As we approach the end of the year, and with the holidays in sight, many consider the option of pulling their property from the market. Others that are wanting to sell consider waiting until the New Year. With all that goes on during a busy holiday season these are very understandable concerns.

However, here are some things to consider when making a decision:

• Buyers vs. Lookers. At this time of year buyers are almost invariably very serious about finding a home, rather than casually viewing.
• When does your home look, smell and present better than during the holidays!
• Some buyers are very motivated to move in before the holidays, encouraging quick sales.
• Others need to complete their property transactions by year end for tax reasons.
• January is traditionally a time when most job relocation occurs and some buyers are already looking to complete their move before their new job starts at the beginning of 2023.
• The mid-term elections will be ending very soon, removing a further layer of recent uncertainty in the market.
• The approach of the holidays inevitably puts buyers in a more emotional state, making positive purchasing decisions more likely.
• Some buyers may feel that delaying their purchase until the New Year risks seeing even higher mortgage rates in operation.
• No matter how good the advice, some sellers will inevitably decide to take their home off the market until 2023. This means you'll have less competition in the coming weeks if you keep listing, improving your chances of finding a buyer and making your asking price more robust.

At the end of the day we understand the concerns and respect whatever decision works best for you and your family. We are here to help and look forward to assisting you in the best ways we possibly can.

Why not reach out to us today at 435-327-2090 and find out more about how we can still help you to get your home sold this year.

If you're selling and/or buying a home right now, you probably don't need reminding that the average interest rate on 30-year loans has continued to climb.

Unsurprisingly, this is a key focus and concern for buyers and the biggest current objection to going ahead with a home purchase.

This is why you might have heard more about temporary mortgage buydowns recently. But exactly what are they and how can they benefit your home sale and/or purchase?

Essentially a temporary buydown enables a borrower to obtain a lower payment by paying the interest up front as part of their closing costs

This is a one-time up-front payment, lowering the interest rate, usually for the first years of the loan.

The result is to reduce the borrower's monthly payments, making the home more affordable and, consequently, more attractive. It also helps buyers to actually qualify for the loan.

As a seller, you are in a great place to help buyers, and not have to keep dropping your price, if you pay down the rate yourself for the buyer. This commonly comes out of the proceeds of your home. According to Dewey Warner of Intercap Lending, Cedar City, sellers can volunteer to pay up to 3% on every loan program out there.

In competitive markets, sellers sometimes offer to pay the buyer's closing costs, or a share of them, so a buydown can arguably be seen as a variation of this.

We're grateful to Dewey for this typical illustration of how it all works:

For a $300,000 home loan at 6.75%, the monthly payment is $1945.

Below are the effects, over the first two years, of a buydown payment of $6,912:

At 4.75% the monthly payment is $1,564, providing first year savings of $381x12 months = $4,572

At 5.75% the monthly payment is $1,750, providing second year savings of $195x12 months = $2,340

Clearly, this makes payments a lot more manageable for the buyer over the crucial first couple of years, in the hope that rates will have fallen in that time, facilitating a more affordable refinance option down the line.

Offering to pay the buydown is a great way to make your home more attractive and affordable in today's challenging market, so why not reach out to us at 435-327-2090, or contact Dewey directly at 435-704-0037.

Fall is already here and we have some tips to help you prepare your home for the changing weather conditions and temperatures we'll be seeing in the coming weeks.

Roofs - A pair of binoculars helps you when inspecting the general condition of your roof. Look for signs of missing shingles/tiles, cracks or other damage and the integrity of flashings around vents, chimneys etc. Seek professional guidance if you have doubts over your roof's condition

Gutters/downpipes - Inspect your gutters to ensure that nothing is going to get in the way of rainwater run-off. Inadequate drainage can damage your foundations, so ensure water is drained away from downpipes to avoid sending water straight down to them.

Heating systems - There's nothing worse, or more likely, than a heating system that fails just as the temperature drops to the point that it's essential. Save yourself any unpleasant surprises by getting your heating system serviced now.

Air leakage - Poorly sealed windows and doors can make a sizeable dent in your wallet, by allowing expensive hot air to leak outside. Weather stripping and appropriate sealants will more than pay for themselves by keeping heat working efficiently for you.

External air conditioning unit - This should be covered for winter, when aircon is no longer in use.

Fireplaces - An annual maintenance regime is essential. A professional is again the best option here, to cover all bases, including flue cleaning, blockage clearance etc.

Faucets/sprinkler systems/general plumbing - Close off valves that serve outside faucets, then open to drain. If you have no shut off valve, consider purchasing an appropriate insulated cover for your faucet. Sprinkler systems will require the correct manufacturer maintenance regime, so make sure that information is to hand, or source it online, so you can make the appropriate preparations. Also look for any obvious areas of vulnerability to freezing in your overall plumbing set up.

Seal holes and gaps - Critters will be seeking shelter in the coming weeks, so sealing holes and gaps in your home's external envelope right now means they'll have a tougher time using your home as their fall/winter retreat.

Walkways/drives - Repair damage to these areas now to avoid potentially nasty consquences when it begins to freeze.

Ceiling fans - Don't forget to reverse your ceiling fan direction to force warm air down.

Trees and shrubs - Pruning of trees and shrubs is very important to greatly reduce the potential for falling branches etc. in storm conditions. Also keep looking for any signs that might indicate some necessary treatment, including very early leaf colour changes, thin or brown pines and dead branches.

Decks/fencing - Right now is a perfect time to restain if needed.

Snow removal items - Stock up with salt and have your snow removal tools ready. The first fall of snow usually catches us by surprise, so be prepared.

This gorgeous Cedar City property sold in October 2017 for $620,000. It's a stunning 7800 sqft, 7 bedroom, 6.5 baths, 4+ car garage mansion, loaded with every possible feature. It was listed a few months back @ $1.5M and recently expired.

Something to consider: How would such a fabulous dream home sell for so relatively little just five years ago? At that time there was low demand and high inventory. Fast forward to the summer of 2020 and we experienced completely opposite market conditions (low inventory and abnormally high demand) to the point that, by early this year, values had skyrocketed, on average, almost 40%!!! Annual appreciation is 3 to 6% in a normal/healthy market...

Why did I use that comparison? It's a reminder of what local buyers can afford when out-of-state buyers are absent. The correction we are experiencing will bring values back to what's more realistic for the market in which we live.

Since early 2022 we've witnessed a rapid change in market conditions and demand has started to slow down. The correction in property values has been almost as dramatic as it went up. The fear fueled covid-inspired migration from bigger cites and out-of-state buyers has subsided. In fact, nationally, sales spiked so much from mid-2020 to early 2022, it’s likely we will see a lag in the number of sales nationally over the course of the next 18 to 24 months.

Of course it is only natural that many current home owners have seen this exponential growth and want to take maximize the equity they pull from their investments. 2021 brought prices we've never seen before in this area and most likely will not see again for years to come. Unfortunately, as the market continues to slide, many of today's home owners are clinging to yesterday's prices and simply holding on to unrealistic expectations.

Locally, it will be interesting to see how the 30+ subdivisions currently turning dirt, finishing roads, and/or putting new inventory up for sale, will contribute to real estate values. With diminishing demand, more and more inventory sitting, developers will most likely start trimming prices.

So what can you do if you still want to cash out?

The market correction we are seeing is still transitioning and, at this point, nobody knows how far it will fall before it levels out. But the situation today is still better than it's going to get and there are no guarantees that we will see a recovery to pricing as we experienced the past couple of years. So, as values continue to drop... once the market levels out... how many years will it take to get back to TODAY'S VALUES?

Maximizing as much equity as possible on the sale of your home requires a willingness to price and market aggressively.

To achieve this goal, it will be essential to team up with the right agent. Did you know, for example, that 60% of today's agents nationwide haven't even sold a single home in 2022! Even during the boom time of last year, over 70% of agents sold less than three properties.

As should be clear from the rather frank presentation of this newsletter, we are being completely realistic about where the market is going and advising our clients accordingly. Our marketing strategy continues to produce excellent results for our sellers and we have been blessed to help many great clients throughout the year with their real estate goals.

If you’re interested in capitalizing on this market and maximizing the equity from your property, don’t hesitate to reach out. This can't be stressed enough, sooner is better. Feel free to call me on my personal cell at 435.327.2090.

Have a great day,

Jared

Numbers don't lie. As the above graphs show, inventory of available homes for sale is building in Iron County and prices are correcting.

While many would-be sellers are "holding out", the reality is that the tidal wave of home sales crested earlier this year and that tide is now heading out!

It's interesting that prices are correcting as fast as they rose. On average, property values have dropped between 8 and 12% this year. Based on current economic factors, it's a safe bet that values will continue to correct by a further 10% over the next six months, or by the Spring of 2023.

So what are the main factors affecting this change?

Essentially we are moving back to a "normal" market. We're no longer seeing the panic buying wave, caused by covid, that led to very low inventory here.

But what is a "normal" market?

The reality is that nothing today can really be called "normal".

Nationally, annual closings jumped by almost 20% in 2021, compared with 2019. So those people who were planning to buy in the next couple of years went ahead and bought. This is likely to contribute to a lag in overall sales throughout the country for the next few years!

We should also remember that we are in a deep economic crisis in the US with no sign of relief. Until things stabilize again, the big unknown factor is how long it might take to fully return to a truly "normalized" market.

So what can you do about it today?

Price and condition are the main driving factors in getting a home sold in today's market. As our graphs show, the market is on a downward trend, so a realistic attitude to what your home is actually worth at the moment is essential. Presentation of the property is also now far more critical, as buyers have the luxury of choice once again.

Nonetheless, we are continuing to sell homes in good numbers. Our clients recognize that the relentless efforts we make to sell any property, even in the boom times, are an absolutely essential ingredient for success right now.

Yes, things are now tougher than they were just a few months ago, but we have your back and will be there with you every step of the way to make sure that nothing is overlooked and every opportunity is immediately seized upon.

Why not contact us on 435-327-2090 to discuss your own situation in more detail. We'd love to help.

The above graph, courtesy of Southern Utah Title Company, shows the home sales performance of the Southern Utah real estate market so far in 2022, compared with the whole of 2021.

As can easily be seen, the number of homes sold a month has lagged behind the 2021 totals for the entire year to date.

We can also see a relatively steep decline in July, doubtless the cumulative effect on buyer sentiment of rising mortgage rates and other financial pressures, such as inflation.

It should, of course, be remembered that last year was absolutely exceptional and much of what we are currently seeing is a return to a more normalized market.

We have recently seen some stabilizing of mortgage rates, and that could lead to a leveling out of home sales, as opposed to the quite steady drop we've been tracking in recent months.

A better jobs market and lower gas prices are also good signs. The National Association of REALTORS® reported at the end of last week that it expects home sales to soon stabilize and that we are likely to start seeing steady gains again, as we head into 2023.

So, as we move towards summer's end, there are some reasons to be upbeat. However this does require a sensible approach to pricing your house to what the current market will bear and also paying attention to those presentation details that mattered much less during the buying frenzy of the past couple of years.

We are still selling very healthy numbers of homes right across all sectors, so why not contact us today at 435-327-2090 and discuss your best options.

The three top-of-the-market homes above have all been sold by us very recently, among several others.

Even though this is a tougher market than we've been used to for a very long time, homes are still selling.

But it's essential to team up with the right agent!

So how are we succeeding where others might fail?

We ensure that the home is priced right within the current market conditions. This is a more precise science than it has been for some time. It's easy to under price a home. We avoid that by studying the market literally day-by-day and use our deep experience to arrive at a price that will still attract buyers but achieves the maximum possible return for you.

We talk straight with you about the market and what you need to do. This is not a time to hide your head in the sand about a more challenging market. Doing so will likely mean that your home remains unsold, putting your future plans on hold. Clients have ultimately thanked us for being so frank with them, as it has been the difference between success and a lot of disappointment.

Presentation of your home is simply far more important than it has been in recent times, where homes would often sell regardless of condition. We offer practical suggestions that help you to make the property as attractive to as many buyers as possible.  

But perhaps above all, we simply work harder for you, in terms of aggressively marketing your property and making important daily connections with people who can influence the sale. 

Why not talk to us today at 435-327-2090.

We are now beginning to see some of the nationally publicized negative effects of the current real estate market in our area.

As our above graphic shows, absorption rate for June shows a dramatic increase, compared with June 2021, in terms of the amount of home supply in the market.

We can also see that homes sold last month were 7.4% down on the same month last year.

Conversely, median sale price in Iron County rose by over 39% year-on-year. But that is mostly attributable to the cumulative effect of continuing price growth in 2021.

We are now increasingly seeing what industry expert Mike Ferry recently referred to as "a price war and a beauty contest".

Pricing and condition mattered a lot less throughout 2021. Now both are absolutely critical.

The rewards are still out there, but it's no longer adequate to just list a home and wait for the offers to almost immediately flood in, as was commonly happening a few months ago.

With such an expansion in the number of available homes for sale, buyers simply have more choice now and sellers have a lot more competition in every market sector. Increasing mortgage rates also mean that most buyers are now having to strike the very best deal they can find.

Now, more than ever, it is vital that you engage with an experienced and seasoned agent who can guide you through what's quickly becoming a more involved and demanding selling process, ensuring that you price optimally to attract buyers and achieve the best possible return, as well as giving all-important advice on the correct presentation of your home in today's more exacting market conditions.

Why not call us today at 435-327-2090 and find out how we continue to produce fabulous results for our clients.  

The current pressures on the real estate market are all over the news.

Rising inflation and mortgage rates are rapidly changing what buyers can actually afford and today's home seller has to face some new realities.

The astonishing price growth that sellers were enjoying not so long ago has gone.

Our Iron County real estate market jumped up by approximately 40% in two years. Absolutely astounding growth that simply could not sustain.

It all sounds like bad news, and yet it isn't. We aren't seeing a collapse in the market. Instead it's a much needed, inevitable and arguably overdue correction to more normal conditions.

Unfortunately many sellers are having to be very realistic about the value of their property.

While price wasn't much of an issue for buyers in the past couple of years or so... it is now!

Even home condition wasn't critical... it is now!

As one top real estate figure recently put it: "It's a price war and a beauty pageant."

Succeeding in this changing market often requires a different mindset, even compared with a few months ago. 

A home that is priced correctly will still sell. But with fewer buyers having more choice due to increasing inventory, there is simply more competition.

Prices are often dropping as the market finds its new level and the situation will get worse before it begins to improve. But that doesn't mean that most sellers won't achieve great returns in selling right now. Remember also that if you intend to buy another home, that is likely to become cheaper too!

Why not contact us today at 435-327-2090 for an informal discussion of how to take advantage of the great opportunities that still exist this summer.

Following real estate news developments nationally can be a disconcerting experience for many right now.

Just this week, we've seen mortgage rates break the 6% barrier for a 30-year home loan, and continuing to rise from there! Home buyers are also having to cope with price inflation and, very likely, a further rise in general interest rates for other borrowing too.

It would be absolutely wrong to try and pretend that this is not going to have implications for our homes market here in Iron County, and in some respects it already has.

However, if we look at the above stats for May, it's undeniable that our market is still outperforming the same period last year, when mortgage rates were about half of what they currently are...

So what's going on here?

Buyers are still arriving in our area from other states in high numbers, many using their equity gained in even more lucrative markets and not needing a mortgage.

But it's probably also fair to say that we are still seeing this positive effect most clearly in the mainstream market for homes here. Higher value properties are not selling so easily and that's partially reflected in the graph below:

Inventory of available homes for sale in May was 65% higher than the same month in 2021. But we are still talking about just over two months of supply in the market, which is arguably still not adequate to accommodate current buyer demand.

The key takeaway right now is that things are very, very likely to worsen before they improve. By listing in these peak summer months, you'll be giving yourself the best opportunity to sell and for the highest possible return.

The great news is that, here in Iron County, we have to some extent been sheltered from the worst of the current real estate negatives. But these influences are likely to have a growing impact here and it would be a huge mistake to think otherwise.

As ever, please don't hesitate to contact us to discuss the current market in the context of your own situation on 435-327-2090.