Author: Geoffrey Fitzwilliam

Began his woodworking career as a philosophy student at Rutgers University. In 1974 he moved to Salt Lake City to attend the internationally acclaimed Violin-Making School of America. Although he still builds the occasional violin, his real passion lies with the study of furniture design and construction. And while his craft remains grounded in the time-honored tradition of the luthier and his personal style is firmly rooted in the Arts and Crafts movement, he has also worked for well-known avant garde furniture-makers Wendell Castle and Michael Fortune. He now works as a Real Estate Agent/Guide for Coldwell Banker Realty in their Sugar House Office

Is now a good time to buy a house in Salt Lake City?

Whether or not now is a good time to buy a house in Salt Lake City depends on your individual circumstances and goals. Here are some factors to consider:

  • The current housing market: The Salt Lake City housing market is currently cooling off after a period of rapid price appreciation. Home prices have started to decline, and the number of homes for sale has increased. This could make it a more favorable time to buy for buyers who are willing to act quickly.
  • Your financial situation: Can you afford the monthly mortgage payments? Do you have a down payment saved? Are you prepared for rising interest rates? It’s important to make sure you’re financially ready to buy a house before you make an offer.
  • Your long-term goals: Are you planning to stay in the house for many years? If so, then a slight decline in home prices now may not be a big deal in the long run. However, if you’re planning to sell the house in the near future, then you may want to wait until the market cools down even further.

Ultimately, the decision of whether or not to buy a house is a personal one. There is no one-size-fits-all answer. However, by considering the factors above, you can make an informed decision that’s right for you.

Here are some additional things to keep in mind:

  • Mortgage interest rates are rising: Mortgage interest rates have been rising steadily in recent months, and this trend is expected to continue. This means that your monthly mortgage payments will be higher if you buy a house now than they would have been a few months ago.
  • The economy is slowing down: The US economy is showing signs of slowing down, and this could lead to a decline in housing demand. If demand for homes falls, home prices could also decline.
  • The housing market is unpredictable: It’s impossible to predict with certainty what the housing market will do in the future. Even if experts believe that the market is cooling down, there’s always a chance that it could rebound.

If you’re considering buying a house in Salt Lake City, I recommend talking to a financial advisor or real estate agent to get more personalized advice. They can help you assess your financial situation and goals, and they can also give you more information about the current housing market.

Home Price Appreciation Is as Simple as Supply and Demand

We are told that interest rates will remain at historic lows for the foreseeable future.

Home price appreciation continues to accelerate. Today, prices are driven by the simple concept of supply and demand. Pricing of any item is determined by how many items are available compared to how many people want to buy that item and are able to access low interest rates. As a result, the strong year-over-year home price appreciation is simple to explain. The demand for housing is up while the supply of homes for sale and interest rates hover at historic lows

Let’s use three maps to show how this theory continues to affect the residential real estate market.

Home Price Appreciation Is as Simple as Supply and Demand | MyKCM

Map #1 – State-by-state price appreciation reported by the Federal Housing Finance Agency (FHFA) for the first quarter of 2021 compared to the first quarter of 2020:As the map shows, certain states (colored in red) have appreciated well above the national average of 12.6%.

Home Price Appreciation Is as Simple as Supply and Demand | MyKCM

Map #2 – The change in state-by-state inventory levels year-over-year reported by realtor.com:Comparing the two maps shows a correlation between change in listing inventory and price appreciation in many states. The best examples are Idaho, Utah, and Arizona. Though the correlation is not as easy to see in every state, the overall picture is one of causation.

The reason prices continue to accelerate is that housing inventory is still at all-time lows while demand remains high. However, this may be changing.

Is there relief around the corner?

The report by realtor.com also shows the monthly change in inventory for each state.

Home Price Appreciation Is as Simple as Supply and Demand | MyKCM

Map #3 – State-by-state changes in inventory levels month-over-month reported by realtor.com:As the map indicates, 39 of the 50 states (plus the District of Columbia) saw increases in inventory over the last month. This may be evidence that homeowners who have been afraid to let buyers in their homes during the pandemic are now putting their houses on the market.

We’ll know for certain as we move through the rest of the year.

Bottom Line

Some are concerned by the rapid price appreciation we’ve experienced over the last year. The maps above show that the increases were warranted based on great demand and limited supply. Going forward, if the number of homes for sale better aligns with demand and interest rates rise, price appreciation will moderate to more historical levels.

Just Because It’s a Sellers’ Market, Don’t Go FSBO!

In a sellers’ market, there are always those homeowners who will be tempted to try to sell their homes on their own (For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the inventory of homes for sale is as low as it is today, buyers are eager to quickly offer up on virtually any house that comes to market. This makes it even more tempting to FSBO. As a result, some sellers think selling their house will be a breeze and see today’s market as an opportunity to FSBO. Let’s unpack why that’s a big mistake and may actually cost you more in the long run.

According to the Profile of Home Buyers and Sellers published by the National Association of Realtors (NAR), 41% of homeowners who tried to sell their house as a FSBO did so to avoid paying a commission or fee. In reality, even in a sellers’ market, selling on your own likely means you’ll net a lower profit than when you sell with the help of an agent.

The NAR report explains:

“FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000…Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”

Don’t Sell on Your Own Just Because It’s a Sellers’ Market | MyKCM

When the seller knew the buyer, that amount was even lower, coming in at $176,700 (See graph below):That’s a lot of money to leave on the table when you go FSBO – far more than what you’d save on commission or other fees. Despite the advantages sellers have in today’s market, it’s still critical to have the experience of an expert to guide you through the process. Real estate professionals are trained negotiators with a wealth of housing market insights that average homeowners may never have. An agent’s expertise can take much of the stress out of selling your home and help insure that you close the best possible deal.

Bottom Line

It’s Your Bottom Line:

If you’re ready to sell your house this year and you’re considering doing so on your own, be sure to think through that decision carefully. Odds are, you stand to gain the most by working with a knowledgeable and experienced real estate agent. And when you have thirty offers which addenda will you use for that? How will you negotiate for the best terms and price? And how will you sort them for the most solid offer; the one that will get you all the way to closing? Let’s connect to discuss how a trusted advisor can help you, especially in today’s market.

A Discussion on Multiple Offers at the Salt Lake Board of Realtors, Part 1 of 2

Here is Part 1 of an interesting discussion between members of a Salt Lake Board of Realtors panel and Shane Norris of the UAR forms committee discussing how to navigate multiple offers.

I think this should help clarify why every buyer and seller needs to use a real estate professional to bring the transaction to closing, especially now, while the market is so tight.

EPISODE NOTES:

The SL Board panel is joined by Shane Norris from the UAR Forms Committee to discuss how to navigate multiple offers including escalation clauses, multiple offer disclosure forms and other pit-falls for buyers and sellers to avoid.

  • Alicia Holdaway, Past President
  • Steve Perry, President-Elect Salt Lake Board
  • Jennifer Gilchrist, Director Salt Lake Board
  • Shane Norris, UAR Forms Committee, Chair PC Board Forms Committee

Mackenzie & Adam: First-time Home Buyers

Geoffrey stayed with us all the way. We started looking in January and finally found what we were looking for in July. He made the offer happen in the middle of alot of multiple offers and even negociated the price down by over $4,500. He was a pleasure to work with and he stayed in touch with us throughout the process. I can only highly recommend him! -Mackenzie W.

Kathleen & Gabe: First-time Home Buyers

“Geoffrey’s understanding of the area, and background in business, made this process easy and made us feel safe buying our new home. We recommend him to all in need of buying or selling a property. He will always go the extra mile, and is easy to talk to and communicate with.” -Gabriel L.

Katie & Matt: First-time Home Buyers

“We were looking to buy our first home and ran into Geoffrey at an open house. He turned out to be perfect because we knew little about where to start. Geoffrey showed us probably 20 houses before we settled on the one we bought. He helped us notice things that we wouldn’t have seen otherwise. He took care of everything.” -Matt W.

My Experience as a First-Time Home Buyer

My wife Melanie and I bought our house when I was 40 years old.  To some, that may seem a little late, but I was self-employed as a designer/craftsman building Craftsman and Prairie School furniture and money came in fits and starts.  Even then I thought taking on a house payment was a little risky, but Melanie was determined: it was time for a house.  We had two little girls and they needed a home.

We started out with very little knowledge about the process, or even really knowing where to begin.  We had seen a “for sale by owner” sign in front of an older home we had admired on 900 East.  We contacted the owner and he walked us through the house.  It wasn’t perfect, but it was affordable, so we put down our earnest money.

I really liked that house, but I was unaware that Melanie was not entirely sold on it.  I think that I was mainly glad that the “looking” part was over.  But it wasn’t over for Melanie, she was still looking; she had contacted an agent and was diligently looking for something better.  This turned out to be a good thing.

The agent Melanie found was a Godsend.  I had avoided this idea for a couple of what I thought were good reasons.  I just wanted to do it all myself and I didn’t want to have pay an agent.  I didn’t know that the seller pays the agent.  I also didn’t have access to or even know what was available or any idea other than to drive around looking for “for sale” signs wherever I could find them.  Having an agent changed all that; for the better.

Her name was Diana Woodside, and she was a classy older lady and an agent with Coldwell Banker.  I am forever grateful for her help; I am actually affiliated with Coldwell Banker now as agent myself because of her. 

She sat us down and took us through the whole looking/lending/buying process.  She helped us clarify what we wanted, how to look for it, and how to make it happen.  We realized pretty quickly that we were rookies and she was a pro.  She showed us homes in neighborhoods we weren’t even aware of.  She also introduced us to a couple of lenders who started us through the other process we had no real handle on: borrowing, something we knew we would have to face, but really didn’t know anything about.  We were clueless.

She showed us lots of houses, and the house we finally bought is where we still live on DeSoto Street.  The house is small, which I like, and I can see Nevada from the kitchen window, which I love.  I didn’t know how important that was until Diana sat us down and helped us clarify just what we were looking for.  We have raised four daughters here and it has become more than our family’s home; it is our anchor. 

While I am grateful for everyone’s help in what turned out to be a surprisingly collaborative process: Melanie, the lender, the title company, and our agent, Diana, I am forever especially grateful for Diana’s help; she took us through what can be a very daunting and complex process and made it easy for us; thank you, Diana, wherever you are.  She has inspired me to help other first-time buyers, and to share the wonderful experience we had because of her help.