All Listings Total Active Listings Sold in Last Year Total Pending Sales Expired in Last Year New Listings Past 30 Days Sold in Last 30 Days Pending in Last 30 Days Expired in Last 30 Days Absorption Rate (Months Supply of Homes) Short Sales Total Active Listings Sold in Last Year Total Pending Sales Expired in Last Year New Listings Past 30 Days Sold in Last 30 Days Pending in Last 30 Days Expired in Last 30 Days Absorption Rate (Months Supply of Homes) Conclusions % All ACT Listings that are SS % All Sales Last Year that were SS % Listings that Expired Last yr that were SS % Total Listings in Last 30 days that are SS % Listings Sold in Last 30 Days that were SS % Pending in Last 30 Days that are SS % Listings that Expired Last 30 days that were SS

7,689 11,644 1,422 12,290 1,782 848 717 996 9 1,649 1,390 263 2,152 259 151 110 183 11 21.4% 11.9% 17.5% 14.5% 17.8% 15.3% 18.4%

 

Buy a Home for only $100 down?

Conventional loans require up to 20% for the down payment. Even FHA loans require 3.5% down payment. HUD has homes you can purchase with a $100 down payment.

What are HUD Homes?

A HUD home is a home that HUD owns as a result of foreclosing on an FHA loan.

These HUD homes are not the HUD homes of the past. FHA increased the loan limits to a high of $729,750 for Single Family homes and up to $1,403,400 for Four Family homes. As a result of higher loan limits, the inventory of homes includes more expensive properties.

The largest hurdle buyer’s face in purchasing a home is coming up with the down payment. The down payment for these HUD homes is $100. Everyone should be able to come up with $100 for a down payment.

There are some requirements you must meet in order to take advantage of the $100 down payment program. When someone with an FHA insured loan can’t make the payments, the lender forecloses on the home. FHA, as the insurer of the loan, pays the lender what is owed and then the United States Dept. of Housing and Urban Development (HUD) becomes the owner of the home

Who is Eligible to Buy HUD Homes?

Almost anyone can buy a HUD home. Any individual who can qualify for an FHA mortgage or who can pay cash may buy a HUD home.

Buyers must have a pre-qualification letter from a lender or proof of cash funds. HUD does not provide financing for the purchase of HUD homes. It is up to the buyer to procure financing through a bank or mortgage lender.

Priority is given to purchasers who are owner occupants. Owner-occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home for two years

 Requirements:

1. HUD Foreclosed homes only.

2. Must use FHA financing.

3. Purchaser must be Owner - Occupant. You must sign a form at closing stating that you are going to live in the property and not use it as an investment such as a rental property.

Is news really news if it had already been anticipated? I'm referring to May's housing numbers, which everyone anticipated and which surprised few.  Existing home sales rose 12 percent compared to April's numbers.

Under more conventional circumstances I'd be tempted to break out the bubbly on such a bullish report, but we all know why home sales under contract spiked in April – impending expiration of the federal homebuyer tax credits.  The credits were a useful band-aid, to be sure, but they were no panacea.  They simply moved demand forward without aggregately increasing it, and they really moved it forward in April.

I'm even less tempted to break out the bubbly when vetting the latest national pricing data.  On that front, the Standard & Poor's/Case-Shiller home price index showed that prices of single-family homes were down 0.5 percent between February and March, the sixth consecutive month-over-month decline. Year-over-year prices are up 2.3 percent nationally.  Meanwhile, the median price on existing homes increased 4 percent to $173,100 in April while the median price on new homes tumbled 9.6% to $198,400, as those who took advantage of the tax credits did so with cheaper homes.

This isn't to say that I am discouraged.  I think the market is simply in a holding pattern at the moment, with inventory levels holding relatively steady at an 8-month supply on existing homes and at a 6-month supply on new homes.  Some reservation is understandable; no one is really sure how the housing market will react to standing on its own heading into the prime buying season.  I remain optimistic, because I think the data suggests it will keep moving forward.

Meanwhile, the refinance market remains robust, and why shouldn't it with rates on 30-year-fixed rate loans regularly found below 5 percent and rates on 15-year fixed-rate loans regularly found below 4.5 percent?  For many borrowers, it's an opportune time to save a lot of money over the long haul by refinancing to a 15-year loan from a 30-year loan.

Of course I'll warn once again that good deals don't last forever. The turmoil in Europe has helped push rates down a few basis points, but rumblings for change are emanating from the Federal Reserve.  Recent minutes of the latest Fed meeting show a growing number of its banks want to raise the rate charged to banks on emergency loans, which is a sign of confidence in the economic recovery.  It's worth remembering that as the economy improves, the opportunity to get a bargain-basement mortgage rate and home price decreases.

A popular investing aphorism states that housing markets must climb a wall of worry in order to advance. If anyone has had more worries than most in recent years, it's the homebuilders. Over the past two months though, they seem to be worrying a little less. The National Association of Homebuilders reported its housing market index – a measure of industry confidence – rose three points to 22 last month, posting its highest reading since August 2007.

Homebuilders are still far from euphoria: readings below 50 indicate negative sentiment about the housing market. The last time the NAHB's index was above 50 was in April 2006, and we saw how the ensuing four years played out. Perhaps the fact that homebuilders remain somewhat guarded bodes well for the industry's future. Still, many homebuilders are expecting improved sales and home buyer traffic in coming months despite the end of homebuyer tax incentives.

Continued price stabilization is helping to lift spirits as well. National home prices increased 1.7 percent in March compared to the same year-ago period, marking the second month of year-over-year increases, according to CoreLogic's home price index. Distressed sales continue to cloud the outlook, though CoreLogic noted that the longer-term forecast remains positive, with prices expected to rise nationally another 2.7 percent over the next 12 months.

Stabilizing and improving prices are also contributing factors to the surge in housing starts, which rose 5.8 percent to an 18-month high of 672,000 units in April. Of course, buyers eager for federal tax credits are another contributing factor, which has some pundits concerned about a precipitous drop in sales in coming months. Their concerns are not unfounded. Permits dropped 11.5 percent, which indicates many builders remain cautious (hence, the 22 reading of the latest NAHB confidence index).

The good news is that continued economic growth is more likely than not. The Federal Reserve expects GDP to grow by roughly 3.5 percent this year, up from its 3.1 percent forecast in January. Meanwhile, unemployment is expected to drop to the low 9-percent range. As the economy and employment recover, the Fed expects inflation to remain subdued.

Like the Fed, we remain upbeat on the economy, but somewhat less sanguine on the subject of inflation. Yes, mortgage rates continue to hug historic lows, but economic turmoil in other parts of the world, notably Greece and China, is the primary reason. The United States is a haven in times of tumult, but tumult doesn't last indefinitely, nor do historically low borrowing rates. It's worth stating again that any rate improvement has been marginal at best for most borrowers.

Real Estate Investors Beware

As a fellow real estate investor, I was ecstatic to see the announcement from HUD Asst. Secretary David Stearns on January 15, 2010 that Section 203.37a(b)(2) was waived for a period of one year - through January 31, 2011. 

The reason behind this decision was simple.  The department of Housing and Urban Development  realized the significant negative economic impact many uninhabitable foreclosed homes have had on the real estate market.  By allowing the waiver of the 90-day seasoning rule, the inventory of these properties would surely decrease as investors are able to rehab and turn these homes in a reasonable amount of time.

Unfortunately the secondary mortgage market is not required to adhere to HUD and FHA "recommendations", and they aren't buying.  At the onset, I found very few lenders who would adhere or accept, either or both stipulations for FHA loans.  I experienced denials from Well Fargo, Bank of America, and SunTrust.  I figured there was a learning curve and they would come around, but now three months into this, the "bigs" still aren’t buying. 

Home buyers looking for a nice rehab property while utilizing an FHA loan are finding more success using local lenders and mortgage brokers.  These people have less bureaucracy and are more apt make the right common sense decisions.

If you are an investor it is critical to educate yourself, and use an educated real estate agent to guide prospects to successful financing.  There is nothing worse than going under contract (taking your listing off the market) for weeks only to find a finance contingency implemented.

Fannie Mae has announced new eligibility rules for home buyers who have experienced a short sale or deed in lieu of foreclosure.  The time that must elapse after a real estate foreclosure or short sale before home buyers can qualify to purchase a home has been changed!  There are other factors that affect these changes as well, such as down payment amounts (LTV) for the transaction, and whether there was a legitimate hardship associated with the loss of home.

You can read the full announcement and changes here at Fannie Mae

The percentage of Utah homes with underwater mortgages remained at 21.1 percent in this year's first quarter, about the same level as in the fourth quarter, according to a new report by CoreLogic.

In Salt Lake City, 20 percent or 45,125 residential mortgages were considered to be in "negative equity," meaning that borrowers owe more on their mortgage than their homes are worth. In addition, 6.2 percent or 14,046 mortgages were in near negative equity in Salt Lake City.

Nationally, 23.7 percent of all residential properties with mortgages were in negative equity in the first quarter.

Nevada (70 percent), Arizona (51 percent), Florida (48 percent), Michigan (39 percent) and California (34 percent) posted the highest negative equity rates of all states.

"The typical underwater borrower is likely to regain their lost equity over the next five to seven years," according to Mark Fleming, chief economist with CoreLogic.

All Listings Total Active Listings Sold in Last Year Total Pending Sales Expired in Last Year New Listings Past 30 Days Sold in Last 30 Days Pending in Last 30 Days Expired in Last 30 Days Absorption Rate (Months Supply of Homes) Short Sales Total Active Listings Sold in Last Year Total Pending Sales Expired in Last Year New Listings Past 30 Days Sold in Last 30 Days Pending in Last 30 Days Expired in Last 30 Days Absorption Rate (Months Supply of Homes) Conclusions % All ACT Listings that are SS % All Sales Last Year that were SS % Listings that Expired Last yr that were SS % Total Listings in Last 30 days that are SS % Listings Sold in Last 30 Days that were SS % Pending in Last 30 Days that are SS % Listings that Expired Last 30 days that were SS

7,476 11,507 2,322 12,361 1,969 918 1,527 978 8 1,622 1,303 283 2,106 276 121 171 202 13 21.7% 11.3% 17.0% 14.0% 13.2% 11.2% 20.7%

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) phases out the federal estate tax through 2009 and 2010.  In 2011 the estate tax will be restored unless Congress acts.  The Main elements of the phaseout are a cap on the top estate tax rate and an increase in the exception amount.  (Kaplan Financial Education,2009 Pocket Tables).  Accountability and planning are important strategies to incorporate while planning for life events.  Whether estate tax has a negative or positive impact is up to the action or non-action each individual takes.  For certain it is one of the most significant events impacting life and loved ones.

When the estate tax is phased out, the unlimited step-up in basis provision for inherited property will disappear as well. Beginning in 2010, the regulations will allow an executor or a personal representative of an estate to adjust the cost basis of assets acquired by the estate's beneficiaries.

Each estate will generally be permitted to increase the basis of assets transferred up to $1.3 million. Plus, the basis of property transferred to a surviving spouse may be increased by an extra $3 million. Therefore, the total step-up for assets given to a surviving spouse will be no more than $4.3 million. After 2010, both the $1.3 million and $3 million figures will be adjusted for inflation.

This change in the step-up in basis provision could negatively affect the estates of farmers and small business owners who hold a significant amount of their wealth in the form of business assets.  Recipients of highly-appreciated real estate in Utah would feel the hit as well when they sell and have to pay capital gains taxes. 

Although the estate tax doesn't have a direct effect on the Salt Lake City home market, tax planning is an important consideration when buying a home in Salt Lake City, Draper homes for sale and Sandy, UT homes for sale.

According to a poll conducted by Dan Jones Assoc. and released by KSL & Desert News, it seems that most Salt Lake County residents believe the split up of the Jordan School District that created the Canyons School District has not been fair for the students, taxpayers and employees of the southwest side of the Salt Lake Valley.

The poll also asked whether county residents believe the school district controversy reflects a deeper cultural divide between the east and west sides of the county.  According to the poll, 67 percent either "probably" or "definitely" agree the dispute reflects an underlying issue of whether east-side residents receive preferential treatment by government over west-siders.

They polled an equal number of residents from either side of I-15 (regarded as the division between east and west sections of the valley.

The Canyons District is headquartered in Sandy and covers homes as far south as Draper and north to Cottonwood heights and Midvale.  It also includes the small town of Alta.  The Jordan School District is headquartered in West Jordan, and also includes homes in South Jordan, Riverton, Bluffdale, and Herriman.

The previous information was derived from KSL.com