Farmington Station Park Update (originally posted 3/18/2010)

I attended a meeting last night at the CenterCal offices in Farmington in which members of the city council (along with the mayor) and Craig Trottier, Vice President of Development for CenterCal Properties discussed the current status of the Station Park commercial/retail development adjacent to the Farmington FrontRunner train station. In spite of the current economic conditions which have slowed the project, it is ready to move forward with two publicly confirmed tenants in the project. Most everyone has heard that Harmons will be opening a store in Farmington Station. In addition, Cinemark has confirmed their plans for a multi-screen theater complex within the project. There has been additional leasing activity but at this time no other tenants can be publicly announced.

Station Park Artist RenditionSufficient tenant commitments are in place, however, to allow for work on the project to continue. It is anticipated there will be additional site work done beginning in late April or early May with construction on the Harmons and Cinemark facilities moving forward in August. At this time, both Harmons and Cinemark are projecting a late spring opening (April/May) although that timetable has some flexibility to move faster if economic conditions warrant.

There was a good deal of discussion regarding the layout and design of the “town square” component of the development and current design concepts reflect a small town central park type of theme. The current make up of the project continues to consist of a mix of street level retail operations with commercial office space contained on the second floors of most buildings. The project continues to reflect a 130 room hotel component and there is serious discussion taking place of adding a complete healthclub/spa facility within the project. The intent is to have a good mix of national, regional and local retailers in this complex. Many of the retailers who have expressed interest do not currently have facilities in Davis County. For several others, this will be their first facilities in northern Utah.

The plans call for 12-18 restaurants in the project with upper end dining establishments circling the perimeter of the interior park area. It was clearly pointed out during the discussion that there are NO plans for a “food court” type of set up. The vast majority, if not all, of the dining options will provide “dine in” capabilities. The less formal dining options will most likely be located near the theater area but it is currently designed so that food services will be available throughout the project.

If the economy improves sufficiently for retailers to begin expanding and entering into lease agreements, the Station Park project could be fully operational by late 2011. However, it would not be unexpected for full build and lease out to occur by the spring of 2012.

 Overall, it was a good meeting attended by approximately 15-20 residents. There is a design model of the complex available and I would encourage other Farmington residents to swing by and take a look. The CenterCal leasing office is located at 42 North 650 West in Farmington.

 

_________________________________________________________________________

Craig Frazer, Realtor, CRS, GRI, CLHMS
RE/MAX Metro

Cell & Text: (801)699-6046
Email: cfrazer@remax.net

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0 commentsCraig Frazer • June 23 2010 11:27PM

Farmington Real Estate 2009 Market Update

You have likely heard all sorts of conflicting reports about the current state of our real estate market. It is true the local real estate market in 2009 continued its adjustment process begun in early 2008. Rather than trying to address the various media reports you may have heard, I prefer to just look at the data and see what the data reveals about local real estate activity in Farmington over the past year. Click on the thumbnail to see a copy of the full report for calendar year 2009.

One thing that stands out is the clear impact the federal home buyer tax credit made on home sales activity toward the end of the year as closed sales for the last quarter of the year were nearly double over the same period last year (50 vs 29). This late surge pushed calendar year sales in Farmington just over 10% higher than 2008 reported sales. This increase in activity, however, did not reverse the overall downward pressure on average & median sale prices.

Median sale prices were down just over 6% for the year in 2009 when compared to 2008. Although the tax credit helped with overall sales activity, it is important to remember the tax credit originally targeted first time homebuyers (although the recent extension of the credit now provides a component for existing homeowners). Most (but not all) first time homebuyers purchase properties priced below the median price point in a community. Generally, it is move up buyers who push median price points higher. This is especially true in Farmington where the average and median prices are some of the highest in Davis County. In terms of geographic activity, 40% of sold homes in Farmington in 2009 were located west of I-15, up from 32% for 2008.

There was a significant surge in average and median sold prices in December which is the result of two sales in excess of $750,000 at the end of the year. Without those two sales, the average sale price in December was $292,950 and the median sale price was $255,000. December’s adjusted median sale price is 26% below the peak monthly median sale price ($343,900) which occurred in September, 2007. It is, however, 11% higher than the lowest reported monthly median sale price of $228,589 which occurred in May, 2009. Has the market hit bottom? The current data seems to suggest it’s possible the market stabilized during the third quarter of 2009. We’ll need to see data after the current homebuyer tax credit expires in April, 2010 to make a definitive assessment.

Overall inventory levels in Farmington remain elevated with eight months of inventory currently on the market. Although elevated above “neutral market” parameters, inventory levels have decreased substantially in the past six months. Inventory levels had reached double-digit levels earlier in the year. This will be an important metric to watch going forward to see how much of this inventory reduction was the result of the tax credit & seasonality versus an actual balancing of supply and demand levels.

Mortgage interest rates remain at historically low levels and the credit markets have recovered from the near devastation of a year ago, the flow of capital into real estate has recovered somewhat, although the number of mortgage product options for buyers has been reduced. It will be interesting to watch interest rate levels as the new year proceeds. If the Federal Reserve believes inflation may begin taking root, they have made it clear they will use their fiscal policy tools (read interest rates) to keep inflation under control. Increases in interest rates can have a significant effect of buyer purchasing power (I will be doing an upcoming blog post on this topic). Most analysts are projecting relatively stable interest rate levels through the first half of 2010. I hope you find this information helpful. Feel free to email me (cfrazer@remax.net) with any questions you may have or if there is a particular topic you would like me to cover in my blog. I am always looking for new topics that would be of interest.

 

_________________________________________________________________________

Craig Frazer, Realtor, CRS, GRI, CLHMS
RE/MAX Metro

Cell & Text: (801)699-6046
Email: cfrazer@remax.net

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1 commentCraig Frazer • June 23 2010 11:17PM

Obamas Aggressive Mortgage Recovery Plan is Unveiled

Jeff Corbett of ActiveRain did a great blog post regarding the basic concepts behind the administration's mortgage recovery plan.  I thought it did a good job of hitting the highlights and providing an idea of the scope of the issue. 

At the end of the post he provides a list of the banking/lending organizations that have either drastically reduced or stopped their loan activity.  This will give you a solid perspective of the depth of the crisis within the mortgage community.

 

Via Jeff Corbett (ActiveRain):

Details regarding President Obamas $75B plan to stem ‘The Housing Crisis’ are out, or as I shall call them: Obamas Mortgage Economics or MObamanomics.

I openly laud some of the principles behind MObamanomics, such as:

“It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell” and “It will not reward folks who bought homes they knew from the beginning they would never be able to afford.”

Speculators should understand and realize the risk of riding an asset up and down.

MObamanomics looks to be far more proactive than reactive too, allowing consumers to qualify for assistance before they default on their mortgage (and lenders take a loss).  Though not by design, mandating that a consumer default before receiving help actually incentivizes them to do just that.

This is by no means a comprehensive analysis, rather the parts I can wrap my head around for now.  For what its worth, President Obamas plan is more aggressive than I had anticipated and he should be commended for having the cajones to step out there where many wouldn’t.

Risky loans, these aint no stinkin risky loans…

MObamanomics will allow Fannie and Freddie to restructure and/or refinance consumers with higher (than 80%) LTV loans on their primary residence that are already within their portfolio.  This aspect of the plan will increase the size of the conforming loan pool where consumers can swim…and thats a good thing.

Fannie and Freddie are typically barred from lending above 80% of a homes value or purchase price without Mortgage Insurance attached (that adds significant dollars to ones monthly payment -more on this below-) because mortgages with LTV’s above 80% are deemed risky by ‘the industry’- Heh.  20% LTV’s are risky with poor underwritng standards.   I’m sure that every mortgage that gets modified under this program will come with a borrower that can prove their income, has a solid credit score, a job and a few months worth of payments in the bank…what a novel concept.

Curious to how the plan will accomodate consumers who find themselves in homes worth less than what they owe.  Whether Fannie and Freddie or any lender will restructure a mortgage that is worth 125% of a homes value remains to be seen.

$75,000,000,000 in grease money…

Part of the $75B in The Plan will be used to subsidize the reduction of a consumers mortgage payment to as low as 31% of their monthly income.  The lender will initially need to make enough in concessions to get the payment down to 38%, then the government will match the lender dollar for dollar to get the payment down to 31% of a borrowers monthly income.  Someone did their research here, ‘discovering’ that high payment to income ratios are the number one cause of mortgage defaults.

The methods a lender uses to get borrowers payments down to 38%/31% could involve stretching out the term (from say 27 to 40 years), lowering the rate and/or the principle balance.  How they do this on an individual basis, when numerous loans were bundled together and sold to investment vehicles like mutual funds seems like a challenge to say the least.

The money will come in the form of $1000 when a lender initially agrees to modify a loan with another $3000 available for the next 3 years.  Many pundits will scoff at the idea of feeding the hand that supposedly slapped everyone…but this is 2009, traditional public facing politically correct economic strategies aren’t likely to work.  Traditional back door politics are in order here, gotta pay to get them to play son.  In any case I applaud the transparency.

MObamanomics shall also subsidize the mortgage insurance premiums that are typically required for Conforming loans with LTV’s higher than 80% at no charge to the consumer.  If the consumer defaults, the government picks up the difference above 80.01% of the value of the home.   This is actually a good idea that will directly benefit the consumer.

Alas, if the cost to concede exceeds the cost to foreclose I can’t see a lender using their moral compass over their financial one.

Borrowers who have lost their jobs or make far less than they did when they initially acquired the mortgage, are probably beyond help.

In the end, its still a voluntary program…lenders can cherry pick the situations they want to work with.  I fear the only way to make lenders play above aboard is the real threat of granting bankruptcy judges (with proper education) the ability to mandate certain loan modifications.

$200,000,000,000 in new money

Supposedly there’s $200B on the table (up from $100B) for Fannie and Freddie to lend out, increase their portfolio size and remain solvent.

I suspect there will be stringent underwriting guidelines, as there should be, but I would implore the regulators to consider such crazy ideas like lending up to 103% of a homes purchase price for primary residences.  This sort of forward thinking, IMHO, would really jump start the purchase market.

All in all, I like where MObamanomics is going, it represents some solid first steps. Now there is more than just hope, there is a strategy…

…and there will need to be many more such steps to pick up the slack from the STAGGERING list of lenders no longer lending through various channels…

334. Perfect FHA - Wholesale
333. EquiFirst
332. Residential Loan Centers of America
331. CU National Mortgage
330. Colonial National Mortgage - Wholesale
329. U.S. Mortgage Corp. - Retail
328. First Interstate Financial - Wholesale
327. Realty Mortgage Corp.
326. Vertice
325. USA Home Loans - Wholesale
324. SunTrust Mortgage - FHA Wholesale
323. New South Federal Savings Bank - Wholesale
322. First Federal - Wholesale
321. 21st Mortgage - Wholesale
320. J.B. Nutter & Co. - Wholesale
319. Homebridge Mortgage Bankers - Refinance.com
318. 1st Republic Mortgage Bankers
317. Superior Mortgage Corp - Wholesale
316. Wall Street Financial Corp - Wholesale
315. Fairfield Financial Mortgage Group
314. Chase Prime - Wholesale
313. Sunshine & Madison Mortgage Corp
312. Liberty One Lending
311. Frontier Investment Co.
310. BankUnited - Wholesale
309. Solstice Capital Group - HSBC
308. MortgageIT
307. HCL Finance Inc. - Wholesale
306. LIME Financial Svcs. - Wholesale
305. Mortgage Network Inc. - Wholesale
304. Fortes Financial - Wholesale
303. HSBC Mortgage Corp. - Wholesale
302. CBRE Realty Finance
301. Franklin Bank, SSB
300. Mortgage Lion, Inc. - Wholesale
299. HMS Capital, Inc.
298. American Sterling Bank - Wholesale
297. CTX Mortgage Co. - Retail
296. Equity One Commercial
295. Coldstream Financial Svcs.
294. Banco Popular North America - Wholesale
293. Ace Mortgage Funding, LLC
292. E-Loan
291. Gateway Bank, F.S.B. - Wholesale
290. First Call Mortgage Co.
289. Downey Savings and Loan - Wholesale
288. Prospect’s Metrocities Mortgage - Wholesale
287. ComCor Mortgage - Wholesale
286. Chevy Chase Bank - Wholesale
285. Washington Mutual - Retail and Warehouse
284. Hometown Commercial Capital
283. Mid Atlantic Capital LLC
282. Kemper Mortgage, Inc.
281. Liberty Mortgage Funding Co.
280. Freddie Mac
279. Fannie Mae
278. Pacific Community Mortgage, Inc. - Gold Reverse, Inc.
277. Homecomings Financial, LLC
276. Thornburg Mortgage
275. CSB Mortgage
274. Carteret Mortgage Corporation
273. Accredited Home Lenders, Lone Star Funds - Wholesale
272. Western Residential Mortgage
271. Liberty Home Lending
270. Equipoint Financial Network, Inc.
269. Ideal Mortgage Bankers, Ltd. - Wholesale
268. Silver State Bank - Wholesale
267. Irwin Union Bank & Trust Co. - Wholesale
266. SunTrust Bank Equity Wholesale
265. Wachovia Mortgage, FSB - Wholesale
264. Lehman Brothers SBF
263. IndyMac Bancorp
262. Mortgages Ltd.
261. Wilmington Finance - Wholesale
260. Accredited Home Lenders, Home Funds Direct
259. Assured Lending Corp. - Wholesale
258. Homewide Lending Corporation
257. Vanguard Mortgage & Title, Inc.
256. Chase Home Equity - Wholesale
255. Chase Subprime - Wholesale
254. Evergreen Investment & Carnation Banc
253. Casa Blanca Mortgage/Shearson - Wholesale
252. Guaranty Bank - Correspondent
251. Citi Residential Lending
250. Montgomery Mortgage Capital Company
249. E*Trade Wholesale Lending
248. Shearson Financial Network, Inc.
247. American Bank Mortgage Group - Wholesale
246. AmeriBanc Corp.
245. Washington Mutual - Wholesale
244. Century Bank, F.S.B. - Wholesale
243. Diversified Mortgage, Inc.
242. National Wholesale Funding
241. Centennial Mortgage and Funding, Inc./Award Mortgage
240. Fidelity Home Mortgage Corp.
239. LMI Funding, Inc.
238. Millennium Mortgage - Wholesale
237. Origen Financial, Inc. (Correspondent)
236. CitiMortgage - Home Equity Wholesale
235. Bear Stearns Residential Mortgage
234. East West Mortgage Co. of VA
233. New Vision Residential Lending
232. Washington Savings Bank, F.S.B. - Wholesale
231. Macquarie Mortgages USA Inc.
230. Global Mortgage, Inc.
229. Unique Mortgage Solutions (UMS, LLC)
228. First Franklin - Merrill Lynch
227. First National Mortgage Sources
226. Resource Mortgage (Wholesale)
225. KH Financial
224. Lydian Mortgage
223. OMG Wholesale Lending
222. Saxon Mortgage (Wholesale)
221. Beazer Mortgage Corp.
220. Allpointe Mortgage (Broker Program)
219. Popular Warehouse Lending
218. Allied Lending Corp. (Wholesale)
217. BF Saul Wholesale Lending
216. Community Resource Mortgage
215. Lehman/Aurora Loan Services
214. Residential Mortgage Capital
213. Maverick Residential Mortgage
212. Countrywide Financial Corp.
211. First NLC Financial Services
210. First American Bank (Wholesale)
209. Soma Financial
208. National City Corp. (Wholesale)
207. Heartland Wholesale Funding
206. Homefront Mortgage Inc.
205. PNC Bank H.E.
204. Family First Mortgage Corp.
203. First Fidelity Financial
202. BSM Financial
201. 1st Choice Mortgage
200. Wescom Credit Union
199. Coast Financial Holdings/Coast Bank
198. WaMu (Subprime)
197. First Madison Mortgage
196. Southern Star Mortgage
195. TransLand Financial
194. Secured Bankers Mortgage Company (SBMC)
193. ComUnity Lending
192. Delta Financial Corp
191. BayRock Mortgage
190. Empire Bancorp
189. Option One - H&R Block
188. Citigroup - FCS Warehouse
187. Charter One (Wholesale)
186. Wells Fargo - Home Equity
185. Paul Financial, LLC
184. Webster Bank (Wholesale)
183. Fieldstone Mortgage Company
182. Tribeca Lending Corp. (Wholesale)
181. WAMU Comm. Correspondent
180. Marlin Mortgage Company
179. Countrywide Specialty Lending
178. UBS Home Finance
177. MortgageIT-DB (Retail)
176. Edgewater Lending Group
175. ResMAE Mortgage Corp.
174. Citimortgage Correspondent (2nds)
173. AMC Lending
172. Liberty American Mortgage
171. Exchange Financial (Wholesale)
170. FirstBank Mortgage
169. Bank of America (Wholesale)
168. Diablo Funding Group Inc.
167. Honor State Bank
166. Spectrum Financial Group
165. Priority Funding Mortgage Bankers
164. BrooksAmerica Mortgage Corp.
163. Valley Vista Mortgage
162. New State Mortgage Company
161. Summit Mortgage Company
160. WMC
159. Paragon Home Lending
158. First Mariner Wholesale
157. The Lending Connection
156. Foxtons, Inc.
155. SCME Mortage Bankers
154. Aapex Mortgage (Apex Financial Group)
153. Wells Fargo (various Correspondent and Non-prime divisions)
152. Nationstar Mortgage
151. Decision One (HSBC)
150. Impac Lending Group
149. Long Beach (WaMu Warehouse/Correspondent)
148. Expanded Mortgage Credit Wholesale
147. The Mortgage Store Financial
146. C & G Financial
145. CFIC Home Mortgage
144. All Fund Mortgage
143. LownHome Financial
142. Sea Breeze Financial Services
141. Castle Point Mortgage
140. Premium Funding Corp
139. Group One Lending
138. Allstate Home Loans / Allstate Funding
137. Home Loan Specialists (HLS)
136. Transnational Finance Wholesale
135. CIT Home Lending
134. Capital Six Funding
133. Mortgage Investors Group (MIG) - Wholesale
132. Amstar Mortgage Corp
131. Quality Home Loans
130. BNC Mortgage (Lehman)
129. First National Bank of Arizona
128. Chevy Chase Bank Correspondent
127. GreenPoint Mortgage - Capital One Wholesale
126. NovaStar, Homeview Lending
125. Quick Loan Funding
124. Calusa Investments
123. Mercantile Mortgage
122. First Magnus
121. First Indiana Wholesale
120. GEM Loans / Pacific American Mortgage (PAMCO)
119. Kirkwood Financial Corporation
118. Lexington Lending
117. Express Capital Lending
116. Deutsche Bank Correspondent Lending Group (CLG)
115. MLSG
114. Trump Mortgage
113. HomeBanc Mortgage Corporation
112. Mylor Financial
111. Aegis
110. Alternative Financing Corp (AFC) Wholesale
109. Winstar Mortgage
108. American Home Mortgage / American Brokers Conduit
107. Optima Funding
106. Equity Funding Group
105. Sunset Mortgage
104. Nations Home Lending
103. Entrust Mortgage
102. Alera Financial (Wholesale)
101. Flick Mortgage/Mortgage Simple
100. Dollar Mortgage Corporation
99. Alliance Bancorp
98. Choice Capital Funding
97. Premier Mortgage Funding
96. Stone Creek Funding
95. FlexPoint Funding (Wholesale & Retail)
94. Starpointe Mortgage
93. Unlimited Loan Resources (ULR)
92. Freestand Financial
91. Steward Financial
90. Bridge Capital Corporation
89. Altivus Financial
88. ACT Mortgage
87. Alliance Mortgage Banking Corp (AMBC)
86. Concord Mortgage Wholesale
85. Heartwell Mortgage
84. Oak Street Mortgage
83. The Mortgage Warehouse
82. First Street Financial
81. Right-Away Mortgage
80. Heritage Plaza Mortgage
79. Horizon Bank Wholesale Lending Group
78. Lancaster Mortgage Bank (LMB)
77. Bryco (Wholesale)
76. No Red Tape Mortgage
75. The Lending Group (TLG)
74. Pro 30 Funding
73. NetBank Funding, Market Street Mortgage
72. Columbia Home Loans, LLC
71. Mortgage Tree Lending
70. Homeland Capital Group
69. Nation One Mortgage
68. Dana Capital Group
67. Millenium Funding Group
66. MILA
65. Home Equity of America
64. Opteum (Wholesale, Conduit)
63. Innovative Mortgage Capital
62. Home Capital, Inc.
61. Home 123 Mortgage
60. Homefield Financial
59. First Horizon Subprime, Equity Lending
58. Platinum Capital Group (Wholesale)
57. First Source Funding Group (FSFG)
56. Alterna Mortgage
55. Solutions Funding
54. People’s Mortgage
53. LowerMyPayment.com
52. Zone Funding
51. First Consolidated (Subprime Wholesale)
50. SouthStar Funding
49. Warehouse USA
48. H&R Block Mortgage
47. Madison Equity Loans
46. HSBC Mortgage Services (correspondent div.)
45. Sunset Direct Lending
44. Kellner Mortgage Investments
43. LoanCity
42. CoreStar Financial Group
41. Ameriquest, ACC Wholesale
40. Investaid Corp.
39. People’s Choice Financial Corp.
38. Master Financial
37. Maribella Mortgage
36. FMF Capital LLC
35. New Century Financial Corp.
34. Wachovia Mortgage (Correspondent div.)
33. Ameritrust Mortgage Company (Subprime Wholesale)
32. Trojan Lending (Wholesale)
31. Fremont General Corporation
30. DomesticBank (Wholesale Lending Division)
29. Ivanhoe Mortgage/Central Pacific Mortgage
28. Eagle First Mortgage
27. Coastal Capital
26. Silver State Mortgage
25. ECC Capital/Encore Credit
24. Lender’s Direct Capital Corporation (wholesale division)
23. Concorde Acceptance
22. DeepGreen Financial
21. American Freedom Mortgage, Inc.
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial

List courtesy of The Mortgage Lender Implode-o-Meter

 

_________________________________________________________________________

Craig Frazer, Realtor, CRS, GRI, CLHMS
RE/MAX Metro

Cell & Text: (801)699-6046
Email: cfrazer@remax.net

Community Data Sets
My Blog

Just Data, Info & Advice -- No Sales Pitches

 

2 commentsCraig Frazer • February 19 2009 12:42PM

Market Snapshot July 2008

What a year it’s been so far in 2008. If you read the papers or watch the news you’d think all of the homes in America stopped selling, and the next great housing depression has begun. Although I exaggerate, it is interesting to see how the national media, in particular, takes national averages and extrapolates that data to reflect the entire country.

The truth is, residential real estate is still a very localized phenomena. There are parts of the country which have been hammered in terms of price points (Las Vegas, California, Phoenix, large sections of Florida, etc) but others have been flourishing (many locations in the Midwest). Utah (and the Wasatch Front specifically) fall into the middle of the statistical heap. Although our sales activity is off between 20-30%, prices have held up reasonably well considering.

In spite of the unit sale slowdown mentioned earlier, average sale prices are holding up well with prices at the levels reported during the same period in 2007 for Davis County. Farmington specifically is reporting a slight overall increase in average price points of just under 4%. Much of this increase in the average is due to two large sales of over $900,000 during the reporting period.

Median sale prices have also held up well consider the slowdown in unit sales. When comparing Davis County to various other parts of the country (and even other areas of Utah), Davis County is holding up relatively well. The data indicates a clear slowdown, year to date, in the pace of sales activity, when compared year over year. However, the data also reflects a slower but still healthy market remains. The data confirms a continuation of the healthy buyer’s market which began to take shape in the first half of 2007.

 

_________________________________________________________________________

Craig Frazer, Realtor, CRS, GRI, CLHMS
RE/MAX Metro

Cell & Text: (801)699-6046
Email: cfrazer@remax.net

Community Data Sets
My Blog

Just Data, Info & Advice -- No Sales Pitches

 

0 commentsCraig Frazer • September 11 2008 04:09PM

Farmington Utah Market Snapshot May 2008

It has been an interesting start to the year in terms of the real estate market. As you can imagine, there has been an abundance of reports relative to both the national and local real estate markets. There are as many different opinions as to the condition of the market as there are home styles .

My personal tendency is to simply look at the actual data, compare it year over year and try to avoid unsubstantiated anecdotal information when assessing the market. To that end, there is no denying a slowdown in the local real estate market in terms of unit sales activity and in terms of home price appreciation rates. Unit sales have declined for both Davis County and Farmington specifically. To give some perspective, however, it should be noted the unit sale activity level in the first five months of 2008 is nearly identical to the unit sales activity during the same period of 2004. At the time, 2004 unit sales established a new record level of unit sales activity (it was followed by new records set in 2005 & 2006.

In spite of the unit sale slowdown in first five months of the year, average sale prices are holding up well with very modest gains reported in both Davis County and Farmington. Median sale prices have fallen due to the severe slowdown in sales of homes in the over $600,000 price range. However, this reduction in median price points in Farmington is still in the single digits. Overall, when comparing Davis County to various other parts of the country (and even other areas of Utah) you find Davis County is holding up relatively well. The data indicates a clear slowdown, year to date, in the pace of sales activity, when compared year over year. However, the data also reflects a slower but still healthy market remains with a continuation of the healthy buyer’s market which began to take shape in the first half of 2007. This presents a good opportunity for either first time home buyers or for “move up” buyers as the affordability index has improved over the past 12 months.

 

_________________________________________________________________________

Craig Frazer, Realtor, CRS, GRI, CLHMS
RE/MAX Metro

Cell & Text: (801)699-6046
Email: cfrazer@remax.net

Community Data Sets
My Blog

Just Data, Info & Advice -- No Sales Pitches

 

0 commentsCraig Frazer • September 11 2008 04:04PM