Salt Lake Real Estate Market’s Dirty Laundry
November 10th, 2007 Categories: Real Estate News
Is the Salt Lake Real Estate Market Good Or Bad? The answer is Yes.
I figured since people insist on getting their Real Estate News from TV Reporters I figure I might as well stop fighting it and give it to them that way. So this morning my daughter and I had fun making me a TV Reporter.
Well there certainly is no shortage of depressing news about the Real Estate Market, even the real estate agents will tell you that the market is bad. The problem I find with TV and newspapers is they are not always about the truth or should I say the whole truth and nothing but the truth. They are more concerned with readers and viewers, so they can charge more for their advertising.
When the national media reports how bad the Real Estate Market is, they are selling advertising and people don’t watch the news when the market is good. I find it amazing that people even consider national news networks as a source for local financial information.
On the other hand, things like trust, truth are all I can offer. I do not sell advertising on my space, I do report and write for business, and I believe that if I give away my knowledge to people I will be an asset and people may consider me when it is time to buy or sell or invest.
Let’s get a little clarity on things. First and foremost Real Estate Is Local In Nature, what is happening in Florida, Michigan has nothing to do with the Utah market. Markets can be different between counties and neighborhoods, between price ranges in the same zip code. Now there are some ties like interest rates and such, but my goodness rates are below 6.5% so we know that is out.
Now for real estate agents about two thirds of the agents in Utah got their license in the last five years, so most do not know what is going on. People and agents alike compare everything to last couple of years, where prices were going up 1,2 and 3 percent per month, people with bad credit and they did not have to verify their income were getting large loans, that is not normal.
So the big question is, how is the Salt Lake Market? The answer is depends. The overall residential market is fairly healthy and normal. There are some factors that are waiting to be played out. For example how much of the current inventory is from speculators and the over building in the South West part of the county.
September’s volume was down 20% over the month of August, but it usually is. The same time frame last year when the market was abnormal the volume difference was 12%.
Remember September’s closings are August contracts. There is a natural seasonal slowdown in August because families have already made their purchase.
So what’s hot and what’s not.
Hot-Sandy $300,000 and under, three bedrooms together in the main bedroom area (not 2 on the main and 3 in the basement). Age of kitchen and bath is more important than the age of the home. If they are updated clean and well maintained, then they will sell fairly quickly and usually can draw multiple offers.
Not-The boat load of the speculator properties, where they bought an older not updated home and slapped a coat of paint along with a medium grade carpet and call it updated. There are plenty of those out there and some bargains can be found that make great rental properties.
Hot- New Ramblers with a small yard, main floor laundry 2 car garage. The empty nesters have nice family homes and now want to have a house that suits their lifestyle. They are not necessarily downsizing, they really don’t want smaller houses, they want smaller yards and less rooms.
Super Hot- Condos with a 2 car garage main floor one level living. The updating applies also. The other factor in a condo is the amenities. They come at a premium. There are a lot of mature single people, that are a single income and do not want to pay for the amenities, face it fifty percent of marriages end in divorce.
Super Not- New Construction in the Southwest section of Salt Lake County except for starter price ranges if you can find them. Also Super not are Starter Mansions in Draper, there are over 200 active listings in Draper above $600,000.
Here are some lyrics from a Don Henley song Dirty Laundry that explain how I feel about TV reporters giving real estate news.
We got the bubble-headed-bleach-blonde who
Comes on at five
She can tell you bout the plane crash with a gleam
In her eye
Its interesting when people die-
Give us dirty laundry
We can do the innuendo
We can dance and sing
When it’s said and done we haven’t told you a thing
We all know that crap is king
Give us dirty laundry!
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You want a local real estate update that mirrors the national press?
http://alexgoldie.thewrittenblog.com/?p=1000&comment=true
That’s local. That’s our dirty laundry!