Wednesday, August 27, 2008


I love the media. They never stop showing us how uneducated they are. Losing steam? Apparently, no one at the trib has sold a home in the last year and a half.

Utah home appreciation, in the year ending June 30 2008, fell to 1.9%. This is actually DEPRECIATION due to inflation. If inflation last year was 3%, do the math... we didn't even keep up. In fact, only Oklahoma, Wyoming, SD, NC, and ND beat inflation.

What does this mean? Honestly? There has NEVER been a better time to buy a house in the last 30 years. Old timer agents are comparing this to the drought of the late 70s early 80s when rates were 15%. Those who buy a home now will have purchased in the best buyer's market in over 2 decades.

Homes are still selling. In fact, homes priced right are receiving multiple offers. All real estate is local. While California is giving homes away for free, no wait, actually paying you to take their home, areas in Utah are seeing good gains. New construction has taken the worst hit. Homes priced 150-400 are still seeing good growth. It's the mega homes that are getting smashed.

My best advice? Buy now, sell later.

Tuesday, August 19, 2008

Quick Facts about the $7500 Tax Credit

The tax credit is for 10% of the purchase price, but not to exceed $7500. So if you purchased a $200,000 house x 10% = a tax credit of $7500.

Single family homes including condos are eligible.

You receive the tax credit on your tax return in the form of a refund, not when you purchase the home. Therefore, if you purchased a home and received the full $7500 tax credit and your tax bill for the year was $2000--you would receive a refund of $5500.

The income limit is $75000 for individuals and $150000 for a joint return. Earning more than this and the credit begins to phase out in proportion to one's income.

Only people who have not owned a home as a primary residence in the past 3 years previous to the purchase qualify.

The tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

Wednesday, August 13, 2008

Way to go Big Brother!

Riverton City Council just approved to raise city property taxes by 200%! That is awesome. Next week's agenda is voting for a one child only policy... developing...

Monday, August 11, 2008

Rates going up, values going down?

30-Year Fixed Rates Rise Slightly Mortgage rates rose slightly in the latest week, with the average conforming 30-year fixed mortgage rate increasing to 6.74 percent. According to's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.38 discount and origination points. The average 15-year fixed rate mortgage popular for refinancing rose to 6.27 percent, while the average jumbo 30-year fixed rate is now 7.68 percent. Adjustable mortgage rates were lower, with the average 1-year ARM dipping to 6.24 percent and the average 5/1 ARM down to 6.32 percent. Here’s another look at the latest figures:

30-year fixed: 6.74%, up from 6.70% last week (avg. points: 0.38)
15-year fixed: 6.27%, up from 6.22% last week (avg. points: 0.47)
5/1 ARM: 6.32%, down from 6.35% last week (avg. points: 0.45)

Values in SL County have been holding steady since the mighty decrease that we've seen in the last year. I would estimate that the average home value in Salt Lake County decreased by over 10% in the last year. Some areas took a hard shot to the you know where.

Our month supply is still over 10 months, meaning values won't go up until we get back down to that safe 6-8 month supply range.

Meanwhile, the Utes prepare to smash Michigan...