It’s hard to believe, but mortgage interest rates hit all time lows AGAIN. It makes me just want to buy again even though I just bought. Home financing is just so cheap right now.
Here is the break down from the latest Freddie Mac survey:
- 30- Year Fixed Mortgages 3.89%
- 15 year Fixed Mortgages: 3.16%
- 5 Year ARM: 3.23
What a fantastic time to buy. Get started searching homes for sale right away before the economy improves and interest rates rise.
One of the best ways to invest in real estate is by investing in Multi-Family Homes. These are residential properties with 1 to 4 units.
Multi-family homes offer advantages over apartment buildings, and over single family homes. If you plan to own property with the goal of obtaining long term rental income, then the best way to get started is with multi-family homes which include, duplexes, triplexes, and fourplexes.
While single family homes are typically the easiest properties for the common man to purchase, they are usually not the most efficient in terms of rental income. The cost per unit often does not yield a very good rental income. It is much harder to generate positive cash flow for single family homes. In addition, single family homes are definitely harder to manage. Each house has its own yard that may require maintenance, whereas, a multi family home has only one lot for several properties.
The big advantage that mulit-family homes have over apartments, is that they can be purchased using standard residential home loans. Residential home loans are much less expensive, and easier to obtain than commercial loans, which are required for buildings with more than 5 units.
Buyers of multi-family properties can also benefit from even lower interest rates by living in one of the units. Primary home loans are less expensive than investment properties. When an investment property buyer purchases a home with the intent to live in it, they can see additional savings from being an owner occupier. Even if they leave the home after living in it for a time, they still get to keep the great interest rate.
There are several advantages of purchasing investment properties. Here are some useful links to help you find investment properties for sale in Utah:
The first property I ever purchased was a duplex. I lived in one half, and the rent I got from the other half almost made my mortgage payment for me. I still own the property. It provides some monthly income, and tax savings every year. I'd recommend that people who can handle land lording buy multi-family properties. It's a great way to build wealth and protect your financial future.
The number of homes for sale in Logan Utah continue to drop.
Right now there ore only 617 listings on the MLS. Real Estate Inventory hasn't been this low since April of 2008.While real estate inventory is down, so are home prices. During November the average sales price was just $157,299 with a median at $149,650. The list price of the Cache County homes for sale has also declined substantially. The current median price of homes for sale in Cache Valley is $172,900.
The Average price per square foot of Cache County Homes has dropped to $72.4 per square foot.
Inventory is looking low, and looking good for Logan Utah Real Estate. If the trends continue, the best time to buy for the sake of low home prices will probably be within the next six months.
From Provo to Park City, Utah has the Reasons and the Seasons
Thinking of relocating, but you’re not sure where to go? Then you should think Utah. With great job opportunities, historically low interest rates, and plenty of properties priced to sell, there’s never been a better time to make the move to the “Beehive” state. And if you’re thinking Utah is mainly about all that awesome winter snow, it’s time to think again. After all, Utah has four distinct seasons, each with an abundance of reasons that make it a great place to live year-round.
Winter: Okay, let’s get it over with. Utah license plates don’t boast the “Greatest Snow on Earth” for kicks. The fact of the matter is that, when it comes to winter, Utah truly is a wonderland. And it’s little wonder that the International Olympic Committee chose Park City, Utah, as the site of the 2002 Olympic Winter Games. And now that the games are history, Utah residents and vacationers can enjoy Olympic venues “up close and personal” as public facilities open for year-round recreation. But all the winter action isn’t in Park City. The Rocky Mountains boast an array of world class resorts, many of which are just minutes from city centers and offer everything from Alpine and Cross-country skiing and snowboarding, to snowmobiling, ice skating, sledding, snowshoeing, and more. Avid fishermen can fish Utah waters any time of year, and even ice fish on near by frozen reservoirs. NBA fans can watch the Utah Jazz take on their opponents at Energy Solutions Arena. And with the winter Holidays come the amazing Ice Castles of Midway Utah, an other-worldly experience where visitors can negotiate a maze of 30 incredible ice towers jutting upward into the winter sky. And no Utah winter is complete without taking in the spectacular Christmas lights on Salt Lake City’s historic Temple Square, along with the many free concerts by the Mormon Tabernacle Choir. Then, in January, it’s back to Park City for the annual weeklong Sundance Film Festival. And for those who enjoy great eating and shopping, Utah offers a vast selection of stores and eateries that will not disappoint.
Spring: There’s that snow again. As the spring sun thaws out the valleys, diehard skiers can take advantage of some of the best spring and night skiing conditions anywhere. In the lower elevations, weather permitting, it’s a great time for picnicking, hiking, and biking. And while you’re at it, you might as well break out the fishing poles, dust off the kayaks, the canoes, the quads, and last but not least, the golf clubs. Utah has a large number of golf courses, many of which are as beautiful as they are challenging. Car trips up the canyons or to such destinations as Timpanogos Cave, Zion National Park, Bryce Canyon or a host of other natural wonders also make for great springtime activities. Naturally, with all that fresh mountain air working up your appetite, you’ll want to stop at one of those great eateries you’ve heard so much about (see Winter) on your way home.
Summer: At last all that great snow is gone. But don’t expect the summer sun to put a damper on the fun at the local ski resorts. Park City offers all kinds of summer activities, from a tranquil ride on the chairlift to shooting down the mountain on the Alpine Slide or Zip Line, to the adrenaline rush of a 70mph Bobsled run at Olympic Park. On Sundays from June to September, families can enjoy the fun and festivities of the Park Silly Sunday Market. Meanwhile, up Provo canyon, fishermen hone their fly-casting skills on the smooth waters of the Provo River, while folks float lazily by on inner tubes. Summer’s also the time for more serious hiking, biking, canoeing, kayaking, and camping out under canopies of countless stars. And let’s not forget all those fabulous eateries, not to mention the world-class shopping.
Here is an article I read. It's got some great reasons that we love Utah, and why people would want to live in our great state. These reasons don't even include the quality of people, and the fact that it is such a great place to raise families.
According to Bloomberg Business week, Smithfield Utah is the BEST place to raise kids in Utah. The article used statistics such as school ratings, test scores, crime rates, parks, and area income to determine the best areas to raise kids in each state. Here is the Article in Bloomberg Business Week:
Best Place to Raise Kids in Utah: Smithfield
Nearby city: Logan
Population: 9,531
Median family income: $61,835
Avg. school math score: 92.85 (State avg.: 75.96)
Avg. school reading score: 94.06 (State avg.: 80.76)A northern suburb of Logan, in the corridor that runs along the Wasatch Range toward Salt Lake City, Smithfield is a pretty city with great outdoor opportunities. There are good schools, plentiful parks, and many fun events throughout the year.
Photographer: Joel Sartore/Getty Images
via The Best Places to Raise Your Kids 2012: Best Place to Raise Kids in Utah: Smithfield – BusinessWeek.
If you want to raise your kids in one of the best places, use this link to search homes for sale in Smithfield Utah.
As someone who just moved to Smithfield, I feel pretty good about this study.
The number of homes for sale in Logan Utah is at its lowest level since April of 2008. That wasat the height of the real estate boom for Cache Valley when homes prices were rapidly appreciating. It is typical for real estate inventory to decline during the fall and winter months, but inventory hasn't been this low in years. This is great news for people who currently own Logan Real Estate and is a sign that home values should start stabilizing.
As you can see in the chart below, while inventory at the front of the year was at its highest January level ever, it is now well below November levels at any time during the last four years.While the reduced real estate inventory in Cache County is good news for homeowners, overall home sales also continue improving.
These inventory levels are great news. Notice how the current November levels are much lower than even November of 2008. The trend has definitely been turned around and the real estate market is headed in a positive direction now.
Home sales during September in Cache County were pretty impressive. September was the second best month of the year for total home sales. On an annual basis, they were up 32.18% compared with September of last year, as 87 residential homes sold. This marks the fourth straight month that year over year home sales are up.October looks like it will also be a fairly strong month for home sales. There are 141 homes under contract right now, last year at this time there were just 99. At last months sales pace, we have just over 8 months of active inventory. This is slightly higher than a balanced market, but compared with what we have seen, this is something to be optimistic about.
The amount of real estate inventory is also down, and HOME PRICES ARE UP. That's right the median and average list price of homes for sale in Cache County Utah is higher than it has been in months. The median list price rose $4,000 to $179,000, while the average list price increased from $218,135 to $223434. Sales prices last month were also up. The average sold price last month was $182,833 while the median sales price was $168,000. August of 2010 was the last time home prices were that high.
Things could change over the winter, but with the way things are looking, it appears as if the Logan Real Estate market has bottomed out and we are near recovery. Real estate inventory is declining, and with 30 year mortgage interest rates hovering around 4%, this could be the best time EVER for buying Cache Valley Real Estate.
This is the most excited I've been about the Logan Real Estate market since, well since the tax credits and we had the "artificial" real estate recovery. A few more months of sales like this, and with inventory declining into the 600 levels this winter, home prices in the Cache Valley should stabilize.
Right now mortgage interest rates are the lowest they have ever been, making home ownership much less expensive than renting an equivalent house. I just locked into a 3.75% 30 year fixed mortgage interest rate today.
One problem that many potential home buyers have is that they can’t qualify for a home loan because their credit score isn’t high enough, or they don’t have credit established.
The good news is that mortgage interest rates will probably remain low for at least another year. The other good news is that credit scores can be improved, you just have to know what to do.
At our office meeting today we were visited by Credit Aid of Cache Valley. They specialize in helping people improve their credit scores so they can qualify for things like home loans, car loans, or even satellite TV. They have an online presence where they can utilize their services to help people improve their credit scores, as well as a physical storefront right here in Logan.
Some of the things they do include:
- Help them get their free credit reports. Also available at AnnualCreditReport.com
- Help people dispute credit issues
- Help people establish credit, they work with credit unions and such that have very affordable ways to get credit established
Understanding Your Credit Score
To improve your credit, the first thing you need to do is understand how your Credit Score is calculated.
35% of your credit score is Payment History. Companies offering financing want to make sure you have a history of making your payments. If companies don’t report payments you made, or don’t report them properly your credit score could be adversely affected.
Missed payments will stay on your credit score for 7 to 10 years.
30% – Debt to Limit Ratios – Financial companies don’t want you to have a high level of debt, or more debt than you can handle. Don’t have a credit card maxed out. Raise your limits, or even better pay down your debt so that no more than 30% of your cards limit is used. 10% or less is best. If you raise your limit, don’t use it. Have some discipline. This same principle applies with home equity lines of credit and other revolving credit lines.
With credit cards you can call and ask to have interest rates lowered and credit limits changed.
Empty credit cards that are never used also aren’t good. Try to use each credit card or line of credit once a quarter. This shows the credit bureaus that you know how manage your money.
15% Age of Credit lines. The older the better. This shows the credit bureaus that you have been responsible over the years. Don’t cancel an old credit card.
10% – Types of Credit. Credit bureaus like to see a little bit of everything. They want to see revolving debt, instalment debt, mortgage debt, unsecured loans, as well as secured loans for a really high credit score. Paying for everything with cash isn’t necessarily good when you’re trying to get I high credit rating.
Car loans and Home loans actually pull a different score. Car loans will pull and ‘Advantage Score’ whereas home loans will pull the ‘True Fico Score’
10% – Credit Inquiries – The credit bureaus don’t like to see that people are seeking credit regularly. These queries only count when you you personally apply for credit. If shopping, and comparing loans do them all at the same time, that way they will only act as one inquiry rather than multiple queries. Credit inquiries last for 2 years on your credit report.
Sometimes the difference between being able to qualify for a mortgage or not is simply a little bit of knowledge. Here are some valuable tips for improving your credit score.
July home sales looked really good. It looked like things for Logan Real Estate had started to turn around, it appeared as if home sales would actually pick up, but they didn't. Were people just too busy to buy during July, just coincidence, or is it an indication of lack of confidence in the economy? Historically July is one of the top 3 months for home sales in Cache County.July was a very poor month for home sales in Cache Valley. There were only 66 homes that actually sold. This is down nearly 40% from last month! On the positive, year over year July home sales were actually improved with last year; but last year was result of the home buyer tax credit hangover.
The good news is that the number of Under Contract homes is up, indicating that future home sales will be better than July. All time low interest rates should help to stimulate some home buying activity, these low interest rates are already making a big impact on the refinance market. Cache County currently has 140 residential properties under contract compared with 124 a month ago.
I can't explain why home sales were down so much. But they were. The super low interest rates should help to make a dent in the over supply of inventory though. Buyers are really getting serious about buying new homes.
The monthly home sales numbers for Logan Utah Real Estate during June the best they've been in over a year. As reported from the MLS, 109 residential homes in Cache County have sold. This is the highest single month of home sales since May of 2010 when 114 residential homes sold.Unfortunately, it looks like this increased home sales trend might not last for too long. Normally, July, August, and September are the best months of the year for number of home sales. Right now there are less homes under contract (124), than there were a month ago (151).
Fewer under contract homes means that there will be less home sales in the future months. The number of homes for sale in Cache County has risen. There are currently 816 MLS home listings compared with 802 a month ago. If inventory continues to rise while home sales don't, home prices will continue to decline.
One interesting thing about June home sales was the increased size of homes sold. The average square footage was more than 2,400 square feet. This is a few hundred square feet bigger than the average home sold a year ago. During June the average sales price of Cache County Homes was $182,079. The median sales price was $160,000.
Cache County Home Sales are still far below their levels at this time a year ago. However, July and August were terrible months for home sales as result of the Tax Credit Hangover.
