Salt Lake
REALTOR
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slrealtors.com
March 2012
September 2014
Salt Lake Among Best Housing Markets for Gen Y p. 10 12 Startups Changing Real Estate p. 14 Trends in Real Estate p. 20
Julie Mathews-Johnson
801-509-6961 | julie84108@comcast.net
I am thrilled to be part of the Berkshire Hathaway HomeServices brand and all it stands for. The reputation and success of our new brand is second to none, and I aspire to contribute to its sterling track record of integrity and market leadership.
Kim Gempeler
801-631-1856 | kimgempeler@gmail.com
Our new progressive company comes with numerous advantages that allow me to better serve my clients. From state-of-the-art digital marketing platforms to real-time neighborhood statistics, corporate leadership provides its real estate professionals with the tools needed to guide home buyers and sellers in today’s complex market.
Stephanie Poulos-Arrasi
801-703-8780 | sarrasi@bhhsutah.com
While Prudential Utah Real Estate allowed me to establish a successful real estate career, Berkshire Hathaway HomeServices has breathed new life into the industry and into my business. I look forward to leveraging my new brand and its unique offerings to the benefit of my clients.
The Sign of Confidence. Get to know us at: BHHSUtah.com Š 2014 BHH Affiliates, LLC. An independently owned and operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc. Equal Housing Opportunity.
Pending home sales in the West rose 4 percent in July compared to June, but remain 6 percent below July 2013. p. 24
Table of Contents Features 10 NAR Identifies Best Purchase Markets for Aspiring Millennial Homebuyers
14 12 Startups That are Changing the Way We Interact With Real Estate
20 What’s Trending in Real Estate Graham Wood Realtor® Magazine
24 U.S. Pending Home Sales Rise in July
Columns 7 Credit Scores and Home Sales Angie Domichel Nelden – President’s Message
Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move
On the Cover: Photo: iStockphoto.com/EpicStockMedia Photo left: Zion National Park Image licensed by Ingram Image
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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September 2014 volume 74 number 9 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 Directors Managing Editor Angie Domichel Nelden Dave Anderton Cheryl Acker Coldwell Banker Residential
At Home Realty
Copy Editor
M. Brock Andersen First Vice President Georgia Cuthbert Prudential Utah Real Estate Dave Robison Communications Committee Jared Booth Robison & Co. Coldman Banker Lori Lee – Chairwoman Annie Hedberg – Vice Chairwoman Tom Colemere Second Vice President Colemere Realty Publisher Troy Peterson Inc.Linda Geer Equity Real Estate Mills Publishing,Coldwell Banker Residential www.millspub.com Shirley Jacobson President Sales StaffReal Estate Treasurer Windermere Miller Paula Bell Adam Dan Kirkham Lisa Jungemann Kirkham Real Estate Bill LinesReal Estate Windermere Office Administrator Karen Malan Cynthia Bell Snow Tony Ketterling Paul Nicholas Past President Equity Real Estate Art Director Don Nothdorft Dave Frederickson Mike Morgan Jackie Medina Keller Williams Keller Williams Administrative Assistant Magazine Designer ChloéMichael Herrman Rowe Erin Tripp CEO Prudential Utah Real Estate Office Assistant Curtis Bullock Graphic Design SharonSnow Spratley Jessica Prudential Utah Real Estate Erin Tripp Ken Magleby Patrick Witmer Advertisinginformation informationmay maybe beobtained obtainedby bycalling calling Advertising (801)467-9419 467-9419ororby byvisiting visitingwww.millspub.com www.millspub.com (801)
Managing Editor Directors President DeAnna Dipo Dave Anderton Cheryl Acker Distinctive Properties
At Home Realty
First Vice President Publisher Jillinda Bowers Purdential Utah Donna PozzuoliMills Publishing, Inc. Daniel Christensen Prudential Utah www.millspub.com Coldwell Banker
Second Vice President President Sarah M. Colbert Dave Frederickson Dan Miller Summit Sotheby’s Keller Williams Art Director Tom Colemere Treasurer Jackie Medina Colemere Realty Charlotte Thomas Kim Farber-Lynch OfficeEquity Administrator Graphic Design Keller Williams Real Estate Cynthia Bell Snow Leslie Hanna Lisa Hyte PastKen President Magleby RE/MAX Canyons Office Assistant Bill Heiner Patrick Witmer JessicaJacobson Snow Shirley RE/MAX Associates
Sales Staff Chief Executive Officer Paula Bell Bryan Kohler Karen Malan Paul Nicholas
Windermere
Administrative Assistant Fred Law Kyrsten Holland Law Real Estate Angie Domichel-Nelden Coldwell Banker
Troy Peterson Equity Real Estate
Credit Scores and Home Sales
Salt Lake Board: (801) 542-8840 Salt Lakee-mail: dave@saltlakeboard.com Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.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 equal housing opportunity the nation. We The Saltachievement Lake Board ofofREALTORS is pledged to thethroughout letter and spirit of U.S. policy encourage and support the affirmative advertising throughout and marketing for the achievement of equal housing opportunity the program nation. Wein which thereand are support no barriers obtaining advertising housing because of race, color, religion, encourage thetoaffirmative and marketing program in sex, handicap, familial or national origin. which status, 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 ® persons quoted in articles are their own and do not necessarily expressed by writers is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions The Salt Lake REALTORand reflect positions of theand Saltpersons Lake Board of REALTORS expressed by writers 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 well and photographs this issue, provided proper is given to The Salt Lake REALTOR®, as Permission will beingranted in most cases, uponcredit written request, to reprint or reproduce articles ® as any writers and photographers whose names appear withtothe andREALTOR photographs. , as well andtophotographs in this issue, provided proper credit is given Thearticles Salt Lake While unsolicited original manuscripts and photographs related to the real estate profession as to any writers and photographers whose names appear with the articles and photographs. are welcome, no payment is made for their in the publication. While unsolicited original manuscripts and use 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 ® ® not necessarily by theand Saltadvertising Lake Board content of REALTORS REALTOR Views andare opinions expressedendorsed in the editorial of the. However, The Salt Lake advertisers do not make publication of this magazine so consideration products and necessarily endorsed by the Saltpossible, Lake Board of REALTORS®.ofHowever, REALTOR® are services listed greatly appreciated. advertisers doismake publication of this magazine possible, so consideration of products and services listed is greatly appreciated.
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redit scoring company Fair Isaac Corp. announced in August it was changing its credit scoring calculations by not including records of unpaid bills if the bill had been paid or settled with a collection agency. The company also said it would give less weight to unpaid medical bills that are with a collection agency.
It’s about time. Restrictive credit limits have been the rule since the home loan industry bellied up in 2008. Thirty-five percent a consumer’s credit score is based on whether they’ve paid bills on time or had any loans sent to collection agencies. As Realtors®, we all know too well that a bad credit score can penalize potential home buyers by raising borrowing rates or denying credit altogether. Last year Lawrence Yun, chief economist for the National Association of Realtors®, said that home sales could increase 15-20 percent above what they currently were if mortgage lenders would return to more traditional credit standards. The numbers suggest that home sales should be surging right now. Yet home sales this year throughout much of the nation and here in Utah have been on the decline. Yun further noted that average credit scores for conventional mortgages that had been approved over the past four years had been in the 760 to 770 range. That compares to 720 for a conventional loan during more typical times, and 660 for an FHA mortgage. According to NAR figures, over half of all renters are financially qualified to buy a home versus only one-third a decade ago. Yun added that there are about 8 million more renters who are able to afford a home than there were in 2000, but who are not becoming homeowners, either by choice or because they can’t qualify for a loan. Steve Brown, president of the National Association of Realtors®, said the Fair Isaac move will “ultimately make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores. Since the housing crash, overly restrictive lending has been the greatest obstacle to homeownership.” Hooray!
Angie Domichel Nelden 2014 President
OFFICIAL PUBLICATION OF THE OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ®® SALT LAKE BOARD OF REALTORS REALTOR is a registered mark which identifies a professional in real estate who subscribes ®
® . toREALTOR a strict®Code of Ethics asmark a member of the NATIONAL ASSOCIATION REALTORS is a registered which identifies a professional in realOFestate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®.
October 2005
October 2005
Salt Lake Realtor® September 2014
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Happenings Realtors® Give to the Community
The Salt Lake Board of Realtors® recently presented two big checks to The Christmas Box International and The Road Home. Each organization was given $19,303.77. The money was raised from this year’s Charity Gala (formerly known as Shrimpfest), now in its 29th year. The event included a three-course seated dinner, live and silent auctions and a live band. More than 300 real estate professionals attended the event, raising nearly $40,000. The Board’s four-part mission includes service to the community. The Christmas Box International houses abused and neglected children while The Road Home offers temporary shelter to individuals and families who are homeless.
Three Realtors® Elected to Board of Directors The Salt Lake Board of congratulates Realtors® Cheryl Acker (RealtyPath), Kim Farber (Equity Real Estate) and Matt Ulrich (Ulrich Realtors®) as the three newest members of the Board of Directors. Acker Cheryl Acker Kim Farber Matt Ulrich won reelection to a second four-year term. Farber previously served on the Board as an appointed director. This year, six nominees ran for three open seats. Each director position is a four-year term beginning on Jan. 1, 2015. The 16-member Board of Directors creates policies and programs to achieve the fourfold mission of the Board: knowledge, advocacy, service and communication. We congratulate all the candidates who participated and thank those members who took the time to vote. The Board would like to thank the 2014 Nominating Committee: Dave Frederickson (chair), Lisa Jungemann, Tony Ketterling, Brock Andersen, Scott Colemere, Greg Fabiano, Kevin Larsen, and Brandy Tilo.
Rebound in Commercial Real Estate The strong rebound in economic growth during the second quarter and ongoing job creation are gradually improving the outlook for all of the major commercial real estate sectors, according to the National Association of Realtors® quarterly commercial real estate forecast. Lawrence Yun, NAR chief economist, says after many false starts, the economy finally appears to be turning a corner to firmer ground. “The job market has been the bright spot of the economy this year as employers are feeling more confident about their growth prospects and adding to their payrolls,” he said. “This gradual turnaround from being overly cautious to more optimistic should slightly boost the demand for leasing and purchase activity as well as new construction projects in the upcoming year.”
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In the News Taxing Forgiven Mortgage Debt as Income is Wrong National Association of Realtors® President Steve Brown issued a statement saying U.S. Attorney General Eric Holder did the right thing by calling on Congress to help financially distressed American families who lost homes to foreclosure or short sales this year. After announcing the details of the U.S. Department of Justice’s settlement with Bank of America, which includes $7 billion in relief to consumers, Holder lamented that Congressional inaction to extend the Mortgage Forgiveness Debt Relief Act will mean that people meant to be helped by the settlement funds will instead be penalized on their income taxes. “The tax relief expired on Dec. 31 last year and unless Congress acts to extend it, every person who has already sold or plans to sell a home in a short sale in 2014, will pay taxes on nonexistent mortgage debt, which is money many don’t have,” Brown said. “Realtors® are strong supporters of the bipartisan Mortgage Forgiveness Tax Relief Act, sponsored by Sens. Debbie Stabenow, D-Michigan, and Dean Heller, R-Nevada, and Reps. Tom Reed, R-New York, and Charlie Rangel, D-New York, to prevent underwater borrowers from paying taxes on any mortgage debt forgiven or cancelled by a lender after their home is sold for less money than is owed. Taxing forgiven mortgage debt as income is an unfair practice that also incentivizes defaults and foreclosures, which could torpedo the housing recovery. Congress should take immediate action to pass this legislation.”
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NAR Identifies Best Purchase Markets for Aspiring Millennial Homebuyers Austin, Texas and Salt Lake City were identified as top standouts for Millennials First-time homebuyers have been largely absent from the housing market in the current economic recovery, but some metropolitan areas – particularly in the Midwest and West – are well positioned to see increases in home-buying from the Millennial generation in upcoming years, according to new research by the National Association of Realtors®. NAR analyzed current housing conditions, job creation and population trends in metropolitan statistical areas(1) across the U.S. to determine the best markets for aspiring, leading edge Millennial(2) homebuyers.
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Austin, Texas and Salt Lake City were identified as top standouts for Millennials for having a young adult population with solid job growth rates and still relatively affordable home prices. Seven of the 10 metro areas recognized are in the Midwest and West. Lawrence Yun , NAR chief economist, says the homeownership rate for young adults under the age of 35 peaked in 2005 (43 percent) and fell to 36 percent in the first quarter of 2014(3). “Limited job prospects, student debt and flat wage growth have combined with tight credit conditions and low inventory to price Millennials out of some of the top cities such as New York and San Francisco,” he said. “However, NAR research finds that there are
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other metro areas Millennials are moving to where job growth is strong and homeownership is more attainable. These markets are well-positioned to soon experience a rise in first-time buyers as the economy improves.” NAR analyzed 100 metro areas that have a large Millennial presence, solid local job market conditions and strong migration patterns of young adults moving to that particular area to determine the best purchase prospects for young buyers. Housing affordability and inventory availability were also considered. The best purchase markets for aspiring Millennial homebuyers are (listed alphabetically): • Austin, Texas • Dallas • Denver • Des Moines, Iowa • Grand Rapids, Michigan • Minneapolis • New Orleans • Ogden, Utah • Salt Lake City • Seattle Other markets with strong potential for attracting Millennial homebuyers include: • Madison, Wisconsin • Nashville, Tennessee • Omaha, Nebraska • Raleigh, North Carolina • Washington, D.C. NAR President Steve Brown, co-owner of Irongate, Inc., Realtors® in Dayton, Ohio, said favorable affordability in these markets will ultimately be met with inevitable life milestones to increase homebuying activity. “Millennials will eventually settle down, trade their roommates for spouses and want to raise a family,” he said. “As long as median income continues to support purchasing power in most areas, the demand and opportunity will be there for Millennials to purchase their first home with guidance and insights from a Realtor®.”
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The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. 1 Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. NAR adheres to the OMB definitions, although in some areas an exact match is not possible from the available data. A list of counties included in MSA definitions is available at:http:// www.census.gov/population/estimates/metro-city/List4.txt. Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Median price measurement reflects the types of homes that are selling during the quarter and can be skewed at times by changes in the sales mix. For example, changes in the level of distressed sales, which are heavily discounted, can vary notably in given markets and may affect percentage comparisons. Annual price measures generally smooth out any quarterly swings. NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989. Because there is a concentration of condos in high-cost metro areas, the national median condo price often is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report. 2 Millennials are generally categorized as those between the ages of 20-34. For the purposes of this research, only leading edge Millennials between the ages of 25-34 are considered for this study, as they are more likely to be prospective home buyers. 3 According to the U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey, Series H-111.
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12 Startups That are Changing the Way We Interact With Real Estate Imagine conducting an entire mortgage transaction online without a loan officer; and software that prevents your web content from being copied and posted on someone else’s site By Bernice Ross Inman News Are you ready for a glimpse into the future of real estate? Real Estate Connect’s “New Kids on the Block” session and an eye-opening Agent Reboot session called “Nine technologies that will change the real estate landscape forever” provided a preview of coming attractions that may dramatically change the real estate industry. James Dwiggins, CEO of Nexthome and the moderator for Agent Reboot, outlined a series of game-changing technologies that are already making their presence felt in the real estate industry. Search with the wave of a finger Your mouse, computer track pad and remote controls are about to become obsolete. Leap Motion has already released an app that allows you to control your screen with just a wave of your finger.
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Fin is “a trendy gadget you can wear on the thumb and make your whole palm a digital touch interface.” Rather than having some smart chip implanted in your body, you will soon be able to preview property videos, share files, change TV stations, control visuals from head-mounted devices, or do a host of other real estate-related activities using nothing more than Fin, your thumb and the palm of your hand. Eye Tribe Imagine simply moving your eyes to flip to the next page of a book or to discover property prices as you are driving through a neighborhood. Eye tracking is making that dream a reality. This technology can tell when and where someone is looking. Eye tracking will also make both gaming and real estate search more immersive and intuitive. Matterport 3D Camera Matterport bills itself as “bringing 3-D capture to mobile.” The Matterport 3D camera takes 360-degree photos of each room in the house. The app then generates a 3-D immersive experience where you can “walk through” the property creating the closest thing to being there in person. It also accurately estimates room sizes and measurements, as well as generating a floor plan. Moreover, your clients can redesign the (continued on page 18)
Your Ivory Homes Specialist for over 10 years Why see me, Susan Johnson, at Ivory Homes? • Your commission is protected when you register your clients with me, no matter where your prospect decides to go without you. • Over 60 move-in-ready homes, many more under construction, call me for a list. • Perfect for your pickiest buyers, we can customize any home design, they CAN have that double deep garage they CANNOT find in an existing home! • HUGE Summer's End Incentives and subdivision closeouts available on many homes, call me for details. • Get paid half your commission up front when your clients build with me.* • Located in Draper, but can also service any of Ivory’s 65 locations. * Receive half the commission upon payment of full pre-construction deposit, and then the remaining half paid on closing. Please accompany your client on their first visit to the Ivory model home or contact an Ivory sales consultant to register your client in advance. For Ivory’s traditional mainline catalog homes you’ll receive 3% commission on both spec (move-in ready) and new build homes. For California Collection homes, you will receive a 3% commission on spec (move-in ready), and 2% on new build homes. For Ivory townhome sales, you will receive a 2% commission. Commission rates subject to change at any time without notice. For updated commission information, please refer to each individual listing on the WFRMLS.
Susan Johnson Senior Sales Consultant Ivory Homes
Visit me today at Ivory’s Bellevue community in Draper at 13200 S. 700 E.
(801) 864-7700 susanj@ivoryhomes.com
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space to fit their lifestyles. Look for videographers and/or virtual tour companies to make the $4,500 investment for the camera. For luxury properties, this service will be a “must have.”
New Kids on the Block At every Connect, New Kids on the Block gives us a taste of new companies that may be the next Zillow or Trulia. Here are some highlights.
Automate your home with Piper Having a fully automated home ranks highly on most Gen Yers’ wish lists. That goal is now reachable with Piper. Given the $199 price point, home automation will become a standard in virtually every home. Piper monitors security, the temperature and humidity, as well as tracking occupants if needed. The system also notifies your mobile device when any system or event in your home requires your attention.
Lenda — replace your loan officer with an iPad app? In his keynote, Brad Inman observed how simple it is to make automatic deposits, pay bills, sign documents or do almost any other purchase online. Mortgages continue to be the one major bottleneck for the real estate industry. Lenda’s new app will allow you to conduct the entire mortgage transaction in two to seven days on your iPad without the aid of a loan officer. Getting a quote, signing off on the disclosures and completing the application takes only 30 minutes. Moreover, the savings are substantial. Lenda reports that its average client thus far has saved over $18,000.
TrackR Bravo TrackR Bravo is “the slimmest and most elegant item-tracking device ever created backed by the world’s largest Crowd GPS network.” The device can be attached to a purse, wallet or anything you would like to track using your mobile device. It’s easy to find the lost item, and if you lose your phone, the app will cause your phone to ring. It’s a great way to also track your keys. At $19.95 for two devices, it also makes a great client gift. Future building technology Invisible buildings? Buildings where each floor rotates separately from the other floors and are powered by solar and wind energy? These innovations are already here. Buildings become “invisible” when images can be projected onto glass to match the background. One rotating tower has already been completed in Brazil and another is being built in Dubai. As Dwiggins noted, “Imagine the disclosures — birds randomly flying into your windows, random motion sickness, and more.”
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Salt Lake Realtor® September 2014
Patch of Land Patch of Land uses crowdfunding to rebuild neighborhoods by partnering with successful developers. Participating developers crowdfund short-term real estate debt and then syndicate that debt to institutional investors. This emerging strategy allows investors to diversify into real estate without the headaches associated with property management. Balcony Your seller is relocating and your company does not have a relocation service. Balcony launches this fall as the nation’s first peer-to-peer referral network. You can send, receive, and track referrals either on the Web or on your mobile. Most important, Balcony also makes sure you receive that referral fee when the deal closes.
Distil Networks Distil Networks and Inman Innovator finalist REDPLAN are out to put a stop to data pirates and scrapers who rip off listing and other copyrighted content. Distill networks has already blocked 2 million real estate bots from ripping off our data and will continue to wage the war against data thieves. Property Connect Property Connect is the first real-time bidding platform for rental properties. Potential renters can make multiple offers on rentals. This helps landlords achieve higher rents while lowering their vacancy rates. HouseCall — home maintenance at the touch of button Have you ever wanted to aggregate your favorite service providers in one place? Perhaps your client needs a roofer and you don’t have a good recommendation. HouseCall is out to remedy that situation, and, unlike Angie’s List, there is no charge for their service. Real estate innovation will continue to alter our business in ways we can’t even imagine. Stay tuned — there’s always more innovation just around the corner. Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, author and trainer with over 1,000 published articles and two best-selling real estate books. This article was reprinted in Salt Lake Realtor® Magazine with permission of Inman News.
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Presented by the Utah Sales and Marketing Council (A Utah Home Builder Association Affiliate) The Council serves sales and marketing professionals in the Utah home building industry. The SMC is dedicated to furthering new home sales in the Utah market through education and the interchange of ideas. To register and to learn more about membership benefits contact:
Kristel Gough | 801-231-2201 | www.utahsmc.com Salt Lake Realtor® September 2014
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What’s Trending in Real Estate Be sure to stay ahead of the curve By Graham Wood Realtor® Magazine
1. Generation X jumps to the top. Generation X—those ages 33 to 47—recently made up the largest chunk of home buyers, at 31 percent, according to the National Association of Realtors®’ “Home Buyer and Seller Generational Trends” report. Generation Y—those 32 and younger—made up the second-largest group, at 28 percent, followed by younger baby boomers (18 percent) and older baby boomers (14 percent). 2. Mobile real estate search. Consumers are taking to their mobile devices in droves for real estate searches. According to online marketing firm The Search Agency, real estate ad clicks on smartphones grew 10.7 percent. Tablet ad clicks shot up even higher, increasing 20.2 percent quarter over quarter—and 87 percent year
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Salt Lake Realtor® September 2014
over year. It all goes to show that consumers are becoming far more comfortable searching for real estate on mobile devices. 3. Paperless business. Want to spend more time helping clients and less time dealing with all that paperwork? There’s a plethora of online tools that allow you to file and manage documents electronically, One option is RES. NET. In addition to keeping all his paperwork stored securely online, San Diego sales associate Jesse Zagorsky of SDREOSold likes that it lets him link his profile to all of his transactions. It also allows him to communicate with everyone involved in each transaction. “The system [frees] up my time to spend helping customers,” he says. And don’t forget DocuSign, a program for creating and transmitting documents
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IN AN EFFORT TO GIVE BACK TO THE LESS FORTUNATE, CITYWIDE HOME LOANS IS EXCITED TO PRESENT OUR NEWEST AFFILIATION, FOUNDATION ESCALERA. ESCALERA IS A CHARITY THAT RAISES FUNDS TO BUILD SCHOOLS IN REGIONS OF MEXICO WHERE FORMAL EDUCATION IS NOT PREVALENT.
We are currently building 13 schools this year in villages where illiteracy is the norm and running water is uncommon. All donations raised will be sent to a village in need, where Escalera employs local laborers to build classrooms. Before Foundation Escalera, children in the villages of Mexico did not have access to schools within four kilometers of their home. Students who did have access to these schools were oftentimes out of school for weeks at a time due to poorly built facilities. With Escalera’s presence in the area, over twelve thousand children have been given the opportunity to attend school in properly built and adequately staffed facilities. Our goal is to create a better future for children whose education is paramount to a higher quality of living.
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“The
use of miniature remote—controlled -helicopters for taking aerial photos and -video of properties is piquing interest among real estate agents.” electronically from any device. (Discounts are available to NAR members through the Realtor Benefits® Program). 4. Reversal of fortune in inventory? The complaint is widespread: Housing inventory has been stubbornly low in the past year. Well, perhaps that’s starting to change. The number of listings nationwide ticked up recently by 4.3 percent to 1.9 million homes on the market in June, according to Realtor.com®. That’s the highest monthly jump in a year, and rising home prices could persuade more sellers to throw their homes on the market in the coming months. 5. Drone photography. The use of miniature remote—controlled -helicopters for taking aerial photos and -video of properties is piquing interest among real estate agents. But it’s important to note that this marketing practice currently
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Salt Lake Realtor® September 2014
violates Federal Aviation Authority rules pertaining to the use of drones for commercial purposes. The agency is expected to release proposed rules for such use. Congress has given the FAA until September 2015 to finalize a plan. Six states have put laws on the books restricting the public and private use of drones. NAR recommends that Realtors® avoid using drones until the FAA has released clearer rules. 6. Micro apartments. In some major metropolitan areas, people are living large in smaller spaces. So-called micro apartments—which are often less than 200 square feet—are becoming popular in San Francisco, New York, Seattle, Boston, Providence, R.I., and Portland, Ore., reports CNN Money. But it’s not only those justout-of-college grads flocking to these tiny units. In some “micro buildings,” the average tenant is 33 years old and makes less than $35,000 a year, according to Reuters. Graham Wood is a senior editor for Realtor® Magazine. This article was reprinted from Realtor® Magazine Online, September 2013, with permission of the National Association of Realtors®. Copyright 2013. All rights reserved.
Photo: Dave Anderton
U.S. Pending Home Sales Rise in July Existing-homes sales to be down 2.1 percent this year to 4.98 million, compared to 2013 By the National Association of Realtors® Pending home sales rebounded in July and have now risen in four of the last five months, according to the National Association of Realtors®. All major regions experienced healthy gains except for the Midwest, which saw a slight decline. The Pending Home Sales Index,* a forwardlooking indicator based on contract signings, climbed 3.3 percent to 105.9 in July from 102.5 in June, but is still 2.1 percent below July 2013 (108.2). The index is at its highest level since August 2013 (107.1) and is above 100 – considered an average level of contract activity – for the third consecutive month. Lawrence Yun, NAR chief economist, says favorable housing conditions are behind July’s higher contract activity. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 20121,” he said. “The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.” Yun adds, “More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.”
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Salt Lake Realtor® September 2014
The PHSI in the Northeast jumped 6.2 percent to 89.2 in July, and is 8.3 percent above a year ago. In the Midwest the index marginally fell 0.4 percent to 104.6 in July, and is 6.4 percent below July 2013. Pending home sales in the South increased 4.2 percent to an index of 119.0 in July, and is now 1.0 percent below a year ago. The index in the West rose 4.0 percent in July to 99.5, but remains 6.0 percent below July 2013. Yun expects existing-homes sales to be down 2.1 percent this year to 4.98 million, compared to 5.09 million sales of existing homes in 2013. The national median existing-home price is projected to grow between 5 and 6 percent this year and 4 and 5 percent next year. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. 1Total housing inventory in July 2014 was 2.37 million existing-homes available for sale, the highest since August 2012 (2.40 million). *The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The index is based on a large national sample, typically representing about 20 percent of transactions for existinghome sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.
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Housing Watch Salt Lake Home Sales Fall 10% in July; Median Price Rises 5% Home sales (all housing types) in Salt Lake County fell 10 percent in July (year-over-year) to 1,389 units, down from 1,546 units sold in July 2013.
economist. “Therefore, new home construction is still needed to keep prices and housing supply healthy in the long run.”
“Household incomes are lagging compared with strong price gains in housing,” said Angie Domichel Nelden, president of the Salt Lake Board of Realtors®. “The price increases are forcing many first-time buyers out of the market.”
Across the country, distressed homes – foreclosures and short sales – accounted for 9 percent of July sales, down from 15 percent a year ago and the first time they were in the single-digits since NAR started tracking the category in October 2008. Six percent of July sales were foreclosures and 3 percent were short sales. Foreclosures sold for an average discount of 20 percent below market value in July, while short sales were discounted 14 percent.
The median price of homes and condominiums sold in July in Salt Lake County increased to $239,900, up 5 percent compared to a median price of $228,861 in July 2013.
In Davis County, home sales in July inched up less than 1 percent with 439 sales compared to 436 sales a year ago. The median home sales price in Davis County in July remained unchanged at $220,000, the same median price in July 2013.
Yun says the deepest housing wounds suffered during the Great Recession are beginning to fully heal. “To put it in perspective, distressed sales represented an average of 36 percent of sales during all of 2009,” he said. “Fast-forward to today and rising home values are helping owners recover equity and strong job creation are assisting those who may have fallen behind on their mortgage due to unemployment or underemployment.”
Nationally, home sales in July remained 4.3 percent below the 5.38 million-unit level from last July, which was the peak of 2013, according to the National Association of Realtors®. “Rising inventory bodes well for slower price growth and greater affordability, but the amount of homes for sale is still modestly below a balanced market,” said Lawrence Yun, NAR chief
All-cash sales in July were 29 percent of transactions, down from 32 percent in June and representing the lowest overall share since January 2013 (28 percent). Individual investors, who account for many cash sales, purchased 16 percent of homes in July, unchanged from last month and July 2013. Sixty-nine percent of investors paid cash in July.
Culmultive days on the market for homes sold in July in Salt Lake County increased to 30 days, up from 17 days a year ago.
6
Sales (all housing types) Year-Over-Year (down 10%)
1,546 26
3
Salt Lake County
Salt Lake Realtor® September 2014
1,389
Salt Lake County Median Price (all housing types) Year-Over-Year (up 5%)
$228,861
$239,900
2 - C OL OR
1
Salt Lake County Days on Market (all housing types) Year-Over-Year (up 56%)
30
2
17
5
Sales $ Davis County Median Price (all housing types) Year-Over-Year (unchanged)
Pending Sales (down 2%)
1,403
1,425
4
$220,000
$220,000
Salt Lake County
Sales
Davis County Sales (all housing types) Year-Over-Year (up 1%)
439
436
Salt Lake Realtor速 September 2014
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REALTOR® Connections Q&A: Bruandie Kump Braundie Kump is a marketing representative for Magellan Title. She was the 2014 Chairwoman of the Charity Gala Committee.
Pictured: Kim Farber (Equity Real Estate- vice chairwoman), Braundie Kump (Magellan Title-chairwoman), Jamie Sacks (Coldwell Bankerchairwoman advisor)
Q: What is the history of the Charity Gala? A: This year we made a name change. The Charity Gala (aka Shrimpfest) has been around for 29 years. Shrimpfest started in the parking lot of the Salt Lake Board of Realtors® with the idea of giving to our community. Shrimpfest has turned into an amazing event which brings Realtors® and affiliates together to create a powerful event to give back to our community.
Q: Why does the Salt Lake Board of Realtors® hold this event? A: This event was created simply to give to the community we live in. By giving, we make Salt Lake City a better place to live, work and raise a family. Thanks to this event this year we were able to give nearly $20,000 each to our two main causes: The Christmas Box International and The Road Home. Q: Who benefits from the event? A: The whole community! With the money that is raised we can touch hundreds of lives each year. The Christmas Box House helps take children out of unhealthy environments and places them in a safe foster home or helps children find an adoptive parent for those in need. The Road Home provides food and shelter for hundreds of families every night. The Charity Gala allows us to provide assistance to both of these amazing foundations.
Thank You Volunteers
The Salt Lake Board of Realtors® offers a special thanks to the many member volunteers who helped at this year’s Charity Gala (formerly Shrimpfest). This year marked the 29th year of the event and included a seated dinner, live and silent auctions, and a live band. The evening benefited two ideal causes – The Road Home homeless shelter and The Christmas Box International. Nearly $40,000 in profit was raised from the Charity Gala and split evenly between the two organizations.
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On the Move Exit Realty Plus welcomes the following new Realtors®: Christal Stevens, Colleen Rushton, Dave Meadows, DeLoy Bisel, Elson Watts, Jeff Dean, Jeremy Harmon, Jessica Cone, Kay Jenkins, Malvinder Singh, Malynda Summers, Nan Mortensen, Paige Alexander, Pat Kiel, Rosalind Beard, Scott McCullough, Scott Schooley, and Stephanie Bernson. Equity Real Estate recognizes the following new Realtors® to its office: Jan Margetts, Janette Price, Steve Barton, Michael White, Kath Swaringen, Dave Royster, Tony Chambers, Kelly Kadlec, Arlee Williams, Rochelle Owens, Sam Coverston, Brent “Daniel” Tarr, Travis VanEkelenburg, Brian Ways, Jesse Smith, Brandy Chase, Craig Foutz, Jason Johnson, Bryan Bush, and RJ Peterson. TD Bank conducted a survey of residential Realtors® revealing that nearly 70 percent of Realtors® responded that lenders should provide easier access to loan programs designed to help make homeownership more affordable. The survey polled more than 150 Realtors® in the U.S. and will help lenders understand Realtors®’ perspectives surrounding the current housing environment. Findings show that 63 percent of Realtors® felt that lenders should offer more information on affordability programs. While most of the respondents were familiar with such loans, they reported that only 20 percent of their buyers are aware of affordability programs. The study also revealed that two in five Realtors® think there is a low inventory of properties for sale, and that it is harder than ever for buyers to secure a loan. Moreover, more than half of Realtors® believe buyers are compromising their wants simply to buy a home due to the low inventory.
He knows more about tech than you do. Join the Salt Lake Board of Realtors® at this year’s Tech Summit Friday, Sept. 19 Realtor® Campus Visit slrealtors.com to register
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