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Turning Houses into Homes®
Table of Contents Features 10 Improved Outlook for Home Buyers in 2024 The National Association of Realtors®
12 A New Year: What to Expect for Utah's Housing Market in 2024 Andy Dean©/Adobe Stock
Dejan Eskic
14
Congrats, Your House Made You Rich. Now Sell It
14 Congrats, Your House Made You Rich. Now Sell It Justin Lahart
16 Real Estate and Design Trends to Watch in 2024 Barbara Ballinger 22 Meet Dawn Stevens 2024 President Salt Lake Board of Realtors®
26 Mortgage Rates Cool Off, Settle in 6% Range Melissa Dittmann Tracey
Columns Turning Failure into The Building Blocks of Success Dawn Stevens – President’s Message Coralimages©/Adobe Stock
7
16
Real Estate and Design Trends to Watch in 2024
Departments 8
Happenings
8
In the News
28 Housing Watch
On the Cover:
Cover Photo: jadams08 ©/Adobe Stock
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.
22 Meet Dawn Stevens, 2024 President Salt Lake Board of Realtors®
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slrealtors.com 4 | Salt Lake Realtor ® | January 2024
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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Laura Fidler Summit Sotheby's (Draper)
President Dawn Stevens Presidio Real Estate (Canyons)
Jenni Barber Berkshire Hathaway
First Vice President Claire Larson Woodside Homes of Utah LLC
J. Scott Colemere Colemere Realty Assoc.
Second Vice President Jodie Osofsky Summit Sotheby's
Chris Anderson Windermere Real Estate - Utah
Treasurer Amy Gibbons KW South Valley Keller Williams Past President Rob Ockey Berkshire Hathaway
Morelza Boratzuk RealtyPath (South Valley) Michael Rowe CB Realty (SL-Sugarhouse) Eric Santistevan Engel & Volkers (Holladay)
CEO Curtis Bullock
Hannah Cutler CB Realty (Union Heights)
DIRECTORS
Michael (Mo) Aller Equity RE (Advantage)
Janice Smith CB Realty (Union Heights)
Linda Mascher Realtypath LLC (Advisors)
Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com
Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Patrick Witmer
Sales Staff Paula Bell Dan Miller
Office Administrator Cynthia Bell Snow 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®.
Turning Failure into The Building Blocks of Success I trust this message finds you in good spirits as we commence a year full of potential and challenges. As the newly elected President of the Salt Lake Board of Realtors®, I’m thrilled to convey my heartfelt greetings to all members of our esteemed community. Nine years ago, as chair of the Shrimpfest event, I raised $63,000 for the Road Home Shelter, feeling unstoppable. This success spurred me to apply for a director role at the Salt Lake Board of Realtors®. During the nomination process, I was taken aback when the 2013 President, Dave Frederickson, told me I wasn’t ready. This feedback, initially disheartening, prompted me to introspect and seek growth opportunities. This journey brought me to a CRS meeting, where a twist of fate and a playful round of rock-paper-scissors surprisingly resulted in me becoming the Utah CRS President. This position marked my initial venture into leadership, presenting numerous challenges and avenues for growth. The takeaway is straightforward: Treat failure as a foundation for success. Dave was correct; I wasn’t prepared at the time. I extend my gratitude to Dave for his candor, which paved the way for my development and readiness. I am passionate about fostering a culture of active engagement within our association. Your participation in committees, educational sessions, and networking events is essential to our collective growth. By embracing challenges and opportunities together, we will elevate our profession to new heights. Remember, the secret to success often lies in the tasks we avoid. Mistakes and failures are invaluable; they offer lessons and pathways to achievement. I encourage each of you to step out of your comfort zones. It’s okay to make mistakes. Strive to do more, improve, and support your fellow Realtors®. Your input is crucial. I welcome your feedback and suggestions and encourage open dialogue. Let’s work together to continuously improve and adapt our services to better support our members and the community. Thank you for your trust and support. I am excited to collaborate with you in the coming months. Together, we will embark on an inspiring journey and write a new chapter in the history of the Salt Lake Board of Realtors®.
Dawn Stevens 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
January 2024 | Salt Lake Realtor ® | 7
Happenings
In the News Surge in New Construction Offers More Opportunities in 2024 Existing-home sales posted a slight gain in November, breaking a streak of five consecutive monthly declines and foreshadowing what is expected to be a more favorable real estate market in 2024.
Also pictured: Megan Beckstrom, Realtor® representing the Freis, and Shayne Mosher (right), Realtor® with Destination Homes.
Have Your Clients Applied for The American Dream Grant? Rachel and Gabriel Frei (left) were recently awarded $7,500 by the Salt Lake Board of Realtors® as part of the American Dream Grant initiative. The Board’s Charity Committee started the program in 2019 to help firsttime homebuyers with their down payments. The monies come from participating brokerages off interest bearing trust accounts. By law, the interest must be used for affordable housing purposes. In 2024, the Board will award 18 grants. Visit www.slrealtors.com/American-dream-grantprogram for more information on how to apply.
Source: Clever Real Estate
FSBOs Say They Regret Not Using an Agent Homeowners who choose not to use a real estate agent to sell their property are twice as likely to report dissatisfaction with the selling experience, according to a new survey from Clever Real Estate. This survey included 1,000 home sellers from 2022 and 2023. Respondents indicated that they likely made less money on their home sale and faced more stress by not having a professional representative. Those who sold without a real estate agent typically sold their home for $46,603 less than those who sold with an agent in 2022 and 2023. About half of the unrepresented sellers expressed regret over how they priced their home, and nearly half now believe their home would have sold for more if they had used an agent. 8 | Salt Lake Realtor ® | January 2024
The National Association of Realtors® reported that existing-home sales, which are completed transactions for single-family homes, townhomes, condos and co-ops, rose 0.8% in November. That figure is likely to grow in the coming months as borrowing costs fall, according to NAR Chief Economist Lawrence Yun. Mortgage rates averaged 6.62% as of Jan. 4 after reaching nearly 8% last fall. Home buyers continue to face limited options on the market, and many homeowners who locked in ultralow mortgage rates in recent years remain reluctant to sell. That’s helping to keep housing inventory at historical lows. Total inventory in November was down 1.7% month over month but was up 0.9% year over year. With existing inventory so low, homebuilders are ramping up construction to woo more buyers. Single-family home construction surged 18% in November compared to the prior month and was up 42% compared to a year earlier, the Commerce Department reported. New-home sales have risen this year despite higher mortgage rates this fall. Builders have been offering more incentives, such as buying down interest rates or offering co-op commissions to buyer’s agents, Yun said. “Lower interest rates and a lack of resale inventory helped to provide a strong boost for new-home construction in November,” said Alicia Huey, chairperson of the National Association of Home Builders. “And while these higher starts are consistent with our latest builder survey, which shows a rise in builder sentiment and future sales expectations, home builders continue to contend with elevated construction and regulatory costs.” Still, home builders are forecasting a 4% increase in single-family starts in 2024, banking on expectations that mortgage rates will fall lower and inflation will drop in the new year, says Robert Dietz, the NAHB’s chief economist. “Even more homebuilding will be needed with the housing shortage persisting in most markets,” Yun said. “Another 30% rise in home construction can easily be absorbed in the marketplace, especially in light of the plunge in mortgage rates in recent weeks.”
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Improved Outlook for Home Buyers in 2024
Austin, Texas named top real estate market with most pent-up housing demand next year. By The National Association of Realtors® Lawrence Yun, chief economist for the National Association of Realtors®, forecasts that 4.71 million existing homes will be sold, the housing market is expected to grow, and Austin, Texas will be the top real estate market to watch in 2024 and beyond. Yun unveiled the association’s forecast on Dec. 12 during NAR’s fifth annual year-end Real Estate Forecast Summit: The Year Ahead. 10 | Salt Lake Realtor ® | January 2024
Yun predicts home sales will begin to rise next year – by 13.5% compared to 2023, and the median home price will reach $389,500 – an increase of 0.9% from this year. “Metro markets in southern states will likely outperform others due to faster job increases, while markets in the Midwest will experience gains from being in the most affordable region.”
Top 10 Real Estate Markets with the Most Pent-Up Housing Demand in 2024 NAR identified 10 real estate markets with the most pent-up housing demand, which it expects to outperform other metro areas in 2024. In order, the markets are as follows: 1.
Austin-Round Rock-Georgetown, Texas
2.
Dallas-Fort Worth-Arlington, Texas
3.
Dayton-Kettering, Ohio
4.
Durham-Chapel Hill, North Carolina
5.
Harrisburg-Carlisle, Pennsylvania
6.
Houston-The Woodlands-Sugar Land, Texas
7.
Nashville-Davidson-Murfreesboro-Franklin, Tennessee
8.
Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware-Maryland
9.
Portland-South Portland, Maine
10. Washington-Arlington-Alexandria, D.C.Virginia-Maryland-West Virginia “The demand for housing will recover from falling mortgage rates and rising income,” Yun said. “In addition, housing inventory is expected to rise by around 30% as more sellers begin to list after delaying selling over the past two years. The selected top 10 U.S. markets will experience faster recovery in home sales.”
Woraphon©/Adobe Stock
Yun expects rent prices to calm down further in 2024, which will hold down the consumer price index. He predicts foreclosure rates will stay at historically low levels in 2024, comprising less than 1% of all mortgages. Yun forecasts that U.S. GDP will grow by 1.5%, avoiding a recession, with net new job additions slowing to 1.7 million in 2024, compared to 2.7 million in 2023 and 4.8 million in 2022. After eclipsing 8% in late 2023, he expects the 30-year fixed mortgage rate to average 6.3% and that the Fed will cut rates four times – calming inflationary conditions – in response to slower economic activity. Yun also foresees 1.48 million housing starts in 2024, including 1.04 million single-family and 440,000 multifamily.
NAR selected the top 10 real estate markets with the most pent-up housing demand in 2024 based on how they compared to the national level on the following economic indicators: 1) more “returning” buyers; 2) lower home price appreciation; 3) more renters who can afford to buy the median-priced home; 4) more potential sellers; 5) a larger decrease in remote workers; 6) more affordable listings for first-time buyers; 7) stronger job growth; 8) faster income growth; 9) most high-earner millennial renters moving into the area; and 10) lower violent crime rate. To view NAR’s Markets with the Most Pent-Up Housing Demand report, visit nar.realtor/research-and-statistics/ research-reports/markets-with-the-most-pent-uphousing-demand. This and all forecast summit materials – including a video recording and Yun’s presentation slides – will be available at nar.realtor/events/nar-realestate-forecast-summit. The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics.
January 2024 | Salt Lake Realtor ® | 11
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A New Year: What to Expect for Utah’s Housing Market in 2024 The Fed is done hiking interest rates, or at least it seems that way, and Wall Street is signaling a 75-basis point rate cut by the end of 2024. By Dejan Eskic Chief Economist Salt Lake Board of Realtors® After three eventful years, will the housing market in 2024 be different? I believe it will. The 2022 housing market was tumultuous, marked by extreme conditions, while 2023 was a year of reckoning, with mortgage rates briefly surpassing the 8% mark. For 2024, the term I’d use is “back to baseline.” The economy in 2023 exceeded expectations; the anticipated recession never materialized. This occurred against the backdrop of the most aggressive interest rate hikes in history, aimed at curbing runaway inflation. With inflation now around 3% and trending downward, and no significant job losses, the outlook for 2024 is more positive than it was six months ago. Housing demand and pending sales hinge on mortgage rates, which in turn are influenced by the 10-year treasury yields. As treasury yields rise, mortgage rates 12 | Salt Lake Realtor ® | January 2024
increase, leading to a decline in sales; the reverse is also true. For context, over the last decade, the 10-year treasury yield typically hovered around 2.5%, but in recent months, it has reached mid-4% and even briefly hit 5%. Consequently, mortgage rates soared, and purchase applications dropped to generational lows. The Federal Reserve seems to have halted rate hikes, and Wall Street predicts a 75-basis point rate cut by the end of 2024. Mortgage rates are expected to decrease but remain around the mid-6% range. However, if economic data deteriorates, the 10-year yield could fall further, potentially bringing rates into the high-5% range. Expectations are optimistic, particularly given the upcoming election year, which historically sees better economic performance. I anticipate less fluctuation in mortgage rates, which, coupled with a decrease, should positively impact sales numbers. Regarding housing prices, it’s surprising how resilient
they have been. Despite predictions of a crash in 2020, 2021, 2022, and 2023, the market has remained stable. Even with rates in the high-7% range for much of 2023, housing prices have held steady, showing a 1.1% increase from the previous year in November. For 2024, I foresee little change in prices from 2023, mainly due to historically poor affordability. As of October, only 20% of Utah households could afford a median-priced home. Unless rates drop to the 4% range, I don’t anticipate significant price increases. Inventory is likely to improve in the new year, but I still expect it to remain below pre-pandemic levels. Remember, 72% of Utah homeowners with a mortgage have a rate below 4%. The challenge lies in
unlocking existing homeowners’ equity to transition them to suitable housing without increasing their monthly payments. As rates drop, more homeowners will likely become sellers, and remember, sellers are often also buyers. The 2024 Legislative Session is set to be a landmark year for housing policy and funding. Governor Cox has announced plans to expand funding and build 35,000 starter homes in the coming years. These goals are underpinned by significant policy changes in zoning and off-site construction. While the next 12 months will still pose challenges, Utah needs to construct approximately 170,000 new housing units by 2030 to meet demand.”
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January 2024 | Salt Lake Realtor ® | 13
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Congrats, Your House Made You Rich. Now Sell It Lots of baby boomers are going to sell their homes in the years ahead. The trick is to beat the crowd. By Justin Lahart
Forget the old slogan about there never being a better time to buy a home. For baby boomers, there might never be a better time to sell. The kids are gone, the stairs aren’t going to get easier to climb, and downsizing with home prices up so sharply since the pandemic could pad out those retirement savings. Many boomers have little or no debt on their current homes and, as an added bonus, it is easy to find ready buyers with so few homes on the market. The key is beating the crowd. If boomers decided to sell en masse, the prices they would get would be a lot lower than what their home appears to be worth on paper today. Even if they can avoid it now, most are going to have to sell in the years ahead. That could put downward pressure on the prices of the types of homes they live in. Then it might not be a good time to sell anymore. 14 | Salt Lake Realtor ® | January 2024
Ever since they began buying homes in the 1970s, boomers’ effect on the U.S. housing market has been profound. Because it was much more populous than the so-called silent generation that preceded it, the baby-boom generation — typically defined as those Americans born from 1946 to 1964 — drastically increased the country’s need for homes. Construction ramped up, suburbs spread and home prices rose. Many boomers didn’t stop with their first home, either, opting to move into ever larger, more expensive homes as their families, and wealth, grew. Helping the process along: Through much of their prime earnings years, mortgage rates went lower and lower. In the years before the pandemic, this dynamic appeared to be shifting. An analysis from International Monetary Fund economist Marijn Bolhuis and Harvard University lecturer in economics Judd Cramer
conducted just before Covid-19 hit, showed that the larger homes that many boomers owned, and for homes in neighborhoods with more boomers in them, price growth and sales were underperforming other types of homes. Then everything changed. A newfound desire for living space among younger generations, sub 3% mortgages and the boost to household balance sheets from government relief pushed demand and prices for homes — particularly those in the suburbs — skyward. And even as the pandemic faded, those price gains stuck: As of August, the S&P CoreLogic Case-Shiller national home price index was 46% above its February 2020 level. Time marches on, though, and the desire and ability of the Generation-X and millennial cohorts to ladder up into the homes the boomers will eventually vacate might be constrained. The apparent preference many millennials, in particular, had for more urban lifestyles might have gone by the wayside. But they aren’t having as many children as boomers did, reducing the need for those extra bedrooms. Moreover, millennials and Gen Xers who are already homeowners typically still owe money on their homes at mortgage rates that are much lower than what is on offer today. Moving into a more expensive home and having to pay even more interest each month won’t work for them. Meanwhile, younger millennials and other first-time buyers are typically looking for less expensive, starter homes. A boomer selling wave won’t happen all at once, though. People are healthier in their old age than they used to be, and relative to the generations that both
preceded and succeeded them, boomer balance sheets are in good shape. Having spare bedrooms for when the grandchildren and the grandchildren’s parents come to visit ain’t a bad thing. “They don’t feel the pressure to move at this point,” said Cramer. The idea of “aging in place” is easy to like, but accomplishing it might not prove so easy. For some boomers, the reasons to sell, either for financial or health reasons, will come sooner rather than later. When that happens, they will need to not only find someone to buy their old house, they will need to find someplace to move into. Jennifer Molinsky, who directs the Housing an Aging Society Program at Harvard’s Joint Center for Housing Studies, thinks there won’t be a “great senior selloff” in the housing market, but she worries about where aging boomers are going to live. Many people over 75 don’t have the financial wherewithal to move into assisted living, and the supply of age-appropriate homes is limited. Even now, rather than aging in place, many older boomers might be more accurately described as stuck in place. “Smaller, accessible stuff is hard to find,” she said. Housing bottlenecks could ensue as more big homes come on the market, and the supply of smaller, accessible ones strains to meet demand. Boomers who are able to make the move now could be happier for it. Write to Justin Lahart at Justin.Lahart@wsj.com. Reprinted by permission of The Wall Street Journal, Copyright © 2023 Dow Jones & Company, Inc. All Rights Reserved Worldwide. License number 5702211405679.
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January 2024 | Salt Lake Realtor ® | 15
Real Estate and Design Trends to Watch in 2024 From ecosystem conservation to “new” darker neutrals in exterior paint, we look at the trends set to take hold in the industry next year. By Barbara Ballinger Staying abreast of what’s new and innovative in design and real estate is important, not to be trendy but to learn about innovative materials, systems and products to live more sustainably and benefit the planet. Also, new uses for rooms can maximize square footage and our surroundings to add joy to our lives. The following 10 trends are worth considering since they can positively influence whether homeowners reside in single- or multifamily housing.
Homeowners Are More Apt to Stay Put With interest rates for a 30-year fixed mortgage still high, home prices holding steady and inventory still low, many homeowners plan to stay put, optimizing or expanding their existing square footage. Laurel Vernazza, Home Design Expert at The Plan Collection— Scarsdale, N.Y.-based company that sells pre-drawn plans—said that for those with no plans to move, the wish list includes: 16 | Salt Lake Realtor ® | January 2024
• • • • • • •
Sustainable features Accessory dwelling units as zoning laws change Pickleball courts Remodeled basements with saunas Media centers and game rooms Home offices as working from home continues Outdoor space, not just at ground level but above as well • AI-driven technology to make homes easier to use and more energy-efficient Why now? Homeowners want to be active but decrease maintenance and energy consumption. They favor sustainable materials sourced locally to pare carbon footprints and support local businesses, which is especially true for millennials and Generation Z. Many materials reflect better waterproofing, and garages may have room for battery back-up systems if power goes out, said architect Jonathan Boriack, AIA, LEED AP, principal with KTGY in Oakland, Calif.
kitti©/Adobe Stock
Specialized Needs for an Aging Population Architectural firms like The Architectural Team (TAT) outside Boston are designing facilities for specialized needs, such as The Cordwainer, which will have private and double rooms and a host of amenities including a two-story atrium, performance center, game room to stimulate the brain, and memory care garden. The bedrooms will be divided between two neighborhoods so residents can safely wander, said TAT architect Anthony Vivirito. Also critical is light to help with
circadian rhythms and mood. “Biophilic elements and the focus on unique spaces for invigorating activities and entertainment required stepping away from traditional practices,” said Tamilyn Liesenfeld, president and CEO at Anthemion Senior Lifestyles, which owns and operates The Cordwainer in Norwell, Mass. Why now? With aging boomers numbering 76.4 million, more attention is paid to their housing needs when they can’t stay at home, which includes many of the estimated 6.7 million who have Alzheimer’s disease.
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January 2024 | Salt Lake Realtor ® | 17
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Smaller Single-Family Homes and More Townhomes Variety is the spice of homebuilding. Currently, homes are shrinking in size(link is external), with the median for single-family houses at 2,261 square feet and the mean square footage of new single-family homes down to 2,469, according to the National Association of Home Builders. One of the most popular styles is the ranch house. The style also offers the flexibility to be opened up indoors and to the outdoors, according to Vernazza. Attached townhomes and stacked flats have gained popularity due to the need for smaller square footage in dense sites, said Boriack. Why now? The main reasons(link is external) for smaller single-family homes are high mortgage rates and lifestyle changes that favor fewer bedrooms. As far as townhomes and stacked flats are concerened, the economics of for-sale property works with current market finances more for developers than rentals do. Land shortages make attached and stacked units smart choices. Bigger Apartments At the same time that single-family homes are shrinking, apartments are increasing from an average of 870 square feet before the pandemic to closer to 1,000 square feet, said architect Sean M. Stadler, FAIA, LEED AP, a managing principal with WDG Architecture’s Washington, D.C. office. Why now? Many renters want more space to work from home and favor more bedrooms, if they can afford, Stadler said.
Homeowners Want Sustainable Energy Use Sustainability isn’t going anywhere. In fact, it’s growing in popularity, and received a boost in January 2023, when the Department of Energy(link is external) announced federally backed incentives to help builders make DOE-certified Zero Energy Ready Homes their standard. An example of a builder focused on both 18 | Salt Lake Realtor ® | January 2024
energy efficiency and lower construction waste is Netze Homes, based outside Dallas, which uses steel that it recycles from cars. It claims its houses are 20 times stronger than those built from wood. Since the frame is built in a factory to exacting specifications, the homes are tighter and the resulting lower air exchange makes them more efficient. Why now? Sustainable homes do a better job of withstanding extreme weather, are fire-resistant, and curb termite damage, wood rot and mold. Energyefficient homes help residents save up to 35% on their electric bills and cut 40% of waste since the frame is formed in a factory. These homes have lowered carbon emissions by 50% against the industry average, proponents said.
Luxury Spec Building Demand is on the Rise The demand for spec luxury houses and townhomes continues, particularly in South Florida, according to J.C. de Ona, president of the southeast division of Centennial Bank. Waterfront sites are particularly desirable. “Some demand may have softened so that there now may be 10 to 20 buyers rather than 100 at a house, but it’s still strong and prices remain up,” he said. Favored features include a modern design with flat roofs, wood detailing, a pool, an open plan and beautiful kitchens, he said. Why now? After slowing from 2012 to 2014, spec building has picked up, due to an uptick in migration. Jose R. Boschetti Jr., managing partner of The Boschetti Group in South Miami, Fla., also sees demand from buyers wanting a minimalistic design and maintenancefree living with artificial turf, porcelain floors, smart features and pools in close proximity to the house to maximize indoor/outdoor connection.
An Abundance of Multifamily Amenities in Small Buildings People are still looking for features in smaller buildings, said architect Joshua Zinder of Joshua Zinder
Coralimages©/Adobe Stock
Architecture + Design in Princeton, N.J. His four-story, six-unit, mixed-income building, Nelson Glass House, reflects the trend of “amenity creep” that has “percolated down to smaller buildings,” he said. Units have terraces, shared parking, bike storage, “Zoom rooms” for online meetings and a ground-level coffee shop. “Having just a good location doesn’t cut it anymore,” he said. Other popular amenities, he said, are a grocery store, pet trail, package center, and lounge and lobby for interaction— sometimes with classes—and electric vehicle charging stations. Some buildings use amenities like EV stations to add revenue, according to Swtch Energy, an EV charging solutions provider that works with multi-tenant properties. Many buildings add programming through a property management company like FirstService Residential, said Katie Ward, the company’s regional president for Texas. The trend has evolved that property management doesn’t just plan space but creates a culture to tailor connections to needs through events, she said. Why now? Amenities allow smaller buildings to compete with bigger ones, retain residents and attract newcomers, said Stadler. One challenge is having amenities that are appealing when a building opens, since the timeline for delivery may be five years.
A Continued Focus on the Kitchen The kitchen remains the heart of the house with old trends in force along with new ones gaining traction, said designer Mick De Giulio of de Giulio Kitchen Design outside Chicago. Induction cooktops continue to increase in number, in part because new homebuilding regulations in certain municipalities require phasing out gas ranges for safety and sustainability, according to The Plan Collection. De Giulio said an organized, walk-in pantry; more light through big windows or LEDs in warmer colors; artisan and hand-crafted features such as hand-scraped wenge wood; and a mix of materials like German silver, stainless with special finishes, and bronze are popular, as well as the island. Why now? In most cases, the kitchen is one of the most used, most seen rooms in a home. People are still eager to congregate in the kitchen, and within the space, certain trends stand out. A kitchen redo makes sense since, if it’s done well, it can last 30 years, though appliances may need to be replaced along the way, De Giulio said.
Natural, Native Landscaping as a Priority Whether in communities or private backyards, homeowners want to conserve ecosystems. In smaller January 2024 | Salt Lake Realtor ® | 19
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homeowners can create a space that meets needs and supports wildlife. Why now? Such communities bring together features that reflect homeowner interest in conservation, and the scarcity of land makes this viable. Likewise, homeowners are aware of their impact on their environment and the need to protect wildlife. Any little bit helps, Peters said—installing a birdhouse or water feature or using native plants and grasses makes a difference.. She advises against cultivars, which do not always serve pollinators.
“New” Neutrals for the Exterior
R. Ken Magleby
communities, even in urban settings, variations of the conservation community or “agrihood,” like Pendergrast Farm in Atlanta, are emerging. The 20 energy-efficient, solar panel–ready homes, wired for EV charging stations, will have a Home Energy Rating System rating of 50 that will use 50 percent less energy than comparable new homes. Seventy percent of its land will be preserved for woods and a working farm. In private backyards, “rewilding” uses native plants to create habitat. Hillary Peters with Mariani Landscape in Lake Bluff, Ill., said this trend is popular among clients who are interested in restoring ecosystems and biodiversity. By bringing native plants to a landscape, 20 | Salt Lake Realtor ® | January 2024
Neutral colors are more popular, said residential and commercial color consultant Amy Wax in Montclair, N.J. “They are a safe choice, offer the opportunity to decorate a home with more emphasis on landscaping, give homeowners the chance to market their home without having to repaint and are not the subdued hues of the past,” she said. Many neutrals are even darker, such as midnight blue, charcoal gray and true black for drama. Why now? Dark exterior accents express confidence with a bold street presence. Adding a periwinkle blue front door or taxicab yellow or hot pink accent is fair game. Durability should be weighed since darker colors may fade, so it’s best to apply paint with a subtle sheen to protect surfaces. Reprinted from Realtor® Magazine Online, December 2023, with permission of the National Association of Realtors®. Copyright 2023. All rights reserved.
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22 | Salt Lake Realtor ® | January 2024
Meet Dawn Stevens 2024 President Salt Lake Board of Realtors® How did you get your start in the real estate profession?
What qualities and strengths do you bring as president to the association?
Living in Florida, a real estate attorney state, I worked as a paralegal for a law firm that held the contract for Freddie Mac and their foreclosed properties. We were one of three firms that handled all the REO (real estate owned) properties for the entire state. I filed the Notices of Default (NODs), conducted the title searches, cleared all the liens, and compiled all the paperwork necessary for settlement to the new owner. This included actually typing the closing statements on a typewriter (yes, I’m that old).
I am not a follower and tend to think outside the box, always ready to ask the hard questions. I value the collaboration and open discussions we have with our Board of Directors. Through these discussions, we collectively arrive at answers and solutions that better serve our Realtor® community.
How long did it take you to sell your first house? While working for the law firm and handing out checks to agents at the closing table, I quickly realized I could do what they were doing, but better. I attended night real estate school after my paralegal job (as there were no online courses at that time), passed the test, and immediately quit my job. My husband asked me to beg for my job back. I asked him to give me 30 days to see what I could do. Every day he would call me and ask, “Did you sell a house today?” On day 22, I was eager for him to ask me the same question he had been asking every day, but he didn’t. I prompted him, “Okay, you need to ask me. Please, ask me.” He responded, “Did you sell a house today?” I said no. He looked confused and asked, “Why did you want me to ask you then?” Grinning ear to ear, I responded, “Because I sold two homes today.” I never looked back. What are your goals as president? My goal as your new president is to raise awareness of current issues related to Division compliance, education, and current market trends. We need to foster an inclusive agent community where we can all learn from each other and help each other become better agents. I envision a day where there are no division complaints filed, except for those involving very nefarious offenders. I would encourage every agent to pick up the phone and call their fellow agent when they notice them making a simple mistake, often due to a lack of awareness. We need to support each other and elevate the Realtor® image, one good deed or phone call at a time. I am also a strong advocate for establishing a mandatory Broker Continuing Education (CE) class, like the mandatory agent class, to educate our brokers. This will enable them to teach and mentor our agents more effectively, thereby better serving the public.
What do you say to critics who diminish the role of a Realtor®? I am reminded of the commercial that asks: Why would you hire a teacher to fill a cavity? Why would you hire a plumber to file your taxes? Similarly, why would you entrust one of the largest investments of your life to anyone other than a professional Realtor®? We only know what we know, and there is so much that a buyer or seller may not understand about the buying and selling process. As someone who is passionate about learning, I am always thrilled to see Realtors® invest in themselves and earn designations to better educate their clients. We provide immense value to the public, and the more educated our agents are, the better service we can offer to our clients. What’s a common mistake real estate agents make? How can they avoid it? I recently received a citation from the Utah Division of Real Estate for a lapse in compliance, specifically related to a social media post where my brokerage name was not precisely mentioned. Notably, the Division does not provide detailed documentation outlining the infraction. Despite my background in paralegal work and emphasis on due process, my efforts to contest the citation were unsuccessful. The Division contended that the wording of the post, which stated, “Presidio Canyons Luxury Real Estate” instead of the exact registered name “Presidio Real Estate – Canyons,” was misleading to the public. Despite my argument that the public could not discern the difference between “Presidio Real Estate –Canyons” and “Presidio Canyons Real Estate,” the Division insisted on strict adherence to the registered name. This raises an interesting point about perspectives on such matters. While one could argue that the public may not scrutinize brokerage names to this level of detail, the Division’s standpoint is clear, emphasizing the importance of compliance. I share this experience not only as a cautionary tale but also to highlight the importance of familiarizing ourselves with the January 2024 | Salt Lake Realtor ® | 23
administrative rules governing real estate marketing, websites, and social media. Understanding and adhering to these rules is crucial to avoid similar pitfalls.”
What is your outlook for the Salt Lake housing market in 2024? It’s an election year, and regardless of which side of the political fence you are on, the government will do its part to make the economy appear like it’s all rainbows and butterflies. Interest rates are likely to drop, and a buyer frenzy may begin due to a lack of inventory and an increased ability for buyers to purchase. This increase in demand may cause home prices to rise once again. What qualities separate an average agent from an exceptional one? As previously mentioned, Realtors® who invest in themselves by obtaining additional designations, certifications, and NAR endorsements distinguish themselves from an average agent. As the Commitment to Excellence (C2Ex) Ambassador for the State, I emphasize that this endorsement is free and demonstrates to the public that your excellence is a result of going the extra mile. It’s about being precise, being a part of the solution, developing a can-do attitude, and making an effort to better educate your clients. What advice would you give to new agents just starting in the business? Focus on education, obtaining designations, endorsements, and committee involvement. Get involved with the Board’s committees. We have several committees – you can find details on the SLBR calendar. See when they meet and make sure to attend! This is how you get to know other agents, stay updated with industry news, and learn about community developments. Knowing the other agent on the other side of a transaction can be a game changer.
24 | Salt Lake Realtor ® | January 2024
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Mortgage Rates Cool Off, Settle in 6% Range Borrowing costs have fallen over the last two months. By Melissa Dittmann Tracey Mortgage rates are ringing in the new year much lower than their near-8% peak this past fall. The 30-year fixedrate mortgage has decreased for the past nine weeks, though breaking for a slight uptick this week to reach 6.62%, Freddie Mac reported. “The overall trajectory of mortgage interest rates in 2024 is expected to decrease,” said Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “While mortgage interest rates ease, 26 | Salt Lake Realtor ® | January 2024
there will be weekly shifts in the average rate. As home buyers move forward into the spring market, staying closely attuned with a mortgage broker can help them navigate the best rate.” At this week’s rate of 6.62%, a monthly mortgage payment for a $400,000 home would translate to $2,048, Lautz said. That is considerably lower than in the fall, when a rate of 7.12% translated to a monthly mortgage payment of $2,221.
"NAR is predicting that the 30-year fixed-rate mortgage will average 6.3% in 2024." Between late October and mid-December 2023, the 30-year fixed-rate mortgage plummeted more than a percentage point, said Sam Khater, Freddie Mac’s chief economist. “Given the expectation of rate cuts this year from the Federal Reserve, as well as receding inflationary pressures, we expect mortgage rates will continue to drift downward as the year unfolds. While lower mortgage rates are welcome news, potential home buyers are still dealing with the dual challenges of low inventory and high home prices that continue to rise.” NAR is predicting that the 30-year fixed-rate mortgage will average 6.3% in 2024.
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Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 4: 30-year fixed-rate mortgages: averaged 6.62%, rising slightly from last week’s 6.61% average. A year ago, 30-year rates averaged 6.48%. 15-year fixed-rate mortgages: averaged 5.89%, dropping from last week’s 5.93% average. Last year at this time, 15-year rates averaged 5.73%.
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January 2024 | Salt Lake Realtor ® | 27
November 2023 Mortgage Rates Predicted to Fall in 2024 Home sales fell slightly in November across Salt Lake County, with the median sales price remaining unchanged. In November, there were 767 homes sold in the county (encompassing all housing types), a 7% decrease from the 828 units sold in November 2022. The median sales price of all homes sold was $500,000, consistent with the median price from a year earlier. Single-family home prices settled at $568,250, marking a 1% decrease from $572,000 in November 2022. Prices for multi-family homes fell to $402,700, a 1% drop from $405,000 last year. In neighboring Davis County, home sales declined by 5% to 217 units sold in November. The median sales price for the month increased by 5% to $499,000, up from $476,000 a year earlier. The decline in home sales over the past 18 months is largely attributed to higher mortgage interest rates. During this period, rates reached a high of 7.79% for the week of October 26, according to Freddie Mac. Since then, rates have fallen, with the 30-year fixed-rate mortgage averaging 6.62% for the week of January 4. Three years ago, the average mortgage rate was 2.65%. “Between late October and mid-December, the 30-year fixed-rate mortgage plummeted by more than a percentage point. However, rates have since moved sideways as the market digests incoming economic data,” said Sam Khater, Freddie Mac’s chief economist. “With the Federal Reserve expected to cut rates this year and inflationary pressures receding, we anticipate mortgage rates will continue to gradually decline. Although lower mortgage rates are welcome news, potential homebuyers still face the challenges of low inventory and high home prices, which continue to rise.” The Wall Street Journal reports, “With inflation seemingly under control, the Fed has signaled potential interest rate cuts in 2024, likely around midyear. While the Fed doesn’t directly set mortgage rates, lenders typically follow the Fed’s lead. ‘Our models suggest a gradual, steady decline,’ says Danielle Hale, chief economist at Realtor.com.” In November, properties in Salt Lake County typically remained on the market for 31 days, down from 34 days in the same month of 2022. New listings increased by 3% year-over-year to 958 properties. However, under contract listings fell by 12% to 1,066 units, compared to 1,212 in November 2022. “The recent dip in existing home sales is a reflection of the buyer bidding process in most of October, when mortgage rates were at their highest in two decades, before the actual closings in November,” explained Lawrence Yun, chief economist for the National Association of Realtors®. “A significant change is expected as mortgage rates have recently plummeted. Home prices continue to rise, and only a substantial increase in supply will temper price appreciation.” 28 | Salt Lake Realtor ® | January 2024
“Home prices keep marching higher. Only a dramatic rise in supply will dampen price appreciation.”
Lawrence Yun Chief Economist National Association of Realtors®
Salt Lake County Local Market Update for November 2023
Source: UtahRealEstate.com
KEY METRICS
NO. OF SALES
MEDIAN SOLD PRICE
MEDIAN PRICE PER SQ. FT
NEW LISTINGS
All Housing Types Single Family Multi Family
767 544 192
$500,000 $572,500 $402,700
$239.43 $231.72 $271.51
958 597 322
$500,000 $568,250 $405,000
$242.75 $238.05 $270.31
934 641 265
0.00% 0.75% -0.57%
-1.37% -2.66% 0.44%
2.57% -6.86% 21.51%
COMPARISON TO LAST YEAR 2022
All Housing Types Single Family Multi Family
828 606 200
COMPARISON TO LAST YEAR -% DIFFERENCE
All Housing Types Single Family Multi Family
-7.37% -10.23% -4.00% NO. OF SALES
MEDIAN SOLD PRICE AUG
828 767
$500,000
-7.37%
ALL HOUSING TYPES NOV. 2022
0.00%
ALL HOUSING TYPES NOV. 2023
NEW LISTINGS
934
$500,000
958 2.57%
ALL HOUSING TYPES NOV. 2022
ALL HOUSING TYPES NOV. 2023
MEDIAN CDOM
34
31 -8.82%
ALL HOUSING TYPES NOV. 2022
ALL HOUSING TYPES OCT. 2023
ALL HOUSING TYPES NOV. 2022
ALL HOUSING TYPES NOV. 2023
January 2024 | Salt Lake Realtor ® | 29
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