I do believe there are many positives for theDraper area Real Estate market for 2012 and beyond. Things over the last 4 years have been rough and while I don't see any wild rides like the middle part of the last decade, I do see many positive signs for the area. First and foremost I think the Salt Lake area and the state of Utah are in very good economic shape, especially when compared to the rest of the country. I could give my theories but probably the best analysis of this comes from Forbes magazine which for the second straight year ranked Utah as the best state for business. If you are interested in reading the article here is the link:
With a number of companies planning to move or expand in Utah that can only have positive effects on the entire real estate market; commercial, existing residential and new construction.
Continuing on the positive outlook theme, here are some observations from our broker sales meeting this month: Initial projections for 2012 are that home values will be stabilizing in most price ranges and areas. One way to put it, "we are out of the sewer." Inventory is down right now. About 73% of all new listings are selling quickly. We are seeing multiple offer scenarios on good homes that are priced right. One example was a 5000 sq ft home in Riverton on a half acre that had 14 offers on it and ended up going under contract for 50K over the list price. This example shows that there is pent-up demand right now for the right property at the right price. As far as new construction goes, there has been very little new building in the last 5 years. The problem has been on the lender side for most developers. Banks have been stingy and tough. The key is building and selling in the right price range. The SW quadrant right now (Bluffdale, Herriman, Eagle Mountain, Saratoga Springs, etc.) is very weak, this area will probably be the last to recover. Sandy, Draper, Riverton, South Jordan are better bets. Homes need to be in the affordable price range of under $300K. We are still seeing some shadow inventory, but most of it has been absorbed with short sales. Bank owned properties and REOs dropped down around the holidays (banks won't usually kick people out of their homes at Christmas--even they have some scruples), but they will pick back up some after the holidays. There are still about 4 million units of shadow inventory across the US but we are in better shape than most markets here in SLC when it comes to foreclosures and distressed properties. Now is a good time to sell due to the decreased inventory. While sellers will still take a hit on the value they get out of their home (many times just breaking even on the equity or walking away with only a couple thousand at closing), they will most likely get something better on the flip side: larger home, better quality, better location, low interest rate, a much lower mortgage payment, etc. One of the hottest markets right now is St. George. Lot prices have come down drastically. In pre 2007, lots in a PUD were going for around $90K and now they are going for 35 - 40K. Any homes under 300K are selling quickly. Most are cash deals by retirees taking advantage of low prices on a second home.
Obviously this could all change if the economy takes a major negative down turn, I do believe that for the most part we have hit the "trough" and the worst of the real estate losses are behind us. I especially feel this is a very positive time for investors. We are at historically low interest rates and if you are in the property for the long-term, a short term price fluctuation makes very little difference in your overall return. The only challenge currently is the low inventory of properties but hopefully that will change this spring.
If there is anything we can do to help you with your real estate needs, or you would just like some information, please feel free to contact us. Thanks again for the referrals.
ZIP Code: 84020 Location Characteristics: Draper is an up and coming area in the Salt Lake Valley. It offers a tremndous mix of homes including a large number of new home developments. A rapidly growing commercial base is helping to strengthen the growth of the area. Proximity to numerous outdoor activites; skiing, mountain biking, golf, etc. make it a wonderful place to live. With all this it is located only 25 minutes from downtown Salt Lake City.
Whether you are looking to buy or sell real estate, you understand that it is a major financial decision. When you are looking for a real estate professional to assist you in these transactions, whether a first time buyer or a seasoned investor, you are interested in finding someone who has the knowledge and experience to assist you in finding the property that suites you. This means someone who is focused on your needs and not just on making the sale.
Steve has a varied background that includes not only 6 years of experience as a Realtor in the Salt Lake area, but also 13 years in the U.S. Air Force flying F-16s, 2 years marketing experience with Lockheed Martin and 14 years as an airline pilot with Delta Air Lines. He has a B.S. in Mechanical Engineering from Colorado State University and an MBA from Embry-Riddle Aeronautical University. Having moved seven times while in the Air Force, he understands the stresses involved with relocating. As an airline pilot, he knows the importance of customer service and of staying current and highly skilled in one's area of expertise. He has a strong work ethic and unique perspective of the world which he brings to his real estate business. He enjoys researching the market and being a source of knowledge and information for his clients. His number one goal is to help his clients feel informed, safe, comfortable and ultimately happy with their real estate purchase or sale. In his six years of experience, he has been involved in over $22 million worth of real estate transactions. He specializes in Commercial and Investment property, as well as Residential sales throughout the Salt Lake Valley including the Park City area.
Steve's assistant and wife, Pam, is also a licensed agent who joined the business in 2008. She also has a varied background which includes a B.S. with High Distinction in Microbiology from Colorado State University and 13 years experience as a licensed Medical Technologist working in hospitals and clinics in the U.S. and overseas. She took several years off to raise their three children and now enjoys helping families find their dream home. Her medical experience fostered several skills which she brings to the business: attention to detail with contracts and deadlines, good communication skills, and compassion, empathy and confidentiality. She specializes in Residential real estate at the south end of the Salt Lake Valley and Park City.
In addition, the Bojack's believe that sales professionals must be involved first-hand in what they are selling. Therefore, they have invested in multiple residential properties around the Salt Lake area. They strongly believe in the real estate market here and want to be a part of it.
Steve and Pam also believe that those promoting the local area should be an integral part of it. Both are involved in the local community in a number of ways. Steve coaches youth sports, volunteers in support of the elderly, and is a past member of the school board at St John the Baptist Schools. Pam is an adult advisor for the high school youth group at their church. She has also volunteered many hours at the Skaggs Catholic Center in their religious education program and Home and School Association. She is a Huntsman Hometown Hero who enjoys combining her love for running with raising funds for cancer research. As a family, they love to ski, backpack, hike and travel abroad.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
