The graph above shows Utah foreclosures (Listed & Sold) per the Multiple Listing Service(MLS) from January 2010 thru Present. Now, I'm going to caution everyone that this may not be a fair representation of fact, as this is only data extrapolated from the MLS, and is not indicative of filings of foreclosures. Further, this information is only as good as the agents that input the information to begin with, which, none of them were me, so I won't speak for them. Typically when a real estate agent inputs a listing, if it is a bank owned property - aka "foreclosure" - then conventionally the "Owner" field is input with "REO" which means Real Estate Owned - aka Bank Owned foreclosure. I didn't make the system, and I'm not defending it, but, it's what we have. So, if this is an accurate representation then, WOW! Times have been good!
We have noticed a significant decrease in properties listed as REO over the last year. Those great deals are getting more and more scarce. Some believe that the banks are holding more property back from sale to try to ease the downward strain these foreclosures cause in the market, impacting Fair Market Value for non-distressed homeowners. Personally, I'm undecided. That would be a very prudent thing for a bank to do.
I've heard many rumors that banks have begun hiring asset managers, otherwise known as property managers, and have been converting a large portion of their owned property portfolios into rental housing. It could just be that the agents who have been given listings have been instructed not to list the owner of the property on the MLS, therefore avoiding a perception of distressed property. Really, the dynamics are so uncertain it's become very difficult to know for sure what's been happening without the assistance of reporting from county records, and that's just not available yet.
Here's another fun graphic for you:
This graph shows the overall listings and homes sold from the first quarter of 2010 through present. You'll notice that throughout 2011 the homes listed on the market have been keeping pace with the homes sold on the market, averaging about a 50% listed to sold ratio per quarter. That's not bad for such a "depressed" real estate market. Also, you'll note that the average price, although it has declined, has leveled off by and large, with the average price of a sold home coming in at $214,000, down from $238,000 at the beginning of 2010.
So, well, all that says is that homes are more affordable than they've been since 1995, interest rates are better, preliminary data suggests foreclosures have slowed down, and well, it's a great time to buy! So, don't wait. Get out there. BUY REAL ESTATE NOW!!!
Don't sit on the fence. Don't let your uncle Leroy tell you about all of the money you'll lose because he knows someone who once urinated in a public restroom next to him who told him about his sister's fiance that lost it all in the real estate market or some other nonsense. Private investors are seizing property at unheard of rates, for incredible deals. They're depreciating these investments and recuperating significant tax windfalls.
If you've got a moderate-to-good credit rating and 2 years of stable, decent income, YOU CAN GET A HOME. Don't take uncle Leroy's advice. Talk to a professional. We're required by law, and a lot of oversight, to provide you with complete and accurate information. The profiteers have washed out of the industry, and what's left is a corps group of real estate professionals ready to guide you to the next stage of your financial future. Do yourself a favor, hop down from the fence, and call a Realtor today.
Happy Hunting Utah!
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