Sitting here with a cold, working, and dreaming about the next time I can be out on my little fishing kayak on Henrys Lake, going for natives like these small ones!
Thursday, February 5, 2009
Buying a Home? Read This First!
As previously stated, an average 32% of all homes on the market (Utah County and Draper areas) are being sold with "third party approval", meaning bank involvement or bank owned. I evaluated all homes for sale in increments of $200K - $300K, $300K - $400K, ... through $1M and above. This was also done for the cities of Alpine, American Fork, Cedar Hills, Draper, Highland, Lehi, Pleasant Grove, and Saratoga Springs.
Sample of typical findings:
Highland - Total homes on market between $200K and $5 M is 180 with 64 (36%) of them being Short Sales. These short sales are selling between $76 and $85 per sq. ft. on average.
Example: Homes for sale between a $400K and $500K sales price: There are 37 for sale with 15 of them being Short Sales... (26%).
Draper - Total homes on market between $200K and $15M is 485 with 163 (34%) of them being Short Sales. These short sales are selling between $84 and $96 per sq. ft. on average.
Example: Homes for sale between a $400K and $500K sales price: There are 93 for sale with 35 of them being Short Sales...(38%).
Buying? Call me first and I can supply you the expected price based upon the city.
Sample of typical findings:
Highland - Total homes on market between $200K and $5 M is 180 with 64 (36%) of them being Short Sales. These short sales are selling between $76 and $85 per sq. ft. on average.
Example: Homes for sale between a $400K and $500K sales price: There are 37 for sale with 15 of them being Short Sales... (26%).
Draper - Total homes on market between $200K and $15M is 485 with 163 (34%) of them being Short Sales. These short sales are selling between $84 and $96 per sq. ft. on average.
Example: Homes for sale between a $400K and $500K sales price: There are 93 for sale with 35 of them being Short Sales...(38%).
Buying? Call me first and I can supply you the expected price based upon the city.
Wednesday, February 4, 2009
Shocking News About Short Sales - DO YOU HAVE EQUITY?
I have always prided myself in being one of the best when it comes to knowing my market, the competition, and being able to predict the what the market (sales) will do over the next 6 to 12 months at any time. Times have changed!
2008-
The year we needed to get rid of the "spec" home inventory in order to have home prices stabilize.
2009 -
The year we need to get rid of foreclosures and short sales in order to have home prices stabilize! The short sale market is killing new construction & existing home prices. The cause of it is the terrible loans that were issued between the summer of 2005 and the summer of 2007. Those ARMs are coming due, forcing people to refinance or sell when they can do neither due to the new laws in place. Additionally, layoffs are not helping.
32% !
I just finished evaluating the number of homes presently on the market verses the number of those homes on the market that are either bank owned, short sales, or pre-foreclosures. I found that the average percentage of homes presently on the market that are short sales 0r bank owned is 32%. Basically, 1 in 3 homes that a buyer has to choose from is a distressed property.
$70 TO $80 per Sq. Ft. = Sales Price!
That's the average sales price of the short sales. If a home is 4,000 sq. ft., one can expect the sales price to be between $280,000 and $320,000. Normally, anything under $100 per sq. ft. is a good price!
2008-
The year we needed to get rid of the "spec" home inventory in order to have home prices stabilize.
2009 -
The year we need to get rid of foreclosures and short sales in order to have home prices stabilize! The short sale market is killing new construction & existing home prices. The cause of it is the terrible loans that were issued between the summer of 2005 and the summer of 2007. Those ARMs are coming due, forcing people to refinance or sell when they can do neither due to the new laws in place. Additionally, layoffs are not helping.
32% !
I just finished evaluating the number of homes presently on the market verses the number of those homes on the market that are either bank owned, short sales, or pre-foreclosures. I found that the average percentage of homes presently on the market that are short sales 0r bank owned is 32%. Basically, 1 in 3 homes that a buyer has to choose from is a distressed property.
$70 TO $80 per Sq. Ft. = Sales Price!
That's the average sales price of the short sales. If a home is 4,000 sq. ft., one can expect the sales price to be between $280,000 and $320,000. Normally, anything under $100 per sq. ft. is a good price!
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