • $325 million in residential real estate commissions, an increase of 11 percent. • $295,000 median sales price for a single family home, an increase of 8.1 percent. • $203,000 median sales price for condominiums, town homes and twin homes, an increase of 7 percent. • 13 days for median cumulative days on market (CDOM), a record low CDOM for single-family homes. Highest Level of Home Sales in 10 Years In 2016 existing single-family homes sales totaled 13,600 units, the highest level in 10 years and the third highest in the county’s history; exceeded only by the pre-recession years of 2006 and 2007. The strong demand for housing was not limited to single-family homes. The sale of multifamily units (condominiums, town homes and twin homes) set an all-time record of 4,300 units and accounted for 24 percent of all residential sales; the highest share ever. Over the past 20 years multifamily sales have averaged 18 percent of residential sales. Residential sales, as usual, were concentrated in Salt Lake City. The city accounts for 21 percent of all households in the county, but captured 25 percent of all single-family sales as well as multifamily sales. In this case the disproportionate share of sales in Salt Lake City highlights the locational advantages of the city regarding proximity to employment, transportation and community amenities. Other cities with a significant number of homes sales were West Jordan, West Valley, South Jordan, and Sandy. These four cities along with Salt Lake City accounted for about 60 percent of all homes and condominiums sold in the county Table 1. The Ups and Downs of Housing Prices Housing price increases have picked up momentum over the past three years. After an
extraordinary and unsustainable increase in 2013 of 15.6 percent it looked as though prices might settle down to the 3 to 4 percent range but in the past two years substantial increases have been recorded. The 8 percent increase in 2016 is particularly noteworthy because it drove the median sales price of a single-family home to $295,000, slightly above the previous record high of $290,000 in 2007 (inflation adjusted). With respect to housing prices, the past 16 years have been the most volatile in the county’s history. This volatility is on full display, which measures price increases in current and constant (inflation adjusted) dollars. Using the inflation adjusted prices the median sales price of a home increased by 38 percent during the three-year housing boom (2004-2007), followed by a 28 percent decline during the Great Recession and then a 39 percent increase in the five years of recovery to 2016. In the non-inflation adjusted prices, the five-year recovery measures a dazzling 48 percent increase; $199,000 in 2011 to $295,000 in 2016. Table 1 Residential Sales By City 2016
Table 2 Change in Med
SingleFamily
Multifamily
Total
Share
Salt Lake City
3,406
1,121
4,527
25.3%
West Jordan
1,572
361
1,933
10.8%
West Valley
1,308
314
1,622
9.1%
South Jordan
1,097
407
1,504
8.4%
Sandy
1,269
173
1,442
8.1%
Unincorporated Salt Lake
905
80
985
5.5%
Herriman
695
248
943
5.3%
Taylorsville
654
156
810
4.5%
Draper
519
254
773
4.3%
Riverton
574
157
731
4.1%
Murray
362
324
686
3.8%
Holladay
333
207
540
3.0%
Midvale
261
271
532
3.0%
Cottonwood Heights
395
83
478
2.7%
Bluffdale
134
120
254
1.4%
South Salt Lake
108
45
153
0.9%
Salt Lake County
13,592
4,321
17,913
100.0%
City Bluffdale Cottonwood Heights Draper Herriman Holladay Midvale Murray Riverton Salt Lake City West Side* East Side* Sandy South Jordan
South Salt Lake Taylorsville West Jordan West Valley
Salt Lake Count
Source: UtahRealEstate.com
February 2017 | Salt Lake Realtor ® | 13
are
3%
8%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
0.0%
Image licensed by Ingram Image
In 2016 the median sales price of a singlefamily home increased in all 15 cities in Salt Lake County. Table 2. Cities with moderately priced housing were some of the leaders in price increases in 2016. West Valley and South Salt Lake both had double-digit price increases and the west side of Salt Lake City (west of Main Street) also reported double-digit increases. The strength of prices in these cities indicates a heightened demand for homes priced below $250,000. Is There a Housing Bubble? The sizeable increases in prices over the last five years raises the question of whether a housing price bubble is building. A 48 percent increase in five years is extraordinary. But this increase must be set in the context of the four years of declining housing prices. For 16 consecutive quarters housing prices declined in Salt Lake County. That was a unique period in Salt Lake County’s real estate history. There had never been more than four quarters of declining prices. The return of prices Table 2 Change in Median Sales Price of Single-Family Homes 2016 City
2015
2016
% Change
Bluffdale
$400,000
$459,450
14.9%
Cottonwood Heights
$338,850
$380,000
12.1%
Draper
$421,000
$445,000
5.7%
Herriman
$317,000
$340,900
7.5%
Holladay
$380,500
$440,000
15.6%
Midvale
$226,950
$245,000
8.0%
Murray
$259,000
$277,000
6.9%
Riverton
$308,000
$329,000
6.8%
Salt Lake City
$275,000
$296,000
7.6%
West Side*
$179,250
$203,000
13.2%
East Side*
$301,750
$322,000
6.7%
Sandy
$295,000
$322,500
9.3%
South Jordan
$357,400
$389,900
9.1%
South Salt Lake
$190,000
$215,000
13.2%
Taylorsville
$219,900
$237,000
7.8%
West Jordan
$249,000
$272,250
9.3%
West Valley
$199,475
$219,450
10.0%
Salt Lake County
$272,900
$295,000
8.1% Source: UtahRealEstate.com
14 | Salt Lake Realtor ® | February 2017
to pre-recession levels should not be confused with a housing bubble. The price recovery has been aided and abetted by the historically long stretch of low mortgage rates, a necessary condition for the recovery Figure 4. Other factors, however, were at play as well, demographics and jobs. From 2010 to 2016, Utah was the third fastest growing state in terms of population change, surpassed by only North Dakota and Texas. And Utah has consistently been in the top five states in employment growth over the same period. A housing bubble also carries some special characteristics that currently are not present in the Salt Lake County and Utah housing markets. Housing bubbles are preceded by rapid increases in debt. Prior to the Great Recession household debt in Utah increased by 35 percent in three years. Much of this increase was driven by mortgage refinancing, second mortgages, and home equity lines of credit. There is no sign of a buildup in debt in Utah. Household debt levels have returned to sustainable pre-recession levels. A housing bubble is also characterized by lack of affordability. For example, in the Salt Lake Metropolitan Area in 2007 the median income household was able to afford only 30 percent of the homes sold in the county. Hence the Wells Fargo housing opportunity index stood at 30 for Salt Lake. Certainly it was a sign that housing prices had become untethered from normal economic relationships, housing prices and household income. Currently the housing opportunity index for the Salt Lake Metropolitan Area is 70; that is the median income household could afford 70 percent of the homes sold in the county in 2016, a sign of an affordable housing market. A housing opportunity index number of 50 or above denotes an affordable market. Housing Shortage Raises Home Prices Utah’s rapid demographic growth has created what appears to be a housing shortage. For the first time in 40 years, the increase in households in Utah exceeds the number of new housing units. Consequently, all segments of the housing market report very strong demand and insufficient supply. Take the apartment market for instance. Apartment vacancy rates are at the lowest level in decades despite the historic apartment boom. The boom has added 20,000 (continued on page 18)
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Join our growing company! Visit www.TeamNewAmerican.com Licensed by the Utah Department of Commerce Division of Real Estate Lic# 6076868-MLCO 7. *14 business day guarantee only applies to purchase transactions. This guarantee does not apply to Reverse Mortgages, FHA 203k, Bond, MCC, loans that require prior approval from an investor, or brokered loans. The guarantee does not apply if events occur beyond the control of New American Funding, including but not limited to; appraised value, escrow or title delays, 2nd lien holder approval, short sale approval, or lender conditions that cannot be met by any party. The 14 day trigger begins when your initial application package is complete and you have authorized credit card payment for your appraisal. If New American Funding fails to perform otherwise, a credit of $250 will be applied toward closing costs. NMLS #6606. All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice. Š New American Funding. New American and New American Funding are registered trademarks of Broker Solutions, DBA New American Funding. Corporate Office is located at 14511 Myford Road, Suite 100, Tustin CA 92780. PHONE (800) 450-2010. All Rights Reserved. 6/2016
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Join Us February 23 11 a.m. - 2 p.m. at Skye Estates Visit this amazing community. Join us for lunch and have your complimentary broker portrait taken!
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units statewide since 2012, a 7 percent increase in the rental inventory, but the rental market remains extremely tight. The Salt Lake County apartment market has the lowest vacancy rates in over 20 years. In the new home market, home builders have virtually no unsold inventory and are producing at full capacity. Builders face three serious supply bottlenecks: labor shortage, high land prices, and municipal zoning, fees and regulations. Builders would be hard-pressed to ramp-up much beyond current levels of construction. And conditions in the existing home market agree with the other signs of a housing shortage. For example, an important indicator of housing demand is median cumulative days on market (CDOM) of “for sale” homes. In the worst year of the Great Recession (2009) the median cumulative days on market climbed to 81 days. But as the demand for housing slowly recovered the CDOM steadily declined. By 2016 the median CDOM had dropped to its lowest level ever, 13 days. The extremely low CDOM in 2016 is a very strong indicator for continued upward pressure on prices in 2017. The Number of Underwater Homeowners in Utah Drops From a High of 21% in 2010 to 2% in 2016 Some price pressure would be relieved by an increase in listings. After five years of equitybuilding price increases homeowners should be
Figure 4 Annual Mortgage Interest Rates
Figure 4 Annual Mortgage Interest Rates
more motivated to enter the market and moveup. The equity position of Utah homeowners has improved markedly in the past few years. In 2010, Utah ranked among the top 10 states in underwater mortgages. Twenty-one percent of all home mortgages in Utah (80,000 homeowners) had negative equity. Consequently, these underwater homeowners were locked into their current home, they could not move-up. The situation has now reversed. The number of homeowners with negative equity by the third quarter of 2016 has dropped to about 2 percent of homeowners and Utah ranks sixth lowest among all states in underwater mortgages. Predictions for 2017: Total Residential Home Sales to Rise 9%; Single-Family Prices to Rise 5-7% Outlook for 2017 Trump’s victory brings some uncertainty to the housing market in 2017. How will his policies impact interest rates? Will Fannie Mae and Freddie Mac be privatized? Will the roll back of Dodd Frank improve credit availability? Will tax reform affect homeownership? Despite all this noise and uncertainty at the national level the Salt Lake County real estate market will have another very good year in 2017. Mortgage rates will tick-up The Fed has signaled that more short-term interest rate hikes will come in 2017 and most forecasts have mortgage rates increasing to around 4.5 percent by year-end. The likelihood of tax cuts and more defense and infrastructure spending will put some upward pressure on interest rates but the mortgage rate will remain quite favorable. The small increase in rates rather than deter potential homebuyers may spark interest “to get in before rates move even higher.” Affordability will decline Although wages are expected to increase by 3 percent in 2017 this will not be enough to counter higher home prices and higher interest rates. How much declining affordability will hurt demand is uncertain but it will not be enough to change the upward direction of home sales and prices, particularly given the increased housing demand from high rates of net in-migration in 2017.
Source: Freddie Mac
Source: Freddie Mac Figure 5 Cumulative Median Days on Market Salt Lake County
18 | Salt Lake Realtor ® | February 2017
Service Directory Home Inspection Image licensed by Ingram Image
More millennials will move to homeownership Millennials in Utah have a greater share of the population than any other state. Seventeen percent of the population in Salt Lake County is in the 25 to 34 year age group. Nationally, almost 14 percent of the population falls into this age group. And of course this is the prime age group for home buying. But in Salt Lake County as elsewhere today’s millennials are more likely to rent than own. In 2015, only 43 percent of millennial households were homeowners; in 2005 it was 53 percent. Some housing economists predict that there will be a trend back to homeownership for this age group as the rental market becomes less attractive due to higher rents and low vacancy rates. Supply will improve some The scarcity of listings, a defining feature of the 2016 market, will continue into 2017, but should improve some as more homeowners enter the market, cashing-in on some of their increased home equity. Strong price and sales increases but not double-digit Another year of housing price increases will be supported by very favorable fundamentals;
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low interest rates and solid demographic, job, and wage growth. These fundamentals combined with the exceptionally strong demand, as wellevidenced by the record low “days on market,” will push the median sales price of a single-family home to the $310,000 to $315,000 price range; a 5 to 7 percent increase. Home sales will see a slightly lower increase with single-family sales increasing to around 14,000 homes; a gain of 3 to 5 percent. Condominium prices and sales will be even stronger, both increasing from 6 to 8 percent. And finally, residential sales will total six billion dollars, up 9 percent and residential real estate commission will hit $360 million, an 11 percent increase.
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February 2017 | Salt Lake Realtor ® | 19
© Maksym Dykha / Adobe Stock
7 Surprising Trends That Could Disrupt the Housing Market in 2017 Even yurts, the dwellings favored by Mongolian herders, are back. By Clare Trapasso Realtor.com
I
t’s been said that the only constant in life is change itself. Democrats give way to Republicans; hoverboards give way to Hatchables; the iPhone 6 gives way to the Note 7, which explodes and then ultimately paves the way for an iPhone 8. Even housing trends—a category in which changes were once so glacial they were barely perceptible to the naked eye—are now undergoing profound and rapid transformation too. As real estate markets across the nation continue their unprecedented boom, the form and function of homes and living styles are changing rapidly to meet the new realities of American life. Small is the new big. Modular is the new custom-built. Three-dimensional printers are the new homebuilders. Communal living is the new grown-up, upscale obsession. Even yurts, the dwellings favored by Mongolian herders, are back. We’re not kidding.
20 | Salt Lake Realtor ® | February 2017
We at realtor.com® went through our archives to find the top trends of 2016 that have the potential to redefine, even transform, the housing market in 2017. Let’s go (back) to the future! Trend No. 1: Microapartments are the tiny homes of cities Everyone knows space doesn’t come cheap in the country’s most expensive cities. (We’re looking at you, San Francisco and New York.) Hence the spread of microapartments—fully appointed living spaces encompassing a measly 250 to 365 square feet. The apartments are tinier than tiny houses— measuring a quarter to a third the size of the median apartment in a newly completed building with five or more units in 2013, according to the U.S. Census Bureau. More and more of these miniature dwellings are cropping
Collaboration is not an option. It’s a promise. When we work with Homebuyers, we build homes around their lives – not the other way around. The same is true when we work with you. At David Weekley Homes, we work hand-in-hand with you and your Team to ensure that your Clients’ path to homeownership is as seamless and fulfilling as possible – and so is your experience in helping them get there. That’s The Weekley Way. At David Weekley Homes, we love taking care of you and your Clients by: • Encouraging you to register your Clients with us – we promise it will be easy VISIT US IN ALL OUR FINE COMMUNITIES • Paying you complete commissions based on a home’s full sales price, not just the base price • Making you look good by guiding your Clients through the building process and beyond
S A LT L A K E C I T Y
s N
215
Great Salt Lake 80
SLC International Airport Lincoln Highway
Salt Lake City
80
1
S. 700 E.
71
201
E. 1700 S. 80
Belt Route
80
1. City View on 7th From the $665s Call for an Appointment 800-240-7487
Fo r t
W. 10400 S.
68
6. Deer Run Preserve
t
From the $620s 385-232-2999
4
4. Canyon Centre Court
E. 10600 S.
151
South Jordan W. 11400 S.
6. Daybreak
From the $470s 385-232-2999
West Jordan
175
5. Canyon Centre Court From the $470s 7392 South Canyon Centre Parkway Cottonwood Heights, UT 84121 801-810-2564
Union Boulev ard
15
6
2. Holladay Town Center Court
ch
From the $660s 1969 East Highland Place Lane Holladay UT 84117 800-240-7487
untain View Corridor Mo
4. Highland Place
E. 5600 S. Belt Ro ute
215
5. Deer Run Preserve
3. Highland Place
3
3. Holladay Town Center Court From the $680s Call for an Appointment 800-240-7487
2
Holladay
a Wa s
From the $700s Call for an Appointment 800-240-7487
215
15
W. 5400 S. Bangerter Highway
2. Sugarhouse Ridge
1. City View on 7th
From the $680s Call for an Appointment 385-232-2999
The East Bench 266
800-240-7487
From the $665s Call for an Appointment 385-232-2999
E. 400 S.
80
Homes from the $275s to $680s+ in the Salt Lake City area
Jordon River Parkway 154
W. 11400 S. E. 12300 S.
71
15
Bangerter Highway
an d ghl Hi
ve Dri
5
From the $380s Call for an Appointment See a David Weekley Homes Sales Consultant for details. Prices, plans, dimensions, features, specifications, materials, and availability of homes or 801-810-2575 communities are subject to change without notice or obligation. Illustrations are artist’s depictions only and may differ from completed improvements.
7. Daybreak
Copyright © 2016 David Weekley Homes - All Rights Reserved. Salt Lake City, UT (SLCA82802)
From the $380s Call for an Appointment 385-232-2999 Cottage Courts From the $275s Creekside Village 60’ From the $360s Lake Village 60’ From the $430s 385-232-2999
up in big cities like New York, Seattle, and Los Angeles. They’re even spreading to smaller metros like Providence, RI. What they lack in size, microapartments make up for in lower costs—usually. They typically run renters about 15 percent less than studio units in the same neighborhoods. But residents may wind up paying a little extra for the luxe amenities that many come with, like convertible furniture, free Wi-Fi, weekly housekeeping service, and sometimes even communal activities (whitewater rafting trips! happy hours!). Trend No. 2: Co-living is coming to a city near you The days of finding roommates on Craigslist and then praying for the best may be numbered. Co-living, a movement in which young professionals have their next housemates/BFFs carefully screened and live together in upscale, highly planned (would-be) harmony, is making its impact felt in major metros across the U.S. The real draw for these “Real World”-esque quarters is the communal environment, where residents pay a little extra to mix and mingle with one another at Sunday artisanal potluck dinners, weekend art workshops, or various common spaces in the building. Other perks include shorter leases (some only three or six months) as well as housekeeping services to minimize disputes.
The spaces have been opening first in hipsterfilled urban areas such as Brooklyn, N.Y.; San Francisco; and Washington, D.C. But they are also moving to smaller metros like Chattanooga, Tenn. “It’s a neat, innovative market response to the higher cost of renting,” Susan Wachter, a real estate and finance professor at the Wharton School at the University of Pennsylvania, told realtor.com. Trend No. 3: The hottest tiny houses are school buses The tiny-house craze isn’t exactly new. With a half-dozen or so reality TV shows and a devoted following, the trend of downsizing into just a few hundred square feet is familiar to just about everyone. But why move into a tiny house when you could live in a school bus instead? A combination of the DIY movement and the smaller-is-better craze has given rise to more folks trying their hand at creating homes from all sorts of vehicles, Aaron Lane, a design engineer at Creative Mobile Interiors in Grove City, OH, told realtor.com. Earlier this year, we wrote about a German couple who bought a 1996 school bus for $10,000. With a little help, some YouTube tutorials, and a whole lot of elbow grease (as well as an additional $50,000), they turned the clunker into a 200-squarefoot loft with a wooden floor, a compost toilet, and a hot-water shower powered by solar panels. The best part? When documentary filmmaker Felix Starck and musician Selima Taibi finished their home, they took it on a once-in-a-lifetime road trip. Trend No. 4: Housing prices are out of control, so why not live in a yurt? With rents and home prices zooming ever higher, affordable housing seems like a fantasy. That’s where yurts come in. These circular homes, which have sheltered Mongolian nomads for thousands of years, can cost quite a bit less than more traditional homes. A roughly 700-square-foot model with a wooden frame and vinyl walls could go for around $20,000. That doesn’t include the foundation and utilities hookups. That’s a prime reason why over the past few years, sales of the structures have grown by about 10 percent annually at the Colorado Yurt Co., Ivy Fife, the company’s marketing manager, told realtor.com. “We’ve seen quite a few retirees buy a piece of ground and put a yurt on it and get out of debt and have a little bit more freedom,” she said. “It’s young people, too. … They don’t want to get into a big mortgage that’s going to make it hard for them to meet.”
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22 | Salt Lake Realtor ® | February 2017
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Trend No. 5: Wellness buildings are the healthy homes of the future These days, health and wellness are more than buzzwords. Want proof? Just look at the proliferation of “athleisure” wear, luxury spinning studios, and Fitbits. So it’s no surprise that wellness-certified buildings are catching on. More than 50 condo and apartment buildings around the world are now applying for the new Well Being Standard. Similar to LEED certification for eco-friendliness, the designation is administered by a group called the International Well Being Institute. To qualify, a building’s design needs to incorporate healthy elements like air and water quality, natural light, and fitness. This can mean giving stairwells more prominent placement to encourage residents to walk more, adding gyms and doctors’ offices to the ground floor, and remediating any stressinducing odors and loud noise. Since it’s a new process, no finished buildings have been certified just yet. “The focus on healthy living today is huge,” said Mollie Carmichael, a principal at John Burns Real Estate Consulting in Irvine, CA. “People are constantly striving for what’s going to keep them healthier.” Trend No. 6: Modular homes could be the next big thing in housing Manufactured houses are no longer just rolling off factory assembly lines and into trailer parks. Upscale modular homes are beginning to enjoy their moment in the spotlight with the world’s tallest modular tower opening recently in Brooklyn, N.Y. The 32-story rental building is expected to inspire other big developers to use modular construction. And why not? Prefabricated housing is
24 | Salt Lake Realtor ® | February 2017
often of higher quality (because it’s built indoors, sheltered from the elements), costs a little less (less material wasted), and can go up a lot faster than traditionally built homes. “This will speed up the development time at a time when we’re really short of housing,” Steve Weikal, an urban design professor at the Massachusetts Institute of Technology Center for Real Estate, told realtor.com. Trend No. 7: A 3-D printer could build your next home Get ready for the future: Homes created by a 3-D printer are expected to be cheaper than traditionally built residences; they don’t require as many construction workers; and they produce less waste as the machines use only as much material as is needed. New homes could be designed by ordinary folks (like you) and printed in days. The technology is still evolving, but rudimentary buildings, mostly made of concrete, are already being printed around the world. A two-story, 4,305-square-foot building was printed recently in China in just 45 days. “You can have high design on a budget,” architect Christopher Hurst, of WATG Urban Architecture Studio in Chicago, said to realtor.com. “Now you can go to a contractor, and you have a highly customizable house that’s indicative of you—and that way you can express yourself in how you live.” Clare Trapasso is the senior news editor of realtor.com and an adjunct journalism professor. Contact her at clare.trapasso@move.com. Reprinted from Realtor® Magazine Online, December 2016, with permission of the National Association of Realtors®. Copyright 2016. All rights reserved.
The Jessica
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801.545.5165 | RichmondAmerican.com/PaydayUT *The Extra Commission Program is subject to the terms, conditions and limitations set forth in the Richmond American Extra Commission Program Terms and Conditions (the “Terms and Conditions”). Commission will be earned as set forth in the purchase agreement and the Terms and Conditions. Total commission is based on the standard base commission of 3%, plus any earned bonus commission (up to 1%), as set forth in the Terms and Conditions. The bonus commissions only apply to select homes in communities in Utah, as designated by Richmond American. All commissions will be paid to the managing/employing broker at closing. Offer must be documented in the contract at time of original contract to be eligible. Sales agents and brokers are responsible for all taxes and any required notification to their employing broker or client. This offer is not valid on lot or community transfers, plan changes or in conjunction with any other real estate agent/broker offer. Richmond American requires that sales agents and brokers comply with Richmond American’s Co-op Broker and client registration policies to be eligible for a commission. Visit a Sales Center for details and for a copy of the Co-op Broker Policy and the Terms and Conditions. **Standard items and included features are subject to change without notice. Availability may vary by community, plan, build status, elevation and/or location. Prices, specifications and availability are subject to change without notice. Square footage is approximate. Actual homes as constructed may not contain the features and layouts depicted and may vary from image(s). Dates and times are subject to change without notice. ©2017 Richmond American Homes, Richmond American Homes of Utah, Inc. (866.400.4131).
Housing Watch Salt Lake County Home Sales Third Highest in History
Single-Family Home Sales Salt Lake County Single-Family Home Sales
Salt Lake County 4th Quarter Comparisons 4th Quarter Comparisons
2- C O L O R
the Wasatch Front. Utah County was the second most active, capturing 22 percent of all single-family sales.
S
alt Lake County home sales ended 2016 on a high note, according to the Salt Lake Board of Realtors ®. For the year, sales of single-family homes increased 1.3 percent to 13,600 sales, the highest level of existing single-family homes sales in nearly 10 years and the third highest level in the county’s history (exceeded only by the pre-recession years of 2006 and 2007).
In the final three months of 2016, home sales across the Wasatch Front increased 9 percent compared to the same period a year earlier. The median price of a single-family home settled at $270,000, up 6 percent compared to the fourth quarter of 2015. Salt Lake County accounted for 44 percent of all single-family home sales in the fourth quarter across the five counties making up
26 | Salt Lake Realtor ® | February 2017
The most popular areas in terms of home sales occurred in ZIP Codes with more affordable home prices. Clearfield, Tooele, Farr West, Taylorsville, and Lehi were the top five hottest selling areas. These five cities accounted for nearly 20 percent of all existing Wasatch Front home sales in the fourth quarter. The price of a single-family home across the Wasatch Front increased to $270,000, up 6 percent from $255,000 a year ago. Salt Lake County had the highest home prices at a median of $290,000. Utah County home prices were the second most expensive at a median price of $275,000. By ZIP Code, Alpine had the highest median home price in the fourth quarter at $607,500. The Avenues in Salt Lake City came in No. 2 at a median price of $525,000. Emigration Canyon was in third place at $476,000. Holladay and Eden rounded out the top five most expensive ZIP Codes at median values of $473,237 and $472,450 respectively.
COUNTY ZIP CITY 2016 HOUSE % +/- 2016 Q4 MEDIAN % +/- # SOLD CHANGE SALES PRICE CHANGE
2016 CONDO % +/- 2016 Q4 % +/- # SOLD CHANGE CONDO MEDIAN CHANGE SALES PRICE
2016 Q4 % +/AVERAGE CHANGE CDOM
S.L. CO
84006
COPPERTON
6
50.00%
$194,950.00
6.97%
0
n/a
$0.00
n/a
28
-9.68%
S.L. CO
84020
DRAPER
142
-2.07%
$400,950.00
-1.00%
62
16.98%
$266,000.00
23.72%
48
-27.27%
S.L. CO
84044
MAGNA
107
-6.96%
$196,000.00
10.05%
7
0.00%
$115,000.00
26.37%
30
-3.23%
S.L. CO
84047
MIDVALE
68
13.33%
$259,900.00
13.25%
70
7.69%
$195,500.00
-10.32%
30
-38.78%
S.L. CO
84065
RIVERTON
130
31.31%
$359,900.00
7.43%
93
60.34%
$253,500.00
8.57%
41
-30.51%
S.L. CO
84070
SANDY
60
-18.92%
$278,700.00
16.12%
23
-14.81%
$175,500.00
6.43%
36
-12.20%
S.L. CO
84081
WEST JORDAN
120
11.11%
$298,750.00
3.02%
18
20.00%
$207,000.00
8.95%
25
-28.57%
S.L. CO
84084
WEST JORDAN
141
15.57%
$255,000.00
8.77%
44
15.79%
$182,000.00
10.00%
25
-24.24%
S.L. CO
84088
WEST JORDAN
124
12.73%
$260,750.00
1.46%
16
-15.79%
$206,200.00
16.50%
30
-40.00%
S.L. CO
84091
SANDY
0
n/a
$0.00
n/a
0
n/a
$0.00
n/a
0
n/a
S.L. CO
84092
SANDY
94
32.39%
$375,000.00
-0.79%
0
n/a
$0.00
n/a
47
-38.16%
S.L. CO
84093
SANDY
75
0.00%
$397,450.00
18.64%
1
-50.00%
$266,000.00
-15.56%
42
-43.24%
S.L. CO
84094
SANDY
84
13.51%
$287,950.00
10.77%
11
-21.43%
$274,000.00
15.61%
35
-10.26%
S.L. CO
84095
SOUTH JORDAN
134
-17.28%
$399,900.00
12.81%
60
13.21%
$243,202.00
10.55%
60
-25.93%
S.L. CO
84096
HERRIMAN
167
-12.11%
$325,149.00
1.16%
49
2.08%
$217,635.00
-2.47%
40
-29.82%
S.L. CO
84101
SLC
5
150.00%
$192,900.00
54.38%
20
-28.57%
$276,500.00
13.34%
98
1.03%
S.L. CO
84102
SLC
17
-19.05%
$423,500.00
29.91%
24
0.00%
$214,750.00
32.36%
42
-34.38%
S.L. CO
84103
SLC
51
10.87%
$525,000.00
18.64%
41
36.67%
$231,000.00
26.61%
72
-18.18%
S.L. CO
84104
SLC
52
4.00%
$179,000.00
17.76%
2
100.00%
$76,950.00
18.38%
19
-47.22%
S.L. CO
84105
SLC
91
-1.09%
$366,500.00
7.48%
1
n/a
$127,500.00
n/a
39
-23.53%
S.L. CO
84106
SLC
129
7.50%
$315,000.00
10.92%
35
6.06%
$178,000.00
-3.78%
36
-26.53%
S.L. CO
84107
MURRAY
57
29.55%
$274,500.00
9.82%
58
-14.71%
$154,500.00
-15.09%
37
-47.89%
S.L. CO
84108
SLC
63
10.53%
$476,000.00
-3.84%
6
-66.67%
$344,175.00
31.87%
53
-32.91%
S.L. CO
84109
SLC
67
-5.63%
$398,250.00
4.80%
7
40.00%
$156,200.00
-18.86%
52
-3.70%
S.L. CO
84111
SLC
17
-19.05%
$265,500.00
6.20%
15
-21.05%
$228,000.00
-18.28%
34
-46.03%
S.L. CO
84115
S SLC
83
20.29%
$235,000.00
17.50%
31
82.35%
$165,500.00
7.82%
30
-11.76%
S.L. CO
84116
SLC
57
-19.72%
$215,000.00
16.28%
8
14.29%
$120,200.00
-6.75%
33
-5.71%
S.L. CO
84117
HOLLADAY
48
-12.73%
$473,237.00
40.22%
51
30.77%
$155,000.00
22.05%
41
-38.81%
S.L. CO
84118
TAYLORSVILLE/ KEARNS 217
17.93%
$218,000.00
12.95%
1
-50.00%
$144,000.00
-32.95%
22
-38.89%
S.L. CO
84119
WVC
108
28.57%
$218,500.00
20.55%
49
11.36%
$158,000.00
12.86%
34
-29.17%
S.L. CO
84120
WVC
147
-3.29%
$217,000.00
11.28%
7
-30.00%
$196,000.00
1.82%
33
-15.38%
S.L. CO
84121
COTTONWOOD
143
17.21%
$365,000.00
11.28%
44
83.33%
$223,250.00
34.49%
63
3.28%
S.L. CO
84123
TAYLORSVILLE/ KEARNS 79
9.72%
$265,000.00
7.83%
30
-26.83%
$148,500.00
16.93%
41
32.26%
S.L. CO
84124
HOLLADAY
64
-5.88%
$468,450.00
12.20%
24
118.18%
$336,450.00
57.22%
60
-35.48%
S.L. CO
84128
WEST VALLEY
98
-7.55%
$229,450.00
7.98%
15
50.00%
$175,000.00
16.28%
29
-3.33%
S.L. CO
84129
TAYLORSVILLE
97
32.88%
$239,000.00
7.90%
9
50.00%
$158,000.00
11.50%
25
-48.98%
S.L. CO TOTALS
3142
5.12%
$290,000.00
7.81%
932
11.48%
$210,000.00
7.72%
39
-26.42%
DAVIS CO 84010
BOUNTIFUL
107
10.31%
$293,500.00
1.21%
21
-22.22%
$162,000.00
-1.82%
49
-20.97%
DAVIS CO 84014
CENTERVILLE
45
4.65%
$297,000.00
6.87%
20
42.86%
$189,250.00
42.83%
37
-17.78%
DAVIS CO 84015
CLEARFIELD
280
7.69%
$224,900.00
15.33%
31
93.75%
$135,900.00
11.44%
32
-48.39%
DAVIS CO 84025
FARMINGTON
59
18.00%
$340,000.00
-0.73%
31
106.67%
$217,000.00
2.12%
68
-5.56%
DAVIS CO 84037
KAYSVILLE
100
2.04%
$329,650.00
6.73%
4
33.33%
$200,750.00
26.26%
60
13.21%
DAVIS CO 84040
LAYTON
78
-2.50%
$271,500.00
-2.16%
11
37.50%
$204,900.00
12.94%
41
-38.81%
DAVIS CO 84041
LAYTON
170
3.03%
$238,000.00
13.60%
14
0.00%
$170,000.00
-1.73%
24
-40.00%
DAVIS CO 84054
N. SALT LAKE
80
9.59%
$284,950.00
7.57%
19
5.56%
$208,500.00
8.12%
56
9.80%
DAVIS CO 84075
SYRACUSE
148
51.02%
$310,950.00
16.09%
0
n/a
$0.00
n/a
47
-14.55%
DAVIS CO 84087
WOODS CROSS
49
19.51%
$285,000.00
18.75%
9
80.00%
$225,000.00
25.00%
25
-13.79%
1116
11.04%
$268,250.00
9.49%
160
33.33%
$190,000.00
9.99%
41
-25.45%
DAVIS CO TOTALS
February 2017 | Salt Lake Realtor ® | 27
REALTOR® Connections
On the Move
Q&A: Ashley Mordwinow Ashley works in Member Services and has been an employee with the Salt Lake Board of Realtors® since 2016. She holds a bachelor’s degree in linguistics from BYU. Q: Do I need to register my eKEY on www.supraekey.com? A: It is not mandatory for you to register your key, but we do recommend it. Registering your key on Supra’s website allows you to generate your own authorization code (should you need a new one after getting a new phone, etc.) and run activity reports on your keyboxes. To register your key, go to www.supraekey.com, click on the purple box in the top right hand corner (titled “SupraWEB Login for Real Estate Agents”), click on “Register,” and set up username and password. Note: During your log-in set-up it will ask you for your serial number and pin. This is asking for your KEY serial number not the KEYBOX serial number. Q: What if I need assistance with my eKEY after business hours or on the weekend? A: We never want any of our members to be caught off guard with a key problem, but we know it happens. In the event that we are not in the office to assist you, here are some alternative lifelines: • Call Supra’s Agent Support line at 1-877-699-6787 (5 a.m.-7 p.m. PST, seven days a week). • Register your key, as outlined above, so that you can generate your own authorization code online. • Reference the “Help” page on your Supra eKEY APP. This is a wealth of information, and I would suggest you review it. Q: What are the most common “quick fixes” for my eKEY? A: With new phones and different software updates coming out so frequently, it’s sometimes hard to pinpoint what causes the error. Here are some suggestions for keeping your eKEY running smoothly. • Always run the wireless update once a day before going out to your showing. It runs best while connected to WIFI. • Check that the Bluetooth on your phone is on and activate the Bluetooth in the keybox by pushing up on the bottom of the key tray. If it just keeps “communicating,” try turning the Bluetooth on your phone off and then back on, or try restarting your phone. • Make sure that there is not an update for the Supra eKEY APP waiting to be run. This will vary from phone to phone, depending on when you run software updates.
28 | Salt Lake Realtor ® | February 2017
Terrie Lund
Academy Mortgage is pleased to introduce Terrie Lund as senior manager of field marketing for the Mountain West region. Terrie brings a strong work ethic along with over 24 years of experience in the real estate industry to Academy Mortgage. Terrie will be responsible for building out the regional marketing team to support Academy’s core strategies, coach and develop the marketing team to drive more purchase business to Academy Mortgage and develop business partnerships to support our sales team. Terrie will also oversee celebratory and service activities that will build our culture of working together in all capacities within the region. Terrie is very involved with the Salt Lake Board of Realtors® serving on several committees, is a certified continuing education instructor and is the chairwoman for the Affiliates Advisory Board for 2017. Aubrey and Associates Realty welcomes: Staci Roylance, Marcela Montemurro, Scott McCullough, Jill Kinder, Nancy Furch, Todd Rodocker, Laura Rosqvist, Jane Simons, Dionisis Cooks, Bryce Stringham, Brooke D’sousa, Kris Botelho, and Grisel Khan. Realtypath welcomed the following new agents: Larry Downer, Brenda Sanchez, Launa Gibbons, Owen Quinonez, John Austin, Michelle Austin, William Petersen, Griselda Vitela, Josh O’Toole, Rosella Jessop, Jameson Kroll, Joshua Elkington, Nick Gonzalez, Ryan Heaton, Colby Robison, Tyler Maughan, Ashley Kargel, Ibette Barraza, Walt Flash, Regina Dickinson, Jeremy Osguthorpe, Rafael Almeida-Colom, Kameron Hammond, Jennifer Overdevest, Robert Becker, Tayla Benally, Austria De Hhertoghe, Moises Medrano, and Christopher Heller.
Upcoming EEnts Commercial Town Hall Wednesday, March 8, 2017
Free Lunch| 11:15a-12p MLS Updates for Commercial RE | 12p-1p
March Madness
March 15-17
Free Food | Bracket Competition | Prizes
Join Us! | www.slrealtors.com
Image licensed by Ingram Image
A Sense of Direction By Marcus Jessop
I
wanted to thank you for your kindness since being put in as the new Government Affairs Director for the Salt Lake Board of Realtors®. I really do appreciate all the new relationships and friendships built over the last two months, and the ones I will continue to build over the years. Thank You. I was recently watching an episode of my favorite Home Improvement guru. No, I wasn’t watching Bob Vila, but Tim The Tool-man Taylor. During the episode, Tim was having an interesting discussion with Mr. Wilson about directions. Mr. Wilson suggested, and scientists have concluded, that each human has a piece of manganite behind the nose – located between the eyes. This tiny piece of manganite is found in migratory birds, dolphins, homing pigeons, honeybees, bats, and even some strands of bacteria. The purpose of the manganite is to provide direction to animals through reaction of the earth’s magnetic field. You can see how this works firsthand by rubbing a needle on wool, putting the needle on a leaf in standing water, and (reacting to the Earth’s Magnetic field) the leaf will then naturally turn until the needle points due north. The earth’s
30 | Salt Lake Realtor ® | February 2017
magnetism has given humans and animals alike direction for thousands of years. I believe that direction is key. Over the years, Realtors®, like yourself, have placed our association on a positive sense of direction. Realtors® have already laid the ground work, navigated and plotted the map, and provided the foundation for my success going forward. I am walking into a Realtor® Association that is not only one of the most influential players in politics, but, most importantly, in helping Utahns live the American Dream; i.e. Home ownership. Your influence is felt at the Capitol, in Utah, in your county, within your municipality, and in your community. I see it as my responsibility to follow the road map and positive direction you have built over the years. I look forward to working with you in 2017 and beyond!! Thank You!! Marcus Jessop is the Government Affairs Director for the Salt Lake Board of Realtors®.
1% down on a new home will make your customers feel warm and fuzzy. With our Double Match program, first-time homebuyers make a 1% down payment and we’ll kick in the other 2%. Getting your clients into the home of their dreams has never been easier!
Danielle Young VP of Mortgage Lending
Download my mobile app today!
O: (801) 890-7656 C: (801) 205-0821 danielle.young@rate.com Rate.com/danielleyoung
6900 South 900 East, Suite 150 Midvale, UT 84047
Danielle Young NMLS ID: 265241 UT - 5487909 - 7495184 • NMLS ID #2611 (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org) • Utah - Licensed in UT: Utah-DRE Mortgage Entity License #7495184 & Utah-DFI Residential First Mortgage Notification – Utah Department of Financial Institutions Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google Inc. *It is important for you to know that the smaller your down payment percentage, typically, the higher your interest rate. Down payment assistance cannot exceed 2% of the purchase price. Minimum credit score and debt-to-income (DTI) requirements, annual income limits and purchase price limits apply. Not all applicants will be approved. Receipt of application does not represent an approval for financing or interest rate guarantee. Example: Monthly principal and interest (P&I) payment of $1,193, based on a purchase price of $250,000, down payment of 3% (1% provided by borrower and 2% provided by Guaranteed Rate), 30 year fixed rate mortgage (360 monthly payments) and rate of 4.250%/ 5.028% APR (annual percentage rate). Advertised rates and APR effective as of 01/12/17 and are subject to change. Assumes a first lien position, 720 FICO score, 55 day rate lock, based on a single family home in Illinois. Subject to underwriting guidelines and applicant’s credit profile. Sample payment does not include taxes, insurance or assessments. Actual payment obligation will be greater. Applicant’s interest rate will depend upon the specific characteristics of applicant’s loan transaction, credit profile and other criteria. Contact Guaranteed Rate for more information and up to date rates.
WHAT TO EXPECT IN 2017 First Time Buyers and Millennials by Matthew Gardner, Chief Economist, Windermere Real Estate
FIRST TIME HOME BUYERS 1.
First Time Home Buyers’ reemergence into the market ensures that sales will continue to increase, even while inventory is limited.
2.
31% of buyers currently in the real estate market are first-time buyers.
3.
Why don’t we have enough first-time buyers in the market? With Baby Boomers working and living longer, we aren’t making much room for Millennials to start their careers.
MILLENNIALS 4.
The major debt that the younger generation owes on student loans ($1.3 trillion today) hugely impacts the housing market. But the bigger issue is lack of down payments.
5.
75% believe that buying a home would be the most astute financial decision they’d ever make.
6.
Yet, 80 percent said they don’t think they could qualify for a mortgage.
7.
Expect to see the yield on 30-year mortgages rise to around 4.7% by the end of 2017.
Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, land use and regional economics. He is the former Principal of Gardner Economics, and has over 25 years of professional experience both in the U.S. and U.K.
SUGAR HOUSE | UNION PARK | LAYTON PARK CITY | COALVILLE