2012 - To be or not to be? I say, definitely to be...

This is pretty simple.  Scroll to the bottom for the basic equation.

Take look at the following graph: (What do you see?)

You're seeing 4th quarter sales
(Oct-Dec) from 2005 thru 2009
in Northern Utah County.

If you recall, there was a real estate bubble that started at the end of 2005 and hit its peak in 2007, right before the big recession slammed us in 2008.  What's really interesting about this graphic?  Look at the start point, the mid-point and the end point of each of these lines:

Blue Line: Average Home Price - Green Line: # of Homes Listed - Red Line: # of Homes Sold

Do you see anything interesting there?  I see a lot.

2005, which was considered a great real estate market because it was one of the most affordable points for Utah homes in the last decade, is just slightly higher than it was in 2011.  That means what?  Homes are more affordable now than they've been in over half a decade...

Okay, so, there was a big spike for 2 years from 2005 to 2007.... and prices have now regulated and come back from the over-inflation we saw in 2007 to a realistic and affordable price.  But, interest rates in 2005 weren't nearly what they are now.  So... homes are more affordable than they've ever been.  I can't stress that enough.

A 1% difference in a mortgage on a $200,000 home is roughly $25,000 over the life of the loan.  So, we're 6 points lower than the average rates in 2005.  So, yeah... saving $150,000 over the life of your loan is better.

Even more interesting is the reverse nature of the Red and Green lines.  Look at the start point in 2005.  Look at the end point in 2011.

I don't see a whole lot of difference in the numbers there, do you?


Now, look at what happened in 2006, 2007 and 2008 on those Blue, Red and Green lines.  The Blue line shoots up... home prices are rising fast!!!  The green line goes up... more homes listed... the red line goes....down....  in fact, only about 1/2 of the homes sold in 2005 were sold in 2007 because of the over-inflated home prices.

Home sales last year didn't quite double the low in 2007 (the imaginary peak of the real estate market) but they are rebounding nicely.  It's a great time to get your home listed.

If you've been in your property more than the 6 years this chart represents, you're probably in a great position to sell and take advantage of upgrade options at lower price points.

If you have never bought a home, now is a great time.  They're more affordable, there's great inventory, and they're moving... what does that mean?  Interest rates will start to climb again very shortly.

If you are looking to invest: Do it.

Inventory + prices + interest rates = Get Started!


If you've been looking for some information to help you make a decision.... I hope this helps.

You can find me on my Facebook Page or get started on your search by visiting My Website.

Stay tuned for the next great insight... ~ Happy New Year 2012! ~