Sunday, May 3, 2015

Utah Young, tolerant and surprising Some lessons in practical conservatism!


In March Utah’s state legislature passed a bill that banned discrimination in housing and employment on the ground of sexuality. The bill did not extend to most public services, leaving open the possibility that businesses could refuse to serve gay customers (though few do). Nor, predictably, did it apply to religious organisations. But, says Clifford Rosky, a professor of law at the University of Utah and an advocate of gay rights, it strengthened the legal protections offered to gay people and passed with a thumping majority.

In the same session, the state also passed a bill which changed many drug offences from felonies to misdemeanours and redirected money towards treatment for the mentally ill and persistent drug users. A similar policy of harm reduction is applied to homelessness. Over the past decade Utah has reduced by around 75% the number of people living permanently on the street, by giving them homes without first insisting that they quit alcohol or drugs or solve their mental-health problems. This policy was controversial, says Gordon Walker, the head of Utah’s housing division. But, he argues, because such people use the emergency services a lot, it saves money.

On immigration, the state has long been fairly tolerant—and much more so than its neighbour Arizona. In 2010, when Arizona passed a law compelling police officers to check immigration papers, Utah became the first in America to issue a special class of driving licence available to illegal immigrants who can prove their residency. That was followed in 2011 by a law which proposed to introduce state-level work permits for illegal residents: an idea ultimately blocked by the federal government, but which was meant to send a message. The state is also among 18 which allow certain illegal-immigrant students to claim in-state tuition benefits, and it enthusiastically takes in refugees under the federal resettlement programme.

Utah’s liberalism should not be overstated. This year the state passed a law reintroducing the firing squad for murderers. It has not yet accepted Obamacare’s expansion of Medicaid, the federal-state health programme for the hard-up, though it may do soon. It continually fights with the feds over environmental policies and land ownership (over half of the state is owned by the federal government). Yet Utah is different, argues Spencer Cox, the state’s young lieutenant-governor. “Our brand of conservatism is…very practical,” he says.

The clearest way in which Utah differs is in its religion. Mr Cox reckons that Mormons, long persecuted themselves, are tolerant of other people’s opinions. Because many serve overseas as missionaries, they are more open to foreigners, he says. Whether that is true or not, the Mormon church has a direct influence on the state’s politics. The sexual-discrimination bill passed largely because the church supported it, says Tim Chambless, a political scientist at the University of Utah.

Mormons also make the demography of Utah unusual. The state is 92% white; and yet, because Mormons marry young and have large families, it is the youngest state in America. It also has the lowest level of income inequality and one of the lowest poverty rates. That is partly thanks to a highly successful economic policy: it has a flat income tax of 5% and invests heavily in infrastructure. In recent years Salt Lake City, which is a more liberal, less religious place than most of Utah, has become a magnet for finance and tech companies.

Can Utah’s model be exported? Its demography, history and religion are unique. In other equally Republican-leaning places, such as Texas and the Deep South, politics is more raw and fiercely fought. Yet even if political culture cannot be exported, ideas can be. Perhaps what Utahns need is a little more missionary zeal.

Monday, March 9, 2015

Local Spots: You Should Check Out...

Local Spots: You Should Check Out...

Check out local restaurants in utah & salt lake county. If the foodie in you is always looking for great places to eat that are not only healthy & delicious but you also like to support small businesses in your community, this is the blog for you. As a growing utah based real estate brokerage we appreciate the support these businesses show us and encourage you to not only check them out but visit us when thinking about either buying or selling your home.




Thursday, January 22, 2015

5 economists forecast the 2015 housing market

Daren Blomquist is the vice president of RealtyTrac.
An exclusive roundup from RealtyTrac's 'Housing News Report'
As we ring in a new year, the “Housing News Report” asked five prominent economists to forecast what 2015 will bring for the U.S. housing market after a 2014 that was a bit of a reality check in the housing recovery following two strong bounce-back years in 2012 and 2013.
Overall, the economists we interviewed were cautiously optimistic about 2015 when it comes to home prices, home sales, interest rates and the impact of loosening lending standards that have recently been introduced by government agencies. All of them see a return of more traditional, owner-occupant buyers for the year, but not all agree which demographic those buyers will come from — millennials or older generations who either delayed a home purchase because of the housing bubble or are boomerang buyers coming back from a failed attempt at homeownership during the housing bubble.
Here’s what they are forecasting for 2015:
Quick takes:
Lawrence Yun, chief economist and senior vice president of research at theNational Association of Realtors: More buyers returning to market from improved job market conditions and a steady flow of buyers who went into the “penalty box” after a distressed property sale.
Jonathan Smoke, chief economist at realtor.com: The new 3 percent down payment products coming from Fannie Mae and Freddie Mac should have a positive impact on the market as they enable more first-time buyers who have good credit but limited assets.
Christopher Thornberg, principal at Beacon Economics: We expect sales and price appreciation to pick up steam this year. Existing-home sales should rise over 5 million and prices will accelerate some — probably close to double digits by the end of next year.
Mark Zandi, chief economist at Moody’s Analytics: New- and existing-home sales are expected to increase by as much as 20 percent in 2015. Key to this optimism is continued gains in the job market. The market should be tight enough that households will finally enjoy real wage gains.
Jed Kolko, chief economist at Trulia: The strongest source of housing demand will be young people getting jobs and forming households. But they’ll be moving into rentals and saving for a down payment rather than buying homes right away.
In hindsight, how did 2014 match up with your forecast for the year?
Kolko: The housing market in 2014 turned out as we expected in many ways. Housing affordability has declined, thanks to home prices continuing to rise faster than incomes. Markets that were hurt badly in the bust and then rebounded in 2012 and 2013 saw sharp price slowdowns in 2014, while other markets have seen steadily rising prices. First-time buyers did not lift the market, and investor activity declined — which is what we meant by calling 2014 “the year of the repeat homebuyer.” And the apartment market has been on fire. Our predictions for 2014 are here.
What, if anything, surprised you about the direction the economy and economic policy headed during the year?
Thornberg: We had been bullish on 2014 in general and had forecasted a 3 percent growth year. Needless to say, the first quarter with its negative growth rate surprised us. But the forces that created this contraction were transitory, and the economy has roared back since. We think — that all said and done — the economy will end up very close to our original prediction.
However, this is not true for the rest of the world. It’s impossible to foresee the issues out there, but the ongoing issues in Europe and the collapse in commodity prices at the end of the year took us by surprise. There are good and bad points to these trends. Exports will be less of a source for potential growth, but at the same time Americans are enjoying low gas prices and interest rates. In the end, we don’t think the external situation will push the U.S. off its current growth path.
What will be the most important housing market trend(s) in 2015 and why?
Smoke: Realtor.com anticipates the most important trend in 2015 will be a substantial change in what has been missing in the housing market recovery thus far: the first-time homebuyer. In 2015, we should see first-time buyer market share return to more normal levels due to increased demand from millennials resulting from demographic and economic factors. On the demographic side, the largest generation ever is reaching a critical tipping point in the number of 25- to 34-year-olds, the historically key age range for buying a first home. On the economic side, job growth continues to favor the young, so opportunities are improving for this buyer segment just as life events are driving more interest in homeownership.
Homebuilding should finally see more growth in 2015 with at least 20 percent growth in single-family starts. Builders focusing on more affordable entry-level product will enable some growth. However, lot, labor and building material constraints will limit how much builders can deliver. The first-time market is critical to seeing more recovery in the volume of new construction.
As the dust settles on 2015, we should also be able to write the final chapter on the aftermath of the financial and housing crisis with its abnormal levels of distressed property activity and investor purchases.
What is your outlook for 2015 in terms of home prices — both existing and new?
Zandi: House price growth in 2015 should be in the low single digits, for both existing and new homes. Prices are recovered in most parts of the country, and are consistent with household incomes and rents. Homebuilders also need to worry about affordability given the big increases in new house prices in recent years.
What is your outlook for 2015 in terms of sales — both existing and new homes?
Zandi: New- and existing-home sales are expected to increase by as much as 20 percent in 2015. Key to this optimism is continued gains in the job market. The market should be tight enough that households will finally enjoy real wage gains. The wage gains will buoy housing affordability in confidence, both essential ingredients for stronger housing demand.
Where are interest rates headed in 2015?
Smoke: Mortgage rates will go up in 2015 — the key questions are: When and by how much? We expect the average 30-year fixed rate to reach 5 percent by the end of the year. While the Fed may not act on increases until the second half of the year, the bond and mortgage markets are likely to move well in advance. We are also likely to see quite a bit of rate volatility in 2015 until the Fed’s actions are evident and the global economic picture becomes clearer.
We are already seeing average rates increase slightly since the Fed’s formal statement on Dec. 17, where they dropped “considerable time” language from their statements. Keep an eye out for more anticipatory movement as the year progresses.
How will recent efforts to loosen lending standards impact the housing market in 2015?
Kolko: Modestly. The main obstacle to buying a home is saving for a down payment, according to Trulia’s consumer survey, more than qualifying for a mortgage. Furthermore, many future first-time buyers are still years away from homeownership if they’re just now moving out of their parents’ homes into their first rental. But looser lending standards could help people who lost a home during the housing crisis and are ready and able to buy again.

Monday, December 15, 2014

New York Times: Homeownership is Best Way To Build Wealth


  

The New York Times recently published an editorial entitled, Homeownership and Wealth Creation.” The housing market has made a strong recovery, not only in sales and prices, but also in the confidence of consumers and experts as an investment.
The article explains:
“Homeownership long has been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”
Many of the points that were made in the article are on track with the research that the Federal Reserve has also conducted in their Survey of Consumer Finances.
The study found that the average net worth of a homeowner ($194,500) is 36x greater than that of a renter ($5,400).
One reason for this large discrepancy in net worth is the concept of ‘forced savings’ created by having a mortgage payment and was explained by the Times:
“Homeownership requires potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.”
“Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment. It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”

Bottom Line

“As a means to building wealth, there is no practical substitute for homeownership.” If you are a renter who is considering making a purchase, sit with a local real estate professional who can explain the benefits of signing a contract to purchase over renewing your lease!

Monday, December 1, 2014

Freddie Mac: Buy Sooner Rather than Later...(www.ModernHomeBuyers.com)


In a recent video update on the housing market, Frank Nothaft, Freddie Mac’s chief economist, stated that with both mortgage interest rates and home prices projected to increase in 2015 buying now makes sense.
“If you are planning to buy a home in the next year, it’s better to do it sooner rather than later.”
Here are the latest mortgage interest rate projections from four major housing entities:Fannie MaeFreddie Mac, the Mortgage Bankers Association (MBA) and the National Association of Realtors (NAR):

Thinking of Selling & Moving Up?

This advice isn’t limited to just the first-time buyer. If you are considering moving up to the home your family has always wanted, waiting also makes no sense.

Saturday, July 19, 2014

Don't Trust Zillow, it could cost you THOUSANDS!

Once upon a time there was a home buyer. This buyer was looking to get a good deal on a home. They found an advertisement and called the owner directly. The owner told the buyer that if he didn’t use an agent he would keep the price lower and save them thousands. Excited, the buyer looked up the home on Zillow and saw that it was worth $424,000. The seller offered to sell the home to him for $365,000. “What a deal” the buyer thought and quickly agreed to the purchase. And the SELLER lived happily ever after!
The buyer thought they were saving $59,000, but in reality they LOST $30,000!
What the buyer didn’t know was that the owner was willing to sell their home for $349,000. In fact they had the home listed on the market for a YEAR without anyone expressing interest at that price. This is not information you can get on Zillow. If the buyer had used a Neighborhood Expert, they could have bought the home for a lot less.
Sadly this story is more common than you might think.  I’ve written multiple articles on why Zillow is inaccurate. I’ve even seen real estate agents make the mistake of using Zillow estimates when buying their own property. So why are people losing money when they listen to Zillow? The average home buyer and real estate agent are not as experienced and don’t know where to find better data. They put too much trust in Zillow. Zillow is excellent when it comes to marketing and web presence. The shear volume of data makes them seem credible, when in reality they are not.
Where does Zillow make their money? Advertising.
In an interview Greg Schwartz (Zillow CEO) said  “The first and largest revenue stream is our Marketplace revenue stream — which includes local advertising from real estate agents, from mortgage brokers, banks, and brokerage firms — which is our largest and dominant revenue stream.”
Unfortunately, that doesn’t help you with your home purchase. Zillow is not looking out for you, they are providing a service for those annoying pop-up ads that bombard you while you’re on their site. So who is looking out for you?
While Zillow’s estimates are generated by incorrect information on a very broad scale, Neighborhood Experts have intimate knowledge about your local area. So they can provide an accurate evaluation. They are also local, so they care about maintaining the value and stability of the area.
Neighborhood Experts don’t make their money from advertising. Agents are paid by home sellers to get their home sold. If the home doesn’t sell, no one get’s paid. Can you imagine if you had to pay your agent every time someone wanted to see your home? They’d over price the house so it would never sell, or under-price it to get more showings. That may be the way Zillow does it, but not Neighborhood Experts.
An average real estate agent sells approximately 6 homes a year. Neighborhood Experts sell more than 4 times that. This experience will give you the assurance you need when making your transaction. You wouldn’t want to use the same agent who may fell for Zillow’s advertising would you? 
Any time I hear about another victim of Zillow’s inaccurate evaluations I just cringe. Before you make any real estate decisions goBE Informed! If you’re looking at buying or selling a home in the near future contact us today to talk with your Neighborhood Expert.
Won’t be moving for a while? Get a free Market Snapshot to give you insights into your market. These periodic reports will keep you informed on the changes in your area. Then if you ever have any questions about the market you can contact a Neighborhood Expert immediately.
Don’t fall into Zillow’s trap, make your decisions based on accurate information.
By Utah Dave
Thursday, March 20, 2014