Salt Lake Realtor February 2016

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Salt Lake Home Sales Near Record Levels p. 12 Major RPAC Investors Recognized p. 22 The Price of a Good Life p. 18


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Thanks to our Realtors® colleagues, City Creek Living had a very successful year. To show our appreciation, Realtors® whose clients go under contract between January 1, 2016 through April 30, 2016 will receive a 32GB iPad Pro* upon closing. *Awarded in the form of an Apple gift card.

Here’s to another great year together. Schedule an appointment at 801.240.8600 to tour City Creek designer model homes. Hours: Mon-Fri 10 a.m. to 6 p.m. Saturdays & evenings by appointment. City Creek Living pays 3% BAC | www.CityCreekLiving.com


2016 ECONOMIC & HOUSING FORECAST 10 reasons to be optimistic in 2016 by Matthew Gardner, Chief Economist, Windermere Real Estate

THE NATIONAL ECONOMIC FORECAST 1.

The U.S. will continue to expand with real GDP growth of 2.3% in 2016.

2.

Employment will continue to expand but the rate of growth will slow. Look for an increase of 1.6% in 2016.

3.

The U.S. unemployment rate will continue to drop and end 2016 at 4.8%.

4.

Inflation will remain in check with the Consumer Price Index at 1.9%.

THE NATIONAL HOUSING MARKET FORECAST 5.

Mortgage rates will rise, but we will still end 2016 with the average 30-year fixed rate below 5%.

6.

Credit Quality – which had been remarkably stringent – will relax a little.

7.

Existing home sales will rise modestly to an annual rate of 5.53 million units with existing home prices up by 4.7%.

8.

New home sales will jump and be one of the biggest stories for 2016. Look for a 23% increase in sales and prices rising by 3.4%.

9.

Foreclosures will continue to trend down to “pre-bubble” averages.

10. The Millennials will start to enter the market.

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. Utah is excited to welcome Mathew Gardner to our stage early this year. Look for further details announced shortly.

SUGAR HOUSE | UNION PARK | PARK CITY | COALVILLE


Utah has the fastest growing economy and home sales are booming p. 12

Table of Contents Features 12 Exceptional Market Fundamentals

James Wood

18 What Price for a Good Life?

Dave Anderton

20 Protecting the Real Estate Profession

Dave Anderton

22 RPAC 2015 Major Investors

Columns 7 Code of Ethics … and Then Some! Cheryl Acker – President’s Message

Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move

On the Cover: Photo: Dave Anderton Photo left: © iStockphoto.com/arbati6

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 2016 volume 76 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.


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President Cheryl Acker Realtypath

Directors

First Vice President Troy Peterson Equity Real Estate Second Vice President Adam Kirkham Summit Sotheby’s International Treasurer Jared Booth CBC Intermountain Past President Dave Robison goBE Realty CEO Curtis A. Bullock

M. Brock Andersen Berkshire Hathaway J. Scott Colemere Colemere Realty Associates Kimberly Farber-Bowen Equity Real Estate Kevin Larsen Coldwell Banker Residential Mike Morgan Realtypath Jodie Osofsky Select Group Realty Steve A. Perry Realtypath Scott Robbins Coldwell Banker Residential 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

T

he Realtor® Code of Ethics is the cornerstone of the National Association of Realtors® ethics training. It guides Realtors® and also shows the public the level of commitment, education and dedication to their profession that each member of NAR possesses. Realtors® are required to complete this class between 2013-2016. If you have not taken it yet, it must be done by the end of the year. Some Realtors® seem to procrastinate in completing the education requirement to take the Code of Ethics. Don’t procrastinate. You can take the course live at the Realtor® Campus. You also have the option to take a special online class by April 30, and you will be entered into a drawing for prizes (gift cards, free CE class, three months of free MLS fees). Check www.slrealtors.com for the dates for the live Code of Ethics classes. For online classes go to slrealtorseducation.com and then click on the Online Library tab. The class, “How to Be an Ethical and Involved Realtor” is one that will fill the NAR requirement.

President Dan Miller Art Director Jackie Medina Graphic Design Leslie Hanna Ken Magleby Patrick Witmer

Code of Ethics . . . and Then Some!

Office Administrator Cynthia Bell Snow Office Assistant Jessica Snow

Sales Staff Paula Bell Karen Malan Paul Nicholas 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®.

One question that is frequently asked, “What article is the most violated?” The top four articles Realtors® find themselves cited for are: 1, 2, 9, and 16. These articles cover areas such as protecting and promoting the interests of the client, avoiding exaggeration or misrepresentation of pertinent facts relating to the property or the transaction, protecting all parties in regards to all contracts and a copy of signed contracts given to the client, and Realtors® not honoring other Realtors®’ agency relationship agreements. Sign up for a Code of Ethics class today.

We are Realtors® . . . and then some!

Cheryl Acker 2016 President

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.

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 2016 | Salt Lake Realtor ® | 7


Happenings

In the News Bright Outlook for Commercial Real Estate

D

Pictured: The office of Windermere Utah at its 2015 Community Service Day.

Windermere Utah Agents Give to RPAC and Serve Community Windermere Utah is an active investor in the Realtors® Political Action Committee (RPAC). In 2015, each of the firm’s agents invested his/her fair share amount. Grady Kohler is principal broker of the Salt Lake-based office and personally contributed more than $5,000 to RPAC last year. Lisa Jungemann, a former director of the Salt Lake Board of Realtors®, was a major investor in 2015 and achieved the President’s Circle. “Windermere is one of just a few brokerages in 2015 to achieve 100 percent RPAC investments,” said Curtis A. Bullock, CEO of the Salt Lake Board of Realtors®. “Windermere had 11 Realtors® in 2015 who each invested $1,000 or more in RPAC. We congratulate Grady and his office for making this investment in protecting the real estate profession.” In addition to their RPAC investments, every year Windermere offices around the country close for one day to participate in a Community Service Day. Last year Windermere Utah chose to volunteer at the Inn Between, a hospice center for Utah’s homeless where homeless men and women can spend their last few days in the peace and comfort of a warm bed. The Windermere Utah family spent the day by building a memorial garden and a privacy fence and helping to create a pet yard where the Inn’s residents will be able to interact and spend time with service animals.

Salt Lake Board of Realtors® There were 136 members of the Salt Lake Board of Realtors® in 2015 who made an investment of $1,000 or more to the Realtors® Political Action Committee (RPAC). That’s up from 129 major investors in 2014. The Salt Lake Board of Realtors® has the highest number of major investors to RPAC of any local Realtor® association across the country.

8 | Salt Lake Realtor ® | February 2016

espite various global and domestic hurdles hindering economic growth, steady job gains and stable leasing demand should help keep commercial real estate activity expanding in 2016, according to the authors of an annual report published jointly by Situs Real Estate Research Corporation (RERC), Deloitte and the National Association of Realtors®. According to the report, Expectations & Market Realities in Real Estate 2016—Navigating through the Crosscurrents, commercial real estate activity is forecast to gradually grow this year with demand for space holding steady across all commercial sectors. While commercial property values and price gains are expected to flatten after surpassing 2007 peaks in some major markets, investors will still benefit from the strong income flows generated from new and existing leases. The fifth annual release of the joint report draws on the three organizations’ respective research and expert analysis and offers an objective outlook on commercial real estate through forecasts and commentary on the current economy, capital markets and commercial real estate property markets. A research-based assessment of the office, industrial, apartment, retail and hotel property sectors is also provided. “Historically low interest rates, especially in treasuries, combined with commercial real estate’s stable prices and value make this asset an attractive investment,” says Ken Riggs, president of Situs RERC. “Looking into 2016, the commercial real estate market should moderate, which could stabilize prices.”


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Exceptional Market Fundamentals Home prices and sales continue strong upward trend; gains in 2015 driven by state’s job growth By James Wood | Ivory-Boyer Senior Fellow, Kem C. Garder Policy Institute, University ® of Utah | Commissioned by the Salt Lake Board of Realtors

B

y any measure 2015 was a “very good year” for Salt Lake County’s residential real estate market. The year saw significant increases in the number and value of homes sold, home prices and sales commissions. The strength of the market was somewhat surprising given the rather average performance of 2014. The gains achieved in 2015 were driven primarily by exceptional market fundamentals; strong job growth, improving income and wages, solid demographic growth and, of course, very favorable mortgage rates. A 2015 summary of the county’s sales statistics show: • $4.1 billion in home sales, an increase of 22 percent. • 3,800 condominium, town home and twin home sales, an increase of 26 percent. • $774 million in condominium, town home and twin home sales, an increase of 36 percent. • $292 million in residential real estate commissions, an increase of 24 percent. Figure 1 Number of Single Family Home Sales in Salt Lake County

Source: UtahRealEstate.com

12 | Salt Lake Realtor ® | February 2016

• A $272,000 median sales price for a single family home, an increase of 6.7 percent. • A $189,000 median sales price for condominiums, town homes and twin homes, an increase of 8 percent.

2015 Ranks as Third Best Year in Home Sales In 2015 existing single family homes sales totaled 13,300 units, the highest level in nine years and the third highest in the county’s history; exceeded only by the pre-recession years of 2005 and 2006 Figure 1. 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 3,800 units and accounted for 22 percent of all residential sales; the highest share ever Table 1. Over the past 20 years multifamily sales have averaged 18 percent of residential sales.

Salt Lake City Leads Other Cities in the Sales of Single-Family and Mulifamily Homes Residential sales, as usual, were concentrated in Salt Lake City. The city accounts for 21 percent of all households in the county but captured 27 percent of residential 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, Sandy, West Valley and South Jordan. These four cities along with Salt Lake City accounted for two-thirds of all homes sold in the county Table 2. Salt Lake City was also the leading city in multifamily sales with 28 percent


Photo: © iStockphoto.com/dbdurden

of all condominium, town home, and twin home sales. The second tier cities for multifamily sales were South Jordan, Midvale, Murray, and West Jordan; each had just over three hundred multifamily sales in 2015.

Housing Demand Soars; Days on the Market for Listings Drops Dramatically Over the Past Year

An important indicator of housing demand is the measure of cumulative days on market (CDOM) of “for sale” homes. At the depths of the Great Recession (2009) the median cumulative days on market for a single-family home swelled to 81 days. But as the demand for housing slowly recovered the CDOM steadily declined. By 2015, the median CDOM had dropped to 21 days for single-family homes and 29 days for multifamily units. In both cases, it was the lowest CDOM since 2006. The very low median cumulative days on market data provide a clear-cut sign of a strong seller’s market particularly for moderately price homes. For a home priced in the second quintile of homes sold ($200,000 to $250,000) the median CDOM was only 14 days. In contrast for homes priced in the top 5 percent (over $600,000) the median CDOM was 67 days. Salt Housing price increases accelerated in 2015 es by Type in Lake County medianCondo, sales price of a home increased 6.7 Condo, as the Total y Twin and Sales to $272,000 Twin andand the strong demand for percent Town moderately priced Town housing pushed the median Home Homes as multifamily units up 8 percent to Sales sales price ofPercent $189,000 Table 4. While 2015’s price increases of Total Sales were not as notable as some years the increases 1,576 represent 10,875 solid, 14.4% sustainable gains. The average 1,570 annual 10,320growth 15.2% rates for housing prices in Salt 1,487 Lake 10,830 County13.7% are 4 percent for single-family 1,604 homes 11,323and 3.8 14.2%percent for multifamily units. growth14.3% rates, however, are not adjusted 1,642 These 11,513 inflation. 15.3% Adjusting for inflation makes a 1,892 for 12,380 difference in calculating the average annual 1,979 huge 12,651 15.6% 2,209 growth 14,267rate. For 15.5%example, the inflation adjusted 2,657 (constant 15,652 dollars) 17.0% annual growth rate in singleprices18.8% from 2000 to 2015 is 1.8 percent 3,554 family 18,871 compared to the 3,704 18,987 19.5% non-adjusted (current dollars) growth rate of four percent. It’s fair to say that 3,180 14,893 21.4% housing prices in Salt Lake County increase 2,419 11,213 21.6% percent annually in constant or 2,264 at about 11,168 1.8 20.3% 1,765 inflation 10,332 adjusted 17.1% dollars. Using constant dollars 1,889

11,309

16.7%

2,363

13,425

17.6%

3,012

14,698

20.5%

3,035

14,635

20.7%

3,826

17,119

22.3%

Table 1 Real Estate Sales by Type in Salt Lake County Single Family Sales

Condo, Total Twin and Sales Town Home Sales

Condo, Twin and Town Homes as Percent of Total Sales

1996

9,299

1,576

10,875

14.4%

1997

8,750

1,570

10,320

15.2%

1998

9,343

1,487

10,830

13.7%

1999

9,719

1,604

11,323

14.2%

2000

9,871

1,642

11,513

14.3%

2001

10,488

1,892

12,380

15.3%

2002

10,672

1,979

12,651

15.6%

2003

12,058

2,209

14,267

15.5%

2004

12,995

2,657

15,652

17.0%

2005

15,317

3,554

18,871

18.8%

2006

15,283

3,704

18,987

19.5%

2007

11,713

3,180

14,893

21.4%

2008

8,794

2,419

11,213

21.6%

2009

8,904

2,264

11,168

20.3%

2010

8,567

1,765

10,332

17.1%

2011

9,420

1,889

11,309

16.7%

2012

11,062

2,363

13,425

17.6%

2013

11,686

3,012

14,698

20.5%

2014

11,600

3,035

14,635

20.7%

2015

13,293

3,826

17,119

22.3%

Source: UtahRealEstate.com

Table 2 Single-Family Homes Sales by City - 2015 Sales

% Share

SaltSource: LakeUtahRealEstate.com City 3,626

27.28%

West Jordan

1,446

10.88%

Sandy

1,380

10.38%

West Valley

1,236

9.30%

South Jordan

1,006

7.57%

Unincorporated Salt Lake

716

5.39%

Figure 1 704 5.30% Number of Single Family Home Sales Taylorsville 588 4.42% in Salt Lake County Herriman

Draper

524

3.94%

Riverton

492

3.70%

Cottonwood Heights

396

2.98%

Murray

394

2.96%

Holladay

296

2.23%

Midvale

268

2.02%

Bluffdale

118

0.89%

South Salt Lake

103

0.77%

Salt Lake County

13,293

100.00%

Source: UtahRealEstate.com

Table 3

February 2016 | Salt Lake Realtor ® | 13

Changes in Current and Constant Median Sales


is a much more accurate measure of housing price performance over the long-term. Table 3 shows both constant and current median sales prices for single-family homes in Salt Lake County from 2000 to 2015. Over this period housing prices have been extremely volatile. Using the inflation adjusted prices (constant 2015 dollars) the median sales price of a home increased by 38 percent during the housing boom, followed by a 27 percent decline during the Great Recession and then a 29 percent increase in the four years of recovery. But even after four years of price recovery the median sales price of a single-family home still remains about 5 percent below the inflation adjusted peak price of $287,750. It appears the market will need at least one more Table 2 year to break the previous inflation adjusted price Homes peak. In 2015, the -median sales Single-Family Sales by City 2015 price of a single-family home increased Sales % Share in 14 of theSalt 15Lake cities Lake County; a27.28% much stronger Cityin Salt3,626 performance than 2014 when 10.88% five cities had West Jordan 1,446 prices Sandy declines Table 1,380 5. Cities with 10.38%moderately priced housing were leaders in price increases West Valley 1,236 9.30% in South 2015.Jordan Four of the five cities with double-digit 1,006 7.57% increases are moderately priced housing markets; Unincorporated 716 5.39% Murray, Salt Lake Taylorsville, West Valley, and South Salt Lake. The strength of prices5.30% in these cities Herriman 704 indicates heightened homes priced Taylorsville 588 demand for 4.42% below $250,000. Draper 524 3.94% Riverton

492

3.70%

The Number of Homeowners with Cottonwood 396 2.98% Negative Equity Has Now Dropped to 4 Heights Percent of All 394 Mortgages 2.96% Murray

Holladay The recent 296 increase in housing prices 2.23% benefitted those homeowners with underwater Midvale 268 2.02% mortgages. In 2010, 21 percent0.89% of all home Bluffdale 118 mortgages in Utah (80,000 homeowners) had South Salt Lake 103 0.77% negative equity, i.e. their mortgage debt exceeded Salt Lake County 13,293 100.00% the price of their home. Consequently, these underwater homeowners were locked into their current home, they could not move-up. This Table 3 Changes in Current and Constant Median Sales Price of Single-Family Homes, Salt Lake County

loss of much of the move-up market severely reduced the demand for housing and resulted in downward pressure on housing prices. But this condition has been reversed with the recent gains in housing prices. The number of homeowners with negative equity has now dropped to about 4 percent of all home mortgages or 15,000 households. Hence, in 2015 the move-up market was back supporting higher levels of sales, which put upward pressure on prices. Another beneficial aspect of the improving market conditions and one that bodes well for housing prices in 2016 is the huge reduction in the sale of distressed homes (short sales or foreclosed properties). For five years the “fire sale” prices of distressed homes dragged down overall housing prices. In 2011, one-third of all homes sold in Salt Lake County were distressed properties and it’s no coincidence that 2011 was the year of the largest decline in prices; 9.5 percent. The near elimination of short sales and REO sales by 2015 was a contributing factor in the acceleration of price increases in 2015.

Despite Rebound, Home Prices Are Not Overvalued For those who can qualify, housing is still relatively affordable in Salt Lake County. According to the U.S. Census Bureau, the median household income in Salt Lake County in 2014 was $62,672. Assuming a household with median income devotes 30 percent of their income to a mortgage payment (including taxes and insurance) that household could carry a mortgage of about $290,000. In 2015, 56 percent of single-family homes sold in the county were priced under $290,000 for a housing opportunity index of 53. An opportunity index number below 50 indicates less affordability; above 50 indicates more affordability. Overall, the local housing market, despite the rebound in prices, is not overvalued. There is still room for moderate increases provided mortgage rate increases are incremental and gradual. Mortgage rate forecasts from a number of organizations show a consensus 2016 forecast of rates moving between 4 and 5 percent with a firm ceiling at 5 percent. In 2016, homebuyers will continue to enjoy some of the lowest mortgage rates in the past 45 years Figure 2.

Boom

2004

2007

% Chg.

Current Dollars

$165,000

$250,000

+52%

Constant 2015 Dollars

$208,412

$287,747

+38%

Contraction

2007

2011

% Chg.

Current Dollars

$250,000

$199,000

-20%

Predictions for 2016: Total Residential Home Sales to Rise 11%; Single-Family

Constant 2015 Dollars

$287,747

$211,122

-27%

Prices to Rise 5-7%

Recovery

2011

2015

% Chg.

Current Dollars

$199,000

$272,000

+37%

Constant 2015 Dollars

$211,122

$272,000

+29%

Source: UtahRealEstate.com

14 | Salt Lake Realtor ® | February 2016

Local market fundamentals and conditions will be favorable for the real estate market in 2016. Job growth is expected to slow slightly but this will be offset by higher rates of net-migration and improving wage rates due to a tight labor market. There are no signs of a bubble; both sales and


prices are at sustainable levels. The market and particularly prices are now largely free of the harmful effects of foreclosures, short sales, and underwater mortgages, which held back demand and prices. And there is no indication of waning demand as demonstrated by the extremely low “days on market” data. On the supply side the inventory of existing home listings shows demand outpacing supply and there’s little concern about competing unsold inventory from home builders; their inventories are very low as well. All these positive local conditions will be supported by a very healthy statewide economy in 2016. But beyond Utah’s borders, both nationally and internationally, there are some potential dangers. Most prominent is the slowdown in the Chinese economy and the possible unraveling of their debt bubble. China’s problems have contributed in part to the recent selloffs in stock markets internationally. Declining oil prices have also negatively affected financial markets and put fiscal and political pressure on oil producing countries; Brazil, Saudi Arabia, Russia, and Nigeria. These worrisome international conditions have raised talk by some of a slowdown in the U.S. economy and perhaps a recession. The U.S. economy is now in its 77th month of expansion, a little long in the tooth as expansions go. The average post World War II expansion is 62 months, just over five years. The longest U.S. expansion was 120 months (19912001). It’s important to note however, that recent expansions have been getting longer due to

structural shifts in the economy (more service oriented) and technological advances in inventory management. International and national conditions are legitimate concerns but over the next 12 months, barring a cataclysm in China or the Mideast, they will have little impact on the local residential real estate market. Total residential sales will increase from 17,100 in 2015 to 19,000 in 2016 an increase of 11 percent. Sales of single-family homes will be up 10 percent and multifamily sales a little stronger with a 13 percent increase in sales. The median sales price of a single-family home will increase in the range of 5 to 7 percent while the increase in the price of multifamily units will be higher at 8 to 10 percent. In 2016, the median sales price of a home will be near $290,000 and near $205,000 for a multifamily unit. Figure 2 Annual Average Mortgage Interest Rates in Salt Lake County

Source: Freddie Mac

Table 4 Price Trends for Single-Family Home Sales in Salt Lake County Median Sales Price Price Increase 2000 $150,000 2.7% 2001 $155,000 3.3% 2002 2003

$159,000 $160,500

2.6% 0.9%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 AAGR 2000-2015

$165,000 $187,500 $228,000 $250,000 $247,000 $233,923 $220,000 $199,000 $212,000 $245,000 $255,000 $272,000 ---

2.8% 13.6% 21.6% 9.6% -1.2% -5.3% -6.0% -9.5% 6.5% 15.6% 4.1% 6.7% 4.0%

Source: UtahRealEstate.com

Table 5 Change in Median Sales Price of Single-Family Homes by City Median Sales Price 2014

Median Sales Price 2015

% Change in Price 2013-14

% Change in Price 2014-15

Bluffdale

$392,705

$400,000

4.3%

1.9%

Cottonwood Heights

$316,000

$339,375

-2.8%

7.4%

Draper

$405,500

$420,000

2.1%

3.6%

Herriman

$326,067

$317,000

9.7%

-2.8%

Holladay

$372,450

$379,950

-3.3%

2.0%

Midvale

$214,600

$226,950

10.0%

5.8%

Murray

$228,650

$259,000

-1.9%

13.3%

Riverton

$275,750

$306,590

-1.0%

11.2%

Salt Lake City

$255,000

$275,000

6.3%

7.8%

Sandy

$285,000

$295,000

3.6%

3.5%

South Jordan

$349,826

$357,000

6.7%

2.1%

South Salt Lake

$172,700

$190,000

-8.6%

10.0%

Taylorsville

$196,250

$218,925

4.0%

11.6%

West Jordan

$234,000

$249,000

4.8%

6.4%

West Valley

$180,000

$199,225

4.7%

10.7%

Salt Lake County

$255,000

$272,000

4.1%

6.7%

Source: UtahRealEstate.com

February 2016 | Salt Lake Realtor ® | 15


MEET THE LEADING SALES CONSULTANTS AT UTAH’S NUMBER ONE HOMEBUILDER. Larry Mitchell was recently honored as Ivory Homes’ sales consultant of the year for the second year in a row. During his 12 years with Ivory Homes Larry has sold over $100,000,000. Larry fully believes in the product he sells, he has purchased 5 Ivory Homes himself. Larry appreciates the opportunity to work with realtors and their clients contributing to their success as they contribute to his.

“It takes a team effort to produce such remarkable results...and there is not a better team out there than Ivory Homes.” In Salt Lake County contact Larry Mitchell at 801-918-7240 or larrym@ivoryhomes.com


Jaymie Chaney is Ivory’s leading sales consultant in Davis County and Weber County for 2015. Jaymie prides herself on her ability to really listen to and understand the needs of her buyers. Jaymie’s incredible consistency and caring allows her to build great relationships with buyers and realtors.

“It is so rewarding to see happy families in their new homes and to know that I was a part of creating that happiness for them.” In Davis and Weber Counties contact Jaymie Chaney 801-654-7975 or jaymiec@ivoryhomes.com

Steve Syphus lead the Ivory sales team in Utah County in 2015. Steve has been with Ivory for 6 years and cannot wait for the amazing opportunities 2016 will bring. Steve believes the new construction business is so much more than selling homes — it is improving lives. Steve uses his bank of past experience to help buyer create a vision of future possibility.

“It’s exciting yet humbling to be part of an organization that not only values its core principles and traditions, but continues pushing to new heights with increasingly diverse products and services to meet the demands of todays more discriminating home buyers.” In Utah County contact Steve Syphus 801-850-8506 or steves@ivoryhomes.com

Hoss Almaraz, Ivory’s leading sales consultant in St. George for 2015 has been with the company for 4 years. Hoss attributes his success to the experience and consistency of the Ivory team. Hoss loves watching his buyers grow as they move through the process.

“I know I have the best support in the industry backing up every homes I sell. Each aspect of the sale, from marketing to pre-construction, through construction and even into warranty work gives me absolute confidence in our ability to provide the best buying experience my clients will find anywhere.” In St. George contact Hoss Almaraz 435-313-5247 or hossa@ivoryhomes.com

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What Price for a Good Life? Salt Lake City ranked No. 718 in highest average home price of more than 2,700 U.S. cities. By Dave Anderton

T

he good life comes at a high price for some Americans. If you live in San Francisco you need to earn $180,600 just to buy a simple house and live comfortably, according to a new report by Finder.com. The study looked at 78 U.S. cities and calculated the minimum salary needed to buy an average home and pay basic expenses. Not surprisingly, San Francisco topped the

18 | Salt Lake Realtor ® | February 2016

list of highest required salaries. San Francisco consistently ranks as one of the nation’s most expensive real estate markets. Only one Utah city was included in the Finder.com list – Ogden, Utah – which ranked more affordable with a required salary of $47,365 and home value of $124,400. A separate report by Coldwell Banker found that nine of the top 10 most expensive U.S. real estate markets were California cities. In San


Francisco, the average price of a four-bedroom, two-bathroom home was $1.4 million. Newport Beach was the most expensive housing market, according to Coldwell Banker, with an average home price of $2.3 million. Cleveland, Ohio, was the most affordable at $74,502. The report analyzed more than 81,000 similar-sized fourbedroom, two-bathroom homes. In contrast to California, Salt Lake City ranked No. 718 in highest average home price ($374,063) of more than 2,700 U.S. cities, according to the study. Draper, with an average home price of $442,164, was the nation’s No. 484th most expensive city. However, Utah home prices have nearly matched pre-recession levels, making it harder for firsttime home buyers to quality for a mortgage. That has lifted condominium and townhome sales. In 2015, roughly 3,700 condos and townhomes were sold, a 27 percent rise compared to 2014 sales. The median price of condos/townhomes was $189,000, nearly $85,000 less than the price of a single-family home in Salt Lake County. Is it harder today to make a living than it was in previous generations? According to the Pew Research Center, yes and no. While younger

people today are better educated, fewer of them were employed in the years following the Great Recession. “A consistent 78 percent of men in the Gen X, Boomer and Silent generations were employed at ages 18 to 33, a share that dropped 10 points to 68 percent among millennial men,” the report said. “In addition, while employment among young women had been increasing with each generation, it dropped 6 points between Gen X women in 1998 (69 percent) and millennial women in 2014 (63 percent).” Another factor weighing heavy on younger people is student loan debt. The National Association of Realtors® recently released a recent report stating that student loan debt is hampering home buying. Student loan debt, the report stated, delays home buyers from purchasing a home by three to five years. Roughly 13 percent of recent U.S. home buyers had difficulty saving for the down payment. Of those, 51 percent said student loan debt made saving the most strenuous step in the buying process. Dave Anderton is the communications director for the Salt Lake Board of Realtors®.

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February 2016 | Salt Lake Realtor ® | 19


The Government Affairs and RPAC Committee is one the most popular committees of the Salt Lake Board of Realtors®. This year more than 50 people signed up for the committee. Becky Grubel is the 2016 committee chairwoman and Bryan Colemere is vice chairman.

Protecting the Real Estate Profession “Where an excess of power prevails, property of no sort is duly respected. No man is safe in his opinions, his person, his faculties, or his possessions.” James Madison By Dave Anderton

E

very year private property rights come under attack. According to Dave Robison, past president of the Salt Lake Board of Realtors® and founder of South Jordan-based goBE Realty, the attacks are not necessarily by people that understand what they are doing. It’s more so by people with an agenda and who don’t appreciate the big picture. “I’m seeing neighbors that believe they should dictate what someone else should do with their property even if it is within zoning laws,” Robison said. “As a Realtor® we are subscribing to more than just access to the MLS. We have an inherent duty to invest in RPAC every year.” Robison offers more than lip service. Last

20 | Salt Lake Realtor ® | February 2016

year he invested $17,000 to the Realtors® Political Action Committee and joined the ranks of the Hall of Fame investors, a handful of individuals who have contributed $25,000 or more during their lifetime. Robison’s investment in 2015 set a record amount given in the space of one year, according to Curtis A. Bullock, CEO of the Salt Lake Board of Realtors®. “Some have asked why I invested so much in RPAC,” Robison said. “My investment this last year in RPAC is my way of putting my money where my mouth is. It is that big of a deal. I could have put it towards an investment property. I did in a way of sorts. I invested in private property rights which pays all of us a dividend. All of us


Service Directory need to have it in our budget every year to invest in RPAC.” It is RPAC investments like Robison’s that make a difference at the local level. Trent Staggs, a Realtor® and Riverton City council member, was elected to the Riverton City Council in 2013. He received the support and backing of RPAC. Since he’s been in office, Staggs has helped overhaul and streamline the building permit process to make it timelier. Recently, Staggs was featured in the South Valley Journal as a force in streamlining development and cutting down wait times for business and residential applications. The new changes will cut 25 calendar days off the approval time for commercial site plan applications and 22 calendar days off the approval time for residential site plan applications. According to The Journal, it currently takes more than 100 days for commercial and residential site plans to be approved. “This is a very big change and will save the city and residents money by not having to notice twice for every site plan, and save the developer on average about 15 days for not having to wait for the city council to hear and review their plan after the planning commission has made a recommendation,” Staggs told the South Valley Journal. “ Justin Allen, government affairs director for the Salt Lake Board of Realtors®, believes Utah has a fantastic culture of advocacy and political involvement manifested in RPAC fund raising. “We have the most major investors of any local Realtor® association in the country,” Allen said. “We try to elect reasonable people to local office. These actions help to lead to more affordable housing options by an improved streamlined development process. Any additional costs to housing from a slow regulatory or permit process ends up affecting the end cost for the consumer.” Grady Kohler, principal broker and partner for Windermere Utah, recently stepped up his personal RPAC donations by investing $5,000. He believes tax incentives, like the mortgage interest deduction and 1031 tax exchange, are incentives at risk and would make real estate investment less desirable should they be discontinued. “We definitely do see the value,” Kohler said. “What was eye opening for me was the number of agents that didn’t contribute anything. People opt out of it because they don’t know what it does. It’s a pretty easy sell and helps our industry when you see what it does.” Dave Anderton is the communications director of the Salt Lake Board of Realtors®.

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February 2016 | Salt Lake Realtor ® | 21


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Housing Watch Home Sales Slow in Final Quarter of 2015; Condo Sales Skyrocket 2 - C OLOR

H

ome sales in Salt Lake County in the fourth quarter showed a modest increase, but slowed compared to previous quarters, according to the Salt Lake Board of Realtors®. There were 2,899 single-family homes sold in the final three months of 2015, a less than 2 percent increase compared to 2,857 sales a year earlier. Despite the slowdown in sales, 2015 marked the third best year in the number of homes sold in the history of Salt Lake County. In each of the first three quarters of 2015, home sales in Salt Lake County posted double-digit gains year-over-year (15 to 16 percent each quarter). Home sales also slowed in Davis County in the final quarter of 2015, up just 0.51 percent year-over-year. Utah County home sales fell nearly 3 percent. “Sales declines in the fourth quarter were not exclusive to the Wasatch Front. Home sales across much of the country also sagged during this period,” said Cheryl Acker, president of the Salt Lake Board of Realtors®. “To some degree this was caused by delayed closings resulting from the rollout of the RESPA-TILA Know Before You Owe initiative, which took effect on Oct. 3.” The rule was implemented by the Consumer Financial Protection Bureau to offer greater transparency into the mortgage and closing process. Unlike other Wasatch Front counties, Weber and Tooele counties

in the fourth quarter saw home sales climb at 13 percent and 23 percent respectively. In the final quarter of 2015, the median single-family home price in Salt Lake County reached $267,500, a nearly 5 percent rise compared to a median price of $255,000 a year earlier. The median home price in Davis County was $245,000, a 9 percent climb compared to $224,000 last year. The top five priciest areas in the fourth quarter for single-family homes by ZIP code along the Wasatch Front were: Alpine (84004) $565,000; Emigration Canyon (84108) $495,000; Lindon (84042) $444,750; Avenues (84103); $424,700; and Holladay (84124) $417,500. The bright spot in the fourth quarter was condominium sales. As first-time buyers struggled to qualify for higher home prices, many turned to townhomes and condominiums. In Salt Lake County, condo sales increased to 822 units sold in the fourth quarter, a 16 percent rise compared to 706 sales in the fourth quarter of 2014. Utah County saw its condo sales rise 15 percent. The median price of condos sold in Salt Lake was $194,750, up nearly 13 percent from a year ago. The average cumulative days a listing was on the market in the fourth quarter in Salt Lake County was 54 days, down from 75 days in the fourth quarter of 2014.

Salt Lake County Home Sales Per Quarter

26 | Salt Lake Realtor ® | February 2016


COUNTY ZIP CITY 2015 HOUSE % +/- 2015 Q4 MEDIAN % +/- 2015 CONDO % +/- 2015 Q4 % +/- 2015 Q4 % +/ # SOLD CHANGE SALES PRICE CHANGE # SOLD CHANGE CONDO MEDIAN CHANGE AVERAGE CHANGE SALES PRICE CDOM S.L. CO

84006

COPPERTON

4

0.00%

$182,250.00

23.98%

0

n/a

$0.00

n/a

31

-63.53%

S.L. CO

84020

DRAPER

141

7.63%

$400,000.00

-3.00%

52

36.84%

$215,000.00

10.00%

67

-19.28%

S.L. CO

84044

MAGNA

113

11.88%

$179,000.00

12.23%

7

40.00%

$91,000.00

-23.21%

31

-43.64%

S.L. CO

84047

MIDVALE

57

-3.39%

$229,000.00

-2.97%

64

-11.11%

$216,500.00

4.10%

50

-24.24%

S.L. CO

84065

RIVERTON

95

-24.60%

$327,500.00

10.46%

54

217.65%

$233,494.00

12.26%

61

-24.69%

S.L. CO

84070

SANDY

74

21.31%

$240,000.00

1.05%

27

17.39%

$164,900.00

10.67%

41

-48.75%

S.L. CO

84081

WEST JORDAN

101

-17.21%

$288,230.00

15.29%

14

-26.32%

$194,950.00

15.42%

36

-51.35%

S.L. CO

84084

WEST JORDAN

119

21.43%

$234,900.00

10.59%

37

15.62%

$165,900.00

6.01%

33

-45.00%

S.L. CO

84088

WEST JORDAN

108

16.13%

$257,000.00

1.62%

19

137.50%

$177,000.00

9.09%

50

-15.25%

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

70

-20.45%

$378,150.00

9.24%

0

-100.00%

$0.00

-100.00%

77

0.00%

S.L. CO

84093

SANDY

74

-7.50%

$337,000.00

5.48%

2

100.00%

$315,000.00

12.50%

75

-10.71%

S.L. CO

84094

SANDY

72

-10.00%

$259,950.00

5.46%

14

250.00%

$237,000.00

51.34%

40

-33.33%

S.L. CO

84095

SOUTH JORDAN

155

-25.84%

$353,484.00

-2.89%

50

-12.28%

$219,950.00

11.09%

84

-10.64%

S.L. CO

84096

HERRIMAN

185

38.06%

$321,456.00

1.90%

48

140.00%

$223,155.00

18.39%

58

-29.27%

S.L. CO

84101

SLC

2

-60.00%

$124,950.00

-26.93%

28

40.00%

$243,950.00

4.25%

97

0.00%

S.L. CO

84102

SLC

21

-19.23%

$326,000.00

21.78%

24

-11.11%

$162,250.00

-1.67%

64

16.36%

S.L. CO

84103

SLC

44

-30.16%

$424,700.00

-12.25%

30

15.38%

$182,450.00

-7.62%

89

-5.32%

S.L. CO

84104

SLC

47

11.90%

$150,000.00

-0.63%

1

-50.00%

$65,000.00

-33.64%

36

-2.70%

S.L. CO

84105

SLC

91

-15.74%

$344,000.00

11.09%

0

-100.00%

$0.00

-100.00%

51

-13.56%

S.L. CO

84106

SLC

115

13.86%

$278,000.00

3.77%

33

-21.43%

$185,000.00

15.81%

49

-37.97%

S.L. CO

84107

MURRAY

43

-17.31%

$249,900.00

6.25%

66

34.69%

$184,700.00

47.88%

72

-18.18%

S.L. CO

84108

SLC

57

50.00%

$495,000.00

32.00%

18

28.57%

$261,000.00

5.24%

79

3.95%

S.L. CO

84109

SLC

66

0.00%

$378,750.00

19.29%

5

-28.57%

$192,500.00

21.84%

55

-28.57%

S.L. CO

84111

SLC

21

-8.70%

$250,000.00

19.05%

19

58.33%

$279,000.00

25.96%

63

-20.25%

S.L. CO

84115

S SLC

68

38.78%

$200,000.00

6.67%

17

-5.56%

$153,500.00

14.21%

34

-61.80%

S.L. CO

84116

SLC

68

19.30%

$181,500.00

12.04%

7

0.00%

$128,900.00

18.26%

36

-56.10%

S.L. CO

84117

HOLLADAY

54

14.89%

$336,250.00

-6.86%

39

-4.88%

$127,000.00

-17.53%

67

4.69%

S.L. CO

84118

TAYLORSVILLE/ KEARNS 177

7.93%

$192,000.00

10.06%

2

100.00%

$214,750.00

141.29%

37

-35.09%

S.L. CO

84119

WVC

81

0.00%

$182,500.00

8.63%

44

29.41%

$140,000.00

7.28%

48

-20.00%

S.L. CO

84120

WVC

144

0.00%

$195,000.00

5.41%

10

-16.67%

$192,500.00

15.79%

38

-40.62%

S.L. CO

84121

COTTONWOOD

121

4.31%

$330,000.00

6.45%

24

-31.43%

$166,000.00

-26.22%

61

-48.74%

S.L. CO

84123

TAYLORSVILLE/ KEARNS 71

24.56%

$246,500.00

15.73%

41

46.43%

$127,000.00

15.56%

31

-67.71%

S.L. CO

84124

HOLLADAY

68

0.00%

$417,500.00

29.48%

11

10.00%

$214,000.00

-21.54%

93

14.81%

S.L. CO

84128

WEST VALLEY

101

32.89%

$212,000.00

9.99%

9

0.00%

$151,000.00

7.93%

31

-40.38%

S.L. CO

84129

TAYLORSVILLE

71

-19.32%

$220,500.00

10.25%

6

-45.45%

$141,700.00

20.08%

51

24.39%

S.L. CO TOTALS

2899

1.47%

$267,500.00

4.90%

822

16.43%

$194,750.00

12.57%

54

-28.00%

DAVIS CO 84010

BOUNTIFUL

92

-14.02%

$286,500.00

20.38%

27

-27.03%

$165,000.00

-5.71%

60

-32.58%

DAVIS CO 84014

CENTERVILLE

43

104.76%

$277,915.00

16.04%

14

-36.36%

$132,500.00

-27.38%

45

-42.31%

DAVIS CO 84015

CLEARFIELD

256

4.07%

$195,000.00

8.03%

16

45.45%

$121,950.00

1.71%

62

-15.07%

DAVIS CO 84025

FARMINGTON

48

-21.31%

$336,500.00

5.16%

15

50.00%

$212,500.00

14.86%

74

-16.85%

DAVIS CO 84037

KAYSVILLE

97

21.25%

$309,900.00

14.35%

3

-70.00%

$159,000.00

-5.79%

53

-44.79%

DAVIS CO 84040

LAYTON

76

-16.48%

$277,500.00

11.00%

8

0.00%

$181,425.00

16.59%

69

-30.30%

DAVIS CO 84041

LAYTON

162

5.88%

$209,250.00

14.97%

14

75.00%

$173,000.00

8.26%

40

-43.66%

DAVIS CO 84054

N. SALT LAKE

73

48.98%

$264,900.00

8.19%

19

35.71%

$191,700.00

12.11%

51

-27.14%

DAVIS CO 84075

SYRACUSE

93

-26.77%

$264,000.00

10.05%

0

-100.00%

$0.00

-100.00%

55

-32.10%

DAVIS CO 84087

WOODS CROSS

39

0.00%

$239,550.00

4.15%

5

-28.57%

$180,000.00

-1.90%

29

-35.56%

979

0.51%

$245,000.00

9.38%

121

-8.33%

$173,000.00

1.82%

55

-31.25%

DAVIS CO TOTALS

February 2016 | Salt Lake Realtor 速 | 27


REALTOR® Connections Q&A: Jodie Osofsky Jodie Osofsky is member of the Board of Directors of the Salt Lake Board of Realtors®. She is a Realtor® with Sandy-based Select Group Realty. She is the director liaison for the Charity Challenge Committee. Q: What is the Charity Challenge? A: The Salt Lake Board of Realtors® in 2016 will launch a fresh approach in serving our community. For the first time, the Board has established a 501(c)(3), giving us a federal tax exemption. The committee is currently formulating several opportunities for Realtors® to get involved. These opportunities include: direct volunteer time, brokerto-broker challenges, and a major fundraising event on June 16. Q: Who can help? A: All Realtors® and affiliates are invited to take part in the Charity Challenge. Dates and times will be announced in future weekly emails, social media, and Salt Lake Realtor® magazine. Q: How do I get involved? A: For more information, please contact Laura Harrison at laura@slrealtors.com.

Realtypath Opens New South Valley Branch & Education Center Realtypath announced it opened a new office and education center. Located in Riverton near Bangerter Highway and 126th South, the office is capable of accommodating up to 150 agents. The conference and office space was designed to serve agents and real estate clientele in the expanding southwest corridor. “The branch intends to target Realtors’® needs without bounds or company borders,” said Mike Morgan, branch broker and president. “Our end game is to have the Realtypath brand be perceived by the public as a signature that the transaction will go smoothly.”

28 | Salt Lake Realtor ® | February 2016

On the Move Signature Group Real Estate recently announced it joined forces with Realty ONEGroup. The new firm will be called RealtyONEGroup Signature. Signature Group Real Estate was founded in 2001 by Ravath (RP) and Joan Pok. In 2006, the firm was recognized by the Mountainwest Capital Network as the No. 1 Fastest Utah Growing Company. The new brokerage recently hired Matt Dulle as principal broker of the firm. Dulle has served on the Young Professionals Network of the Salt Lake Board of Realtors® and the Council of Residential Specialists. Exit Realty Legacy announced that Vilisoni (Vili) Kotobalavu has joined its brokerage. Vili is native to the North Shores of Oahu, Hawaii and attended the University of Utah, where he graduated with a Bachelor of Science in Geography and attained a Geographic Information Systems (GIS) certification. He later attended Stringham Real Estate School and learned that geography is applicable to nearly everything Realtors® do in the real estate business. Aubrey and Associates announced the following Realtors® have joined the firm: Doug Miller, Brandon Hacker, Peter Schiess, Elizabeth Lippert, James McBeth, Launie Belnap, Mike Smithson, and Sandra Gillen. Salt Lake Realtor® Magazine welcomes announcements of new Realtors®, affiliates, awards and professional accomplishments. Items received are printed at the discretion of Salt Lake Realtor® Magazine on a first-come, first-serve basis. Send your news to dave@slrealtors.com.



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This is Bill. Bill pays his broker $395 per deal, caps at $15K and gets the best darn marketing ever. Bill keeps lots of his commissions. Bill works at RealtyONEGroup Signature. Bill is smart. Be like Bill.

w w w.JoinROGSignature.com Matt Dulle & RP, Managing Brokers 801. 381.6288 matt@rogsignature.com

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