Economic Summit 2012 Residential Real Estate in WASHINGTON COUNTY “ A Review and a Preview ”...
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Economic Summit 2012 Residential Real Estate in WASHINGTON COUNTY “A Review and a Preview” Presented by Vardell H Curtis, RCE Chief Executive Officer Washington County Board of REALTORS ®
Economic Summit 2012 Residential Real Estate in WASHINGTON COUNTY “ A Review and a Preview ” Presented by Vardell H Curtis, RCE Chief Executive Officer
Economic Summit 2012 Residential Real Estate in WASHINGTON
COUNTY A Review and a Preview Presented by Vardell H Curtis, RCE
Chief Executive Officer Washington County Board of REALTORS
Slide 2
Slide 3
Road Map to a Housing Rebound If youre a homeowner these days
and almost two thirds of Americans are the housing market generally
doesnt fall into the realm of pleasant dinner conversation. The
once-booming industry has been bruised and bloodied from nearly
every angle. Home prices have plunged 30% nationally over the past
5 years, millions of Americans have lost their homes to
foreclosure, and millions more are on the brink with underwater
mortgages. Still others are seriously delinquent on their home
loans. Still, the U.S. economy is resilient. The recovery has
absorbed a debt-ceiling fiasco at home, a near financial meltdown
in Europe, and political chaos in the Middle East. The job market
is improving, consumers are spending more, and corporate balance
sheets remain healthy, all of which are critical for the housing
market to rebound. US News December 2011
Slide 4
Road Map to a Housing Rebound The situation in the housing
market is tightly bound with whats happening in the broader
economy. A broader economic recovery is going to have to precede a
recovery in housing. Really, job growth is so essential for housing
demand. Particularly important is the unemployment rate among young
Americans between 25 and 34 years old. These are the people forming
households and buying their first homes. Due to the bad economy,
more young Americans have been doubling up, moving in with friends
or living at home to ride out lean times. Thats put the kibosh on
demand which is part of the reason why theres still so much housing
inventory to work through. US News December 2011
Slide 5
Utahs Employment Summary Utah continues to be one of the
nations leading employment growth states. Nearly all industrial
sectors have added jobs over the past 12 months, and the employment
rebound appears on firm footing as the economy moves into 2012.
While nearly all industrial sectors are adding jobs, the lone
exceptions are construction and government. Construction, an
industry whose growth is important to help sustain overall
long-term economic expansion, is trying to rebuild its employment
foundation in Utah. It is moving forward in some regions while
others are still sluggish. Construction employment is largely
unchanged from last year and is an industry still waiting for a
rebound to develop. Department of Workforce Services November
2011
Slide 6
Utah Seasonally Adjusted Unemployment Rates
NovemberOctoberSeptemberNovember 2011 (p)2011 (r)2011 (r)2010 (r)
Washington 8.0 8.4 9.0 9.9 Iron 8.1 8.4 8.9 9.4 Cache 4.7 4.9 5.2
5.9 Garfield 11.5 11.9 12.8 10.1 State 6.4 7.0 7.4 7.6 United
States 8.6 9.0 9.1 9.8 Department of Workforce Services December
2011
Slide 7
Construction New housing starts seem like theyre stabilizing.
However, they remain well below peak levels. As that pent-up demand
comes into play, we should see those housing starts start to slowly
increase, and that should help boost our construction sector. We
lost so many jobs in construction that any increases show up as
relatively good growth. We even see in 2012 construction being the
fastest-growing sector in employment at around 4 percent growth,
but thats just related to the fact we lost so many jobs there. Utah
Business Magazine December 2011
Slide 8
Builder Confidence Challenged Builders know that many buyers
have been sidelined by tightened lending standards. The uncertain
economic climate and concerns about job security are discouraging
many buyers from exploring a home purchase. While buying conditions
are very favorable in terms of prices, interest rates and
selection, consumers are worried about what the future will bring.
Builders continue to confront the same major challenges they have
seen over the past year, including competition from the large
inventory of distressed homes on the market, inaccurate appraisal
values, and issues with their buyers not being able to sell an
existing home or qualify for favorable mortgage rates because of
overly tight underwriting requirements. Realty Times August
2011
Slide 9
Housing Starts and Building Permits Most data the public sees
is based on home prices, number of homes sold or foreclosures.
Housing permits are a way to look ahead at what is likely to happen
in the market. This indicator reports on both the number of housing
units on which construction has begun, as well as the number of
units for which permits have been issued. Its generally regarded as
a good indicator of future home sales and consumer spending in
general. Permits typically are a good indicator of housing starts
three to four months in the future. Financial Outlook Winter
2011/2012
Slide 10
Building Permits Historically
Slide 11
Building Permits by Month
Slide 12
Consumer Confidence Index This indicator is a summary of
interviews with some 5,000 consumers nationwide on their feelings
about their own financial condition, the strength of the economy,
and their outlook for the next six months. Historically, changes in
this index have tracked the leading edge of the business cycle
well, as it indicates how willing consumers are to spend more and
make big-ticket purchases (like a car or a home). Financial Outlook
Winter 2011/2012
Slide 13
CCI Surges in December Americans are gaining faith that the
economy is on the upswing. An improving job outlook helped the
Consumer Confidence Index soar to the highest level since April and
near a post- recession peak. The December surge builds on a big
increase in November when the index rose almost 15 points.
Economists watch confidence numbers closely because consumer
spending accounts for about 70 percent of U.S. economic activity.
According to the AP poll of economists, conducted December 14
through 20, the U.S. economy is expected to grow 2.4 percent in
2012. In 2011, it likely grew less than 2 percent. The Spectrum /
AP December 2011
Slide 14
Consumer Confidence on the Rise In December, on a seasonally
adjusted basis, the Zions Bank Consumer Attitude Index (CAI)
increased to 81.9 percent, a jump of 14.1 points compared to
November 2011. The national Consumer Confidence Index (CCI)
increased 9.3 points to 64.5. An index of 70 or below is indicative
of slow economic growth. Consumer confidence in stabilizing home
prices increased this month as well. Seventy-three percent,
compared to sixty-nine percent in November, believe the price of
homes in their community will remain unchanged during the next 12
months. Overall, consumer attitudes have taken a more positive
direction. Utah Business.com December 2011
Slide 15
Washington County Hit hard by the recession, Washington Countys
meteoric population growth has moderated and the countys
construction industry has yet to make a comeback. Manufacturing was
hit by the double whammy of construction-related losses, and then
again by the national downturn. However, the countys economy is in
recovery albeit a jobless recovery. Unemployment rates, while still
above the state average, are moderating, initial unemployment
claims are down and gross taxable sales are up slightly. Department
of Workforce Services December 2011
Slide 16
10 Housing Markets Poised for Biggest Price Recovery The blog
24/7 Wall St. has identified the ten metropolitan areas where home
prices are projected to increase the most from the second quarter
of 2011 to the second quarter of 2012. Six of these ten
metropolitan areas are among the top 50 areas that experienced the
worst housing declines from the second quarter of 2008 to the
second quarter of 2011. The housing markets in these areas were
badly hurt when the real estate bubble burst and were considered to
have hit rock bottom. These kinds of markets draw investors, and
the inflow of new money causes these markets to bounce back,
driving home prices back up. HousingZone.com November 2011
Slide 17
Americas Ten Worst Housing Markets Poised to Recover 10 -
Mobile, Alabama6.2% 9 - Syracuse, New York7.0% 8 - Las Cruces, New
Mexico7.4% 7 - Niles Benton Harbor, Michigan 7.5% 6 - St.George,
Utah7.9% 5 - Farmington, New Mexico8.3% 4 - Yuba City,
California9.2% 3 - Yuma, Arizona9.5% 2 - Carson City, Nevada15.5% 1
- Madera Chowchilla, California15.5% Wall Street.com November
2011
Slide 18
Markets Poised to Recover St.George Change in home prices (2011
Q2 to 2012 Q2): 7.9% Change in home prices (2012 Q2 to 2013 Q2):
3.5% Population: 138,492 Prices reached peak in: 2006 Q4 (-41.4%)
Unemployment: 9.6% Home prices have decreased by 41.4% in
St.George, Utah, since the fourth quarter of 2006. In just the last
twelve months, prices have dropped 12.4% - the eighth largest drop
in the country. However, from the second quarter of 2011 to the
second quarter of 2012 prices are projected to increase 7.9% Wall
Street.com November 2011
Slide 19
ACCRA Cost of Living 2011 3Q All Items Groceries Housing
Utilities Transport Health Salt Lake City 94.8 92.0 90.4 80.8 95.5
93.4 Provo-Orem 90.2 87.8 84.2 82.1 95.5 88.1 Ogden 90.5 94.9 80.1
102.8 93.5 86.3 St.George 91.4 100.4 81.6 87.6 93.0 90.4 Cedar City
87.8 100.6 70.2 84.3 97.4 85.1 San Diego 130.8 106.3 189.1 112.8
107.3 111.6 San Francisco 161.3 118.8 278.2 90.4 108.8 110.7 Denver
105.3 102.6 114.2 89.5 94.0 105.4 Las Vegas 98.3 104.6 89.9 91.7
101.1 106.4 New York 223.9 148.9 426.5 131.4 127.5 127.1 Council
for Community and Economic Research November 2011
Slide 20
Mortgage Rates Reach New Record Lows Just in time for the
holidays: Mortgage rates reached new all- time lows this week,
pushing home buyer affordability even higher, Freddie Mac reports
in its weekly mortgage market survey. Rates on 30-year fixed
mortgages have been at or below 4 percent for the last eight weeks
and now are almost 0.9 percentage points below where they were at
the beginning of the year, which means that todays home buyers are
paying over $1,200 less per year on a $200,000 loan. This greater
affordability helped push existing home sales higher for the second
consecutive month in November, the most since January. Daily REAL
ESTATE NEWS December 2011
Slide 21
The Impact of Mortgage Rates The low rates can translate into
big savings for home buyers. Five years ago, a home buyer would
have been lucky to land a 5% rate on a 15-year loan. On a $200,000
mortgage, that would have meant the borrow would have paid $1,582 a
month. Should a borrower land a 3.2% rate on a $200,000 loan now,
the monthly mortgage payment would come to $1,400 a savings of $182
a month. The rock-bottom interest rates, combined with the lowest
housing prices in years, have made home buying extremely
affordable. CNNMoney.com December 2011
Slide 22
Interest Rate Heaven It seems over the past few years we have
been in an eternal state of Interest Rate Heaven. How soon we
forget what rates were just 5 to 10 years ago, and then back to the
early 80s rates of 15 to 20 percent. Can you say perspective. Lets
be realistic, mortgage interest rates like the ones we have
experienced over the last three plus years cannot be sustained. In
fact, the reason interest rates have been so low is primarily
because the economy has been in the dumps. Bottom line, a mortgage
will continue to be one of the cheapest forms of money that
individuals will be able to get. If economic predictions hold true,
the inevitable interest rate increase will come. The Daily Spectrum
December 2011
Slide 23
Record Low Financing Costs Yes, obtaining credit in many cases
is more difficult than a few years ago. Yes, financial issues in
Europe have raised anxiety levels throughout the world. Yes, U.S.
political uncertainty has done the same. However, one constant is
likely to remain in place throughout 2012 and perhaps well into
2013. The Federal Reserves most important interest rate the federal
funds rate has been at an all-time low target range of 0.00%-0.25%
since December 2008, a period of three years. Moreover, the Feds
Open Market Committee has noted frequently its intent to keep that
rate at the current level until at least mid-2013. Such a statement
is almost unprecedented in the Feds history. Mainstreet Business
Journal December 2011
Slide 24
Refinance Applications on the Rise Amid substantial market
turmoil, mortgage rates dropped to the lowest levels of the year,
and refinance applications jumped more than 30 percent to the
highest levels of the year. Over the past month, refinance
application volume has increased by 63 percent. Refinance
applications for jumbo loans increased by almost 75 percent
relative to last week. Despite these low mortgage rates,
applications for home purchase have remained little changed through
the summer. Realty Times August 2011
Slide 25
A Refinance Resurgence Currently, most borrowers are looking to
refinance existing loans rather than buy. Last week, mortgage
applications climbed 4.1%, driven by a surge of home buyers trying
to refinance to record-low rates. According to the Mortgage Bankers
Associations latest Market Composite Index, close to 80% of loan
applications were to refinance existing loans. CNNMoney.com
December 2011
Slide 26
Present Market Conditions Mortgage rates ended the year
hovering near historic lows in an already affordable housing market
according to Frank Northaft, vice president and chief economist at
Freddie Mac. The low mortgage rates also contributed to the
improving environment for the housing market. 30-year fixed-rate
mortgages averaged 3.95% with an average of.7 points. Last year at
this time 30-year fixed-rates averaged 4.85%. 15-year fixed-rates
averaged 3.24 % with.8 points, almost a full 1% lower than last
years 4.20%. Market Review and Mortgage Update January 2012
Slide 27
A stronger economy will push Treasury bonds and mortgage rates
up because inflation will become more likely and investors demand
higher rates to hold bonds. But lots of factors can push rates up
or down. For the housing market, which direction rates go is less
important than why. Gradual economic recovery is good news for the
housing market even if it means higher mortgage rates because
higher mortgage rates should go hand-in-hand with greater housing
demand. It is predicted that mortgage interest rates will gradually
rise from record 2011 lows to 4.5% by the middle of 2012. Jed
Kolko, Trulia Chief Economist December2011 Housing Wire November
2011 Whats Up Mortgage Rates?
Slide 28
Restored Higher FHA Loan Limits In an important victory for the
housing industry and consumers, Congress approved a much-debated
initiative to restore higher loan limits through 2013 for mortgages
backed by the Federal Housing Administration (FHA). The measure
reestablished a national ceiling for FHA mortgages of $729,750, up
from $625,500. The measure also restored local FHA loan ceilings to
125% of the area median home price, up from 115% which will help
put a floor under falling home values in markets nationwide.
Unfortunately, in the face of extreme opposition in the House,
legislators were unable to restore the higher loan ceilings for
government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac,
which together provide funding for about half of all U.S.
mortgages. National Association of Home Builders December 2011
Slide 29
Cash is KING in 2011 Despite record low mortgage rates, 2011
has seen a surprisingly high level of cash home purchases. Between
tight lending standards and a desperate search for yield by
investors, cash purchases of homes particularly for distressed
properties became even more common in 2011. Thirty-eight percent of
homes purchased in 2011 were bought with all cash. Thats up from
34% in 2010, and double the 19% rate in 2006. This trend is likely
to continue in the near term as cash-paying investors are
responsible for an increasing share of home purchases. DSNEWS.com
December 2011
Slide 30
Heres another sign the market is nearing the bottom: Investors
have started to buy up houses and condos, in some instances paying
entirely in cash. Its a sign these investors are betting on the
rebound. Thats a far cry from the heady bubble days when borrowed
money seemed the key to riches. The bubble-era speculators who got
burned tended to buy at the peak and borrowed too heavily to do so.
When the crash came, they quickly saw their wealth erased.
Investors buying at current prices are looking for deals. They
typically like to pay entirely in cash (or with a relatively small
loan) to speed up transactions. That can be vital for an investor
wishing to lock in a deal fast. THE WALL STREET JOURNAL March 2011
Investors Stepping Up
Slide 31
Investors Back in the Market There are a number of investors
that are taking their money out of Wall Street and are looking for
investment rental properties, because they can buy a property for
$130,000 - $160,000, put 20 percent down and typically return 7 to
10 percent before the cap rate. So investors are very active in the
St.George market. Utah Business Magazine December 2011
Slide 32
Decline Among Owner-Occupant REO Buyers New Vista Asset
Management has published the results of a three-year study on
buyers of foreclosed homes, covering 18 counties hit hardest by the
mortgage crisis. The company says the percentage of REO homes sold
to owner-occupant buyers has decreased in almost every market. Most
markets in the study saw their share of owner-occupant REO buyers
drop by double- digits over the three-year period. DSNews.com
December 2011
Slide 33
REOs & Short Sales The New Normal? If you even know anyone
who has house-hunted in the past couple of years, youve likely
heard tales of high drama -- super long escrows, first-time
homebuyers being bested by investors cash offers, banks resistant
to negotiating for repairs that take place in the course of a
distressed property sale. In the coming year, distressed home sales
will continue to represent an increasing share of homes on the
market. So, buyers will shift from considering whether to buy a
short sale to understanding that they must be educated and prepared
to do a deal with a seller, a bank (to buy a REO) or a hybrid of
the two (to buy a short sale) to access the full selection of homes
on the market. Inman News January 2012
Slide 34
Impact of Foreclosures The number of foreclosed homes on the
market continues to pose major challenges, not just to builders who
have to compete against that low-priced product, but also to buyers
who need to sell an existing home before trading up to a new one.
Price data suggests entry-level homes are generally driving the
new-home market right now, and thats because first-time buyers dont
have another home they have to sell. Realty Times October 2011
Slide 35
Faster Foreclosure Processes & Reduced Inventory Getting
homes that are likely to be foreclosed upon or homes that already
are in foreclosure to the market is key to exposing the nations
shadow inventory, which has been keeping prices depressed around
the country. Next on the to-do list is to clear out the massive
housing inventory. Especially with the influx likely to come on to
the market when foreclosure processes finally get ironed out.
Reducing the supply of homes should help boost prices in the long
run, and price appreciation is good for the housing market. US News
December 2011
Slide 36
Top Ten Foreclosure States STATERATEAVERAGE FORECLOSURE PRICE
Nevada1-175$119,180 California1-211$237,150 Arizona1-256$123,077
Utah1-290$166,645 Georgia1-330$110,121 Michigan1-330$ 59,079
Florida1-358$110,503 Illinois1-427$124,042 Ohio1-500$ 82,873 S.
Carolina1-517$150,898 NATION1-579$182,489 (November 2011)
Slide 37
Foreclosure Rates Decrease According to recently released
information from CoreLogic data, the rate of St.George area
foreclosures among outstanding mortgage loans is 2.51 percent for
the month of September 2011, a decrease of 1.75 percentage points
when compared to September 2010 when the rate was 4.26 percent.
Foreclosure activity in St.George is lower than the national
foreclosure rate which was 3.48 percent for September 2011,
representing a 0.97 percentage point difference. Also, in
St.George, the mortgage delinquency rate has decreased. According
to CoreLogic data for September 2011, 6.56 percent of mortgage
loans were 90 days or more delinquent compared to 9.73 percent for
the same period last year, representing a decrease of 3.17
percentage points. Mainstreet Business Journal December 2011
Slide 38
NODs and Trustees Deeds
Slide 39
Slide 40
Active Inventory
Slide 41
Slide 42
Sold Volumes and Average Price
Slide 43
2011 Sold Volumes and Average Price
Slide 44
Sold DOM vs Sold Price
Slide 45
Slide 46
Sold DOM vs Units Sold
Slide 47
Slide 48
Hot Sheet Price Change Trends
Slide 49
Price Change Trends in 2011
Slide 50
High-End Properties What the Experts are Saying A little over
three years ago, a study of all active listings over $500K was
conducted with about 500 properties identified. Today, there are
198 listings in that same price range. While it is true that many
homes over $500K three years ago may now, because of market driven
pressures, remain on the market but for less than the identified
threshold, it is equally true that certain geographic areas and
developments have now worked through their excess inventory and
remain viable and healthy. Case in point, The Cliffs of Snow
Canyon, the Ledges and Stone Cliff, 3+ years ago had 103 homes for
sale over $500K. Today, 31. Just another indication of an upswing
in the market. Southern Utah Title Company January 2012
Slide 51
Active Listings over $500K
Slide 52
Outlook 2012 Utah typically grows more rapidly than the nation
after recessions, and this pattern is taking hold in the current
recovery. Though housing stabilized, with building permits at 8,700
in 2011, home-building is not leading the economy as it does during
a typical recovery. Economic growth in Utah is expected to
accelerate during 2012. Employment is forecast to increase 2.7% for
the year as a whole, with larger increases as the year progresses.
Housing permits are forecast to move up slightly from historic
lows. As the overall unemployment rate declines to 7.1%, the
improving labor market will support increased consumer spending and
a strengthening recovery. Governors Office of Planning and Budget
November 2011
Slide 53
Utah the Best State for Business For the second year in a row,
Forbes Magazine ranks Utah as the best state in America for
business, noting: No state can match the consistent performance of
Utah. It is the only state that ranks among the top 15 states in
each of the six main categories we rate the states on. Utah
highlights includes energy costs 31% below the national average and
employment growth that has averaged 0.6% since 2005. Utahs 5%
corporate tax rate is well below western neighbors Arizona, Idaho
and New Mexico. Utah ranks sixth in a new Tax Foundation study that
looks at the tax burden on business in each state across different
industries. Forbes Magazine December 2011
Slide 54
Positive News for Utah Utah is #6 on Forbes list of The Best
States for Jobs http://www.forbes.com/pictures/mli45ggeg/6-utah
Fiserv says Utah to have seventh-highest home price appreciation by
summer
http://cgi.money.cnn.com/tools/homepricedata/index.html?iid=EL Utah
is in the top five states for employment growth
http://jobs.utah.gov/wi/press/2001press/ratecurrent.pdf Forbes
names Utah Best State for Business and Careers
http://www.forbes.com/sites/kurtbadenhausen/2011/11/22/the-best-states-for-business/
Utah ranked #2 on Pollinas Top 10 Pro-Business States list
http://www.pollina.com/top10probusiness.html More Positive Utah
News http://business.utah.gov/whyutah/accolades/
Slide 55
Utah Home Prices on the Rise Based on projections from Fiserv
Case-Shiller and Moodys Analytics, statewide prices are set to rise
about 2 percent by summer 2012 and nearly 7 percent during the
subsequent year. Utah home price gains will be strongest in
St.George according to the report. From second quarter 2011 to
second quarter 2012, home prices are expected to rise nearly 8
percent. From the same period in 2012 through 2013, home prices in
St.George should increase 3.5 percent. Utah REALTOR Third/Fourth
Quarter 2011
Slide 56
Houses Are a Good Deal Housing is the most affordable it has
been in decades, according to analysts at Moodys Analytics. They
dont just look at house prices. They also look at incomes.
Nationally, the cost of a house is the equivalent of about 19
months of total pay for an average family, the lowest level in 35
years. Pricing is down so much in some markets that when you
analyze renting versus owning it makes much more sense to own.
While the good news is that the worst of the housing crash might be
over, the bad news is that the fast gains of the glory days of 2005
and 2006 wont be back anytime soon. So to cover your costs of
buying and selling, and what could be a prolonged recovery, plan to
own for more than 10 years. THE WALL STREET JOURNAL March 2011
Slide 57
Homeownership - Equity When you pay rent, you never see that
money again. It is in the landlords pocket. Yes, buying a home may
come with some hefty initial costs (downpayment, closing costs,
inspections), but you will make that money back over time in equity
built in the home. Historically, homes appreciate by about 4 to 6
percent a year. Some areas are still experiencing normal
appreciation rates. For the areas that have seen harder times since
the recession, experts feel that the housing market will recover.
Homeownership is about building long-term wealth. Realty Times
November 2011
Slide 58
Homeownership Great Deals Its a great time to buy. Interest
rates are at historic lows. Were talking 4.0 percent instead of 6.0
percent or higher. This means big savings for todays buyers. Home
prices have also taken a dip since the recession, which means homes
are more affordable than ever. If you have a steady income and cash
for a downpayment, then be sure to talk to your local REALTOR about
what homes in your area could be a fit for you. Homeownership can
be a real joy. Its time to get off the fence and into a home that
is right for you. Realty Times November 2011
Slide 59
The Economists Crystal Ball My crystal ball is never as
crystal-clear as Id like, but I do think that we can expect a
gradual economic recovery to move the housing market a few steps
back towards normal in 2012. In fact, every single one of the
fifty-ish economic forecasters surveyed by the Wall street Journal
expects the economy to grow throughout 2012. However, many
borrowers who fell behind on their payments during the housing
crisis are still in limbo: last years robo-signing controversy
threw a wrench in the gears of the foreclosure process. That means
that some delinquent loans havent gone through the foreclosure
process. Once an agreement is reached with banks over robo-signing,
well see a new wave of foreclosures and foreclosure sales. Jed
Kolko, Trulia Chief Economist December 2011
Slide 60
The Economists Crystal Ball Very favorable affordability
conditions will dominate 2012, which will probably be the second
best year on record dating back to 1970. The hope is that credit
restrictions will ease and allow more homebuyers to take advantage
of current opportunities. With falling inventory, the median home
price should rise in 2012. Home prices have yet to show a
definitive stabilization pattern in most areas. Still, given an
over-correction in prices, there likely will be moderate
appreciation in 2012. Housing Wire November 2011
Slide 61
The Economists Crystal Ball Gradual improvement in the housing
market is expected in 2012, with existing-home sales edging up 4%
to 5% and new homes getting an even bigger boost off 2011s record
lows. Tight mortgage credit conditions have been holding back
homebuyers, and consumer confidence has been shaky recently.
Nonetheless, there is a sizeable pent-up demand based on population
growth, employment levels and a doubling-up phenomenon that cant
continue indefinitely. Housing Wire November 2011
Slide 62
Timing is Everything Theres a great opportunity for investment
at this point. Interest rates are low, and so individuals and
businesses who have good credit do have access to funds for
investment. While housing prices are still stabilizing, people who
are looking to buy homes right now have an opportunity to borrow at
a really low rate and buy at a low price. Utah Business Magazine
December 2011
Slide 63
Acknowledgements Washington County Board of REALTORS National
Association of Home Builders Realty Times Market Review and
Mortgage Update Utah Business Magazine CNNMoney.com The Spectrum /
AP Daily REAL ESTATE NEWS Housing Wire Community & Economic
Research Housing Zone.com US News Trulia Department of Workforce
Services The Wall Street Journal Wall Street.com Utah Business.com
Utah REALTOR Magazine Forbes Magazine Governors Office of Planning
and Budget Financial Outlook Southern Utah Title Company DSNews.com
Mainstreet Business Journal Inman News