Tremonton Utah Area Real Estate

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Kathy Fuhriman

The real story about real estate


 
 

The real story about real estate

 

25 June 2008 (Appeared in the Box Elder News Journal) - You have certainly heard many stories from the national media regarding real estate, foreclosure rates, declining markets and the inventory of homes available for sale. What you haven't heard is reality. Real estate has and always will be a local and regional issue. What happens on the east or west coast is meaningful to local residents but has only a minor impact on the other regions of the country.

Of course there will always be some national influence such as the fact that lending institutions or the federal government may change their operating rules for the entire country based on what happens in only one or two regions. These actions may affect some borrowers, but the market will go on based primarily on local factors.

One real estate publication, Realty Viewpoint, recently had an article titled "Why Buy Now? Media Is Wrong About Housing Slump" by Blanche Evans. In the article, she quotes Chris Plummer of "Market Watch" who denounces both The Associated Press and the Case-Shiller Index for being "grim reapers." "The Index covers only 20 markets, heavily weighted to the most volatile metros in the nation," he said.

Plummer also notes, "The glaring discrepancy in this case is that 17 of the 20 metro areas posted record annual declines, and yet 78 percent of the 330 metropolitan regions that the NAR (National Association of Realtors) tracks reported price increases."

The best advice to those contemplating buying or selling real estate is to get the facts from your local professionals. You should visit with lenders and Realtorsto get a true picture of the local market and see what opportunities are available. A Realto® will also help you find the property you want, provide negotiation skills and follow through with the details of the transaction.

There are two important factors to consider when buying or selling real estate: How the market has performed in the recent past and, most important, how it is expected to perform in the future. To illustrate past performance, here are some numbers from the Wasatch Front Regional Multiple Listing Service that show Box Elder County has had a healthy growth rate for the last three years:

200520062007
Single-Family, Number Sold497583608
200520062007
Single-Family, Average Sales Price $138,654$151,719$172,153
To help illustrate the expectations for the future, Susan Thackary, director of Box Elder County Economic Development, provides some interesting information about job growth in the county. In the last few years, Box Elder County has helped to bring some exceptional businesses to the area - West Liberty Foods, Malt-O-Meal, and Proctor and Gamble to name a few. Thackary says her office will continue to look for great companies to locate to Box Elder County and provide exceptional jobs for area residents. In fact, the Box Elder County Economic Development Department receives approximately one to two leads a week from the State Economic Development Department. This is important because job growth is typically a sign of a healthy real estate market in the future.

To summarize, home prices and interest rates are still reasonable, there is a good supply of quality homes available, and the future market looks very good. Whether upgrading or buying for the first time, now is a good time to consider a real estate transaction.

 

 
   
Published Friday, September 05, 2008 6:32 AM by Kathy Fuhriman

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Jason said:

While the Case-Shiller Index is not very useful for Utah, there is an analogous index put out by the  Office of Federal Housing Enterprise Oversight (http://www.ofheo.gov) for each state (http://research.stlouisfed.org/fred2/series/UTSTHPI?cid=27328).  Utah is mirroring the nation but is simply about a year behind.  Additionally Box Elder has higher unemployment than the state, 5.0% vs. 4.3% as of December 2008 and both are on the upswing (http://research.stlouisfed.org/fred2/series/UTBOXE3URN, http://research.stlouisfed.org/fred2/series/UTUR).  The 2009 Economic Report to the Governor (http://governor.utah.gov/dea/default.html) predicts Utah homes prices will fall 9% in 2009.  If lower interest rates saved you $200-300 in monthly payments this would not make up for a lost $18,000 in your house's value.  Even though real estate usually does not have downside risk, it does in todays market.

February 20, 2009 10:34 AM

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