Influencing Factors on Growth in Residential Real Estate

For the property owner, these are what we believe to be the driving forces behind decisions and should be considered in a localized basis in real estate decisions in your area:

  • Consensus on Overall Economic Recovery – While there are still concerns, the majority of economists agree that even though it may be at a slower pace, the U.S. is into recovery.  The primary impact of this is that the balance of national news is now weighted towards a more positive tone which has profound impact on consumer confidence and behavior.
  • Historic Low Interest Rates – Housing affordability is excellent.
  • Retail Sales – Homes, autos, and overall retail sales are up and increasing, albeit slowly.  Consumer spending positively affects tax collection and therefore overall economic health of communities.
  • Residential Construction – Construction of new homes is increasing but may not meet demand in some areas.  Buyers returning to the market are seeking selection and low inventory is generating demand in the new home sector which in turn fuels job creation in construction.
  • Employment – Increases in Americans getting back to work will continue to be the primary force behind recovery.  Though less than desired, we are adding jobs and moving forward.
  • Pent Up Demand – The Great Recession has left us with over five years of demand that will percolate back to the market.  Economic constriction created many consolidated, multi-generational households that are now dissolving.  Some people with the capability to buy have been unable to secure a reasonable mortgage, particularly in more challenging sectors such as condominiums and luxury homes.  Move-up purchases have been delayed pending “better days” and are now being contemplated.
  • Job Security – Americans are less fearful of losing their jobs.  Since 2007, this has been a stressful force in our home-purchasing decision process.
  • Price Confidence – People in most areas of the U.S. are significantly more confident that the value of their home or one they might purchase will not fall.  Indeed, headlines from many areas tout significant increases.

If you are considering a sale or purchase of residential real estate, you should discuss how these factors are playing out in your community, neighborhood and product type so that you have an accurate idea of what to expect.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

www.shesellsparkcity.com
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Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
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U.S. Residential Real Estate – Statistics

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Although the national economy is still in a volatile state with annual growth below two percent and unemployment hovering around eight percent, the housing market, by most indicators, is moving steadily in a positive direction. Homes sales continue to improve from month to month across the nation and home prices are rising.

According to the National Association of Home Builders there were approximately 368,000 new homes sold across the country in 2012, up substantially from 2011 when there were only 305,000 new homes sold. The same report noted that at the end of December 2012 there was a 4.9 month’s supply of new homes in the nation compared to a 5.4 month’s supply at the same time in 2011. The National Association of Realtors reports existing home sales were up 9.2% and new home sales were up 20% in 2012. The existing home inventory is at a seven year low with a 4.4 month’s supply of homes. Nationally, the market is shifting away from the buyer’s market that we have been experiencing for the past several years. Generally, a six month supply is considered a good balance between a buyer’s and seller’s market.

As the number of homes sold increases and the inventory shrinks there is pressure being put on housing prices. Home prices jumped 8.3% in December compared to the same time a year earlier based on a report by CoreLogic, a real estate data provider. This is the biggest gain on an annual basis since early in 2006. According to the same report, home prices rose in 46 of the 50 states – the top 5 states with home price increases were all in the west. The effect of the pricing increases is that more homeowners may be willing to put their properties on the market and buyers may be more anxious to purchase before prices rise further, helping fuel the housing recovery.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

www.shesellsparkcity.com
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Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
Friends, followers, and connections are a way of the future. Feel free to share!

 

Utah Residential Real Estate – Statistics

For the past several years Utah’s economy has been one of the best in the nation, that trend continued through 2012. The current unemployment rate in Utah is 5.9%, a full two percentage points below the national rate. The continued strengthening of the Utah economy and the improving employment numbers are feeding the local housing market in an extremely positive manner.

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One of the brightest spots in the Utah housing recovery is in the new home construction market. Midway through the 4th quarter of 2012 new home construction was up almost 40% statewide, ranking Utah sixth among all states in new home construction. There were approximately 7500 new single family homes built in 2012 across the state, up from about 5400 in 2011. The upward trend in new home construction is expected to continue through 2013.

Statewide, all major housing market indicators moved in a positive direction. Closed sales for 2012 were up 12.4% over 2011 while pended sales were up 14.7% for the same period. The number of days a property was on the market dropped from 92 days to 84 days. The median sales price of homes in Utah rose by 3.7% while the average sales price jumped by 4.0%. Inventory in the single-family unit segment dropped 22.2% in December 2012 versus December 2011, and the current month’s supply of homes is 5.1 months. It is also worth noting that Utah continues to have one of the best housing affordability indexes in the nation at 179, up 8.9% over 2011.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

www.shesellsparkcity.com
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Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
Friends, followers, and connections are a way of the future. Feel free to share!

Relocating to Utah? Here are the facts:

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Did you know…

  •   Forbes Magazine ranked Utah as the #1 Best State for Business and Careers for the third year in a row.
  •   One of only 7 states to maintain the highest bond rating by Moody’s, Finch, and S&P.
  •   #1 ranking in the ALEC-Laffer State Economic Rankings for 2012
  •   #1 “Best Place to Live in the Future”  by Gallup.
  •   CNBC ranks Utah #2 for the Best State for Doing Business.
  •   Salt Lake City ranks in the top 15 Hottest American Cities of the Future by Business Insider.
  •   Provo and Ogden are ranked #1 and #6 Best Cities for Business by Forbes.
  •   Utah ranks #8 Overall in the 2012 New State Economy Index and #1 for “Economic Dynamism” by the Information Technology & Innovation Foundation
  •   Utah is the top state for volunteerism in America for seven years in a row according to the Volunteering and Civic Life in America report.
  •   Utah also ranks first nationally for doing favors for neighbors, according to Census based data.
  •   #1 ranking for Utah by Pollina Corporate Real Estate survey for Top 10 Pro-Business States.
  •   Chief Executive Magazine shows Utah as #9 Best State for Business.
  •     #1 Five years in a row for “Expected Economic Recovery and Economic Outlook” by the American Economic Council.
  •   “Best Managed States in the Nation” #1 ranking by the Pew Center on the States
  •   Utah is the #4 “Best Run State in America” by 24/7 Wall Street
  •   Innovation Daily shows Utah as #2 for “The New Places Where America’s Tech Future is Taking Place” for 2005-1012.
  •   Top ten “Best Tax Climates for Business” by the Tax Foundation
  •   #1 (with Minnesota) for “Best Livable States of the Future” by NBC News/Reuters
  •   #1 “Best States to Live – In 2032” by CNN Money
  •   Utah #2 “The Next Boom States” by the U.S. Chamber of Commerce

Interested in more or the details?  Go to www.business.utah.gov/whyutah/accolades

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Employment  2012 showed a 2.9% increase in nonagricultural jobs, or about 35,800 new positions created, exceeding the national rate of 1.4% by more than double.  Unemployment fell from 5.8% to 5.2%, significantly below the U.S. rate of 7.1%.  Industries leading this job expansion were Information, Hospitality, Financial, and Professional Services.  Construction was the only sector with a net job loss, down 2.2% over 2011 though we expect that trend will reverse with solid gains in 2013 of nearly 10%.  Overall, we should see net gains of 3.5% for 2013 in nonfarm jobs.

Wages and Income  Utah ranked 7th in America for personal income growth, finishing 2012 up 4.7%, led by strong wage growth of 5.5% with a similar increase expected for this year.  Annual average pay per capita was up 3.2% to $41,070 last year and is projected to rise 2.7% in 2013.  Median household income stands at $58,438, 11th in the nation.

Taxable Sales | Tax Collection  Taxable sales rose 6.2% in 2012 and retail trade was up 6.7%.  Business investment tax collection rose 6.6% and those on services were up 6.4%.  This year, we can expect retail sales to grow by 6.1% and taxable sales to gain 5.4%. Tax collections for the State will rise to about 5.7% this year.

Population  Utah’s population increased in 2012 by 40,090 people or 1.5% ranking fifth overall in the nation, though on a percentage basis we were more than double the U.S. rate.  Our total population stood at 2,855,287 for 2012 and should be about the same for this year.  Utah’s high internal birth rate will continue and will offset a somewhat slower in-migration trend, though continued nonagricultural job creation, particularly in construction could have a stronger positive impact. Utah’s life expectancy stands at 78.6 years, third in America. The median age is 29.5 which ranks youngest in the nation.  We also have the largest average household size currently at 3.13 persons per home.

Education  90.3% of Utah residents are high school graduates and 29.7% of those over 25 years hold a bachelor’s degree.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

Facebook
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Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
Friends, followers, and connections are a way of the future. Feel free to share!

The Most Expensive Ski Homes Currently for Sale in Park City – Deer Valley

To follow up the last post … now with the Most Expensive Homes Currently for Sale in the Park City area:

This magnificent estate owned by the Hunstman family is a gated 22,000 square foot residence on 60.22 acres in Upper Deer Valley. This sophisticated rustic retreat perfectly encapsulating that classic ambience of Yellowstone National Park lodge, warm yet dramatic at once. With 12 bedrooms and 16 baths, the living spaces provide for entertaining on a grand scale. There is a large indoor pool and game room on the lower level. Extensive outdoor living spaces are surrounded by spring creeks, a waterfall and a fishing pond. The most expensive home currently for sale in the Park City and Deer Valley area and is offered at $44,000,000.

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This Ultimate Ski Home located in the Colony at the Canyons is being offered at $26,200,000. With 9 bedrooms and 15 bathrooms in over 15,000 square feet of living space, this home has something for everyone!  This is one of the most extraordinary homes in the Rocky Mountains!  Seller Financing is available.

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The SKI Magazine Dream Home is truly a Deer Valley masterpiece, exuding stunning architecture, a brilliant design and inspiring panoramic mountain and lake views. Raising the level of resort luxury, this home features direct ski-in/ski-out access from Deer Valley’s Mountaineer ski run, a heated outdoor pool, waterfall, custom elevator, golf simulator, grand theatre, DJ booth, 550-gallon aquarium, steam room, sauna, day spa, and approximately 4,500 square feet of heated decks and patio space. This dream home offered at $21,900,000.

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In every way possible this residence really is the True Ski Home, sitting at the top of Deer Valleys Silver Lake Village area in the very private gated Bald Eagle Club featuring views for miles down valley, across the ski resorts and to the city lights. The 14,0000 square foot home makes entertaining easy with a billiard room, game room, multiple living areas, resort like ski room, indoor pool and spa and sauna and caretakers quarters.  A rare combination of extreem security, privacey and ski in ski out right into your own ski lounge. Offered at $20,500,000.

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Rounding out the top 5 is another home in The Colony. This amazing 18,500 square foot estate resides on seven acres in The Colony. The main home has three bedroom suites and there is an attached five-bedroom guest house. A gourmet chef’s dream comes to life in the fully outfitted kitchen and butler’s pantry. There is an amazing indoor 25 meter pool with automatic cover,Jacuzzi and a waterfall feature on the lower level.There is a ski prep room,fitness room and theatre as well as a family room complete with billiards. This estate is offered at $19,500,000.

 

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:
www.shesellsparkcity.com
Facebook
LinkedIn
Twitter

Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
Friends, followers, and connections are a way of the future. Feel free to share!

Dave Ramsey’s 5 Principles of EntreLeadership

Recently Dave Ramsey spoke to KW agents recounting his days in the Real Estate industry.  Being a small business owner and entrepreneur, I always find his insight and advice most useful.

Ramsey congratulated KW on its rise to #1 and then recounted his own boom and bust years in the real estate industry. He sat for his real estate license when he was 18 years old and sold his first home three weeks later. By 20, he had a broker’s license.

“I set up a farm, gave my clients pumpkins at Halloween and controlled 98 percent of my market,” he said. “In the next few years, I lost everything. I was sued, foreclosed on, had a baby and went bankrupt. I had to start over. That’s how I learned how money and business really work.”

Ramsey shared with the attentive audience his five principles of EntreLeadership:

People Matter

“If you don’t have people at your core, you will fail,” Ramsey said. “Your customers matter. They’re not transactions. They have stories.” And because real estate agents often deal with people during their toughest times, there’s stress and drama. Ramsey urged attendees to always remember that the members of your team are people. “Your competitors are people, too,” he said. “And sometimes we all need a little grace.”

You don’t get to #1 unless you like to help others, Ramsey observed. “And if you help enough people, you don’t have to worry about money.”

An Incredible Team and Culture of Excellence Matters

Ramsey used his own company to illustrate his lessons. “The easiest way to build an incredible team is to build an incredible team,” he said. “Thoroughbreds don’t want to run with donkeys.”

“If you’re going to build an incredible team, hiring and firing matter,” he added.

Ramsey uses the DISC assessment to keep “crazy” at bay. “When ‘crazy’ comes into the building, we try to find out which door they used,” he said.

Ramsey also relies on his wife’s counsel. “I don’t make major decisions unless we’re in agreement,” he said. “If I’m in a big meeting with FOX business, she’s in the meeting. If I’m discussing a deal with Simon & Schuster, she’s in the meeting. I always ask her how she feels. I’ve only overruled her ‘feeling’ twice. And both times ended as disasters.”

Ramsey’s hiring process includes a final interview over dinner with the hiring authority, the candidate and both of their spouses. “You better know what you’re getting into,” he said. “When you join our team, you’re on our team. No one’s loyal to companies anymore because companies aren’t loyal to people.”

It’s also important to treat people as you want to be treated. Ramsey shared a story of an employee whose child was diagnosed with leukemia. He immediately gave her six months off with pay. And during that time, the family never had to mow their yard or prepare meals. Ramsey’s team “got organized” to cover it all. “They’ll do anything for me because I’ll do anything for them,” he said. “That’s how you build a culture of excellence.”

Ramsey has a zero tolerance policy for gossip. “I have no secrets,” he said. “That makes it easy. My failures are my brand. And failure is just the pile of stuff you stand on as success.”

Slow and Steady Matters

“The businesses that succeed are not microwaves but crockpots,” Ramsey observed. The biggest reasons for business failure are cash flow problems and growing too fast. “Don’t outrun your supply lines,” he advised. “When I was broke, I decided to learn from millionaires. Now I want to learn from billionaires.”

Ramsey recounted a meeting he recently had with one of these billionaires, who said the best business lesson comes from “The Tortoise and the Hare” story. Ramsey said market cycles clean out the trash. “Those of you in this room today have the heart of the tortoise,” he said.

Ramsey believes strongly in lifelong learning. “How do you grow in your personal life? Reading and coaching. Personal growth moves the needle.”

Financial Principles Matter

Ramsey urged all Keller Williams associates to follow his basic rules of finance: Stay out of debt, follow a written plan and save money. “When you have a bad idea and borrow money, you pay big,” he said. Create an emergency fund to cover at least 3-6 months, pay in cash, invest for the long-term, live on less than you make and be generous.

A Higher Calling Matters

“If you can’t find a purpose in your work, you need to find other work,” Ramsey said. Money’s nice, but it’s not everything. “If you eat enough lobster it tastes like soap.”

Ramsey concluded by challenging everyone in attendance. “You have what you need to win but it’s up to you. It’s as you will it.”

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:
www.shesellsparkcity.com
Facebook
LinkedIn
Twitter

Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
Friends, followers, and connections are a way of the future. Feel free to share!

 

2012 Top Home Sale Prices in Park City

And the winner is… a $11,225,000 home in Deer Crest!

Park City, and the Deer Valley area in particular, still remains one of the most affordable luxury ski destinations in the country which rivals the likes of Aspen and Vail. 

Deer Crest

#1 10282 N Summit View Dr – Deer Crest : $11,225,000

This home sold in October coming in at #1 for the year at $11M. A total of 17,000 square feet with 7 bedrooms and 11 bathrooms, this is a very large and luxurious estate home in the Deer Crest area. This ski home sits on 2.5 acreas overlooking the Jordanelle Reservoir with stunning views and great ski access down to the Deer Crest Gondola.  

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#2 9100 Marsac Avenue #1182 – Montage Deer Valley : $8,250,000

The #2 spot is a condominium at the luxurious Montage Deer Valley in Empire Pass sold by the Montage sales team. This development is one of the most prestigious in the Deer Valley area with many sold residences for this ski-in ski-out luxury complex. This unit is a four bedroom and seven bath residence with 6,858 square feet which is one of the largest residences offered at The Montage. 

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#3 9950 N Summit View Dr – Deer Crest : $6,900,000

Deer Crest top the charts with another sale. This estate offered great ski access right out of the door and grand lake views. Sold in April of last year for just under 7M by our own Keller William associate.  With six bedrooms, eight bathrooms, and almost ten thousand square feet of slope-side living, this is an impressive ski home. 

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#4 7840 Hawk Ct – Bald Eagle : $6,875,000

This impressive estate home in Bald Eagle was sold back in February as the 2nd sale within Bald Eagle to top the list. This home is in the prestigious and gated area of Bald Eagle and designed by Otto Walker. A cabin style luxury home at it’s finest with expansive views. The home boasts 12,000 square feet of living space with eight bedrooms and twelve bathrooms. This home was built in 1997 in one of the most renowned locations in all of Deer Valley. 

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#5 2300 E Deer Valley Dr #802 – St. Regis : $6,200,000

Another resort residence made the top 5 sales for 2012 located at the St. Regis inside of Deer Crest. This is a four bedroom with 5 bathrooms unit with 3,615 square feet of living space. This sold for $1,716/sq ft which is an impressive number to see selling after coming out of the suppressed markets we have seen these last few years. St. Regis is another luxurious development to rival the Montage and is in the gated Deer Crest area. 

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

www.shesellsparkcity.com
Facebook
LinkedIn
Twitter

Kristen Johnson
435.659.8041
shesellsparkcity@gmail.com
Friends, followers, and connections are a way of the future. Feel free to share!