Mountain Luxury Real Estate Blog

January 20, 2010

Alternatives to Foreclosure for Home Owners

Filed under: Utah Foreclosures, Utah Short Sales — Tags: , , , , , , , — brandi @ 10:25 pm

This is long overdue but I want to clear the air of several mis-understandings regarding distressed properties and exactly (not that there is an exactly here) how it all works.  There are so many people that feel they have no options, and honestly, it simply isn’t correct.  There are several options so don’t you or someone you know, become a victim of this market.  Get informed and work through it.  It will be worth it, I promise!

First let’s see who owns your note (loan) it isn’t always the entity you make the payment to.  There are two sites that are easy Fannie Mae Loan Lookup at http://loanlookup.fanniemae.com/loanlookup/ and the Freddie Mac Loan Lookup at https://ww3.freddiemac.com/corporate/.  These are very important sites because if either of these entities owns your note, they have guidelines from the government on how to modify, short sale, foreclosure or otherwise handle your hardship.  If the above mentioned response is a negative, call your mortgage company and ask, “Who is the investor on my loan?”  Once you know this adds to your understanding of how to best negotiate with them.  This applies to second mortgages too.

I want to say first, keeping your house is the ideal, especially if your hardship is something that will change, you still love your home and it is where you want to live.  This being said, loans are being modified, and even rental homes (I just did one through Citi Mortgage) to as low as 2% and ammortized out over 40 years max.  This is a very agressive move to help you keep your home by the banks.  Please take advantage of it!  I will make another post on just how it works, but for now call your bank or call me, I will walk you through it.

Deed-in-Lieu of Foreclosure is the least damaging avenue to give your home back to the bank.  A few conditions need to be met; title should be clear, no tax liens, no mechanics liens, no second mortgage.  This will likely not affect your credit, be sure to negotiate that this satisfies your debt in full and get an attorney involved.  You don’t want some loophole leaving you a deficiency later.  But, you sign some documents, move out and it is over.  You will likely be asked on future loan applications if you have done a Deed-in-Lieu but at this time, to my knowledge (and I have been wrong before) it won’t affect your credit.

Short Sale is the second option and I list it second because it is a very good alternative to foreclosure.  It also brings several benefits to the home owner, not the least of which is a long process time allowing a home for free for several months.  Other benefits would include owners can repurchase a home with FHA after 2 years with a short sale and 5 years with a foreclosure, a big deal if you like owning your home and the fact that FHA is the easiest organization to get a loan with right now.  It is done without a deficiency if done correctly, again, make sure you have good contracts and an attorney.  If you aren’t behind on your payments, it is actually possible to negotiate it so that it won’t affect your credit.  Novel idea I know.  Most people just use the regular contracts but short sales, as in all things, are negotiable.  SO NEGOTIATE!  I love to negotiate, it is a lot of fun, and it creates a win-win for all parties.  This is far superior to just letting your house go to auction, you need to take a little action but it will pay off for years to come.

Foreclosure, yes the big “F”.  Well, it is a fact these days, they are happening.  So let’s deal with it.  If you have a bank that won’t work a Deed-in-Lieu or a Short Sale prepare yourself for a foreclosure.  Presently, most of the big banks are not pursuing deficiencies but the local credit unions and banks are.  Be prepared because this can haunt you for a while, seven years for sure.  First, get an appraisal ordered on your property within a week of the sale date.  This is important because in the state of Utah, if they start the auction below what you owe and no one buys it, the bank does at the lower value, leaving the difference to you as a deficiency.  This is very important to know, because just when you thought it was over you actually end up with a new struggle.  They have 3 months to file a deficiency and sue you.  You need to respond.  Show up to your auction and see who is there, see if anyone actually bids on it, etc. especially if you are with a local bank.

The last alternative is Bankruptcy.  It is a very good strategy giving you time to get things in order, protect assets, etc.  You need a good attorney to work through this strategy however.  I am not going to into it here, especially since I am not an attorney, but consider it if you have a local bank and have a risk of defiency and have a lot of assets or no assets (ask your attorney to explain).

More information can be found at www.makinghomeaffordable.gov.  Please make yourself aware of what can be done, strategize with professionals that understand your options, and make the best move for you.  This market has thrown so many people into situations they would have never thought possible.  Don’t be helpless because there is a lot you can do.

Brandi Hammon is the broker at Mountain Luxury Real Estate and Development and is helping home owners keep their homes and assists home owners in short sales and distressed property disposal.  She also lists and sells for several banks.  Brandi and her team are well versed on current strategies and utilize professionals to help assist homeowners in Utah.  Visit www.MountainLuxury.com for more information or call 888-9MY-Utah or visit us in Ogden and Eden, Utah.

December 27, 2009

Mountain Luxury Real Estate Challenges Businesses to Give Back to the Community by Donating 1% for Open Space

Filed under: Utah Real Estate — Tags: , , , , , — brandi @ 5:33 pm

Mountain Luxury Real Estate Challenges Businesses to Give Back to the Community by Donating 1% for Open Space

 Brandi Hammon of Eden has been serving the real estate needs of her clients for six years.  Raised in Ogden Valley, she says she is dedicated to ensuring that Ogden Valley retains its grace through change.  Thus, in 2008 she joined the board of The Ogden Valley Land Trust.  Recently she, like many other realtors in Ogden Valley and across the nation, has felt the impact from one of the deepest recessions our nation has experienced.  

Reflecting on the situation she states, “It was funny, I don’t think real estate could have been much worse, but I was on a trail run one day, looking around at the amazing surroundings we live in and it hit me; the absolute best thing that could have happened to Ogden Valley was this recession.  The idea sounds counter to my business, but I believe strongly that the recession has offered a second chance for organizations like The Ogden Valley Land Trust to get involved in grass root conservation efforts and thoughtful development.  I also realized that it is one thing to think about making a difference, and another to actually make a difference.  I decided right there I would contribute 1% to open space and hopefully inspire others to follow.”

 Importance of Open Space:

Open space is something that is very hard for most people to understand, because open space, as a phrase, means very little.  Hammon sums it up, “Open space contributes to the sense of a town, the presence of nature and space, a rural peacefulness that has left places like Park City.  Open space provides a balance between development and nature, and is the only way to preserve what almost every individual who has come to this Valley has felt when they arrived.  I want to put effort into, not only protecting land, but also planning in thoughtful ways that maintain the inspiration and personality of this valley.”

 Importance of Contributing

“Every person can make a difference, whether through The Ogden Valley Land Trust or in other ways.  If you have a passion or really believe in something, it’s important that you act on it . . . anything, because even the smallest assistance or donation to The Ogden Valley Land Trust truly helps.  Non-profit organizations are so often ran by volunteers with families and jobs, and they still go the extra mile for something they believe in; thus, anything you can contribute to the Land Trust is immensely appreciated,” Hammon adds.

The Challenge

“There are a lot of great agents and developers in this valley.  I challenge each of them, beginning January 1, to join the OVLT and the 1% for Open Space program and start making a difference where it matters most—at home in Ogden Valley.  As real estate agents and developers, it is akin to replanting a tree.  The challenge to business owners, local residents, and visitors is to both support and join The Ogden Valley Land Trust in its mission to preserve land and open space.  Anyone can join and business owners can contact the land trust to see how they can implement a 1% for Open Space program in their establishment and start making a difference now.  It is time for those of us who are passionate about this valley to step up and start making a difference.  Log on to OgdenValleyLandTrust.org to learn more and to join now.  If one person can truly make a difference, just imagine what a thousand or more can do?  Local brokerages are especially encouraged to make this part of their commitment to the community they serve; it is actually a very small contribution that will have a very large impact over time.”

 For more information about The Ogden Valley Land Trust, or about donating, visit www.ogdenvalleylandtrust.org where you can view a the Land Trust’s new website and video, which is full of valuable information.  You may also donate to the Land Trust by mail at:

 

THE OGDEN VALLEY LAND TRUST

PO BOX 412

HUNTSVILLE UT 84317

 

For more information, or to receive a brochure about The Ogden Valley Land Trust, you may also call 801-745-2688.

 

Mountain Luxury

Mountain Luxury recently donated $1,470, and continues to contribute 1% of its net commissions to The Ogden Valley Land Trust, paid quarterly.   

 Mountain Luxury is a local real estate brokerage located in Eden, Utah.  Owner and broker Brandi Hammon spent her childhood in Ogden Valley, wandered and adventured for eight years, then moved back to raise her children in one of the few places she could call home. 

 Mountain Luxury represents most developments in Ogden Valley including Rivers Edge, The Preserve at Sheep Creek, Edgewater, Lakeside Village Condominiums, Trappers Crossing, the Reserve at Crimson Ridge, the Ranches of Monte Cristo and Hawkins Creek; thus, Hammon says she feels like it is the company’s responsibility to take a lead in the 1% for Open Space initiative.   

Mountain Luxury is located in the Elk Run Commercial Center across the street and north of the Eden Post Office, and is opening a second branch on January 3 at 119 25th Street in Ogden.  Call 888-9MY-UTAH or visit www.MountainLuxury.com for further information.

The Powder Mountain Story

Filed under: Utah Ski Conditions — Tags: , , , , , , , , — brandi @ 5:26 pm

The Powder Mountain Story

Powder Mountain is one of the few ski resorts in the United States able to boast all natural snow. You won’t find a snow making machine on any of the 5500 skiable acres. Amazingly, this resort receives and average snowfall of 500 inches per year in the Utah mountains making the resort’s name, Powder Mountain, even more appropriate. It is filled with controversy and is a juxtaposition of old and new. Powder Mountain has a personality, a place in our hearts and a story.
Frederick James Cobabe was an orphan from age 15. His life was that of a sheep herder and in time he managed to acquire a herd of his own, along with land in Eden that would later become our beloved Powder Mountain. Rumor has it, the land was extremely over grazed but Frederick began conservation practices improving the vegetation and water shed. In 1948, Frederick’s son, Alvin Cobabe purchased the 8000 acres of land his father had accumulated including land in the high mountain slopes. Alvin was resourceful and managed careers in ranching, construction and livestock but in 1956 decided to sell the businesses and attended the University of Utah Medical School. He completed his education at the age of 45, the oldest graduate at the time, and opened a practice in Northern Utah.
One fateful day in the 1950’s while riding horses along the resort’s Lightning Ridge, a friend suggested the high mountain land would make a great ski area. Alvin liked the idea and began to acquire adjacent land. By 1972, the idea became a reality when Alvin Cobabe opened Powder Mountain on approximately 14,000 acres of land.
Only the Sundown lift was open during that first season. Ski lessons were taught, the area was lit for night skiing, and hearty food was prepared for famished skiers on an outdoor barbeque. In 1973 the Main Lodge and Sundown Lodge were added and the second lift, Timberline, was built to accommodate the crowds. A shuttle service was added in 1981 which allowed enthusiastic skiers onto open powdered runs. With the increasing popularity of snowboarding, Powder Mountain became the first Utah ski resort to welcome snow boarders in 1984. As skiers and snowboarders started coming in droves to enjoy the pure, champagne powder at Powder Mountain, the Sunrise lift was soon built and the Paradise Lift followed in 1999.
With Dr. Cobabe at a ripe 88 years old, a decision was made to sell the resort and in 2006 Western American Land Holdings took ownership. A master plan was developed for the resort and local controversy began. But that was only the beginning; Powder Mountain applied to become Powder Mountain Town utilizing a loop hole that has since been corrected to qualify. Locals began posting “Stop Powder Mountain Town” everywhere in the Ogden Valley and are in active litigation with the new owner mostly from a position of being placed into a town and not allowed to have any representation. All the while, Western American Land Holdings is also in litigation within its group with accusations of fraud and misrepresentation.
The new master plan for the resort was expected to be controversial, rarely is any development in the area not. It is a community passionate about preserving its rural ambience and any new-comer should understand this. The resort needs new facilities, lodges, lifts and infrastructure improvements. It all takes money and development could potentially supply funds. But amidst all of this, Powder Mountain is still covered in snow. The shuttle buses still run skiers back up the canyon after runs in Powder Country. Lightning Ridge draws you to the slopes of James Peak, inspiring you just as Dr. Cobabe was years before that is the place for some amazing turns. It is business as usual, smiling skiers and one of the best raw skiing experiences available in the States.
Powder Mountain isn’t a glitzy resort. It feels like the 1970’s and it feels like home. It is a down-to-earth ski mountain, offering more snow covered area than any resort in America. It was the first resort and perhaps the only to offer snow kiting and with open arms, it was the first resort for snowboarding. What does the future hold? Great skiing and boarding to be sure. Perhaps those in dispute can find a balance, that perfect place between turns where you feel weightless and you know, everything is going to be alright.
With its history, restored by an orphan, realized by the oldest medical student graduate, to a good argument over its future; this organic mountain belongs here, in Northern Utah

Visit www.PowderMountain.com for more information on passes, reserving a mountain guide (highly recommended), snow kite lessons, cat skiing, heli-skiing, and our favorite trip up Lightning Ridge. Summer season now offers old school motor cross on a track designed by Jeremy McGrath.

December 18, 2009

Foreclosure and Short Sales

Filed under: Ogden Market Update, Ogden Valley Market Update, Utah Foreclosures, Utah Real Estate, Utah Short Sales — Tags: , , , , , , — brandi @ 10:44 pm

Foreclosures and Short Sales Seminars
Most of us know someone involved with a short sale, pre-foreclosure or foreclosure in
the Utah real estate market. While these properties represent a large portion of those being
bought and sold currently, most individuals are unaware of several of the intricacies
involved with these transactions. Brandi Hammon, with Mountain Luxury Real Estate
and Development, and Celeste C. Canning PLLC, attorney at law, will be presenting a
synopsis of the process involved in a short sale and foreclosure as well as the legal
differences between the two on an ongoing as needed basis.  Please email to request a new seminar or simply request basic information.  These events are open to the public and pertain to both buyers and sellers. There will also
be an open forum for a question and answer session.
Brandi Hammon is a licensed Utah real estate broker and owner of Mountain Luxury Real
Estate and Development. She has successfully stayed foreclosure proceedings, purchased
foreclosures, purchased REOs, bought and sold short sales, and aided in helping people
keep their homes. She currently lists more than 30 short sales in the Ogden Valley and
has over 100 listings. She and her team sell more real estate than any other brokerage in
Ogden Valley. Contact Brandi directly at 801-745-8400 or
brandi@mountainluxury.com.
Celeste Canning is a licensed attorney with a practice in business law, taxation, estate
planning and real estate. She is in private practice with an office in Ogden and resides in
Ogden Valley. She can be reached directly at 801-612-9299 or ccanninglaw@aol.com.
For further questions please contact Mountain Luxury at 801-745-8400.   www.MountainLuxury.com

Short Sales
By Brandi Hammon
An Overview
In essence, a short sale occurs when a lien holder agrees to take less than the amount
owed on a property in order for the owner to successfully sell it. There are varying
reasons for owners to short sale a property. Owing more on a property than it is worth is
the obvious, but most owners could just wait until a market recovers if other
circumstances in their lives would allow for this. Real estate values have always gone up
and down at times but life’s needs don’t always correspond. So in a down market job
loss or change, reduced income, relocation, medical needs, family needs, and divorce are
just a few of the possible reasons one might need to sell. So sellers must approach their
lenders/lien holders and ask for a reduction in the principle loan amount if they owe more
than the property is worth. This will avoid a foreclosure and reduce the likelihood of
legal implications later on.

The Short Sale Process
Short sales can be simple or complicated but they are always an act of persistence. More
often than not, banks will not cooperate in a short sale unless the owner is behind on their
payments. Late payments affect the seller’s credit as the past due payments are reported
to credit bureaus. Usually a short sale is also a “pre-foreclosure” and has a limited
amount of time before the bank will foreclose on the property due to missed payments.
The amount of time to negotiate a short sale varies by the terms of the loan, the bank, and
the seller. On average, there is at least 180 days from the first missed payment to
successfully negotiate a short sale. While the exact repercussions of a short sale to your
credit are unknown at this time, it is generally assumed it is less damaging to have a short
sale than to have a foreclosure and there are possibilities of other legal benefits.
The key to successfully completing a short sale is to 1- get an offer and 2- get it
negotiated with the bank. Most property owners have a hard time talking to their lenders
regarding the situation. Fortunately there are alternatives to negotiating your short sale
yourself. Short sale facilitators, these are firms specializing in short sales as well as loan
modifications, they charge a one time fee to help you through the process. Facilitators
use attorneys to negotiate with the banks and usually have a good idea of what will be
accepted by a bank because of previous deals. Attorneys are an excellent choice, whether
you use the attorney to negotiate a short sale or not, you should absolutely consult one no
matter how you choose to negotiate a short sale. Verify they have experience with short
sales. The possible affects of a short can be discussed including 1099’s write offs,
current exemptions and deficiencies. Real estate agents are another solution as they are
likely to be working with you to get an offer on your property, they can be a good choice
if they have experience with short sales and understand the process. Again, consult an
attorney whether you negotiate the sale or use another professional to assist you so you
have a very clear understanding of your circumstances.
As the owner you will be required, at a minimum, to send in a hardship letter describing
your current situation. The most common additional documentation includes two months
bank statements, previous year’s tax returns, itemized expenses, a profit and loss if tax
returns are not available and your most recent paystubs. All of these items will need to
be submitted to the bank. It is a good idea to submit these documents early so your
packet is ready when an offer is received. Once an offer is received, it will be assigned to
a negotiator in the loss mitigation department. The negotiator will then reply with
changes, a counter offer, acceptance, or a rejection. There are no guarantees a short sale
will be accepted but the current financial climate is rapidly making lenders much more
agreeable.

Local Implications for Ogden and Ogden Valley
Short sales and foreclosures are here to stay for a period of at least 18 months in the
Ogden Valley. While they represent some amazing values in the market right now, they
have contributed to a decline in property values. Short sale transactions are not to be
used by appraisers to determine value due to the distressed situation but still have an
affect on the market by bringing nicer homes in at lower prices to compete for buyers.
This creates some amazing opportunities for buyers with recent short sales in the
Preserve generating multiple offers on new homes at $300,000 and under. The new
owners are elated. Sellers have an excellent opportunity to work through a short sale
with their banks but also have great opportunities to get their loans renegotiated to better
terms even on investment properties. While all banks are different, there are solutions for
both buyers and sellers right now.
Remember when locals where saying their kids couldn’t afford to live here anymore? If
they could ever afford it, now would be the time. Lots are selling for as little as $56,000
in Eden. Amazing!

December 14, 2009

Welcome Statement 2008

Filed under: Utah Ski Conditions — Tags: , , , , , — brandi @ 2:06 pm

Utah winters bring the gift of champagne powder renowned as the greatest snow on earth. Although this is one of the most coveted gifts of nature, Utah boasts unique landscapes from slot canyons in Zion National Park to the snowy peaks of the Wasatch Mountains. Here you will find friendly people filled with exuberance and a plethora of accessible world class exploits. While most of the nation is experiencing a recession in real estate, Utah, although slower than in previous years, remains stable and is still a phenomenal value. The state has enjoyed a population growth of 85,000 over the last year with more companies looking to relocate to the area.

Mountain Luxury Real Estate represents properties in the greater Ogden area including the mountain towns of Eden, Huntsville & Liberty surrounding Snowbasin, Powder Mountain, and Wolf Mountain Resorts. Over the last few years our area has experienced great strides due to the combination of visionaries believing in the beauty and accessibility of the region. Companies like Descente, Nidecker Snowboards and Amer Sports companies including Salomon, Atomic and Suunto have all recently made Ogden their home. The area continues to attract new outdoor recreation companies and events including the Winter Outdoor Recreation Show hosting its offsite venue at Snowbasin Resort. As Ogden was once a gem and hub of the west, it is rapidly gaining a reputation as an adventure destination and center for outdoor recreation.

The area is impressive and any outdoor enthusiast will find several adventures still undiscovered and easy to access. This quality alone differentiates Ogden Valley from other ski towns. Ogden is a mere 30 minute commute from the Salt Lake International airport and the ski resorts are as close as 45 minutes from the airport. Within a 30 minute radius of Ogden you are able to kayak, fish, ski, ice climb, skate ski, cross country ski, snow shoe, mountain bike, snowkite, kiteboard, hike, trail run, back country ski, ice fish, snow mobile, go boating, water ski, ride ATVs and motorcycles, rock climb, boulder, surf (yes) and even practice sky diving in a wind tunnel. While surfing isn’t world class here (we make due with a free standing wave) everything else is. That is why Xterra holds the national championship here every year and the first winter Xterra was held at Snowbasin. Powder Mountain is proud to present the Superfly Open, an international snowkiting competition, the only kiting event ever held at a US ski resort. The area is filled with energy and exhilarating new ideas with each day offering something new right out your door.

While Mountain Luxury sells real estate, our main goal is to help people find the lifestyle they have always wanted. The wonderful thing about the greater Ogden area is that whether you are looking for a great view with trails right out your front door and a friendly coffee shop nearby or ski resort and lakefront living in a quiet setting, you can find it here at an incredible value compared to other ski towns across the US. It is time to look to Utah for the lifestyle you have always dreamed of.

November 24, 2009

Snowbasin Resort to Open Thanksgiving Day

Filed under: Utah Ski Conditions — Tags: , , , — brandi @ 6:10 pm

This was just released by Snowbasin. I was at the resort on Thursday and it isn’t looking so great. But have faith, Snowbasin will get lots of snow! I BELIEVE.
Wolf Mountain is open, bunny hill only. So, there is skiing to be done! My husband managed to get some skinning at Powder last Sunday after the storm. He had some great runs on north facing slopes. Welcome winter!
See you on the slopes!
Brandi
FOR IMMEDIATE RELEASE CONTACT: Jodi Holmgren 801.510.9684

SNOWBASIN TO OFFICIALLY OPEN ON THANKSGIVING DAY

SNOWBASIN, Utah (November 24, 2009) – Snowbasin announced today that they will open as planned on November 26th. Needles Express Gondola and Littlecat Express Quad will be in operation beginning at 9am on Thanksgiving. Mountain Manager, Chris Westover, reports a base of 19” of man-made and natural snow on top to bottom runs.

Snowmaking made an early appearance at Snowbasin this year followed by warm temperatures. Despite the temperature inversion and small amounts of natural snowfall, the resort has been able to generate an impressive amount of man-made snow in order to open this week. As of November 24, there has been a total of 32” of natural snow on the mountain.

“According to mountain staff, opening conditions will present better than they have in the past couple of years,” said Jodi Holmgren, Director of Marketing and Public Relations. Holmgren said that early season rates are in effect, based on the amount of runs open.

In addition to skiers and boarders converging on the resort for opening day, more than 600 people are expected at Snowbasin for its annual Thanksgiving Feast. Limited reservations are still available.

Located 17 miles East of Ogden, Snowbasin is an easy 36 miles North of Downtown Salt Lake City. For safety, hiking is no longer being permitted because of snowmaking and grooming on the mountain. The ticket windows will open at 8:30 a.m. For more information, call 801.620.1000. For more information on snow conditions, call the Snow Report Hotline at 801.620.1100, or visit: www.snowbasin.com.

November 18, 2009

“Bargaining for Eden” in Park City

Filed under: Utah Ski Conditions — Tags: , , , , , — brandi @ 10:57 am

So I have not read the book, Bargaining for Eden, as of yet, but Scott Trimble has written a story of the struggles over land and it is focused on the land swap between Earl Holding and Forest Service for Snowbasin. I will make more comments once I have read it but from what I have read in reviews and been told so far, the book appears to be a balanced view of preservation of land and open space versus development the rights to do such. Here is a very important point, conservation easements and who holds them is critical. I am not sure if this is actually addressed or not in the book, but had a third party (non-political) possessed a conservation easement, the land could have not been developed.
Just a note, anything can be developed with a change in politics or policy if there is not a third party helping to protect the land.
Have a great day, he speaks tonight at 7:00 pm at the Kimbal Art Center.
For information on land preservation in Ogden Valley check out the Ogden Valley Land Trust at www.ogdenvalleylandtrust.org
Mountian Luxury donates 1% of commissions to protect open space. Please follow our lead and join too!
www.MountainLuxury.com

November 14, 2009

Mountain Luxury’s new blog!

Filed under: Utah Ski Conditions — Tags: , , , , , — brandi @ 1:03 pm

It has been a long time coming, but finally I have committed to creating and maintaining a blog with topics relating to real estate, the market, the lifestyle we represent and well, since it is a blog, anything else I fancy.

So where to begin, as with all things, change is here.  It is snowing in beautiful Eden, Utah right now signifying a new season, my favorite season, and the creeping end to a long recession.  Yes, this is my optimism speaking, which is innate. 

I recently attended a meeting with three panelists including Juliette Tennert who manages and analyzes economic, demographic and fiscal data to the state government.  In the discussion was unemployment, which Utah is still substantially behind the national average, new home starts which are down over 50% this year, and expected new home starts for next year which are expected to drop 17% more. 

Utah hit this recession late, for those not following Utah, we were the golden child, fiscally sound and not affected.  At Q4 2007 things changed and Utah tumbled hard, not as badly as it neighbor Nevada, but still the recession came.  Where most of the nation saw this transition at Q4 2005.  So the question I asked was, “If we are two years late heading into this thing, we will recover two years later”.  Juliette actually answered this directly and felt that we would likely recover at the same time much of the nation did.  I felt this was optimistic, but she had some valid points: Utah has positive in-migration still, expected 6000 new folks to move to the state this year and slightly more next and Utah has a large echo boomer population with a high birth rate (this is also in the in-migration numbers from my understanding) and this creates a large economic demand as well as a strong work force which several states are lacking.

So where will it lead?  I don’t know.  Additional panelists including the head of residential lending at Bank of Utah and the head of commercial lending at America First Credit Union where very negative on the situation.  I will say the forecast by the commercial sector is a bit a of look out, the shoe hasn’t even dropped yet due to several loans coming due and with no method to refinance the property.  Other fears are another wave of postponed residential foreclosures due to Obama programs.

So we will see the future holds, none of us have a crystal ball.  Locally, Ogden Valley has reduced inventory since summer to the tune of about 40 homes.  While most homes that are selling are in the 300,000 range,  I did sell one home for $1,060,000 and another for $875,000 but they where discounted substantially, in the 40% range.  Let’s see if the inventory continues to drop.  Land is still overly abundant at about a 6 year supply and according to Metro Study closer to 10 years (this accounts for non-listed properties).

Buyers aren’t complaining about the prices.

For a full economic report on Utah visit http://www.governor.utah.gov/DEA/EconSummaries/EconomicSummary.pdf.

Let it snow,

Brandi Hammon

www.mountainluxury.com

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