Issuu

Salt Lake

REALTOR Magazine January 2020

Meet 2020 Board President Alicia Holdaway p. 10

Big Takeaways for 2019 Real Estate Market p. 22

NEW YEAR NEW HOME ACHIEVE YOUR RESOLUTION

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Turning Houses into Homesâ„˘

Outdoor living spaces are just one of many Utah design trends p. 18

Table of Contents Features 10

Alicia Holdaway 2020 President of the Salt Lake Board of Realtors®

Do You Have an Entrepreneurial Mindset? Tim and Julie Harris

10 Utah Design Trends for the New Year

2019’s Big Takeaways for Real Estate Melissa Dittmann Tracey

Two New Requirements for Realtors® in 2020 Ashley Mordwinow The Salt Lake Board of Realtors®

Columns 7

Why I am a Realtor® Alicia Holdaway – President’s Message

Departments 8

Happenings

In the News

Housing Watch

Realtor® Connections

On the Move

On the Cover: Cover Design: Martin Barraud©/ iStock Photo left: tab62©/ Adobe Stock

This Magazine is Self-Supporting Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.

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The Salt Lake REALTOR® (ISSN 2153 2141) is published monthly by Mills Publishing, located at 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106. Periodicals Postage Paid at Salt Lake City, UT. POSTMASTER: Send address changes to: The Salt Lake REALTOR,® 772 E. 3300 South, Suite 200 Salt Lake City, Utah 84106-4618.

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Jennifer Gilchrist Utah Key Real Estate

President Alicia Holdaway Summit Sotheby’s

Ryan Henderson Realtypath LLC

First Vice President Matt Ulrich Ulrich Realtors®, Inc.

Tony Ketterling Equity Real Estate John Lucky Coldwell Banker Residential

Second Vice President Steve Perry Wise Choice Real Estate

Michael Morgan RealtyPath LLC

Treasurer Rob Ockey Century 21 Everest

Mary Olsen Utah Key Real Estate Sophie Reece Berkshire Hathaway

Past President Scott Robbin Summit Sotheby’s

Janice Smith Coldwell Banker Residential

CEO Curtis Bullock

Dawn Stevens RealtyOne Group Signature

Directors

Carlye Webb RealtyOne Group Signature

Hannah Cutler Coldwell Banker Residential

Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com

Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Patrick Witmer Office Administrator Cynthia Bell Snow

Sales Staff Paula Bell Paul Nicholas Chad Saunders Administrative Assistants Jessica Alder Caleb Deane

Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

Why I am a Realtor®

leven years ago I decided to get my real estate license as a “tool in my tool belt” as my husband and I had set a goal to invest in real estate. We were building our first investment property and to say the least, it didn’t go well. Did I mention it was in 2008? At the time, I had zero intention of becoming a Realtor®. I hung my license with a non-MLS Brokerage and only sold three homes, one of which being my own primary residence in that first three years.

I had a full time international sales job with a lot of autonomy, flexibility and made a good commission income. However, I wasn’t challenged, I was totally bored with what I was doing and desperately needed a change of pace. So in 2012 I became a Realtor®. For 14 months, I worked my “regular” job from 1 a.m. – 6 a.m. and built my real estate career during the day. In January of 2014 I quit my full-time job and have never looked back. If you would have told me then, that five years later I would be sworn in as the President of the Salt Lake Board of Realtors®, I would have laughed in your face. But here I am. So how’d I get here? Why am I here? The simple answer is because I freaking love this industry! I mean it. I really love this profession. I was lucky enough to have a broker at the beginning of my career who encouraged me to get involved at the Board and give back to the industry. I signed up to be on the Young Professionals Network Committee. I dove head first into YPN and soaked it all up as I learned so much from the people and leaders in that committee. I was eventually asked to be the co-chair, then the chairwoman of YPN. Then I got the call, asking if I’d consider running for the Board. My answer? NO WAY! The reality is, the more and more I got involved, the more I realized just how much work was being done “behind the scenes”, all so I could go make a living doing something I really enjoy. Flash forward three years and here I am, the President for 2020. I could not be more humbled and excited for this opportunity and don’t take it lightly. I am in the trenches selling real estate every day and want nothing more than for this to be an industry full of professional, kind, committed and involved Realtors® who truly care about the consumer more than the paycheck. I believe in the value of a Realtor® and will continue working with the Board and our staff to ensure we are helping our members understand, live up to, and articulate that value to the consumer. My goal as President is to never steer away from, but drive toward the hard questions that make us better. We have a Board that is running incredibly well and cares deeply about you, the member. We have the luxury of a well-run ship that gets to be brave, ask hard questions, and do things we’ve never considered before, for the benefit of raising the bar and challenging status-quo.

Alicia Holdaway President

OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005

January 2020 | Salt Lake Realtor ® | 7

In the News

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Happenings

New Award Honors Cecil Thompson Lori Khodadad, center, was presented the Cecil Thompson Advocacy Award in December for her extraordinary volunteer work on the Government Affairs-RPAC Committee. The award was established by the Salt Lake Board of Realtors® Board of Directors in December of 2019 to honor the memory of Cecil Thompson, a devoted advocate to the Government Affairs and Realtors® Political Action Committee. Cecil unexpectedly passed away on Nov. 16, 2019. Standing with Lori is Karen Thompson, left, a Realtor® and wife of Cecil, and Nevah Stevenson, daughter. This award is presented annually to a Realtor® who has gone above and beyond in service to their community and demonstrates a commitment to the Realtor® Party.

Stanley Lake, Idaho

Top Relocation States More people are heading to Idaho than any other state, according to the newly released 2019 Atlas Van Lines Migration Patterns study. This marks the second year since 2017 that Idaho has ranked as the inbound leader for moves nationwide. Meanwhile, more residents are leaving New York, which had the highest number of outbound moves last year, the study shows. Overall, the company’s national moving data shows a decrease in domestic relocations from 2018 to 2019. Its study also shows that 26 states registered as “balanced,” which means that the number of residents moving in and out are about equal. The states seeing the biggest rises in new residents are attractive because of job growth, lower cost of living, and more moderate climates.

Utah is No. 4 in Fastest Rising Home Prices Utah home prices are rising at the fourth fastest level of all states, according to FHFA. In the third quarter, Utah home prices increased 7.84 percent year-over-year. Nationally, prices were up 4.94 percent. At 11.55 percent, Idaho home prices posted the highest percent change. Illinois had the lowest appreciation at 1.89 percent.

8 | Salt Lake Realtor ® | January 2020

Atlas Van Lines showed the following states as having the highest number of inbound moves in 2019: Idaho, Washington, North Carolina, New Mexico, Tennessee, Rhode Island, Arizona, Alabama, Washington, D.C., and Texas.

Alicia Holdaway 2020 President of the Salt Lake Board of Realtors® Compiled by Megan Johnson and Dave Anderton

When and why did you choose real estate as a career? I earned my license in 2009 to be a real estate investor. In 2012, I decided to make it a full-time career. My previous career was in the personal growth industry. I sold personal development coaching, but once I finished a sale I never talked to my clients again. Real estate involved a career helping people accomplish their goals and build a longterm relationship. What is your vision as the 2020 president? To ask bold questions and help encourage and provide resources for our members and define their value. I want to promote the value of a Realtor® in today’s market. What has selling real estate taught you about yourself? I thrive on connection. I love connecting with people and helping people connect to resources. I love building community. Real estate has allowed me to do that. What is a typical work day (or week) like for you? “It’s always different. This is why I love real estate because it’s not always the same.” Typically, Alicia is involved at the Board, works with about five to 10 clients at a time doing listing appointments and consultations. Her marketing is not done in a typical way, Alicia spends time on dropping off 10 | Salt Lake Realtor ® | January 2020

gifts and interacting with old clients or friends and holding parties. What do you like most about your occupation? Being involved with people’s life journeys. Playing a role in such a significant life event. What do you like least about your occupation? Probably the 24/7 nature of it. It never sleeps. Talk about your first home sold My very first transaction was in 2009. I helped a buyer purchase a bank-owned home. It was rocky throughout the process, but after they closed they ended up with a ton of equity because it was a distressed sale. They also got a tax incentive for purchasing the home. My first listing was in 2012 for a short sale.

It took me 2.5 years to sell it and had an asking price of $450,000. It eventually sold for around $375,000. What do you expect the 2020 real estate to hold? Continued growth and continued appreciation. What would you tell a client that says they are waiting for home prices to go down before they buy? The quick answer is home prices are not coming down. When we look at prices over the next decade, I don’t foresee prices going down. How long did it take your to earn your first commission? Couple months. What advice would you give a new agent? Get ready for the ride. You can be

and yet I have literally never met a group of people who smiled more frequently and genuinely.

successful if you get involved in the real estate community. Buy into the profession, get involved at the Board, and invest in the real estate industry as a whole. Real estate is more than just a platform to generate a paycheck. The client has to come first. It’s not about you. Hobbies? Watching REAL soccer games, watching my boys play soccer, hiking, and traveling. Service? In 2019, I spent two weeks in Nepal serving the village of Guanshahar with CHOICE Humanitarian, an organization that helps rural communities where villagers live on less than $1.90 a day. Seeing how the Nepali people live, work, worship and play was eye opening and inspiring. They do back breaking work every day just to survive

I have a big heart for trafficking victims. My sister and I founded Operation 61, an organization to educate and raise awareness of sex trafficking here in Utah with an effort of ending the demand for it. What skills, abilities, and personal attributes are essential to success in your job/this field? Empathy, sales skills, problem solving, being knowledgeable in the field, and commitment. You can never stop learning when you’re helping people who are making one of the biggest decisions in their lives. Also, being committed to the industry itself. If you don’t have an industry, you don’t have a career as a Realtor®. Favorite vacation spots?

people the ability to trust that they don’t have to solve those problems on their own. Also, dealing with the emotional aspect of the industry is difficult. You have to realize that they are acting in the moment during a very important time in their life. What current issues and trends in the real estate field should people be aware of? For the consumer: Falling into the trap that selling their home is going to be so easy because it’s such a hot market. Or they feel as though they don’t need full protection and representation. For Realtors®: When there’s more activity in the moment, you forget the fundamentals. Agents should remember to get in touch with their clients after the sale. Be careful that you’re not giving as great of service because you’re too busy. You should never neglect your current clients to take on new ones.

Moab and Hawaii

Secret to being a successful Realtor®?

What kinds of issues do you deal with?

Care about the client beyond the transaction.

Realtors® are problem solvers. We give

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January 2020 | Salt Lake Realtor ® | 11

Tierney©/ Adobe Stock

Do You Have an Entrepreneurial Mindset? Learn what traits are shared by most entrepreneurs and how you can use these characteristics to improve your real estate business in 2020. By Tim and Julie Harris

Entrepreneur Magazine recently published a list of 12 traits that are consistent among most entrepreneurs. We’ve analyzed those 12 traits and outlined how they apply to the real estate industry. See how many of these entrepreneurial characteristics you have and how you can apply them to improve your business in 2020. 1. You take action. Barbara Corcoran, founder of the Corcoran Group and co-star of TV’s The Shark Tank, believes those who have a concept, but not necessarily a detailed strategy to realize that concept, are more likely to be entrepreneurial. Corcoran’s strategy is “invent as you go.” Forget about over-analyzing and take action, she recommends. That means a real estate professional should be in action 90 percent of the time rather than planning mode. 2. You’re scared. Fear isn’t necessarily a negative emotion—it’s actually quite motivating, as the Entrepreneur article points out. Fear creates focus; it keeps you on your toes. Fear creates the drive to succeed, no matter what—even when the market is bad or a deal falls through. According to Susan Jeffers, author of Feel the Fear and Do

12 | Salt Lake Realtor ® | January 2020

It Anyway (Ballantine Books, 2006), “Pushing through fear is less frightening than living with the bigger underlying fear that comes from a feeling of helplessness.” 3. You’re resourceful. Being an entrepreneur is not about having enough resources (such as experience or perfect scripts). “Being an entrepreneur is about being resourceful with what you have,” as the Entrepreneur article says. Earn while you learn—great advice for brokers and agents alike. And remember, action is more important than perfectionism. 4. You obsess over cash flow. Define what you want and track your income. • Track your cash flow to fuel your basic monthly expenses. • Track your cash flow to pay your taxes on time. • Track your cash flow to fuel the lifestyle you want, including paying off your debts, paying cash for all expenses, etc. • Track how many transactions you need to meet or exceed your goals.

ANNOUNCING COLLECTIONS MAGAZINE WINTER 2020

As we enter into the winter season, I'm always struck by the excitement our state has for the snow falling, the resor ts opening and the visitor s arriving. We tr uly are lucky. If you pause for a moment and take a step back, one realizes, quickly, how for tunate we are to call Utah home. Fifteen ski resor ts, five national par ks, an expanding international airpor t, the Silicon Slopes.... and the list goes on. It's no wonder that we find our selves witnessing extraordinar y growth in all corner s of the state. With this growth of cour se comes a great responsibility – responsibility for us to suppor t our communities, give back and be actively involved in creating our future. Over the last eleven year s, I've witnessed the team of agents, management and staff of Summit Sotheby's International Realty embody that responsibility by being pillar s of their respective communities. Our 501(c)(3) "Sotheby's Cares", extraordinar y company culture, award-winning team and ultimately our sales results are all a direct reflection of ever yone's commitment to leading by example. As you flip through the pages of this edition of Collections Magazine I hope you'll see a tangible representation of who we are as a company, team and as individuals. The sum of all of us working together is what has made this publication come to life, from the families who trust us in representing the sale of their proper ty to the team who has designed each page – It's a publication I'm honored to be a par t of and now, am excited to share with each of you. Thomas Wright – President and Principal Broker, Summit Sotheby’s International Realty summitsothebysrealty.com

This material is based upon information that we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, including price, or withdrawal without notice; square footage is an estimate only. ©MMXX Sotheby’s International Realty Affiliates, Inc. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Each Office Is Independently Owned And Operated. Copyright© Summit Sotheby’s International Realty 2020.

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• Track how many listings you need to create the number of transactions you need to meet or exceed your goals. 5. You don’t ask permission. Your listing and buying clients want you to be a leader. If you’re a broker-owner, you’re the one with the final word at your company. Take charge and embrace your authority. 6. You’re determined. Not taking action will cost you money. Make a list of what you’re not doing that you know is profitable and start doing those things now. For example, contact expired listings, contact FSBOs, set appointments, recruit new agents or team members, try a new marketing technique, or build a lead-generating platform. 7. You welcome change. In real estate, it’s imperative to have a willingness to be flexible and versatile. When things don’t go according to plan, do not give up. Find another way. 8. You love a challenge. Entrepreneurs think nothing is insurmountable. Entrepreneurs do not panic—they rise to the occasion. 9. You consider yourself an outsider. Chances are, you felt like an outsider where you worked before you became a real estate agent. Now that you are an agent or broker, embrace the fact that you don’t have anyone telling you what,

14 | Salt Lake Realtor ® | January 2020

how, or when to do what you’re doing. You get to figure all of that out and do it as you see fit. 10. You recover quickly. If you fail, Corcoran advises that you to resist the urge to feel sorry for yourself or to wallow. Move on to the next thing immediately, be it the next person who needs your help, the next business plan, or the next day. 11. You listen. As an entrepreneur, you listen to those who know things you don’t and to ideas that are not your own. Real estate leaders should be able to take constructive criticism and honest feedback and to gain insight from others at your firm. Always be listening, learning, and implementing. 12. Focus on what matters. What matters is your product and your product is profit. William Wordsworth, an English poet, once said, “Life is divided into three terms—that which was, that which is, and which will be. Let us learn from the past to profit by the present, and from the present, to live better in the future.” For more than two decades, Tim and Julie Harris have been leaders in the real estate industry, first as top producing agents, and now as sought-after business coaches. Their latest book, Harris Rules: Your No-BS Practical Step By Step Guide to Finally Become Rich and Free, is an international best seller. Learn more at timandjulieharris.com.

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10 Utah Design Trends for the New Year Prep kitchens, freestanding tubs, and large windows are some of 2020’s hottest design trends. Fresh, warm and comfortable. These are the cornerstones of the hottest design trends for Utah homes this year. We call the look and feel “Warm Utah Modern.” It’s rooted in an outdoorsin aesthetic, one that ties what’s inside your home with the character of Utah’s magnificent outdoors, big blue skies and fresh, clean communities. Modern doesn’t mean edgy. It’s a design spirit that’s open and informal. Uncluttered and clean. Timeless and traditional. Incorporating this style in your home makes it an exciting place to come back to every day, for every member of the family. There are 10 design trends that embody the Warm Utah Modern style, new looks for 2020 that will stand the test of time. And it all starts with color.

18 | Salt Lake Realtor ® | January 2020

1. Warm blues and grays. These fresh, warm colors are soothing and comfortable, just like home should feel. Influenced by linen, sisal and teak, 2020’s soft color palette is easy to live with and design around. We’ve moved away from dark hues that are heavy and convey a feeling of foreboding. The trend toward lighter, more natural tones reflects the colors of Utah’s landscape and establishes a seamless connection between the outdoors and the interior spaces of an inviting home. 2. Outdoor living spaces. The outdoorsin experience is trendy this year. It’s practical, conveys respect for the nature that surrounds us, and fits the Utah lifestyle. Outdoor living areas increase the usable space of your home and act as an extension of the natural environment. Be Warm Utah Modern by incorporating

features like outdoor fire pits, BBQ and cooking stations, covered patios, and furnishings made of weatherproof materials that look like teak. Each can create lovely entertainment, dining and lounging areas that epitomize the open, modern feeling of a 2020’s Utah home. 3. Texture. River rock and rustic boulders are out this year. Instead, watch for beautiful stacked stone elements inside and out. This textural element around fireplaces can mirror exterior stonework and firepits for a unified, modern feel. Kitchens are another place where textural trends have changed. Speckly granites and pebbly backsplashes are done and gone. This year’s countertop trend is quartzite. It’s as durable as granite but has the look of marble or veined limestone. Add a waterfall end for a timeless look you’ll be seeing a lot of this year. 4. Clean lines. Warm Utah Modern is clean – unfussy, uncluttered, approachable. Clean lines will be found throughout the home. Highcontrast hardware trims and moldings in ebony and bronze can add character and warmth to every room. Kitchen cabinets will be flat-paneled and finished with a natural hand-hewn look that

Rosecrest Reserve kitchen

brings out the grain in a hearty and soulful way. Even furniture will carry the clean lines of the Warm Utah Modern design: comfortable, low slung, tidy. Look for open arrangements that naturally invite people to come together. 5. Prep kitchens. Kitchens are the natural gathering place in every home. Extending that space into a prep kitchen is a trend that’s taking off in Utah, and for good reason. These spaces, hidden behind a cabinet door system next to

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or behind the kitchen, are where you can tuck the work and mess away as you’re cooking in the main kitchen. The mess stays in back and disappears, along with your stress. Pairing a prep kitchen with a large walk-in pantry is another trend for 2020. Today’s Utah family needs space for food, snacks and other goods that are easy to reach for every member of the family. When equipped with bins, slide-out drawers and storage cubbies, the modern Utah pantry adds convenience and organization. 6. “Spoil yourself” bathrooms. Say “ahhhh” and add a freestanding tub to your Warm Utah Modern bathroom. Fussy, traditional tubs are on the way out. It’s the modern, clean tub that people are drawn to now. Pair this soaking tub with a generously sized shower for a bathroom that is comfortable and luxurious. Add porcelain tile to your bathroom and bring another 2020 design trend into your home. These “looks like” tiles won’t stain or crack and are more durable than limestone, marble or porous stones. Plus, they’re cost effective and will last a lifetime. 7. Large windows. Utah’s dramatic vistas call for large, clean windows that open your living areas to the outdoors. This year’s trend is for big stacking glass doors that let light flow in and act like a necklace wrapping the entire room. In 2020, modernize any window with light, bright, airy window coverings. Draperies can feel stuffy. Instead, Warm Utah Modern opts for nylon shades…or no shades at all for a truly indooroutdoor experience. 8. Gathering spaces. Play, hang out, watch a movie, explore a hobby or work in comfortable gathering spaces where everyone’s welcome.

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Bonus rooms are a 2020 trend that answers, “What do you want to do with your time?” Fly tying? Jewelry making? Indoor cycling? Homework? Gift wrapping? Whatever the purpose, these multi-functional spaces are inviting and flexible, allow for multiple activities, and work well for families of all sizes and generations. 9. Wallpaper. It’s back, fashionable and more affordable than ever. A far cry from the flocked, heavy wallpaper of yesteryear, modern wall coverings create an experience. We’re talking murals – wallpaper that expresses a vision and sells a mood. Murals can personalize any space, from family rooms to stairways, and the myriad of choices allow you to bring everything from mountains to rivers and streams into your home. This is a huge trend for 2020, with easy to install visuals that will give you goose bumps. 10. Large formats. When it comes to plank flooring, stonework, and tile, large scale materials are all the rage. They can bring an expansive feel to multiple the surfaces in your home and are in sync with the uncluttered, clean aesthetic of Warm Utah Modern. A move away from mini-mosaics and bricks and toward elongated materials will mirror the great outdoors Utahans enjoy in every direction. Utah 2020 Design Trends is provided by Toll Brothers Inc. (NYSE: TOL), the nation’s leading builder of luxury homes. Experience the Warm Utah Modern concept at Toll Brothers’ Utah model homes in these Salt Lake County communities: Toll Brothers at Edelweiss in Draper/Sun Crest and Toll Brothers at Rosecrest in Herriman.

Thank You 2 0 19 R PA C S P O N S O R S

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SALT LAKE REALTORS

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2019’s Big Takeaways for Real Estate The most noteworthy industry news stories that are likely to influence how the business unfolds in 2020. By Melissa Dittmann Tracey Real estate forecaster Stefan Swanepoel captured the essence of the year that was when he called the industry “chaotic” and “changing at what appears to be an unprecedented pace.” The biggest industry news of 2019 reflected the disruption that is—and has been—occurring technologically and in other ways in real estate, including: New business models that promise to solve transactional pain points for consumers. Unveiling the secrecy around off-MLS listings.

for the National Association of Realtors®, warned often that first-time buyers would have a difficult year, as the housing crunch became most acute in entry-level price points. While total inventory was down 5.7 percent year over year in November, according to NAR, percent year over year. Production from builders, who are saddled with escalating construction costs and labor and lot shortages, continued to lag buyer demand, making inventory shortfalls worse, housing economists said at NAR’s first-ever Real Estate Forecast Summit earlier this month.

1. The Housing Crunch

The shortages have pushed home prices higher just as buyer demand soared, in large part due to sub-4 percent mortgage rates. But the median price for an existing home among all housing types was $271,300 in November, according to NAR data, pressing on buyers’ budgets.

The lack of inventory nationwide was a major theme in 2019. Lawrence Yun, chief economist

What’s next for 2020: There’s a silver lining for homeowners: “Real estate is on firm ground

Addressing ongoing inventory shortages. We compiled a list of some of the biggest real estate topics that made headlines in 2019—and we make predictions for 2020.

22 | Salt Lake Realtor ® | January 2020

with little chance of price declines,” Yun said during the Forecast Summit. “However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains.” 2. The Rise of the iBuyer iBuyers, though not a new concept, dominated the industry conversation this year as companies like Opendoor captured more market share. But instead of fearing the iBuyer, an online entity that makes instant offers to home sellers, real estate pros began to see opportunities to work with iBuyers. More traditional brokerages, too, entered the iBuying model this year with their own spin on such services. Realogy launched RealSure in conjunction with Home Partners of America to give sellers a cash offer on their home that is valid for 45 days, while the home also is publicly listed with a Realogy agent. Keller Williams launched Keller Offers, partnering with the iBuying platform Offerpad. Redfin partnered with Opendoor to widen its Redfin Now iBuying program. eXp Realty rolled out its Express Offers to 13 states.

What’s next for 2020: iBuyers have deep pockets and are expanding rapidly. Most of them will likely begin adding services such as mortgage and title to capture higher margins, predicts Jeffrey Fagan, president of the Orlando Regional Realtor® Association. Indeed, Opendoor, a giant in the iBuying space, entered the mortgage business this year and partnered with title insurers to become a one-stop shop for real estate transactions. Expect more brokerages to look for alliances with iBuying firms. “I think iBuyers are here to stay, and I think as an industry, we will find that we will need to address the iBuyer position as an option to sellers who desire that approach,” Fagan says. “We need to closely watch these companies and even possibly let them teach us how to improve our own models.” 3. MLS Disputes Grow Louder MLS issues came to the forefront of the industry’s consciousness this year. A growing number of brokerages were keeping listings off the MLS, choosing instead to create “limited exposure” listings and advertise them on their own private platforms—accessible exclusively to their agent networks and a small, select group of potential buyers. Such a practice, coupled with expanding

January 2020 | Salt Lake Realtor ® | 23

iBuyer market share, meant MLSs were faced with declining and incomplete inventory, further impacting the availability of listing information to consumers and brokers. The industry responded. In November, the National Association of Realtors®’ Board of Directors approved the “Clear Cooperation Policy” to address the growing practice of limited exposure listings. The policy requires listing brokers who are participants in an MLS to submit their listing to the MLS within one business day of marketing the property to the public. It does not prevent brokers from taking office-exclusive listings. What’s next for 2020: MLSs have long been the cornerstone of an orderly and transparent real estate market, but that is being challenged as the use of limited exposure listings continues to grow. To better serve brokers and consumers by ensuring a pro-competitive and pro-consumer marketplace, MLS consolidation is increasing. Some MLSs also are collaborating to improve their technology and streamline broker and consumer access to data with data-sharing agreements. An NAR presidential advisory group looking into the future of the MLS recommended an industrywide effort to urge further consolidation among MLSs and provide added support to those who do. 4. Data In-security Keeping your and your clients’ personal information safe during a transaction has become a pressing issue. Cyber threats, from wire fraud to malware attacks on MLSs, are growing. Scammers are hacking into real estate professionals’ email accounts and those of mortgage companies, attorneys, title companies, and others involved in a transaction. Prior to closing, scammers will send unknowing buyers fraudulent wiring instructions for their down payments. Once the money has been wired, it rarely can be recovered. What’s next for 2020: Expect scams that target real estate transactions to widen in scope. The funds disbursed to sellers after settlement, either from refinancing or selling a property, are also being targeted by fraudsters. “We can’t allow the consumer to lose faith in our ability to protect them and their money in a transaction,” Fagan said. Fallout from data security laws also is expected to be a hot topic in 2020. Starting Jan. 1, the California Consumer Privacy Act takes effect; enforcement starts June 2020. Other states are considering similar measures. The CCPA gives consumers the right to know what personal

24 | Salt Lake Realtor ® | January 2020

information a company intends to or has collected from them. Real estate pros who collect client information and use it in marketing data could be held liable if they don’t abide by certain protocols. 5. ‘Proptech’ Accelerates The property technology space—including products and services that offer digitized closing platforms, artificial intelligence, and data analytics tools—has seen a surge in venture capital funding. In the first half of 2019, investors poured a record $12.9 billion into real estate tech companies. That surpassed the $12.7 billion record for all of 2017. NAR has helped influence the exploding proptech market, continuing to prepare new and diverse startups for the marketplace through its award-winning Reach Accelerator program. At the association’s second annual Innovation, Opportunity & Investment Summit in August, Curbio, a presale renovation company, won the “pitch battle”—perhaps a sign of a burgeoning marketplace for such services. What’s next for 2020: The iOi conference set the stage for what’s to come: The pace at which technologies like iBuyers and artificial intelligence are reshaping the real estate industry is only going to speed up. Expect more wellfunded real estate technology startups to vie for market share. “The real estate market is changing very quickly,” said Jerry Clum, founder of Hommati, a real estate services company. Tech-savvy millennials—a strong force in the housing market—are prompting the tech evolution in real estate, Clum said. “Because they grew up with video games and computers, they are more visual than previous generations. In order for a home to get noticed in all the clutter out there, real estate agents need to use dynamic visual content to set their listing apart.” Other technologies center on growing iBuying platforms, fostering digital transactions, and weaving artificial intelligence into your business. “Startups are growing with massive amounts of venture capital money,” the 2020 Swanepoel Trends Report noted. “Because these startups can operate without being beholden to short-term profit demands and invest heavily in growth, they have the ability to disrupt the incumbent market regardless of their eventual success.” Melissa Dittmann Tracey is a contributing editor for REALTOR® Magazine. She can be reached at mtracey@realtors.org. Follow her on Instagram and Twitter: @housingmuse

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NOVEMBER HOUSING WATCH Falling Home Sales and Rising Prices in Salt Lake and Davis Counties Home sales fell in November in both Salt Lake and Davis counties. Despite the decline, overall 2019 sales are expected to reach near record levels. In the first 11 months of 2019, there were 16,849 homes sales in Salt Lake County, down 1 percent compared to the same period in 2018. Nationally, total existing-home sales completed transactions that include single-family homes, townhomes, condominiums and co-ops, were up 2.7 percent in November from a year ago (5.21 million in November 2018). The Salt Lake County median home price (all housing types) increased 8 percent to $345,000. In Davis County, the median home price rose to $330,000, up 6 percent from a year earlier. The U.S. median existing-home price for all housing types in October was $271,300, up 5.4 percent from November 2018 ($257,400), as prices rose in all regions, according to the National Association of Realtors®. November’s price increase marks 93 straight months of year-over-year gains. Total housing inventory at the end of November totaled 1.64 million units, down 5.7 percent from one year ago (1.74 million). Unsold inventory sits at a 3.7-month supply at the current sales pace, down from 3.9 months in October and from the 4.0-month figure recorded in November 2018. Unsold inventory totals have declined for five consecutive months, constraining home sales. Compared to one year ago, fewer homes were sold below $250,000; with a 16 percent decline for homes priced below $100,000 and a 4 percent reduction for homes priced from $100,000 to below $250,000. “The new home construction seems to be coming to the market, but we are still not seeing the amount of construction needed to solve the housing shortage,” said NAR Chief Economist Lawrence Yun. “It is time for builders to be innovative and creative, possibly incorporating more factory-made modules to make houses affordable rather than building homes all on-site.” Nationwide, properties typically remained on the market for 38 days in November, seasonally up from 36 days in October, but down from the 42 days in November 2018. Forty-five percent of homes sold in November 2019 were on the market for less than a month. First-time buyers were responsible for 32 percent of sales in November, essentially hovering at the 31 percent seen in October and 33 percent in November 2018. Individual investors or second-home buyers, who account for many cash sales, purchased 16 percent of homes in November 2019, up from both 14 percent in October and from 13 percent in November 2018. All-cash sales accounted for 20 percent of transactions in November, about even with 19 percent in October and 21 percent in November 2018. Distressed sales – foreclosures and short sales – represented 2 percent of sales in November, unchanged from both October 2019 and November 2018. NAR recently compiled and released a list of 10 metro areas expected to outperform in terms of demand and price appreciation due to their strong job growth, in-migration and affordability. In alphabetical order, those metro areas are: Charleston S.C.; Charlotte, N.C.; Colorado Springs, Colo.; Columbus, Ohio; Dallas-Fort Worth, Texas; Fort Collins, Colo.; Las Vegas, Nev.; Ogden, Utah; Raleigh-Durham-Chapel Hill, N.C.; and Tampa-St. Petersburg, Fla.

26 | Salt Lake Realtor ® | January 2020

Salt Lake & Davis County

MEDIAN CDOM

MEDIAN PRICE

HOME SALES

Salt Lake County DOWN 3% 1,388

Davis County DOWN 8%

1,341 434

399

NOVEMBER 2018 NOVEMBER 2019

UP 8%

UP 6%

$319,000

$345,000 $312,450

$330,000

NOVEMBER 2018 NOVEMBER 2019

UP 5%

UP 3%

NOVEMBER 2018 NOVEMBER 2019

NOVEMBER 2018 NOVEMBER 2019 January 2020 | Salt Lake Realtor Â® | 27

REALTOR® Connections Adam Kirkham 2018 President of the Salt Lake Board of Realtors® Summit Sotheby’s International Realty Q: What should you look for as an agent when choosing a brokerage? A: This answer is different for each agent depending on their favored business model. Priority No. 1 one should be finding a broker that will support you in your business model. For example, if you are an agent that focuses on representing buyers, your broker’s marketing campaign may not benefit you as much. Q: Did you start at a large brokerage? A: In 1999, I started at a small boutique brokerage Kirkham Real Estate and worked there until 2015 when I joined Summit Sotheby’s International Realty. I was fortunate enough to learn from my parents and brother Ryan basic selling practices. When starting out as an agent I was not handed any deals but did receive hands-on-support and service. When shopping brokerages I might suggest focusing on the employee-to-agent ratio rather than the size of the brokerage. Q: What kind of support should a broker provide to his/ her agents? A: This should be tailored to what the broker believes is best practice. As an agent you cannot be everything to everyone. This goes for a broker as well. In my opinion, every broker should provide basic legal support, a positive work space, adequate business support, access to basic office services and moral support when the going gets tough. Now these suggestions are bare minimums. I suggest focusing less on what the brokerage takes home and more on what the broker will do to best help you to succeed.

On the Move Toll Brothers, a luxury home builder, announced that two of its model homes in the Canyon Point at Traverse Mountain community were recognized by the National Association of Home Builder’s National Sales and Marketing Council with Silver Awards in The Nationals, a program that salutes and honors the best in the building industry for determination, integrity, creativity, and endurance. “The Nationals are the most prestigious awards of their kind,” said Scott Ilizaliturri, Toll Brothers vice president, Utah division. “Being recognized with two Silver Awards is a tremendous honor for Toll Brothers and our Utah team, and reinforces the originality, quality and superior design we put into all our homes. As the nation rings in the new year, the U.S. Census Bureau projects the U.S. population will be 330,222,422 on Jan. 1, 2020. The nation starts the new decade with an increase of 1,991,085 people, or 0.61 percent, from New Year’s Day 2019. Since Census Day (April 1) 2010, the population has grown by 21,476,884 or 6.96 percent. In January 2020, the United States is expected to experience one birth every eight seconds and one death every 11 seconds. Meanwhile, net international migration is expected to add one person to the U.S. population every 34 seconds. The combination of births, deaths and net international migration will increase the U.S. population by one person every 19 seconds. The projected world population on Jan. 1, 2020, is 7,621,018,958, an increase of 77,684,873, or 1.03 percent, from New Year’s Day 2019. During January 2020, 4.3 births and 1.9 deaths are expected worldwide every second.

Making a Difference Davis County Realtors® gave $15,000 in December to three different charities ($5,000 each) at the annual Affiliate Appreciation Breakfast. The charities included: The Bountiful Food Pantry, The INN Between (a home environment that enables adults who are experiencing homelessness to gain access to professional hospice care), and The Eastman Family Recovery Foundation. Members also collected and donated hundreds of pounds of food during the food drive. 28 | Salt Lake Realtor ® | January 2020

Two New Requirements for Realtors® in 2020 By Ashley Mordwinow The Salt Lake Board of Realtors® FINGERPRINTING (License Requirement) Starting in January of 2020, all real estate and appraisal license renewals and applications will require a fingerprint background check and enrollment in Rap Back. Real estate licensees must enroll within 45 days of their license expiration date. For appraiser licensees, the renewal window is three months before the license expiration date. Fingerprinting and enrollment done earlier than the 45 days or three months, respectively, won’t count. So stay in your window. The cost for fingerprinting, processing, and enrolling in Rap Back will be $45.00. Rap Back is a system that allows authorized agencies to receive on-going status notifications of any criminal history reported to the FBI. Once all licensees have been enrolled in the system, the Division will be able to remove the 10-day reporting requirement (which mandates that any criminal convictions need to be reported to the Division within 10 days). The goal of this new system is to protect the public and promote the positive reputation of Utah’s licensed professionals.

30 | Salt Lake Realtor ® | January 2020

The Salt Lake Board of Realtors® has partnered with the Utah Division of Real Estate so that fingerprinting can be done at the Realtor® Campus once a month, starting in January. To see when fingerprinting services will be available at the Realtor Campus, please visit www.slrealtors. com/calendar. Don’t forget to make your appointment within your renewal window. MANDATORY RESIDENTIAL COURSE (License Requirement) Starting in January of 2020, all active real estate licensees will need to have at least one version of the “Mandatory Course” on their CE transcripts in order to renew their licenses. Each version (Residential, Commercial, or Property Management) is certified for 3 CORE credits, and will count toward the 9 CORE credits required for license renewal. This will be a recurring requirement for every license renewal going forward. The Salt Lake Board of Realtors® offers the Mandatory Residential Class to its members for free. To see upcoming classes, please visit www. slreators.com/calendar.

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