A housing boom could be coming, some experts say - Oct. 12, 2012

NEW YORK (CNNMoney) -- The long-battered housing market is finally starting to get back on its feet. But some experts believe it could soon become another housing boom.

Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.

Obama's economy

A look at where the economy stood when Obama took office and what's changed since.

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But while many economists believe this emerging housing recovery will produce only slow and modest improvement in home prices, construction and jobs, others believe the rebound will be much stronger.

Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015.

"In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts," said Stephen Kim, an analyst with Barclays, in a note to clients.

In addition to what Kim sees as a big rebound in building, he's bullish on home prices, expecting rises of 5% to 7.5% a year.

Related: Where housing is most (and least) affordable

Construction is expected to be even stronger, with numerous experts forecasting home construction to grow by at least 20% a year for each of the next two years. Some believe building could be back near the pre-bubble average of about 1.5 million new homes a year by 2016, about double the 750,000 homes expected this year.

"We think the recovery is for real this time around," said Rick Palacios, senior analyst with John Burns Real Estate Consulting. "If you look across the U.S. economy right now, there are only a handful of industries looking at 20-30% growth over the next 4-5 years, and housing is one of those."

Home builder stocks are up 162% in the last 12 months, led by a 250% jump at PulteGroup (PHM). Other leading builders including DR Horton (DHI), Toll Brothers (TOL), KB Home (KBH) and Lennar (LEN) have all seen their stocks more than double over that time. New orders at publicly-traded builders are up 30% since January, according to Kim.

Related: Is buying rental property now a sure bet?

Palacios said stocks in other sectors, from manufacturers of drywall to flooring to kitchen and bath fixtures, have all more than doubled as well this year.

The housing rebound can have a ripple effect that could help get the entire economy growing at a much stronger pace, which will add to more demand for housing.

"That turn in the [housing] market is occurring now and it should become a boom by 2015. It will be powerful enough ... to lift the entire U.S. economy," said Roger Altman, chairman of Evercore Partners and former deputy Treasury secretary, in a column for the Financial Times.

Altman said he expects housing will add 4 million jobs to the economy over the next five years, as pent-up demand for home purchases drives building and and home prices higher.

First Published: October 12, 2012: 1:01 PM ET

via money.cnn.com

This is great news we have all been waiting for

Foreclosure filings slow in Utah but spike elsewhere - Utah Down to 15th Nationally

The Salt Lake Tribune noted in the article below that Utah is down to 15 now in foreclosure. This is good new for consumer confidence.

With the lack of inventory on the market,  the number of buyer rising and interest rate at a 40 year low this is a great time to sell your home.

One thing to think about when deciding to sell your home is the number of homes you will be competing with (supple and demand) this will help you as a seller to get a high price for your home. So let get that home on the market and get you the highest price possible.

Call me today for more information

 

THE SALT LAKE TRIBUNE

First Published Mar 15 2012 07:21 pm • Last Updated Mar 15 2012 11:57 pm

Utah, which had one of the nation’s highest rates of foreclosure filings for much of the past two years, has eased back to 15th highest, a new report shows.

With a rate of one in every 721 households receiving some sort of notice in February, Utah is faring better than the national rate of 1 in every 637 households, according to foreclosure-listing firm RealtyTrac.

Nevada continued to post the nation’s highest rate last month, with one in every 278 households in the state receiving a foreclosure-related filing. That’s more than twice the national average.

Foreclosure activity surged last month across about half of the nation’s states, as banks tackled a backlog of homes with mortgages that had gone unpaid yet remained in limbo because of delays stemming from foreclosure-abuse claims.

The increase occurred across 26 states where the courts supervise the foreclosure process. In contrast, the 24 states where the courts do not play a role in the process saw activity decline in February, RealtyTrac Inc. said Thursday.

Utah, which falls into the latter category, saw foreclosures drop by 61 percent from February 2011 to the same month this year, according to the report.

Although uneven, the pace of foreclosures is accelerating after a $25 billion settlement reached last month between the nation’s biggest mortgage lenders and officials in 49 of the 50 states (including Utah). The settlement was tied to the industry’s foreclosure abuses.

Major banks temporarily put foreclosures on hold in the fall of 2010 after claims surfaced that lenders and mortgage servicers were processing foreclosures without verifying documents. As a result, many homes that would have normally ended up foreclosed were left in a procedural limbo, particularly in states where courts play a role in the process.

But that logjam has begun to ease, and banks are moving to sort out their roster of problem mortgages.

That means potentially more foreclosed homes hitting the market this year that could drag down the value of neighboring homes.

story continues below

Among states with a judicial foreclosure process, foreclosure activity rose 2 percent last month from January, and climbed 24 percent from February last year, the firm said.

Foreclosure activity across states without a court-supervised process fell 5 percent in February from the previous month and declined 23 percent from a year earlier.

RealtyTrac bases foreclosure activity on filings that signal when a home is in some stage of the foreclosure process — an initial default notice, a scheduled home auction or a home repossession, which is when a property goes back to the lender.

Overall, U.S. foreclosure activity dipped 2 percent from January and was down 8 percent from February last year. Taken individually, some states registered far higher increases in foreclosure activity last month. Banks repossessed 63,834 U.S. homes last month, down 4 percent from January and a decline of 1 percent from February las

Top 5 Indicators that Will Give Americans Confidence About the Housing Market | Trulia Pro

With the U.S. economy still struggling, over half of Americans (54 percent) aren’t sure the President can stabilize the housing market over the next year, according to Trulia’s latest consumer survey on American attitudes on housing policy.

Harris Interactive conducted this online survey on Trulia’s behalf and asked more than 2,000 Americans what signals will give them confidence that the housing market is getting back on track.

Jed Kolko, Trulia’s Chief Economist, says,  “Americans won’t believe our economy is improving until they see real proof.” Luckily for agents, the proof that consumers are looking for lies in key data points that agents can present to clients to help give them the confidence to buy:

1. Fewer defaults and foreclosures

“Fewer defaults and foreclosures” tops the list as a key factor indicating recovery, suggesting that consumers will be more confident in the market’s recovery if they believe that their neighborhood as a whole is doing better.

“As long as there are foreclosed homes and lingering for-sale signs in neighborhoods across the country, people are faced with constant, everyday reminders that the housing market is still struggling,” says Kolko. For real estate professionals, showing potential clients and customers local statistics on decreases in defaults can be a major tool in building the confidence consumers need to make a market move.

2. More home sales

The survey data showed home sales matter the most next to defaults and foreclosures. With 38 percent of the votes, this data indicates that statistics showing increased home sales can be a major tool to get consumers to believe in the market’s recovery.

Soon, communicating local home sales data is about to become even more important because of a lingering National Association of Realtors’ revision to 2005-2011 national home sales data which will likely show national numbers have been to high due to inflation.

For agents who have local areas where sales have increased, data driven presentations can motivate clients who may be straddling the fence on the decision to purchase.

3. Fewer vacant homes

While empty homes mean opportunity, they are a downer when it comes to consumer confidence. ”Neighborhood vacancies are like second-hand smoke, hurting everyone around them,” says Kolko.

Survey data showed, with 32 percent of the responses, declines in vacancies are top confidence builders for consumers.

For agents, this means the value of placing a “sold” sign is not only a great moment for the buyer, but for the neighborhood as a whole. To track vacancies by states, check the U.S. Census Bureau’s quarterly release on home vacancies, which breaks down the information by both state and Metropolitan Statistical Areas.

4. Lower Mortgage Rates

The survey data says “lower mortgage rates” are another of the top five confidence builders and received 25 percent of votes. That means it’s important, not only to offer clients updates on the day-to-day changes in rates, but also to show the bigger picture.

When it comes down to visual representations of today’s market opportunity, mortgage rate changes over the past 30 years is probably one of the most dramatic graphs an agent can present to a client. To make your own graph of mortgage rates and see the dramatic change, visit Bankrate.com’s Graph Rate Trends Page.

5. Higher Homeownership Rates

Lastly, the survey showed nothing sells ownership like ownership. Higher Homeownership Rates received 23% of the votes when it came to building confidence among consumers.

This indicates that seeing reminders of sales activity in their area and ownership benefits are keys to motivate clients to make a move.

via pro.truliablog.com

Realtor: Now is the time to buy, sell homes in Utah

OGDEN -- The volume of Utah homes for sale is up and interest rates are down, so if you're looking to buy or sell a home, now is the perfect time.

Compared to last year, real estate volume is up 30 percent and interest rates haven't been this low for years, said Bob Hill, president of Northern Wasatch Association of Realtors.

That's the good news.

The bad news is, the value of your home over the past year is possibly down as much as 3 percent, but the experts say not to let that discourage you too much.

"A house you would have bought for $100,000 last year would have cost you about $97,000 this year," Hill said. "But it's still a great time to buy and sell. If you bought a house today compared to 10 years ago, your house payment would only be up 17 percent. That's really incredible. Taxes are down. Prices are down. Interest rates are down. We know things are going to come back up, so if you're in the market, I wouldn't wait."

During October, Utah Realtors sold 2,819 homes, townhomes and condos. That's a 30 percent increase from October 2010 sales, Hill said. In addition, the 30-year, fixed-rate mortgage fell to 4.32 percent in August.

According to the Utah Association of Realtors, homes are being absorbed at record speed. The number of homes on the market statewide has come down more than 21 percent over the past year. Also, it now takes about eight months to sell an inventory of properties that previously took about 11 months to sell.

"That's really great news," said Eric Allen, director of the Utah/Idaho region for Metro Study, a provider of information to the housing industry. "If you compare us to the rest of the nation, the whole market is within the top 3 to 5 percent as far as being a healthy market."

While you might not get your listing price when selling your home, Hill and Allen said if you want to buy a new home, the difference will even out in quality.

"Homes are being built better than ever," Allen said. "They're more energy efficient, materials aren't as expensive but they're better quality."

If you want to sell a home right now, make sure you know what the homes in your neighborhood are selling for, Hill said. And small, strategic improvements can mean a great deal to the prospective buyer.

"Go outside and make the curbside appealing," he said. "You want to invite people inside. Once they're inside, have things packed away. Clutter doesn't give the potential buyer an idea of how suitable the living area might be for them."

If you're in the market to purchase a home, keep your credit rating clean and your financial status on solid ground.

"Know what you want. Look for the right floor plan that meets your lifestyle," said Allen. "I really hate to sound cliché, but it really is a great time to buy a home. We are not overloaded with home inventory, so if you can get qualified, there hasn't been a better time than now to buy."

And fewer homeowners are losing their homes to foreclosure than in 2010. Core-Logic, another firm providing real estate information and analysis, said the foreclosure rate for outstanding mortgages in September 2011 was 1.33 percent in the Ogden-Clearfield market, down from 1.67 percent in September 2010.

Utah's statewide foreclosure rate of 1.68 percent also was favorable when compared to the national rate of 3.48 percent, according to CoreLogic figures.

via standard.net

28.6 percent of homeowners nationwide owe more than their home is worth, report says | Deseret News

SALT LAKE CITY — A new report shows that 28.6 percent of homeowners owe more on their mortgages than their homes could sell for. That's nearly three out of every 10, nationwide.

The quarterly report from the real estate Zillow indicates the 28.6 percent is worse than the second quarter number, which was 26.8 percent, and about the same as the first quarter number of 28.4 percent.

Dave Anderton, a spokesman for the Salt Lake Board of Realtors, said last month roughly two in 10 people in Utah are underwater in their mortgages.

Click to enlarge

Associated Press

In this May 9, 2008 file photo, a foreclosure sign stands outside an existing home on the market in Denver. A new report shows that 28.6 percent of homeowners owe more on their mortgages than their homes could sell for.

From the archive

• Yes, you can still sell your home in a down market – June 27, 2011
• In confusing market, is it time to rent or buy? – June 13, 2011
• Underwater mortgages rise as home prices fall – March 8, 2011
• Fewer homeowners underwater in the third quarter – Dec. 13, 2010
• Home prices falling faster in most metro areas – Nov. 30, 2010

"About 20 percent of Utahns are in a negative equity position, we call it, or owe more on their mortgage than what their home is worth or what someone is willing to pay for it," he said.

Home prices, which have been declining for four years after peaking in 2007, are a factor. Nationally, Zillow says home prices dipped 0.2 percent from second quarter to third quarter this year. Year-over-year, though, home prices have dropped 4.4 percent.

Of the 157 metropolitan areas covered in the Zillow Real Estate Market Report, 105 showed quarterly home value depreciation and 26 metro areas saw quarterly home values go up, and the remaining 26 metros saw no change.

"In (Salt Lake) County, home prices are still falling," Anderton said. "We're just hoping we see an end to the falling prices, especially for homeowners."

Zillow chief economist Stan Humphries predicts home values will go down another 3-5 percent before reaching bottom in 2012 at the earliest. He thinks the foreclosure market will remain "robust" for the next two to four years.

Experts say another reason the number of underwater homeowners appears to have increased from 2008 and 2009 is a change in how long the foreclosure sale process takes. The "robo-signing" scandal surfaced in 2010 when people were signing off on foreclosure paperwork in large numbers without properly reviewing the files.

That has changed, but experts say as a result there are added delays to foreclosure sales. That has boosted the number into the 26-28 percent range, instead of the 21-23 percent range prior to 2010.

Elsewhere around the nation, Zillow says more than 66 percent of homeowners in Phoenix are underwater in their mortgages. In Atlanta the rate is 58.7 percent and in Riverside, Calif., the rate is 51.4 percent.

via deseretnews.com

How to secure your home during a foreclosure | ksl.com

SALT LAKE CITY — A vacant home is a tempting target for all sorts of criminal activities, like vandalism and even illegal drug operations. Take a look at a few statistics regarding bankruptcies and foreclosures: According to the United States Bankruptcy Court, bankruptcy filings in Utah have increased 7 percent so far this year, even though the national rate has fallen 10 percent.

Although Utah’s rate of foreclosure filings during the third quarter of 2011 dropped from the second quarter, the state is still ranked among the nation’s Top 10 for rate of default filings in that time period.

As people foreclose on their homes, neighborhoods deal with the increased potential for crime. When a home becomes vacant, either through a foreclosure, repossession or even when the owners leave for an extended vacation, it’s important to make sure the property remains secure.

Malicious or unintentional property damage can end up costing banks and homeowners money, and property insurance may not cover it all. Guarding against accidents and break-ins is crucial, since the homeowner is still liable for the property during the process of foreclosure. Experts recommend thoroughly securing the property and the home before moving out, and paying close attention to the details.

Before you secure your home, realize there are certain things you shouldn’t overlook. It’s also a good idea to make sure the property doesn’t look vacant. If potential vandals, thieves and trespassers believe there is still someone living at the property, they’re less likely to target the home.

Here are some tips to consider:

 

• Lock up — All it takes is one window left unlocked, and the insurance company could deny any potential claim. Check all the entrances to your home — and then check them again.
• Winterize — Before a home is left vacant for any length of time, shut the water off at the main valve. You should also drain the water from the plumbing systems, and push the leftover water out with compressed air. Even a small leak can lead to a big problem, potentially costing tens of thousands of dollars in damage.
• Maintain the property —
  Quick Look

  Keeping your foreclosure safe
  

  • Lock up
  • Winterize
  • Maintain the property
  • Ask for help
  • Unplug
  • Test and retest

  Property preservation companies offer services to give a vacant property a “lived in” look. They’ll maintain the yard, pick up mail and newspapers, shovel snow from the driveway, and remove debris. Companies like these offer services to homeowners and banks, so a vacant property can be maintained indefinitely.

• Ask for help — Former neighbors and friends can lend a hand with maintaining the property when it becomes vacant. Ask them to occasionally check up on the home or lot, and check for leaks, turn the blinds and monitor for trespassers.
• Unplug — An appliance that is set to “off” still draws a little power, so make sure everything inside the home and garage is unplugged. Before the electricity to the home gets shut off, pulling the plug can ensure a potential fire doesn’t start.
• Test and retest — Smoke and carbon monoxide detectors, as well as security alarms, should all be functioning properly. Make sure there are fresh batteries in the units, and test them before vacating the property.

“While foreclosure activity in September and the third quarter continued to register well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up,” says James Saccacio, chief executive officer of RealtyTrac. Even though going through a foreclosure is a stressful time, ensuring your property and home are secure can save a lot of headaches in the future.

via ksl.com

 

THIS IS FALSE !!! I just talked to my Advisor... If you sell your house after 2012 you will pay a 3.8% sales tax on it?

The National Association of REALTORS is all over this and working to 
get it repealed, before it takes effect. But, I am very pleased we
aren't the only ones who know about this ploy to steal billions from
unsuspecting homeowners.

 

How many REALTORS do you think will vote Democratic in 2012?

Did you know that if you sell your house after 2012 you will pay a
3.8% sales tax on it? That's $3,800 on a $100,000 home, etc. When didthis happen? It's in the health care bill and goes into effect in
2013.

Why 2013? Could it be to come to light AFTER the 2012 elections? So,
this is "change you can believe in"?

Under the new health care bill all real estate transactions will be subject to a 3.8% Sales Tax.If you sell a $400,000 home, there will be a $15,200 tax.

 

This bill is set to screw the retiring  generation who often downsize
their homes.  Does this make your November and 2012 vote more
important?

Oh, you weren't aware this was in the Obamacare bill? Guess what, you aren't alone. There are more than a few members of Congress that
aren't aware of it either!

http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home>

 
VOTERS NEED TO KNOW YOUR VOTE COUNTS.

CNN Money ranks Logan No. 22 in nation for jobs - USU Statesman - Utah State University

Cache County was recently listed as the 22nd best place in the U.S. to find a job, according to a a piece published in CNN Money.

In truth, however, the local job market is only slightly less dismal than the rest of the country, said economics Professor Randy T. Simmons.

"CNN is just looking at U.S. Census numbers," Simmons said. "Yes, there are more jobs here in 2010 than there were in 2000, but there are also more people."

According to Utah's Department of Workforce Services, jobs may have increased in Utah, but unemployment has as well. The state average was around three percent in 2000 but is closer to eight percent today. Cache County hovers just below the state average at about five percent.

The CNN article lists the Utah Science Technology and Research (USTAR) initiative as one of the key components in local job growth. According to Simmons, however, USTAR is not one of the major employers in Cache Valley. CNN also listed employers not in the county as critical to job growth here.

"CNN got some of their information confused," said Jacoba M. Poppleton, USTAR public relations specialist. "The Bingham Entrepreneurship and Energy Research Center is actually in Vernal, not in Logan."

CNN also listed Utah County as the eighth best area for "where the jobs are," yet Utah County's unemployment rate is currently at 7.5 percent — higher than Cache County, according to the UDWS.

"CNN's analysis is very superficial," Simmons said.

 

The Unpromising Job Market

 

The job market in Logan is in a sad state of affairs, but it's better off than the rest of the nation, said James Feigenbaum, assistant professor of economics.

"Cache Valley — and Utah — seem to be in a better spot than, say, California or New York," he said. "In a lot of states there have been promises to public employees to grant huge pensions, and Utah does not have such an overpaid public sector. Looking forward, I'd say Utah is slightly better off."

The local capitalist spirit and the young, optimistic students who are eager to work seem to offset the recession slightly, Feigenbaum said.

The more free market approach to business regulation also helps keep the local economy above the water line, Simmons said.

"The cost of government here is low compared to other places. The local government tends to stay out of business, rather than picking winners and losers as they do elsewhere," Simmons said. "Utah's ranked No. 1 or No. 2 economically, and I think it's because we have limited but effective government involvement."

Despite Cache Valley being better off than other places, we are far from trouble free, Simmons said.

"Officially the recession bottomed in 2009, but we haven't had much recovery since then — it's far from over," he said. "I am the former mayor of Providence, and I can tell you that for realtors, builders and everyone else it's been a tough three years. The only homes that are selling are in the low-end market."

Statewide, Utah had one foreclosure for every 450 properties, said economics and finance Professor Benjamin Blau. Cache County only had one foreclosure for every 1,056 properties.

"We face greater uncertainty now than we have since the Great Depression," Feigenbaum said, "It's not just part of the business cycle. It's a demographic shift. There are more old people, and there is going to be a painful transition in the near future."

There have been many layoffs in Cache County since 2008, according to Simmons, who said ATK, Malt-O-Meal and Autoliv all recently made cuts. However, he said, the area did not crash quite as hard as other areas because of less government intervention and business diversity.

"We have a broad academic and industrial base," Feigenbaum said. "The university employs a lot of people, but we also have a more varied set of businesses and industries than most college towns this size."

 

Seeking Help

 

Director of the Cache Community Food Pantry Matt Whitaker said more people in Cache Country are requesting aid than ever before.

"I chuckle when I hear politicians say the recession is over," Whittaker said. "The number of people coming (to the food pantry) has been trickling higher and higher."

Wayne Jolley, a Logan resident, is one of those who depends on the food pantry for survival.

"Without their help I wouldn't have any way to get dinner for my family," he said. He said he is a father of five.

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via usustatesman.com

Salt Lake City Blogs:News Blog-Utah Banks' and Lenders' HAMP Report Card

Posted // 2011-10-05 -

This week’s City Weekly cover story looks at how banks and lenders in Utah have used and abused a federal program meant to help homeowners avoid foreclosure. Here is a look at how well all banks and lenders did in helping Utahns fend off foreclosure with loan modifications.

The Making Homes Affordable Program, known as HAMP, was rolled out by President Barack Obama in 2009 with plans of helping as many as 4 million homeowners obtain loan modifications to help them keep a roof over their head. But to date, fewer than 800,000 loans have been modified. As this week’s cover story explored, the program was beset with confusing guidelines and lacked penalties for banks and lenders who abused the program.

Below, you can see how well your bank did in Utah for its performance in converting trial applications to the program into permanent modifications. Keep in mind that while not every trial is qualified to become permanent, a major criticism of the program was that the inefficient handling of the trial process has strung homeowners along to the point that their trial was canceled because the home faced imminent foreclosure.

Another critique is that HAMP was pushed and promoted to homeowners who simply did not qualify for it, and that manipulating the modification to try to get a loan modified also expedited the foreclosure process.

UTBanksLenders

via cityweekly.net

Click on the link for a full list of banks and the percent of completion you will be amazed. Is it really that good of a plan what are your thoughts?

HotPads: Smarter Map-Based Search for Homes, Foreclosures, Rentals, and Hotels

Name: HotPads.com

Quick Pitch: HotPads is a map-based housing search engine. Housing shoppers can find long term rentals, homes for sale, vacation homes, and hotels on our map-based search.

Genius Idea: If you’re in the market for a new home, vacation property, or rental, you can turn to Craigslist, iList, or dozens of other online classifieds sites to help you in your search. But, most of these options aren’t tailored to the best search experience for your housing-related needs. HotPads, however, keeps it simple with interactive map-based search results for everything from apartments to hotels and even recently foreclosed homes.

If you can get past the off-putting name, you’ll find that HotPads provides an enjoyable search experience for housing and hotels. You can quickly search the map, find centers of housing activity, view listing details without leaving the map, and narrow search results by type, price range, or points of interest. With more than 300,000 rentals, 3,000,000 homes for sale, and a myriad of vacation and hotel listings, HotPads has got the entire residential and commercial landscape covered.

Some great features of the site’s map-based approach to housing include the ability to zoom into precise locations for a better view of nearby venues and hot pads, demographic heat map overlays for info on population density and median rent prices, street, arial, or hybrid views, and advanced search options to find detailed info on mortgage terms and down payments.

We’re sold on the site and think it could prove to be a time-saving resource for finding and researching your next big move or out of town stay.

via mashable.com

Check out before you go out!!