The Jared Zimmer REMAX Properties Blog

 

July 11, 2018

How Long Can This Seller's Market Last?

How Long Can This Seller's Market Last?

Last time I wrote to you, I talked about how resilient our Iron County real estate market has been, despite higher federal funds interest rates and increases in mortgage rates.

We're still in fabulous shape in our local market, but a logical question at the moment is how long can the current seller's market conditions last?

In some areas of the country, there are signs of buyers being less keen to accept continually rising home prices. Quite simply, many are at the edge of what they can afford, not helped by interest rate rises. This is resulting in the balance of power in some markets swinging slightly more in favor of buyers than has been the case for some years.

It's hard to say if we will see the same conditions here.

The California market, for example, has arguably been overheating in terms of price for some time and there is something of a reset at present, including many homeowners moving out of state, chasing more affordable property, as a direct consequence.

This trend is, of course, very positive for us in Southern Utah, which is an extremely affordable part of the country to buy a home, especially from a Californian perspective.

Therefore, our local conditions are, to some extent, being further enhanced by homeowners moving here from elsewhere.

As ever, your individual circumstances will dictate when is the right moment for you to sell. It can certainly be said that right now there are still wonderful opportunities, being driven by such strong and sustained demand.

Please don't hesitate to contact us for an informal chat about whether selling sooner or later is right for you.

June 19, 2018

Interest Rate Rises and Real Estate - Some Perspective

Interest Rate Rises and Real Estate - Some Perspective

It probably won't have escaped your attention that the Federal Reserve raised short-term interest rates last week.

The federal funds rate was raised by a quarter percentage point to 2% - the seventh rate increase since December 2015. The Federal Reserve also indicated that there are likely to be another two rate hikes this year.

The first thing to say is that the federal funds rate is not directly related to mortgage rates, however it does of course pertain to other forms of borrowing, including credit cards and auto loans.

I think it's important to examine why these increases are happening. They are a direct result of the very, very strong economy and incredible confidence that's everywhere right now.

So, while no one welcomes higher borrowing costs, there is an offset in terms of the recent tax cuts and let's never forget that higher interest rates are great news for savers, including those saving for a home (saving account rates are now at a five year high).

Here in Iron County, we're seeing no reduction in the fabulous levels of enthusiasm of home buyers and there are no signs that the wonderful market conditions we've been enjoying for some time are going to diminish.

Mortgage rates are also higher these days and aren't adversely affecting housing demand here either.

Higher interest rates are, in fact, a direct result of a much better economic environment, which can only help to further improve things.

Why not contact us to discuss the fantastic opportunities in today's market.

June 7, 2018

Iron County Fact File

Iron County Fact File

I recently read some really interesting statistics concerning real estate and related matters for Iron County, so I thought I'd share some of them with you:

Renters - Out of the total population of 49,940, 16,460 are renters. What's really interesting is that 4,148 of those renters can afford to purchase their own homes!

Unemployment - Currently the unemployment rate is just 3.39%, down from 4.46% in 2015.

Employment - The number of people employed has been climbing since 2010 and a on a fairly steep increase since 2013. Current employment levels are considerably higher than before the effects of the Great Recession kicked in.

Income - Median household income is currently $50,450.

Home Prices - Median home price for Iron County stands at $228,930.

Home Price Appreciation - Home prices are forecasted to appreciate by almost 19% over the next five years.

Inventory - Available homes for sale continue at a very low level, despite continuing high buyer demand, down by 12% compared with the same time last year.

I hope you find the above information of use. It's a great time to buy or sell, as these statistics tend to suggest, so please don't hesitate to contact us to discuss your specific needs and the many opportunities in the current vibrant marketplace.

May 30, 2018

Why Current Mortgage Rates Are Still Great Value!

Why Current Mortgage Rates Are Still Great Value!

If you're looking for a home, it won't have escaped your attention that mortgage rates have been climbing for some time now. Indeed we recently saw the highest 30 year rates for seven years.

Of course we've become more accustomed to seeing rates travel in the opposite direction over recent years but, as I have often said in these communications, that situation was unsustainable in the long term and, as the economy improves, it's much more likely that we'll see higher rates.

Because we've become used to such low rates, it's important at this time to consider just how low they still are.

The best way to appreciate this is to go back in history and look at how high 30 year fixed rates have been:

May 1978: 9.57% (40 years ago this month)

October 1981: 18.45% (highest 1971 - present day)

May 1988: 10.46% (30 years ago this month)

May 1998: 7.14% (20 years ago this month)

May 2008: 6.04% (10 years ago this month)

(Source: freddiemac.com - "Monthly Average Commitment Rate And Points On 30-Year Fixed-Rate Mortgages Since 1971")

On any historic scale, mortgage rates are still extremely low, which is very much reflected in the fact that buyer enthusiasm remains extremely strong.

I hope this quick look back in time helps to reinforce your confidence that now is still a great time to buy or sell a home.

As ever, please don't hesitate to contact us today if you have any questions.

May 16, 2018

More Buyers Are Looking For Homes But Are You Benefiting?

More Buyers Are Looking For Homes But Are You Benefiting?


ShowingTime is a company of leading real estate analysts. They have been publishing their Showing Index® report for over four years now.

Showing Index® measures foot traffic across available homes for sale, tracking average numbers of buyers viewing homes and thus providing a useful indication of the current levels of buyer sentiment in the market.

The really great news for sellers is that the latest Showing Index® Report demonstrates the highest national index rating (166.8) since ShowingTime started the survey!

Here, once again, is more proof of what we see on a daily basis more locally.

Buyers are out in force and ready to purchase. The next question is are you in a position to take advantage of it?

If you've been considering listing your home, but have remained undecided, you're currently missing out on showing it to so many extremely enthusiastic and well qualified potential purchasers who are also making inquiries with us at an unprecedented level.

And don't forget that there's a shortage of properties across most market sectors, with competition among buyers leading to multiple offers that can take the eventual sold price above what was initially being asked for the property!

Why not contact us today and start to turn this wonderful situation to your advantage!

Posted in Market Data, Sellers
April 17, 2018

Great Home Maintenance Tips For The Warmer Months Ahead

 Great Home Maintenance Tips For The Warmer Months Ahead

Although we've had some variable weather of late - high winds and snow already this week for instance - Spring has in fact been here for a few weeks and so it's time for some important maintenance tasks around the home.

Here are some useful pointers to some of the main things that you should be paying attention to.

Gutters - Ensure gutters and downpipes are clear of leaves and other items that can block water flow.

Roof - Has there been any damage to the roof over the winter? Binoculars are often sufficient to to check for any big problems. If you have nearby trees, branches should be at least five to seven feet from your home so that moisture and various critters can't enter your property. Branches that are too close might also harm paintwork etc.

Air conditioning - Now is a great time to check that your air conditioning is in good working order before it gets more stressed in the warmer months to come. Your compressor should also be clear of any vegetation or other obstructions that may have accumulated over the winter months.

Paintwork - Inspect for any winter damage and make any affected areas good. Applying a pressure washer to wood surfaces will reveal weak spots where paint is flaking.

Decking - Deck components are subject to deterioration over time. Ascertain that your deck is in good shape to take the additional loads of spring/summer events etc.

Lawn sprinklers - Make sure water irrigation systems are fully functioning and not in need of repair. Controllers should be adjusted to avoid overuse of water.

Garden equipment - Now is the best time to service equipment such as mowers and trimmers, so they are reliable when in regular use in the next few months.

Window and door seals - Air leakage at building apertures such as windows and doors leads to more expensive air conditioning bills in summer. Check for and repair any seal damage.

Screens - they perform a great function in allowing windows and doors to let in fresh air and keep critters out, but not if their condition has degraded over the winter. Inspect them all and repair/replace as required.

We hope that these pointers help you to get your home in tip-top shape. All this advice is arguably even more important if you're planning to sell your home soon. If you are, why not contact us today for more specific guidance.

March 20, 2018

Do You Know How Much Your Home Is Worth Today?

Do You Know How Much Your Home Is Worth Today?

Have you looked at how much your home is worth lately?

If you haven't then chances are you could be in for a very pleasant surprise.

In recent months we've seen average sold prices in Iron County sometimes increase by over 20% on the same period last year.

These impressive rises follow a long period of sustained price improvements so, if you've not checked your property's value in recent times, now might be an excellent moment to do so!

What's even better is that getting a ballpark figure is just a click away on our website.

Our popular home valuation tool provides you with an instant idea of the value of your property.

While we would encourage you to also contact us to visit your home and provide you with an even more accurate figure, the instant option could be enough to make you realize just how much equity you might have at present.

Having this knowledge empowers you in so many ways. You might be considering an upgrade, downsizing, cashing out or even just borrowing against the value of the home.

Whatever your motivations, we invite you to click here to find out.

Please feel free to contact us today with any real estate questions and I'll be happy to answer them for you.

Have a great day
Jared Zimmer

Posted in Sellers
March 2, 2018

Home Buyers Already Out In Numbers as Spring Approaches

 Home Buyers Already Out In Numbers as Spring Approaches

I thought I'd let you know about a very positive Iron County real estate market trend we've been observing here in recent weeks.

We're noticing a significantly higher than normal influx of enquiries from buyers.

Considering that spring is not yet here, this is very encouraging for prospects for home sellers as the traditionally busier selling season approaches.

This is a very clear demonstration of how this year's local market is likely to play out, building on the strong momentum we saw throughout 2017.

If you're planning to list in the next few weeks, the fact is that buyers are already out in numbers looking for a home, so why delay?

Early entry into the market has many advantages, including less competition with other sellers and the consequent probable result that your asking price will be more robust.

The fact that so many buyers are already involved in active home searches also means that multiple offers, even this early in the year, are very possible.

We sell over 130 properties every year, whereas the typical agent sells just one per month. Why not contact us today and find out more about how our marketing strategies are achieving exceptional results for our clients.

Feb. 20, 2018

Why is DIY Home Selling a Bad Idea?

Why is DIY Home Selling a Bad Idea?

Have you ever wondered why those "for sale by owner" signs never seem to change to "sold"?

Despite this, some sellers still think they can do as good a job as a professional agent and avoid paying commission.

Emphatically, this is a false economy, because the odds are really stacked against DIY sales ever happening.

So why is this?

There are a number of key factors that make things so difficult for the DIY home seller:

- A pro agent has access to the area Multiple Listing Service (MLS) and has intimate knowledge of recent sales of similar homes. This, combined with his/her own experience, allows the agent to accurately price the home to match the current market conditions, thereby ensuring a listed home is best poised to attract interest and, especially at the moment, obtain multiple offers that may take the eventual sales price over the original asking price.

- A professional agent will promote your home across his/her website, social networking sites and literally dozens of other websites across the internet. Do you actually have the time, skill and resources to do this?

- Full time agents spend every day prospecting for sellers and buyers, using their network of past clients and other contacts that they have built up over the years. This quickly identifies well qualified buyers to view their home. How are you going to identify these people and even if you did, how are you going to connect with them and get them to view your home soon?

- Staging the home is essential and experienced agents know what sells your home and how to present it to appeal to buyers. It's not simply a matter of spring cleaning, but more a question of accentuating the best features of the home and creating the best viewing experience. Do that yourself and you'll be leaving a lot of factors to chance.

- Let's imagine that you've somehow managed to receive an offer for your home. Is it the best offer you can hope to achieve? What if the buyer places conditions on the offer? A seasoned agent deals with these issues almost every day and knows how to get the best result and outcome for you.

- Even if you get as far as accepting an offer from a buyer, this is followed by the closing process, which is a complex stage when amateur selling can be most costly in the long term, as it's vital that everything is done to comply with legislation affecting the sale of homes, including any necessary disclosures about the property. Hiring an agent ensures that there will be no problems in this respect that might come back to haunt you later.

If you've been thinking about selling your home on your own, we hope that the above points help you to realize how agents really earn their commission.

We average over 130 sold properties every single year, so why not contact us today and let us help you to achieve the best possible return on your sale in the shortest possible time.

Feb. 2, 2018

Iron County Median Sales Price at a Multi-Year High!

Iron County Median Sales Price at a Multi-Year High!

We recently received the latest Iron County real estate market statistics (for November) issued by the Utah Association of REALTORS® and one figure really stood out.

The median sales price for the area of $181,700 is actually the highest figure in this category in over a decade!

As if that weren't impressive enough, we also noted that average sales price now stands at $220,576, which is over 20% higher than the same period in the previous year!

These stats confirm what we're seeing every day, in terms of a very lively market, even through the winter months. To emphasize that, pending sales were a massive 68.2% higher than the same period in 2016, which is a huge increase and a reflection of how traditional busy seasons are being challenged by vigorous sales activity throughout the year (helped this winter by the very mild weather of course). Closed sales showed a 12 month improvement of 11.2%.

There are also clear signs that more sellers are recognizing the amazing opportunities at present, when we consider that new listings showed a year-on-year 20.4% increase. To balance that, however, months supply of inventory of available homes for sale in our market showed a 19.2% drop in the same period. It was therefore no surprise to see virtually no annual improvement in the number of homes for sale, with a figure just 0.7% up on 2016.

It all highlights a wonderful opportunity for sellers, with growing returns on sale and the continuance of a general short supply of homes.

Why wait for spring when the market is already booming! Contact us today and we'll work closely with you to develop a winning strategy to make the best of the excellent current market conditions.