Barclays: Home Prices to Rise 10% This Year...

Home prices will likely climb 10 percent in 2013 and 8 percent in 2014, according to Barclays analyst Stephen Kim, who recently upgraded his view of the housing market from neutral to positive. 

Kim told The Wall Street Journal recently that low mortgage rates are helping to make buying more affordable than renting in many markets. 

About “18 months ago, the industry was nothing much to look at: dilapidated foreclosures were flooding the market, home equity had suffered the worst retrenchment in a generation, and housing starts and sentiment were far below historic troughs levels,” Kim notes. “But after stabilizing in 2012, both new and existing home prices are now accelerating much more rapidly than in the 1990s cycle.”

Source: “The Housing Market: Not Your Analyst’s Oldsmobile?” The Wall Street Journal (April 23, 2013)

Following Goldman, Investment Banks Eye...UTAH?

A word of warning to Ivy League Excel jockeys heading to Wall Street: You may end up in Salt Lake City. It’s a long commute to the Hamptons, and the nightlife can be … well … sobering. Then again, think of the skiing.

Utah, already home to 5 percent of Goldman Sachs (GS)workers, is gaining momentum in its bid to be Wall Street of the West. State economic development officials say they are in advanced talks with three major banks on projects that would bring an additional 1,000 securities jobs to Salt Lake City.

For finance companies, the strategy is a classic arbitrage trade. The state offers real estate and labor well below the rates demanded in the concrete canyons of New York or other finance hubs. And, in part because a high percentage of the Salt Lake City population has completed the Mormon church’s two-year missionary program, foreign language skills are abundant. More than half of Goldman’s Salt Lake workforce is fluent in a second language.

Utah is also sweetening deals with major incentives, offering credits of up to one-quarter of corporate tax bills. That means Goldman will receive $47 million in Utah rebates by 2029, provided it keeps about 1,100 workers in the state and hits certain investment hurdles. Four years after signing that deal, Goldman has already met the first target. It has 1,500 Utah workers and is still making a strong Salt Lake sell in its recruiting materials.

It’s not just tech support. Goldman now has asset managers and research folks in the state. It even recently added a team of investment bankers. Next month, the company will host its annual meeting in Salt Lake City, its first outside New York City.

The state has also notched smaller recruiting victories of late. Morgan Stanley (MS) has expanded its Utah operations three times in the decade since it opened an office there. In November, Royal Bank of Scotland (rbs) committed to hiring 310 workers in the state, in exchange for $5.3 million in tax credits.

Granted, another 1,000 jobs won’t change the industry. But in a smaller city like Salt Lake, those jobs are significant, and over time, those zeros add up.

Meanwhile, the share of securities industry workers in New York City has fallen from 30 percent to 21 percent in the past 20 years,, according to a recent report by the Securities Industry & Financial Markets Association. The city’s finance industry now employs 169,700, down from a peak of 200,300 in 2000.

The labor picture is similar across the Atlantic. Employment in London’s financial services industry is nearing a 20-year low, though City banks and brokerage firms still employ about 237,000 people. Powder skiing is not one of their perks.

By Kyle Stock April 05, 2013 - Stock is an associate editor for Businessweek.com.

UTAH - 10th Best State With Low Tax Burdens

Not all states are equal, especially when it comes to local taxes. Find out which states' residents enjoy low -- or no -- sales, property or income taxes

Utah

Utah fell closer to the middle in income and sales taxes -- ranking 14th and 22^nd, respectively -- but since it has the third-lowest property tax rate ($837 per capita) and fifth-lowest corporate tax rate (5 percent flat tax), it's the 10th best state for overall taxes.

Brianna Ehley, The Fiscal Times

Home Prices Climb In December, Best Yearly Gain Since 2006...

February 26, 2013 9:30 AM ET

NEW YORK (Reuters) - U.S. home prices picked up in December, closing out 2012 with the biggest yearly gain in more than six years as the housing market got back on its feet, a closely watched survey showed on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas rose 0.9 percent in December on a seasonally adjusted basis, topping expectations for a gain of 0.5 percent.

Prices in the 20 cities jumped 6.8 percent year-over-year, ahead of expectations for 6.6 percent and the best yearly gain since July 2006.

"I expect the home price rise to persist in 2013," said Michelle Meyer, senior economist at Bank Of America Merrill Lynch in New York.

For the final quarter of the year, prices gained 2 percent on a seasonally adjusted basis. On a non-adjusted basis, prices were up 0.2 percent in December.

Last year housing contributed to economic growth for the first time since 2005 as the sector began to recover from its far-reaching collapse. Still, the market is far from fully healed, with over 20 percent of mortgages underwater and foreclosure rates still elevated.

Prices have been rising since last February as the supply of available homes for sale tightened in 2012, helping to stabilize home values. Investors buying cheap homes to be converted into rentals also supported the market and some hard-hit areas saw a sharp bounce back in prices. Phoenix, for example, saw gains of 23 percent compared to December 2011.

"While the economy faces challenges from the fiscal cuts, the housing market is on a good footing due to low inventory, slow clearing of foreclosure, steady household formation and more easing of mortgage credits," said Meyer.

Atlanta and Detroit racked up their biggest yearly increases since 1991, when they were first tracked. Prices in the cities climbed 9.9 percent and 13.6 percent, respectively. New York was the only region to decline on a yearly basis, down 0.5 percent.

U.S. stock index futures saw little reaction to the data, with Wall Street set for a higher open, while the dollar extended losses against the euro.

(Reporting by Leah Schnurr, additional reporting by Richard Leong; Editing by Chizu Nomiyama)

Would You Buy Near the Friendly Rails?

"Transit-oriented development" sounds like a solution to a variety of urban problems. If people could live and work within walking distance of a train or bus stop, people could save money on gas, people without cars could commute more easily, neighborhoods could reduce congestion and pollution, and economic growth could follow.

Generally, it makes sense for cities to invest in the hubs that connect people and the places they need to go. However, not every rail stop is equally primed for a new apartment complex or retail development, and determining why is a significant challenge. For example, there is little sense in pushing transit-oriented development in a community where every household already has multiple cars, and likewise there is little sense in developing stops in areas divided by highways and mega blocks where people are unlikely to walk to a train.

In early February, the Center for Transit-Oriented Development released a study of more than 100 transit stops in the Pittsburgh area, assessing the suitability for transit-oriented development. A quarter to half of the station areas in the system could benefit from a small infrastructure investment, such as a pedestrian bridge or tunnel, signage showing where the station is, or paved pathways or sidewalks. The assessment uses pentagonal graphs to illustrate ways that density, land use, care dependency and distance all shape communities differently.

"It’s a very simplistic way of measuring what you need," says CTOD director Abigail Thorne-Lyman. "But if you don’t have the resources to even know where to begin, it’s very powerful to say ‘I’m just going to look at these five things, and what do I need to improve to push myself into a more transit-oriented urban form?'" 

Source: "The Geometry of Transit-Friendly Neighborhoods," The Atlantic Cities (02/11/13)

Why rising housing prices are a good thing (for both Buyers & Sellers)...

By Dave Zitting, ksl.com Contributor

SALT LAKE CITY — As consumers, we are taught to seek out bargains, discounts and good deals. Paying less is better, right? So why are we celebrating rising housing prices and continuing to hear it is a good time to buy? In his State of the Union address last week, President Obama talked about the housing sector and its recovery since the collapse in 2007. For many of us, what happened then and what is happening now is nebulous and can be hard to understand. But, in light of the collapse, we, as a nation, can celebrate our subsequent recovery and rising cost of homes.

The collapse

Simply put, in 2006 and 2007 many banks and lenders were playing fast and loose with the mortgages they were dolling out. In order to close deals, they were promising payments from buyers without the due diligence of making the sure the buyers could actually pay. And sadly many couldn't. Foreclosures increased and the value of homes dropped dramatically.

The recovery

In addition to putting more compliance measures in place to regulate how and to whom mortgages are given, both the federal government and the private sector stepped up to artificially stimulate the housing economy. This happened in two ways. This gets a little complex, but stay with me…

1. Mortgage bonds. The Federal Reserve purchased (and continues to purchase) mortgage bonds which created a ripple effect resulting in lower interest rates. By purchasing the bonds, the federal government made more credit available and at a reduced cost. Thus, the lower interest rates.
2. Shadow inventory. After the collapse, the number of available homes to purchase due to the number of foreclosures could have been very high. Luckily, major investors have purchased a significant portion of the inventory to rent out until the housing market recovers completely and they can sell the homes at a profit. By purchasing these homes, it has kept the supply of homes low. We know when supply is low, demand is high. And high demand fuels the economy.

So, now, we have lower interest rates and high demand. But, still, how are these increasing prices good for buyers?

Affordability

If there is one good thing about the drastic reduction in the cost of homes, it is that they became very affordable. Think back to the good deals conversation earlier. And although we are now seeing a solid recovery, including the increase in the cost of homes, we have a long way to go before they reach their pre-collapse prices, and even further before they become unaffordable. In fact, according to the S&P/Case-Shiller Home Price Index, the increase in home prices we have seen as of late only gets us a fraction of the way back to where they were prior to the financial crisis. That's why we refer to this as a "recovery," because we are in the process of getting back to where we once were. In the meantime, we are continuing to enjoy home prices and mortgages that are oftentimes less than the cost of renting.

Investment

In addition to being the roofs over our heads, our homes are investments for us. So think of it like buying a rare collector's item. As time goes on, you would hope your item increases in value so some day you could turn around and sell it for more than what you paid for it. Homes are the same way. For those who purchased their homes as the market was collapsing, their homes are now worth less than what they owe. For them, selling at this point would cost them money instead of make them money. However, for those buying homes today, the value of their home is increasing as home prices rise, making their home a productive investment.

Economy

Lastly, because so much of our economy hinges on the success of our housing market, to see it recover means good things for the rest of our economy. In fact, as President Obama said in his speech, home prices are not only rising, but rising faster than they have in six years. So for those of us to own homes, our investments are becoming more valuable. For those who are looking to buy, they can take advantage of low home prices, low interest rates and the ultimate joy: homeownership.

Dave Zitting is the President and Chief Executive Officer of Primary Residential Mortgage, Inc.

CoreLogic: Home Prices Post Largest Gain in 6 Years

Home prices, including distressed properties, soared by the largest gain since May 2006, rising 8.3 percent in December on a year-over-year basis, according to the latest housing figures from CoreLogic. This is the tenth consecutive month for increases in nationwide home prices, according to CoreLogic.

When foreclosures and short sales are excluded from the mix, home prices rose 7.5 percent year-over-year, according to CoreLogic. 

Nearly every state posted gains in December, except for Pennsylvania, New Jersey, Illinois, and Delaware. 

The following states posted the highest gains in December in prices, when including distressed sales: 

1. Arizona: 20%
2. Nevada: 15.3%
3. Idaho: 14.6%
4. California: 12.6%
5. Hawaii: 12.5%

“We are heading into 2013 with home prices on the rebound,” says Anand Nallathambi, CoreLogic president. "All signals point to a continued improvement in the fundamentals underpinning the U.S. housing market recovery."

Source: CoreLogic

* Our Utah Market saw a a December growth of between 4.6% - 6.9%. 

How Real Estate May Save an Ailing Job Market

The overall economic recovery is betting big on real estate’s continued progress. After all, a stronger real estate market can lead to a stronger job market. 

Strength in the real estate sector tends to lead to increased hiring in various housing-related industries, from carpenters and landscapers to real estate agents, loan processors, appliance manufacturers, furniture makers, and more. 

When it comes to job creation, "the most promising news is related to the housing market," says John Challenger, CEO of employment consulting firm Challenger, Gray & Christmas. 

The construction sector for housing added 28,000 jobs in January alone. 

"Since reaching a low in January 2011, construction employment has grown by 296,000, with one-third of the gain occurring in the last four months," according to the Bureau of Labor Statistics.

The National Association of Home Builders says that for every home start, three new jobs are added in industries such as lumber, concrete, lighting fixtures, and lending. 

If the housing market rebounds to its historical average, the economy could generate 2.9 million direct jobs from it, according to the Bipartisan Policy Center, a Washington think tank. 

Source: “Jobs Still Lag, But Homebuilding May Soon Help,” NPR (Feb. 1, 2013)

An Upbeat Forecast for Our Housing Market...

The housing market has bottomed out and should show solid improvement, especially next year, top economists said at the International Builders’ Show in Las Vegas.

The National Association of Home Builders expects construction of single-family homes to surge nearly 22 percent in 2013 to 650,000 units and spike 30 percent to 844,000 in 2014, said chief economist David Crowe.

Starts of multifamily units should rise 22 percent to nearly 300,000 this year, followed by a more modest gain of 6 percent in 2014.

Freddie Mac expects residential sales to climb 8 percent this year as mortgage rates remain below 4 percent, according to chief economist Frank Nothaft. And home prices could increase between 2 percent and 3 percent this year, he adds. 

Still, builders remain concerned about the rising cost of building materials, gridlock and uncertainty in Washington, the stagnant job market, and ongoing issues with home appraisals.

Source: "At Builders' Show, an Upbeat Forecast for Housing," The Wall Street Journal (Jan. 22, 2013)

(Side Note: Utah's Housing Market expected to rise between 4 and 6 percent in 2013. Source: Utah Housing Economic Report 2012)

6 Reasons Why This Winter Is a Great Time to Sell

DAILY REAL ESTATE NEWS | WEDNESDAY, JANUARY 23, 2013

Forget the myth that winter is a bad time to sell real estate. While sales usually inch lower in the cooler months, some real estate pros are saying this winter in particular may be a great time to sell a home. 

Here’s why: 

1. Mortgage rates are near record-breaking lows. 

2. Home prices are starting to rebound in many markets across the country. The National Association of REALTORS® reported that home prices in December were 11.5 percent higher than a year earlier. 

3. Homes still remain a good deal: Prices are rising but remain mostly below 2007 highs, and in many areas, the cost of buying is cheaper than renting. 

4. Distressed homes that typically sell at big discounts -- up to 20 percent off -- are still widely available. Short sales and foreclosures accounted for 22 percent of all existing home sales in November. 

5. Household demographic changes: Many buyers used to want to wait until the end of a school year before moving, but households are changing and moving schedules are less tied to school terms. That’s because households with children are making up a smaller part of the mix nowadays. According to William Frey with the Brookings Institution, 80 percent of all households in the U.S. do not include children. has declined. 

6. Household formation is growing. “Many people who ran into tough economic times several years ago are again looking at real estate ownership,” says Wendy Forsythe, executive vice president with Atlantic & Pacific Real Estate. “Enough time has passed so that many of these individuals have re-built credit, built up their savings and now qualify for FHA, VA and conventional financing.”

Source: “Does Real Estate Really Sell in the Winter?” Reuters (Jan. 22, 2013)

Housing Inventories Posted Big Drop in 2012

Inventories Posted Big Drop in 2012

DAILY REAL ESTATE NEWS | THURSDAY, JANUARY 10, 2013

The number of homes on the market continues to fall, according to some real estate indicators. Inventories dropped 27 percent in December 2012 compared to December 2011, according to Movoto Real Estate. 

The lower inventory is giving a boost to home prices, analysis from the company says. But many home owners are still cautious, keeping their houses off the market until prices appreciate more. 

Generally, the number of homes for-sale hits lows in December before starting to increase in January and peaking during late summer. But last year, inventories continued to drop throughout the year. 

Source: “Housing Inventory Steadily Declines in 2012,” HousingWire

Low Inventory Levels Lift Home Prices, Limit Sales

Inventories of for-sale homes have dropped significantly this year, helping to stabilize housing prices but also limiting the number of homes sold, The Wall Street Journal reports. 

The large inventory drops have been attributed to home owners waiting out the market for price increases, investors snagging up houses, fewer bank foreclosures, and builders curbing production.

But the low inventories are helping home prices to rebound. “Large drops in inventories have whittled away the discount at which foreclosures sell in many markets, which has further contributed to big price gains,” The Wall Street Journal reports. 

In places where prices are increasing, more home owners are deciding to sell, which is helping to lift some inventory levels. For example, prices are up 17 percent in Phoenix compared to a year ago. Inventories of homes for sale there have increased 10 percent from July. Still, inventories are 20 percent below year-ago levels. 

Source: “2013: The Year Home Inventory Hits a Bottom,” The Wall Street Journal (Dec. 19, 2012)

Agents Prepare Home Buyers to Compete

House buyers in a growing number of areas are finding something they haven’t seen in years when house-hunting: Competition. With housing affordability high and mortgage rates low, home buyers are ready to cash in but they’re finding a lot of others are as well.

Bidding wars are becoming more common, particularly as the inventory of for-sale homes remains constrained across the country. 

“Buyers have to change their attitude about the way the market is,” says Carol Hooks, a real estate professional with Coldwell Banker Residential Brokerage in Alexandria, Va. “Many still think it’s OK to make a low offer and ask for closing-cost assistance, but they really need to come up with a good, realistic offer and be prepared to pay their own closing costs.”

Real estate professionals are helping to prepare their buyers for the increased competition. For example, they’re encouraging buyers to get financing in order before they look for a home and go through the mortgage-approval process, not just the lender’s prequalification letter. Eldad Moraru with Long & Foster Real Estate in Bethesda, Md., says it’s important for buyers to find a lender who will be able to provide them with a new approval letter within an hour of finding the home they want to purchase. The new letter should include the address of the property so they can attach it to the offer. 

Home buyers also need to have their earnest money deposit and down payment ready to go, Moraru says. 

“A lot of buyers will have some money in stocks to sell and some money in a checking account and will tell me they need a few days to get it together,” he said. “You need to have that money consolidated and accessible in one account before you find a house.”

As competition heats up , buyers need to prepare to think fast. 

“If [the buyer] moves fast enough, [they] can have a home inspection before [they] make an offer, and then [they] can waive the home-inspection contingency,” Moraru says about being competitive in some multiple bid situations when you know when the seller is going to be reviewing all offers. 

Some agents compare today’s competitive housing market to the process of dating.

“You need to win on both looks and personality,” says Phil Bolin, a broker with RE/MAX Allegiance in Alexandria, Va. “The ‘personality’ part is the fundamental issue of financing and down payment, but the ‘looks’ part doesn’t cost you anything. It can be as simple as making sure there are no mistakes in your contract. If there are mistakes or missing items in your offer, you don’t look like a serious buyer.”

Source: “Strategies Shift as Buyers Again Face Competition,” Washington Times (Nov. 29, 2012)

USA Today Reports, "Rents to Keep Rising in 2013"

Rents are forecasted to rise nationally 4.6 percent next year, and that’s following a 4.1 percent increase this year, according to the National Association of REALTORS®.

What’s more, rents are expected to continue to climb for the foreseeable future, rising more than 4 percent a year for 2014 and 2015, forecasts Reis, a market research firm. 

“The pendulum has definitely swung back in favor of landlords, not renters,” Ryan Severino, senior economist for Reis, told USA Today.

Rents are rising even more rapidly in some areas. For example, rents in San Jose, Calif., and San Francisco have been climbing at a 13 percent to 15 percent annual rate as of late last year, according to MPF Research. Other metro area seeing rent increases of more than 5 percent by the end of September include Oakland, Calif.; New York; Denver; Houston; Nashville; and Columbus, Ohio, MPF reports. 

The rise in rental costs are causing more renters to consider home ownerships, says Greg Willett, MPF vice president. Mortgage rates are at historical lows and home prices are up, but still way below their 2006 peak. 

Source: “Rents Expected to Climb Steadily, According to Forecast,” USA Today (Nov. 27, 2012)

Data ranks Provo/Orem as fastest growing area in nation

11 hours ago  •  Genelle Pugmire - Daily Herald

PROVO -- Hang on, Happy Valley -- the growth roller coaster has left the platform. According to data released by Pitney Bowes Software on Tuesday, the Provo-Orem area ranks first on a list of the nation's fastest-growing metropolitan areas and will remain that way for the next five years.

Both Provo and Orem mayors were not surprised to hear the news, and both noted not only excitement but a desire to maintain what is already established.

"With the two recently announced developments, we anticipate a lot of growth in the downtown area," Provo Mayor John Curtis said. "The demographic is changing. It's not about home ownership anymore."

Curtis added, "This complements precisely our efforts in the downtown area. We're ready to welcome them home. For most of my three years not one residential planner has called. Now things are picking up and developers are calling."

"Wow," Gary McGinn, Provo's community development director, said. "We've been anticipating we'll have fast growth and how we will accommodate that growth while preserving the characteristics of what makes Provo such a desirable place to live."

McGinn added, "Our valley has such a great demographic profile, it's not surprising companies would want to locate here. We've been planning on it."

According to a press release from Pitney Bowes, from 2012 to 2017 Provo-Orem's population is projected to add nearly 11,000 new households, or 7.4 percent at an annual rate of 1.5 percent. However, that is slower than the 4 percent growth rate between 2000 and 2010. Because the two-city area has an excess of 100,000 households it is considered a major metropolitan area. Coming in second and third are Austin, Texas, and Killeen/Fort Hood, Texas.

"We recognize this is a wonderful place to live," Orem Mayor Jim Evans said. "With growth you have the good and the bad. You've got to continue to have sustained economic growth. We as leaders need to do all we can to support the businesses that are already here. We aren't through being a retail powerhouse."

Orem's director of development services Stanford Sainsbury said, "I think this means great things. This is a result of the people we have here. It's exciting and a challenge to meet the growth. And, they'll bring their business with them. It will become a center for technology with great brain power. It will raise the salaries and enhance the cultural arts.

"This is the reward for all of the work our predecessors and pioneers went through. We stand on the shoulders of those who have gone before."

According to the press release, Pitney Bowes's demographic projections combine national projections by age, sex, race and Hispanic origin. Those complement state and county projections based on county trending from the Census Bureau.

While Provo-Orem will be the fastest growing, the metro areas of Houston, Atlanta and Washington, D.C., are projected to add the most households.

Detroit and Charleston, W.V., are the only major metropolitan areas expected to see a decline in the number of households in the next five years.

Pitney Bowes analyzed 384 metropolitan areas. For most of the country growth will remain stagnant. It will slow in 78 percent of the metro areas. Washington, D.C., and New York have returned to the top five metropolitan areas for absolute growth.

Top 10 Worst Home-Showing Offenses

Don’t let one of your listings suffer from one of these common showing mistakes.

OCTOBER 2012 | BY MELISSA DITTMANN TRACEY

When it comes to presenting a home to buyers, some sellers are clueless.

Are your sellers’ homes leaving buyers with a bad impression? REALTOR® Magazine received more than 50 responses from buyer agents who revealed their pet peeves when touring homes with clients—offenses that, they say, have buyers racing for the door.

After 20 years of showings, Elke W. McMenemy, ABR, CIPS, broker-owner at St. Augustine Real Estate Inc. in St. Augustine, Fla., has practically seen it all, from the “fully loaded litter boxes” to the “roach-infested ovens.”

“These situations have proven to be frustrating and embarrassing to my buyers and me,” McMenemy says.

Mary Lynn Stenzel with Russ Lyon Sotheby’s International Realty in Scottsdale, Ariz., suggests agents be proactive in discussing with their sellers the cleanliness and presentation expectations for showing appointments upfront. Don’t assume your clients know what to do. Also, agents might want to arrive early to a listing appointment to double-check that everything is in show-ready shape.

Here are the 10 most common responses from buyer’s agents when asked about the worst mistakes they see when presenting for-sale homes to clients:

1. Leftover home owners

By far, one of the top offenses cited by buyer’s agents was home owners still lingering around when agents arrived with clients to preview the home. Awkward encounters ranged from buyers finding sellers taking a shower, asleep in the bed, to even the “stalker sellers” who liked to follow buyers and the agent all over the home to see what they thought.

With the exception of the “stalker seller,” many of the home owners who were still at home blamed their listing agent for not giving them enough advance notice about the appointment prior.

2. Pets and their messes

Numerous agents also cited the not-so-friendly dog and kitty encounters as a top offense. Even pets left in a crate can pose a distraction since they might make noise the entire time others are in the house. Plus, if they seem mean, the buyer might not even step in the room.

Vicki Robinson, ABR, CRS, broker with Fonville Morisey Realty in Raleigh, N.C., says she recently was given showing instructions from a listing agent who told her the family’s “friendly dog” would be at home. But when Robinson unlocked the front door with her client for the showing, a pit bull was staring down at them from the top of the staircase, growling. “We closed the door and left!” she says.

3. Bad smells

A displeasing smell can really turn buyers off. Common offenses include cooking smells lingering around the home, such as garlic, fried bacon, or fish. Also, watch for cigarette smoke and animal smells, agents say.

“Sellers get immune to the smell that their pets have embedded on their property,” says Halina Degnan with Gables & Gates, REALTORS®, in Knoxville, Tenn. “Anyone opening the door will smell it immediately -- even if there are air fresheners trying to cover up the smell. If you have a pet, there will be an odor. Don’t send your buyers away: Paint and clean the carpeting. Take the odor seriously and do what is needed, even if it means replacing the carpet.”

4. Critters running wild

Wild animals and pests roaming around is a surefire way to send buyers running. Agents described worms crawling on the floor and bats and raccoons lounging in the attic. “I showed a house in Utah once with a baby alligator/crocodile [in a cage] in the dining room,” Kristi Hutchings, ABR, SFR, with the Wendy K Team The Real Estate Group in Utah.

5. Odd home makeovers

Do-it-yourself disasters were also prevalent, like doors opening the wrong way or unprofessional paint jobs. Also, rooms not being used for their intended purposes can confuse buyers, such as an office being used as a bedroom even though it has no closet, says broker Elaine Byrne with Elaine Byrne Realty in Austin, Texas.

6. Dirt and clutter

There were a number of offenses cited when it came to cleanliness: Dirty laundry piles, unflushed toilets, dishes on the counter or in the sink, unmade beds, clothes scattered about, soiled carpets, dirty air conditioner filters, and overflowing trash cans.

“One of the worst things I have seen is piles and piles of clothes in every room,” says Chris Leach, ABR, with Medel & Associates Realty in Riverside, Calif. “It was like an obstacle trying to walk around the mess.”

7. Personal information left in plain sight

Sellers should be careful not to leave in plain sight important documents that may pique buyers’ curiosity. Some agents say they’ve seen personal information like bank and credit card statements—even mortgage payoff notices—left on the kitchen counter.

“Buyers are nosey,” says Christopher Handy, ABR, GREEN, broker-associate with Bosshardt Realty Services LLC in Gainesville, Fla. “I’ve even seen the contract for the sellers’ next purchase sitting on the kitchen countertop or ‘final notice’ bills.”

8. Too dark

Dark or dimly lit houses aren’t showing the home in the best light.

“Particularly [homes lit with] CFL bulbs,” says Yvette Chisholm, ABR, CRS, associate broker with Long & Foster Real Estate in Rockville, Md. “By the time [the bulbs] light up, the buyer is gone.” Energy efficient bulbs need time to warm up before they are at their brightest, so staging professionals usually recommend agents arrive early to a showing to turn on any light fixtures with CFL bulbs at least 10 minutes prior.

9. Keys missing from lockboxes

All too often, agents arrive at a listing appointment with their client only to find there’s no key to get in. “I actually had a [seller’s] agent who wanted me to open the door for my clients by going through the dog run as a large dog barked like crazy,” says Hutchings.

10. Distracting photos

Watch the photos displayed on the walls too, agents warn. Tara Hayes, ABR, e-PRO, with Rector-Hayden, REALTORS®, in Winchester, Ky., recalls showing a family a home that had life-sized, nude photos hanging, which left her clients racing for the door covering their eyes.

Similarly, Angela Gandolfo, ABR, SFR, with Citywide Real Estate & Investment in Phoenix, recalls showing a home to a client, who was staring at a painting in the master bedroom of a woman in lingerie. “Isn’t that the owner?” the client asked. “She was also the real estate agent!” Gandolfo says.

Homes Are Selling Faster as Inventories Fall...

The median time a home is on the market nationwide? Just 69 days. 

The number of days on the market nationwide has fallen nearly 30 percent from year-ago levels.

Meanwhile, inventory levels are hovering at all-time lows, with the number of homes for-sale down 31.2 percent from a year ago. The inventory is at a 6.4-month supply of homes on the market, as of July data.  

"As inventory has tightened, homes have been selling more quickly," says Lawrence Yun, the National Association of REALTORS®' chief economist. "A notable shortening of time on market began this spring, and this has created a general balance between home buyers and sellers in much of the country. This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren't often languish on the market."

For comparison, the time on the market for non-distressed homes peaked at 10 weeks in 2009. During the housing boom between 2004 and 2005, for example, the median selling time was just four weeks. 

Source: “Low Inventory Levels Sells Homes Quick,” Realty Times (Nov. 2, 2012)

House prices on Wasatch Front continue to improve in third quarter

By Jasen Lee

SALT LAKE CITY — Housing prices in northern Utah are showing improvement, a new report shows.

According to the Salt Lake Board of Realtors, home prices in Salt Lake County showed double-digit gains in this year's third quarter.

For the July-September period, the median single-family home price in Salt Lake County increased 11 percent to $218,000, compared with a median price of $197,000 in the third quarter 2011.

The third quarter marked the second consecutive quarterly price increase in Salt Lake County. Home prices in the second quarter increased 6 percent year over year.

"Salt Lake City ranks among the top 25 major U.S. cities showing the biggest home-price increases," said Donna Pozzuoli, president of the Salt Lake Board of Realtors. "In fact, this year is the first time in five years Salt Lake home prices have made a comeback."

Among the ZIP codes experiencing the largest percent increases in median home prices during the third quarter were 84123 in Kearns, which jumped 21 percent to $208,500; 84124 in Holladay, up 17 percent to $295,000; Canyon Rim's 84109, which climbed 13 percent to $284,900; 84093 in Sandy, up 12 percent to $306,950; and West Jordan's 84081, which rose 11 percent to $227,000 during the period.

Meanwhile, Utah County saw its third-quarter median sales price rise a little more than 6 percent to $205,000, with the Davis County median price increasing 8.42 percent to $206,000 and Weber County climbing nearly 8 percent to $151,000 for the three-month period.

Pozzuoli said the recent price increases are the result of low inventory levels. In the third quarter, there were 3,938 homes listed for sale in Salt Lake County — the lowest third-quarter inventory level since 1997.

The declining inventory was one of the major factors pushing sales prices higher during the quarter, said Jim Wood, director of the University of Utah's Bureau of Business and Economic Research.

After area prices dropped about 25 percent during the recession, "we're getting some of that back this year," Wood said.

"Higher prices will bring more houses onto the market," he explained. "We're in that period when the market sends a signal to homeowners that would like to sell that things are improving."

The historically low interest rates are "phenomenal," Wood said, and should help in the continued growth of the Wasatch Front housing market.

"When you have interest rates at (3.25 percent), it's going to stimulate demand," he said. "We're on the way back."

The report also showed that although a majority of cities across the Wasatch Front saw home prices increase, there were a handful that experienced price declines, including 84004 in Alpine, which was down 7 percent; Provo's 84601, down 5 percent; and 84065 of Riverton, which fell 2 percent.

The number of single-family homes sold in Salt Lake County in the third quarter reached 2,982 sales — a 12 percent increase compared with the same period last year. Single-family homes in the third quarter were on the market for an average of 81 days before being sold, down from 120 days in last year's third quarter.

Condominium sales in the third quarter showed impressive sales gains by jumping 29 percent over the same time last year.

Wood said the uptick began last quarter as inventories decreased enough that some properties began receiving multiple offers, which prompted higher eventual sales prices. That trend has helped stabilize the local housing market and push prices upward for the first time in a long while.

With current rates so low, the area housing market could experience the first double-digit increase in years in 2012, which bodes well for 2013 as well, he said.

"If interest rates stay in the 3.5 percent range, next year we'll see another 7 (percent) to 10 percent increase in prices," Wood predicted.

Traits of People With High Credit Scores

To have a high credit score, individuals tend to keep revolving balances low to their available credit, not max out credit cards, and consistently make payments on time, according to the company behind the FICO credit score.

FICO recently released findings from a study about the habits and behaviors of those who have the highest credit scores — 785 or greater. These high-credit scorers tend to qualify for the best mortgage rates, saving thousands of dollars over the life of a loan. 

Nationwide, 25 percent — or 50 million people — are considered “high achievers” with their credit scores.

“High achievers” tend to exhibit some of the following behaviors, according to FICO: 

• 96 percent have no missed payments on their credit report. For any who have a missed payment, it occurred, on average, about four years ago. (Payment history makes up 35 percent of a person’s credit score.) 
• They tend to have a well-established credit history and rarely open up new accounts. On average, the oldest credit account was opened 25 years ago. Overall, according to FICO, these “high achievers” tend to have credit accounts that are at least 11 years old.
• They’re not always debt-free: They average about seven credit cards, including both open and closed accounts, and have an average of four credit cards or loans with balances. One-third of “high achievers” have balances of more than $8,500 on non-mortgage accounts. The remaining two-thirds have total balances of less than $8,500. 
• About 1 in 100 have a collection listed on their credit report. What’s more, 1 in 9,000 has experienced tax liens or even a bankruptcy.

"While people with a high FICO Score are not perfect, their consistently responsible financial behavior usually pays off over time," says Anthony Sprauve, credit score advisor for myFICO. "In a challenging economic period, the fact that we all have a chance to be high achievers is very good news. The lesson from these high achievers is that it's never too late to rebuild and score high."

Source: FICO

Morgan Stanley Makes Bold Prediction on Housing

Investment firm Morgan Stanley has high hopes for the housing market’s recovery this year and next. 

"We expect to see 2012 end with an increase of 7 to 9 percent for the year in aggregate home prices after considering seasonality effects for the remainder of the year, with the possibility of a 10 to 12 percent increase on the bullish side and a 4 to 6 percent increase as the bear case," according to Morgan Stanley analysts in its latest Housing Markets Insight report. "We view the bear case outcome to be relatively less likely."

Morgan Stanley analysts say that home shoppers need to have more access to credit in order to finance their home purchases to keep the housing recovery strong. A tight lending environment has kept many would-be buyers out. 

"Recent actions by the Federal Reserve, the commitment to keep interest rates lower for longer as well as the launch of an open-ended QE3, convince us that this low mortgage rate environment and the demand response for housing are likely to prevail for an extended period — well into the future," the Morgan Stanley analysts conclude.

Source: “Morgan Stanley Declares Housing Out of the Woods,” HousingWire (Oct. 1, 2012)