Utah Mortgage Forclosure Well Below the National Average

I read this article recently in The Salt Lake Tribune.

Foreclosure rate falls
The state's low unemployment and high job growth keep delinquencies well below the national average
By Lesley Mitchell
The Salt Lake Tribune
Article Last Updated:12/13/2006 11:38:43 PM MST

Buoyed by the state's strong real estate market and high job growth, fewer Utahns are falling behind on their mortgages and losing their properties to foreclosure.

Utah is bucking a national trend of higher numbers of past-due loans, the Mortgage Bankers Association (MBA) reported Wednesday in its National Delinquency Survey. Only 0.68 percent of mortgages in Utah were in foreclosure in the third quarter, down sharply from 1.06 percent in the same period in 2005 and 1.52 percent in 2004, the association said.

The drop is not going unnoticed.

"Over the past three months, we've seen a big decrease in people who say they are near foreclosure," said Preston Cochrane, president of credit-counseling company AAA Fair Credit Foundation in Salt Lake City.

Once among the highest in the country, Utah's foreclosure rate is well below the national average of 1.05 percent, according to the MBA report, which covers government-insured and conventional loans. Foreclosures nationally were up eight basis points from the third quarter of 2005.

Utah's delinquency rate, which measures the total share of loans that are more than 30 days past due but not yet in foreclosure, was 3.71 percent in the third quarter, down from 4.12 percent in 2005 and 4.64 percent in 2004. Nationally, the share of delinquent loans rose to 4.67 percent, up from 4.44 percent last year.

Nationwide, interest rates are rising, which in many cases has increased the monthly payment for borrowers with adjustable-rate loans. Some families struggle with higher payments, and refinancing at fixed rates offers no relief because rates are so much higher.

If those homeowners are in one of many markets nationwide right now in which homes are taking longer to sell and prices are flat or even falling, they may feel they can't sell fast enough and for enough money to cover their mortgage obligations. So they simply walk away.

"But if it's easy to sell a home and home prices are going up, people in [financial] trouble can often avoid foreclosure," said John Mitchell, U.S. Bank regional economist.

That, he says, is exactly what is happening in Utah, where home sales and appreciation over the past year have been strong.

Job growth is another factor, said Douglas Duncan, chief economist for the Mortgage Bankers Association.
States with high job growth and low unemployment often have low delinquency and foreclosure rates. And Utah, which is near the top in both those categories, is no exception. People in these states are more likely to find a job fast if they lose one and can continue to make their mortgage payments. They also are more likely to see wage gains - either from their existing employer or by switching jobs.

Nationally, Utah had the 16th-lowest rate of delinquencies among all states and Washington, D.C., in the third quarter, down from No. 21 in the third quarter 2005. Utah had the 17th-lowest rate of foreclosures in the past quarter, down from No. 20 in 2005.

In addition to reporting delinquency and foreclosure rates, the Mortgage Bankers Association also said Wednesday mortgage-application volume climbed last week to the highest level in more than a year. The reason? Many people are taking advantage of a dip in mortgage rates to buy a home or refinance out of adjustable-rate loans for loans at fixed-interest rates.

lesley@sltrib.com

Source: The Salt Lake Tribune

What Offer on Your House Can't You Refuse? Tell the World

Zillow.com just announced a new feature on it's website called "Make Me Move", where home-owners can tell the world the price on their home that they can't refuse. Here's the details.

What is Make Me Move?

Make Me Move is a free and easy way to tell others the price you'd be willing to sell your home for, without actually putting it on the market. It's that magical number you just can't refuse.

How Does It Work?
Once you set your Make Me Move price, potential buyers can contact you anonymously via e-mail. Then it's up to you whether or not to sell your home.

Why Use Make Me Move?

Pre-market
Thinking about selling soon? Use Make Me Move to start gathering interest from potential buyers.

Meet Sarah: Sarah lives in a 1920s house with her 17-year-old daughter who will soon head to college. Since the house is old and requires a lot of upkeep, Sarah wants to buy a smaller home in a brand-new development that is being planned a few miles away. She's not ready to formally put her home on the market, but she wants to get the word out that she would like to move within the year.

Opportunity knocks
Your "plans down the road" might happen sooner than expected if the right offer comes along.

Meet Mike: Mike works in the city and lives in the suburbs with his wife. They have a second home in the Southwest where they plan to retire when Mike turns 62, so they still have 10 years in their primary home... or do they? Mike is a little tired of taking care of his 2-acre property, the kids are out of the house, and it would be nice to avoid the commute, plus enjoy all the city has to offer. Mike is thinking if the right opportunity came along, he might just be tempted to sell it, downsize, and rent a place in the city until he's ready to retire.

Pie in the sky
Flirt with the possibilities. Every seller has a price — what's yours?

Meet Ryan: Ryan is 32 years old, single, and has a great job as a senior accountant at a health insurance company. He bought a one-bedroom condo a few years ago, but there's nothing holding him back from changing direction at a moment's notice. He would travel for a year — or more — as he's always dreamed. His life could be a blank canvas from which to start something new. He would be daring, if someone gave him the right price for his condo.

Kaysville Utah on Business Week Top 25 Most Affordable Suburbs

When Business Week released its The 25 Best Affordable Suburbs in the U.S., Kaysville, Utah appeared on the list. What was key to making the list? Low crime, reasonable commute, and good schools, and most of all a low median house price.

Suburban Heaven
If the Northeast's concept of "affordable" housing still seems a bit beyond your reach, look no further than the West and Southwest, where towns like Kaysville, Utah, and Sandia Heights, N.M., offer many homes under $400,000 and even $300,000.

"We've thought about moving but we haven't made the change. We couldn't replace what we have here anywhere else," says Melissa Coxey, a Realtor with Coldwell Banker and resident of Kaysville for over 20 years. Kaysville, a popular destination for those escaping the higher cost of living in nearby Salt Lake City, has one of the lowest median home price on our list, at $209,100—but this still spells status for many Utah homeowners.

"Stuff doesn't last long here," says Coxey, who has been selling houses in the area for the past 10 years. "And part of the reason is to be able to say: ‘I do live in Kaysville.'"

Salt Lake City
Kaysville, Utah 84037
Median Home Price: $209,100
Cost of Living Index: 107.1
Violent Crime Index: 36
Secondary School Test Scores Index: 102

Read the whole Article on Business Week Online.

Utah Home Sales Fall, But Prices Rise

Here's a recent article I ran across in the Deseret News online. It still looks good for Utah.

Home sales fall across Utah — but prices rise
By Dave Anderton
Deseret Morning News
Wednesday, November 29, 2006

Home sales across Utah fell 6 percent in this year's third quarter, while the average sales price rose 16 percent, according to a report by the Utah Association of Realtors.

The report, which tracks the sales of previously owned and new homes listed through a real estate agent, noted that total home sales statewide in the three months ended Sept. 30 fell to 12,615, down from 13,445 homes sold during the same quarter in 2005.

Home sales in the third quarter fell in seven of the 17 areas tracked by the association compared to the same quarter in 2005. Sales were down in Davis County by 6 percent. The Park City area showed a 28 percent drop in the number of homes sold. Salt Lake County showed an 8 percent drop, and Washington County home sales fell 29 percent.

While fewer people were buying houses, the average sales price for homes sold in the third quarter rose to $255,402, up from $219,822 during the same period last year.

The highest-priced homes sold in the third quarter were in the Park City area, where the average sales price reached $826,802, a 14 percent increase from $725,000 during the same quarter in 2005.

The cheapest homes sold were in the Carbon-Emery area, where the average third-quarter sales price was $104,653, up 24 percent from $84,314.

Wasatch County saw the biggest percentage increase in its average sales price in the third quarter. Homes there sold for an average of $384,929, up 60 percent from $240,680. The average sales price in Wasatch County was the second-highest in the state, but home sales there fell 6 percent in the quarter.

No areas across the state showed house-price declines. However, condominium prices did fall in Davis and Weber counties, by 3 percent.
E-mail: danderton@desnews.com

Source: Deseret News