The Blog House

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

According to RealtyTrac, foreclosure activity in Utah is up 10% from last month and up 104% for the year. The biggest jump from October was seen in the number of properties going to the auction [Notice of Trustee Sale(NTS)]. In October there were 277 NTS and in November there were 624 NTS. These numbers were likely a result of July’s spike in Notice of Defaults (NOD). In July, we had 892 NOD filings when we had traditionally been in the 100-200 range.

I imagine the following scenario may be at playing out in these numbers: Mr. Seller needs to sell. He puts the home on the market in the spring of 08’. But the Salt Lake market has slowed considerably by this time and he can no longer sell at the price he needs to in order to break even. So Now, Mr. Seller cannot sell the home and can no longer make payments. He stops making payments in March/April of 08’. Notice of Default is filed in July of 08′ along with 891 other NODs. In November, he gets a Notice of Trustee sale with the time and date the lender is going to hold the auction at the court house steps. Next January or February, the home will be sold at the auction. And in Feb or March of 09’ it will come on the Salt Lake Real Estate market as a REO (Bank Owned Home).

If you want to have these REOs emailed to you the day they come on the market then fill out this form and I will set you up with the automatic email for free. Be sure to fill out the price range and neighborhoods you are interested in.

All data taken from the WFRMLS. Information reliable but not guaranteed. All rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell (801) 979 6275

Salt Lake County Home Inventory November 2008

Home inventory levels are figured out by taking the number of homes on the market in a given zip code and dividing it by the number of homes sold in that zip code for the last 30 days. The answer will give you the absorption rate. Or the number of months it would take to sell the existing inventory at the current rate if no other homes came on the market.

Note: I do not include properties under contract in the calculation. And I round up for .5 and above.

Sellers Market 1-6 Months

Normal Market 6-8 Months

Buyer’s Market 8+ Months

From November 2007 to November 2008 home inventory levels remained relatively flat in Salt Lake County. November 2008 saw a average of a 14 month supply of homes while November 2007 saw a 12 month supply. This is actually good news for the market. It means that inventory levels are high but are not getting out of hand. It also means that homes are continuing to sell in Salt Lake County despite the nation’s worst housing market in decades.

*One zip code of concern is 84101. There has not been one home sale in this zip code in the last 30 days and only 1 in the last 60 days. This zip has 112 properties on the market. Most of them are downtown Salt Lake City condos in the $250,000 + price range. It is clear that buyers for these types are units are not making any moves right now. Hopefully the church is taking this into account when planning price ranges for its condos at the City Creek Development.

Utah Notice of Defaults October 2008

Unfortunately,
Realty Trac reports that the Notice of Defaults for Utah returned to
their July high with 889 filings, 3 filings shy of July’s 892 filings.
Given the lending environment, trends in other states, and this
increase in NODs, it is looking like the Salt Lake market could be at
least 9-12 months from prices bottoming out.  As a seller, pricing
right in order to avoid chasing the market is key.  As a buyer, take
your time and get signed up for automatic emails so you can track the
market.  By filling out this form , you can get customized automatic
emails of the type of home you want.  Some of the most popular searches
are REOs and Short Sales .  This means the system will autmatically send
you all the REOs and Short Sales in your price and and in the
neighborhood you would like.   This easy way to track the market will
have you on top of the best deals when the come on the market.

All data taken from the WFRMLS. Information reliable but not guaranteed. All
rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell
(801) 979 6275

Utah Notice of Defaults September 2008

Notice of defaults continued their upward trend after a August lull with 574 default filings for the month of September. Although this is a relatively high number, it is still less than July’s dramatic jump to 892 filings. We can expect a portion of these loans to end up as foreclosures on the Salt Lake Market. Given the foreclosure time line, it is likely we will see a surge in foreclosures in Spring 2009

All data taken from the WFRMLS. Information not guaranteed. All
rights reserved Mark Alder ©, a Salt Lake City Real Estate Agent cell
(801) 979 6275

The WFRMLS just released the 3rd Quarter 2008 market numbers. For a year over year comparison:

Single Family

1) Total units sold 2459. ↓ 12%

2) Average sales price $286,461. ↓ 7.49%

Condos

1) Total units sold 633 ↓27%

2) Average sales price $191,076 ↑ 1%

County Totals

1) Average time on market 68 days. ↑ 88%

2) Average asking price $336,110 ↓6%

The current market offers a smorgasbord of deals for the
buyer with money to put down, good credit, and patience. For first time homebuyers or those struggling
with down payment and credit issues, your best bet is still going to be going FHA with a normal seller situation. But for those with something to bring to the
table, there is plenty to choose from.
Below is a sampling of the types of deals available and the benefits and
risks of each.

REO
REO stands for Real Estate Owned property and it is property
that is owned by the bank. REOs are
properties that have already been through the foreclosure process, to the
auction, and are now offered back on the market. Banks will hire REO specific real estate
agents to help them sell these properties.

Pros
Often can get a good price below market value. Banks want to close quick on
these properties to get them off their books.
Cons
The homes can be trashed and banks want you to sign an “as is”
addendum so you get no warranties.

Short Sale
Short Sales are properties where the seller owes more than
the property is worth. Instead of
bringing money to the closing table in order to get out from under the property, the seller may be able to sell the
home “short” or for less than it is worth.
This is where the buyer comes in and picks the home up at a discount
often at 70%-80% of market value. The key here is getting the bank to agree.

Pros
Below market value.
Cons
These things can take forever. The bank is not excited about taking a loss
and is in no hurry to accept offers and close.
That is why it is imperative that the agents on both sides of the
transaction prepare the paperwork as meticoulously as possible to encourage the
mitigation companies at the banks to accept the offers and close.

The Auction
You buy at the auction when a trustee fulfills his legal
duty as part of the foreclosure process and offers the property for sale at a
public auction to the highest bidder.
This can be a quick way to get a great deal. But I would not do it alone the first time. I recommend Vestus.com for help with this.

Pros
Quick way to get a good deal on the property. Also a clean way to get title since all
junior lien holders lose all interest to the property when it is sold at the
auction
Cons
There is high risk here because you don’t get time to do
your due diligence. Make sure you know
what you are buying before you go to the auction and start making bids

Pre-Foreclosure
In a pre-foreclosure deal, you negotiate directly with the
seller to purchase the property from them before the property is foreclosed on
them at the auction. The seller will
need enough equity in the home to make this kind of deal work.

Pros
The seller gets out from a home they can not afford. Able to inspect property prior to purchase. Flexibility on terms.
Cons
Can take a lot of legwork on the investors/buyers side to
find the right buyer. People who are
having problems making payments are constantly contacted by buyers looking for
a pre-foreclosure deal.

If you need help getting started, contact me and I will point you in the right direction. Or if you are ready to go and want lists of short sale and/or REO properties fill out this form and indicate they type of property you are looking for. Thanks for
reading!

All data taken from the WFRMLS. Information reliable but not guaranteed. All rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell (801) 979 6275

5 Tips For Buying a Foreclosed Home

After
turning on the T.V. this week I felt like grabbing all my money and
heading for the hills. But when the dusts settles a little bit and the
panic recedes, there is going to be a ton of opportunity. And a
perfect example is REOs or Bank Owned Homes. As you can see in an article recent article on defaults in Utah, bank owned homes are expected to rise soon here in Utah. So here are 5 tips to help you make the best of the market.

5) Get Set Up With a Just Listed Auto Email
Since many of these properties are going to sell quick, you want to be the first to know about them. Click here and
indicate that you are looking for foreclosures and the area you are
interested in. then you will get homes emailed to you the day they
come on the market.

All data taken from the WFRMLS. Information reliable but not guaranteed. All rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell (801) 979 6275

September 2008 Inventory Levels

Home inventory levels
are figured out by taking the number of homes on the market in a given zip code
and dividing it by the number of homes sold in that zip code for the last 30
days. The answer will give you the
absorption rate. Or the number of months
it would take to sell the existing inventory at the current rate if no other
homes came on the market.

Note: I do not include properties under contract in the
calculation. And I round up for .5 and
above.

Sellers Market 1-6 Months

Normal
Market 6-8 Months

Buyer’s Market 8+ Months

All data taken from the WFRMLS. Information reliable but not guaranteed. All
rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell
(801) 979 6275

Notice of defaults (when a homeowner does not make mortgage
payments for 90 days) were way up in Utah
for the months of July and August. This
is likely a sign of a surge of foreclosed homes to soon hit the Salt Lake
market. As these properties work there
way through the system, many will eventually get foreclosed on. When that happens, the bank will be forced to
sell them on the open market as a bank owned home or an REO (Real Estate
Owned).

Because of the foreclosure time line, you can expect to see
many of these homes in default to hit the market sometime after the new
year. And while this is not great news
for many neighborhoods, many home buyers can take advantage of these REOs which
are often sold at a discount so the bank can get them off their books. If you would like these homes emailed to you
the day they come on the market, sign up here and indicate the neighborhood you
are interested in. Be sure to indicate
you are looking for foreclosed homes.

Utah Notice Of Defaults

All data taken from the WFRMLS. Information reliable but not guaranteed. All
rights reserved Mark Alder ©, A Salt Lake City REO Real Estate Agent cell
(801) 979 6275

Radon In Utah

The Utah Safety Council provides some very helpful
information on their website for anyone who is thinking of buying a home and is
concerned about radon.  Radon is a gas
released from uranium that is most often found in the soil and seeps into the
home.  The radon gas can get trapped in
the basement of the home and can be dangerous for those who live there.  If you are thinking of buying a home, you may
want to do a Radon test when you do your regular inspection.
 

The following chart is taken from the Utah Safety Council’s
website and it provides information about each zip in Salt Lake
and the result of short term tests.  A
short term test is one that takes less than 90 days to complete.  Anything over 4pCi/L is considered
unhealthy.  For more information please
visit the Utah Safety Council’s website and the EPA’s website .

Salt Lake County