June 20, 2011

Is It Better to Rent or to Buy?

Posted to First Time Home Buyers, Neighborhood Market Trends, Steve Randall

In today’s economy, is it better to rent or to buy?

This argument of rent vs. buy has again come to the forefront in Utah as home prices continue to decline and new lending standards make it more difficult for new home owners to qualify for a mortgage. For those of us who currently own have made a home purchase, and especially for some Seniors Citizens who now are using the equity they have built in their homes over their life time for retirement, owning a home has been a life-saver. However, for those first-time buyers in the market, renting may be the best option in order to save for a down payment and closing costs.

In a recent Deseret News articles published June 14, 2011, Lois Collins reports that the highest barriers to owning a home were as follows:

  • Saving for a down payment and closing cost 31%
  • Job uncertainty 21%
  • Your Credit Score 16%
  • Inability to get a loan 11%
  • Your current debt 9%
  • Concern if the home price will drop more 8%

Almost every pundit says that now is the time to buy. If you want to own your own home, the stars are still aligned. If you are an investor, then buying now is great, but also many will not buy for the reasons above and they will still need a home to live in. Great time for investors too. It certainly makes sense that owning a home will be the largest single asset when retirement approaches and remains a great investment. Renting is a great option while you save or prepare to choose a location in which to buy a home.

For more information on renting vs. buying please at anytime for comparisons.

Posted by:  Steve Randall





February 11, 2011

Waiting for Superman in East Layton?

Posted to Buyers, Neighborhood Market Trends, Sellers, Steve Randall

With spring just around the corner there are many who are wondering if now is the time to list their home. In fact, there are more who want to actually tour homes when the weather begins to warm up so there is some validation to that train of thought. For example, in East Layton there are several neighborhoods that lie east of Fairfield Road and west of Highway 89. These three neighborhoods are Summer-Haze, The Oaks at Mutton Hollow, and Oak Crest. This area is a popular area of East Layton to live. There are also some larger lots on Mutton Hollow Road with some newly remodeled homes that have a great deal of street appeal.

In the past year there have been seven homes sell in these neighborhoods. The average price per square foot for these homes has been $72.00. Now, every seller when they list their home wants to get the most for their home and sell it in the least amount of time. However, as a seller, we have to be careful to avoid thinking that our home is so much better than any other in the same market place that it will demand a much higher price. When a seller overprices a home hoping for the unique cash buyer, we call it “waiting for superman”!

In these three neighborhoods, there are currently 10 listings for sale in these late winter months and most are priced correctly in the $70 to $75 per square foot range. One is as low as $58 per square foot and two are at $84 and $138 per square foot. If you are a buyer and looking online, which homes will you tour? Most buyers will tour the homes that are priced correctly in these neighborhoods. The average listing price for the active homes on the market is almost $81.00 when the market is $72 per square foot or 13% above the average where homes are really selling. Overpricing a home waiting for superman is just wishful thinking. For sellers wishing to actually sell their home this spring, price it right for the spring market. Please remember, there will be more competition that will put downward pressure on your listing price so it is good to be below that average amount.

If you can’t wait for superman to show up to sell your home then let us help you with real-life pricing so that you can truly sell your home for the most money in the least amount of time. Contact me at for pricing assistance and current market information in your neighborhood. Here are the year-end results for Davis County where these three neighborhoods reside in the East Layton area.

Posted by:  Steven Randall





January 31, 2011

Are Home Prices Stabilizing in Northern Utah?

Posted to Neighborhood Market Trends, Steve Randall

The Utah Association of Realtors recently released their Local Market Update Report for the State of Utah which identifies market trends for the number of units sold and median home price trends for every county. In the Northern Utah Counties of Weber, Davis and Salt Lake, the market was not kind to sellers – with Weber County showing a 29.5% drop in 4th Quarter unit sales, Davis County showing a 31.6% drop in unit sales, and Salt Lake County showing a 27.2% drop in unit sales for the 4th Quarter of 2010 when compared with the same quarter of 2009. This shows the market is still soft but predictions are that unit sales will increase in 2011.

The median price of homes in Weber County for the entire year decreased 3.5% when compared with prices of homes in 2009. Davis County home values dropped 2.3% and Salt Lake County prices fell 3.5% when compared to 2009 prices.

Points to Ponder:

It appears that the rate of decrease is slowing but sellers must price their homes for the current market if they are to sell. The trend for 2011 will be for more unit sales but that will also be countered with an increase in listings from foreclosures, shadow inventory (pent up demand), and the normal new listings that will come in the spring. For sellers, it is best to price the home at the market value earlier in the year when prices are higher rather than in the second half of the year when prices will have dipped some more. For more details on specific neighborhoods and cities please  at anytime.

Posted by:  Steven Randall





January 04, 2010

The Next 10 Years!

Posted to Neighborhood Market Trends, Steve Randall

Welcome to a new year! We survived the 2009 real estate market! In fact, we actually had some good news in last half of 2009 with unit sales rising in many parts of the country and some price ranges actually seeing some appreciation. In some areas in Layton and other parts of Northern Utah we saw some appreciation. We don’t want to be overly optimistic because we know that recovery will be slow and some economists fear a “double-dip” economic recession if unemployment numbers don’t show greater improvement. There will be some rough waters to navigate this year as well.

In 2010 we still face a higher than normal inventory, declining home values in most price ranges, high unemployment leading to delinquencies, short sales, and even foreclosures. Credit is still tight but the worst is likely behind us. Recovery will be slower than we all wish for, but still we will see progress in 2010 in the Utah housing market.

A recent Deseret News article outlines some of the changes coming to Utah in the next decade that will impact our lives in the next 10 years. Here are the full details of the article.

Utah, especially Northern Utah, will have some great things to look forward to starting with an estimated increase of 700,000 new residents in the next 10 years. The bulk of that population growth will be centered in Northern Utah. Additionally, Utah will draw some high tech jobs and companies as part of its “entrepreneurial heritage.” Research now being conducted at Utah’s major Universities will continue to draw top notch companies which will want to employ Utah’s highly educated work force.

Transportation will be expanded with new smart-car technology that will communicate with each other adding new features and greater safety. Utah Transit Authority (UTA) will have five new Trax lines completed by 2015. Real estate values will increase around the station locations. In addition, the Mountain View Corridor will be completed to Provo and I-15 expanded to accommodate the new growth coming to Utah. Each expansion of transportation will lead to more growth and an increased demand for new housing, existing housing and a strong rental market through the next ten years.

Utah’s economic growth will outpace the US economy in the next 10 years with the real question being how well will the US economy do in the next 10 years. Utah’s advantage has always been in its educated, reasonably priced work force. That advantage is expected to continue into the next decade.

To review the top 10 stories for national real estate trends in 2009, we refer you to Steve Harney’s blog which we have highlighted in a previous blog post. For the statistics on how we in the Beehive State did in 2009, please refer to this NAR report for Utah.

One thing we know for sure is that there is nothing to fear in 2010 that a buyer, seller, or investor with the right information cannot use to their advantage. For those in Northern Utah who want to know how the recent market changes have impacted home values, please contact us for a free, no obligation, Competitive Market Analysis. Welcome 2010!

Posted By: Steve Randall





October 28, 2009

Fernwood Hollow Subdivision

Posted to Brad & Liz Sears, Neighborhood Market Trends, Ogden, Salt Lake City

Over the years many homeowners have taken their search for homes north of Salt Lake City for the simple idea of getting more home for their money, a chance to escape the fast paced city life and a quiet place to raise a family. The little extra commute time was a small sacrifice compared to all the benefits. Years down the road each little town and city got more populated, faster paced and a lot busier. Now people are moving further and further north for a chance at a life they grew up with. However, I’d like to tell you about an amazing neighborhood nestled in the upper hills of East Layton called Fernwood Hollow. Located only 20 minutes from downtown Salt Lake and 15 minutes from downtown Ogden, this East Layton neighborhood encompasses this lifestyle and a more convenient location.

Fernwood Hollow is a matured East Layton subdivision that offers peace and tranquility, and is hidden away by the vast amount of trees and gullies. It seems nearly invisible from the busy fast paced city life. All the homes have their own unique look, lot sizes range from .50 to over 1.00 acres and home prices range from $230,000 to $800,000.

This East Layton neighborhood is close to hiking, biking and horseback riding trails as well as within 7 minutes of three water parks (Layton Surf and Swim, Cherry Hill and Lagoon A Beach a division of Lagoon Park). Cherry Hill and Lagoon Park also offer many other activities, rides and more. Snow skiing, water skiing and camping are all within a 30 minute drive.

Fernwood Hollow has quick easy access to Highway 89, I-84 and I-15.

Visit my Fernwood Subdivision website to view a full tour of the neighborhood, plat maps, school information, local business, demographics and available homes for sale.

Due to the popularity of East Layton and Kaysville the averages show that homes in this particular neighborhood sell within 4 months which indicates good movement and a stable market according to the absorption rate. To view the homes for sale in this neighborhood, visit my website and click on the Fernwood Hollow Subdivision.

Posted By: Brad & Liz Sears