In a recent forecast of future market conditions, MBA economists published the following information about interest rates from 2009 to 2012. It has the average rates per quarter since the beginning of 2009 shadded in gray. The other numbers are the projected average interest rates per quarter.

As you can see it is expected that rates will increase to 5% by this time next year, and up to 5.7% by the end of 2012. This rise in interest rates will reduce buying power by as much as 10%!

Today with an $1,100 monthly payment you could probably get a $175,000 home. Next year that payment will only get you a $165,500 home, and by the end of 2012 the price of the home you can afford will be closer to $150,000. Here is a graphic demonstrating how the

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The National numbers are in and it looks like we have a double dip situation on our hands. January 2009 was the bottom of the market, but last months numbers show we could have another dip approaching. Last month the United States' home sales fell to a level we haven't seen in almost 15 years! Everyone expected home sales to be a little lower, but the results were lower than anyone thought. We knew it would be low because of the expiration of the tax credit. The tax credit compressed months of demand into a short period ot time. When you look at home sales there is a spike corrolating with BOTH tax-credit deadlines.   Now that the tax credit is gone we are experiencing a decrease in demand. Because less homes are selling there are more homes…

Summer is a great time to Buy/Sell a Home in Utah!

Knowing when and where to sell & purchase a home is vital to Real Estate success. The demand is highest in Utah’s Hot Spots!  These locations are the zip codes and prices ranges that had the most demand and highest success last month. Economic improvement and recovery start in hot spots and then spread to other areas of the valley. These hot spots are the areas that will get top dollar for their home. Purchasing a home in one of these hot spots gives you a front row seat to economic recovery.

1. Salt Lake City, Zip 84117           Price Range: $100K – $200K
Sales History           Current Homes for Sale

2. Lindon, Zip 84042           Price Range: $100K – $200K
Sales History           Current Homes

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Signs of Utah's economic Recovery have been escalating. The job market is improving, retail sales are increasing, and of course Real Estate sales are up. Jim Wood, of the Bureau of Economic and Business Research at the University of Utah, recently published a report on Utah's recovering economy. In his article (which can be read here) he states that "indicators show that the worst is over"!

Here are some of the highlights from the report:

Job Market:

The number of job openings posted has doubled from a year ago

The amount of job losses has slowed considerably

Unemployment claims are down 13%

Unemployment rate for males in Utah is 4.6% lower than the National Average

Real Estate:

The number of existing home sales has been positive

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Utah’s local Economist, who has been proven accurate in past statements, speaks about today’s economy. The past couple of years I have been following Kelly Matthew’s market predictions. As a testament to his knowledge of local market fluctuations, Wells Fargo has been able to weather the economic storm better than most other financial institutions by using his predictions. 2 years ago, Kelly said prices for Utah’s housing would have to come down. In January of last year he said it looked like the inevitable was happenening and predicted that 2009 would be a bottom. Recently Kelly Matthews spoke, with another Wells Fargo Investment Strategist, about the current market. You can find the full article hereon KSL.com

What did they say?

It looks

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Utah's local Economist, who has been proven accurate in past statements, speaks about today's economy. The past couple of years I have been following Kelly Matthew's market predictions. As a testament to his knowledge of local market fluctuations, Wells Fargo has been able to weather the economic storm better than most other financial institutions by using his predictions. 2 years ago, Kelly said prices for Utah's housing would have to come down. In January of last year he said it looked like the inevitable was happenening and predicted that 2009 would be a bottom. Recently Kelly Matthews spoke, with another Wells Fargo Investment Strategist, about the current market. You can find the full article here on KSL.com

What did they say?

It looks like

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Top Places to Buy/Sell a Home in Utah this October!

Mortgage rates are still low and time is quickly running out for Government incentives. The market is hot, but where are the hottest areas?

The best places to buy/sell are those that have been seeing more demand recently than other areas. Based on where homes were selling last month we have an idea of where home sales are going to be the hottest this month! Those living in these hot spots can get top dollar for their house and get a great deal on another home! These Hot Spots are also prime locations to buy because you can count on a stable home value and being able to sell if you ever need to.

1. Salt Lake City Zip 84108           Price Range: $100K - $200K
Sales History           Current Homes

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Last August I was predicting that January of 2009 would be the worst month for home sales that we have ever seen. It was. People kept asking when the bottom was going to be, but it contintued to elude us, things kept going down.

So where is the bottom for home sales? It looks like it was January of 2009. Looking back at the statistics for this year you can see that home sales bottomed out in January. There were even 2 months where Salt Lake experienced an increase in homes sold compared with the year before.

If Salt Lake were to maintain 1,000 home sales for the next 3 months, this year will be almost identical to 2008 in the total number of homes sold. That would show a true bottom in home sales. (Not necessarily prices, this requires a switch in

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The temperature is rising, and so are home sales!

These summer months are the hottest months of the year to sell your home. Mortgage rates are still low and Government incentives are getting ready to expire. Smart buyers are acting now to take advantage of the market conditions.

Some areas of Utah have been heating up more than others. Based on where homes were selling last month we have an idea of where home sales are going to be the hottest this month! If you're living in one of these Hot Spots and are thinking about moving, now is the best time to capitalize on current demand. Those living in these hot spots can get top dollar for their house and get a great deal on another home!

If you are looking to move this summer, it is the perfect time

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Buzz! There’s a buzz in the air

The news says the market is picking up in real estate and even people in the local industry say business is growing again. Why are they saying this? They are saying this because home sales have been going up nation wide! But, why wouldn’t they? With homes in Phoenix selling for $50,000, and other great deals to cultivate the market, the ground is fertile for growth!

Lenders claim it has picked up. If you talk to a mortgage person they should say they are busier than ever. Why? Because mortgage rates have not been this low in decades. It is history in the making for low interest rates. People are refinancing, or trying to, in record numbers. Lenders are swamped, but this is only temporarily. Either the number of

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