Issuu

Salt Lake ÂŽ

Magazine June 2020

Salt Lakeâ€™s Housing Market Moving Forward

MORE CONNECTED TO YOUR CLIENTS Than Ever No matter what changes life may bring, you can rest assured that one thing remains constant – David Weekley Homes is here for you and your Clients. We are available and ready to continue connecting with you to help find your Clients’ dream home.

Internet Advisors As always, our Internet Advisors are eager to answer any questions your Clients may have over phone, email or online chat.

Sales Consultants Our experienced Sales Team remains available to connect with your Clients one-on-one through calls, emails, video chats or private appointments to help discover a home that fits their needs.

Virtual Tours and Videos Our website provides virtual tours and photo galleries of many of our models and Quick Move-in Homes, so your Clients can experience our exceptional design without ever having to leave their home.

Personal Building Team And after they purchase a beautiful David Weekley home, our Personal Building Team is committed to maintaining open communication with your Clients as we continue their home building journey.

Connect your Clients to their dream home by contacting 385-420-5990 See a David Weekley Homes Sales Consultant for details. Prices, plans, dimensions, features, specifications, materials, and availability of homes or communities are subject to change without notice or obligation. Illustrations are artist’s depictions only and may differ from completed improvements. Copyright © 2020 David Weekley Homes - All Rights Reserved. Salt Lake City, UT (SLC-20-002205)

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Table of Contents Features 10

What Does the COVID-19 Pandemic Mean for Utah’s Housing Market? James Wood

What Ties People to Their Communities? The Knight Foundation

Be Safe Extends to Online Activity Tracey Hawkins

NAR Identifies Top 10 Housing Markets for Millennials during the Pandemic The National Association of Realtors®

Columns 7

Professionals Needed More than Ever Before Alicia Holdaway – President’s Message

Departments

How to stay safe when using Zoom, FaceTime, and other online meeting apps. p. 20

Happenings

In the News

Housing Watch

On the Cover: Cover: ©/Adobe Stock Photo left: 9dreamstudio©/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

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Treasurer Rob Ockey Century 21 Everest

Mary Olsen Utah Key Real Estate Sophie Reece Berkshire Hathaway

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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

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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.

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Professionals Needed More than Ever Before A new national survey revealed that 65 percent of consumers said that despite the ongoing COVID-19 pandemic, they would attend an open house or take a home tour without hesitation. The survey, by Engagious, also revealed what matters the most to buyers and sellers about in-person tours is the real estate agent, who is expected to know and enforce health-related safety rules. The real estate–related findings come from an online survey earlier in May of 1,040 buyers and sellers. The goal was to provide insights about how consumers want to safely navigate residential real estate transactions during the COVID-19 pandemic. What the results mean, according to Rich Thau, president of Engagious and co-creator of the barometer, is that agents really matter during the pandemic. Forty-seven percent of buyers and 53 percent of sellers indicated that relying on a real estate professional for buying or selling a home was more important than before. “Agents’ value has gone up tremendously as a result of the pandemic,” he said. “People need reassurance.” And he offered this advice: “Know the protocols, follow them, and don’t be afraid to enforce them.” In my own business, I’m definitely seeing multiple offers again in the Salt Lake Valley. At the same time, home buyer preferences are changing. I’ve had buyers change course completely and move to different areas based on working from home. Some buyers no longer want to be in densely populated areas. A separate survey by The Harris Poll found nearly 40 percent of U.S. adults living in urban areas indicated they would consider moving toward rural areas. The Wall Street Journal reported that the pandemic also spurred many New Yorkers rethinking their commitment to live in the city. “The prospect of a mini-exodus is a real possibility,” said Jonathan Bowles, executive director of the Center for an Urban Future, a Manhattan think tank. Remember, as the stay-at-home directives are loosened and we ease back in to re-opening the state, we cannot lose sight of the fact that this pandemic still exists. Do not let the re-opening cause you to forget safety protocols. Triple check showing instructions before going out to show each property! Every seller is going to be different and we all need to remember to respect their showing protocols. Ultimately, a big change here in Salt Lake is that the spring home-buying season, delayed by the pandemic, is now hitting. Home sales are increasing as mortgage rates drop to 50-year lows. Days on the market appear to be decreasing. At the center of new Covid-19 rules and increasing housing activity is the Realtor®. Now, more than ever before, are the skills and know-how of a professional needed.

Alicia Holdaway President June 2020 | Salt Lake Realtor ® | 7

Happenings

In the News NAR Statement on George Floyd We here at the Salt Lake Board of Realtors® fully support National Association of Realtors® President Vince Malta’s feelings and comments on the death of George Floyd:

Utah Cities to Recover Faster in Post-Coronavirus Era Fast-growing tech hubs in the West and South will lead states in the post-coronavirus era, according to Forbes Magazine. The top 10 cities best positioned to recover from coronavirus include Salt Lake City and Provo. “Places that are more spacious, rely more heavily on car travel and provide ample access to single-family housing are likely to emerge as more attractive as a result, especially among those who choose to bypass the highly urbanized Northeast,” said Adam Kamins, senior regional economist at Moody’s Analytics and the author of the report. Cities at the bottom of the list, included: New York, Detroit, Honolulu, and Los Angeles. Are U.S. Homes Ready for an Aging Population? Homes with aging-accessibility features are becoming more valuable as the U.S. population grays. However, less than 10 percent of U.S. homes are considered “aging-ready,” according to a new report by the U.S. Census Bureau. An agingready home is a housing 115 Million U.S. Housing Units unit that has a step-free entryway, a bedroom and full bathroom on the first floor, and at least one bathroom accessibility feature. The number of older Ljupco Smokovski ©/ Adobe Stock Americans is projected to more than double from Source: U.S. Census Bureau 40.3 million in 2010 to 85.7 million in 2050.

8 | Salt Lake Realtor ® | June 2020

“The shocking, senseless death of George Floyd is tragic. Our deepest sympathies are with the Floyd family and other families who understand and feel this pain and grief. Our neighbors in the communities where we work and live across America should feel safe and free from discrimination. As longtime champions of fair housing, equality and inclusion are among NAR’s most cherished values. NAR is committed to leading the way on policies that address racial injustice and that build safe and inclusive communities. Building the future begins with equal access to housing and opportunity for all. We appreciate all you do as Realtors® to listen, learn, and work with others to be a part of the solution. As leaders in your communities, America’s 1.4 million Realtors® are active participants in promoting equality, inclusion, and acceptance. We welcome your input and thoughts on how we can improve our communities together.”

More Homes Facing Bidding Wars After the housing market nearly shut down in April, competition is back with a fury, according to an article by CNBC. The coronavirus pandemic caused a historic drop in the supply of homes for sale that was already pretty meager. Weak supply and growing demand is now causing a surge in bidding wars, especially for homes priced below $1 million. More than 41 percent of homes faced a bidding war in the four weeks ending May 10, according to Redfin. That’s up from just 9 percent in January, before the pandemic hit the U.S.

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What Does the COVID-19 Pandemic Mean for Utah’s Housing Market? The bottom line is the next three to four months are going to be challenging, followed, hopefully, by a solid recovery in the second half of the year. By James Wood Note: The opinions expressed are those of the author alone and do not reflect an institutional position of the Gardner Institute. We hope the opinions shared contribute to the marketplace of ideas and help people as they formulate their own INFORMED DECISIONS™. For over 40 years, I have made an annual forecast of Utah’s housing market. Never have the economic conditions underlying my forecast been as uncertain and fast-moving

10 | Salt Lake Realtor ® | June 2020

as the COVID-19 market. Take, for example, the extreme volatility expected in Utah’s job market over the next several months. The Utah Department of Workforce Services (DWS) forecast shows a loss from February through May of about 200,000 jobs, a 13 percent decline in employment in three months. The good news is that in the second half of the year employment growth returns bringing the 2020 annual employment estimate to 1,463,000 jobs, down

andreykr©/ Adobe Stock

about 97,000 jobs from 2019. The unemployment forecast for 2020 is 8.6 percent, higher than the peak unemployment rate of 8.1 percent during the Great Recession. The bottom line is the next three to four months are going to be challenging, followed, hopefully, by a solid recovery in the second half of the year. This housing forecast assumes job recovery by the fourth quarter, which of course also assumes the economic recovery will be preceded by near containment of COVID-19 through testing, treatment, and isolation of cases.

Residential Construction I expect the number of residential permits in 2020 to fall by 18 percent, a decline of about 5,000 units. Severe economic contractions cause buyers and sellers to head for the sidelines. The suddenness, severity, and uncertainty of this downturn will cause some developers and buyers to postpone transactions that would have

occurred in the spring and summer of 2020. Another factor that could hamper residential construction is the disruption in the construction industry supply chain. China supplies 30 percent of construction materials. Furthermore, the approval process for new developments will likely be extended as city and county personnel work remotely. Overall, 2020 could be the most challenging for the homebuilding industry since the Great Recession bottomed in 2011. Single-Family Construction—There were no signs in 2019 that the single-family market was overbuilt. The number of new homes receiving building permits statewide was 11,900, slightly below 2017 and 2018, and still 43% below the pre–Great Recession peak of 20,950 units. Homebuilders reported strong demand for their product, and they held little in the way of speculative inventory. The single-family market, however, will not be insulated entirely from market headwinds. The initial shock of the economic shutdown, combined with social

June 2020 | Salt Lake Realtor ® | 11

without COVID-19, apartment construction was likely headed lower in 2020. Given the current environment, some developers will delay potential projects due to weaker market conditions as well as less advantageous financial markets, thereby pushing apartment construction activity lower. The number of permits issued for apartment units will experience a substantial drop in activity in 2020, falling by 30 percent.

Existing Homes Sales

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distancing and the stay-at-home directive will slow new construction activity and sales, particularly in the second quarter. For the year, the number of permits issued for single-family homes will be down 9 percent, a smaller decline than the 45 percent drop in the fourth quarter of 2008, in the immediate wake of Lehman Brothers’ collapse and the onset of the Great Recession. The steep decline of single-family activity in 2008 was due to credit markets seizing-up. Credit was not available for most borrowers; only those with gold-plated FICO scores could secure home loans. Credit conditions are very different today. Credit is available, and mortgage rates are near historic lows. This critical distinction will cushion the downside for the new single-family market. Condominium and Townhome Construction—The number of permits issued for condominium and townhome units accelerated in recent years, reaching a record high of 5,752 units in 2019. The investor market drove some of the recent surge in demand. Hundreds of condominium and townhome units over the past few years have been sold to investors buying three to four units to rent. Investors are unlikely to have the same appetite for rental units during a stock market correction and historic job losses. A pullback by investors will cut into demand, and buyer interest will probably fade some as well. The young, moderate-income household is the primary target market for condominiums, and these households are more vulnerable to the uncertainties of the job market and more likely to postpone home-buying decisions, either by choice or necessity. Weaker demand from investors and buyers will shave 15 percent off the number of condominium and townhome permits in 2020. Apartment Construction—Last year, the number of permits issued for apartment units hit an alltime high of 9,366, almost 40 percent more than the second-highest year on record, 2016. Even

12 | Salt Lake Realtor ® | June 2020

While not as vulnerable as the homebuilder, real estate agents will face similar challenges: extreme market uncertainty and reluctant buyers and sellers. So far, financial market liquidity has not been affected by COVID-19; in fact, the pandemic has kept mortgage rates near historic lows. The performance of the residential real estate market in 2020 comes down to whether economic uncertainty offsets the advantage of low-interest rates. A share of both potential buyers and sellers will feel it’s to their advantage to wait six to 12 months before entering the market, while others will see the current market as a buying opportunity. However, the impossible-to-ignore job losses could seriously dampen demand in the second quarter. But, as the economy recovers in the second half of the year, strong demand for homes will follow, and sales of existing homes, condominiums, and townhomes will finish the year down 10 percent. Last year sales totaled 48,184 units. In 2020, total statewide sales will be around 43,400 units.

Home Prices and Rental Rates Home prices will continue to increase but at a slower pace. The shortage of listing will put upward pressure on prices. Statewide the median sales price of a home (single-family, condominiums, and townhomes) will increase by about 5 percent to $336,000 in 2020. Rental rates are more likely to decline as job and income losses force some tenants to move out and double-up with friends and family. According to the Commerce Real Estate Solutions’ annual market survey, rental rates in Salt Lake County have been increasing at an average annual rate of 5 percent since 2011. The long string of annual rate increases will be interrupted in 2020 with rents flat at best and possibly falling 3 percent to 4 percent.

Rental Market The rental market is bound to see higher vacancy rates. Over the last four or five years, the vacancy

rates in Wasatch Front markets have consistently been below 4 percent. In recent months, however, rates had started to move higher due to the completion of several new projects. The increasing supply of rental units combined with the loss of nearly 200,000 jobs in the second quarter will put serious pressure on the market and inevitably push vacancy rates higher. The rental market is particularly vulnerable to recessions, but fortunately the CARES Act, through the expansion of unemployment insurance, will shield many landlords and renters, at least for a while, from a major loss in revenue and tenants. Renters impacted by COVID-19 were also protected from eviction by Governor Herbertâ€™s Executive Order of April 1st, which provided a statewide moratorium on evictions until May 15th. Vacancy rates throughout the Wasatch Front are currently between 5 percent to 6 percent. I expect rates to move up 1 to 2 percentage points as recently completed projects experience slow rates of absorption, and existing projects see an increased rate of move-outs.

Housing Market Forecast 2020 The COVIID-19 recession will cut residential construction and existing homes sales by 9 percent to 30 percent depending on the type of housing. Apartment construction, which was likely to drop despite the COVID-19 pandemic, will see the steepest decline, while construction of single-family homes and sales of existing homes will fare best (Table 1).

Table 1: Forecast for Residential Units by Type of Unit, Utah Type

2019

2020

Decline

11,872

10,700

Condominiums

5,752

4,900

15%

Apartments

9,366

6,500

30%

Total Construction

26,990

22,100

18%

Existing Home Sales

48,184

43,365

10%

Single Family

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What Ties People to Their Communities? Residents who feel they have easy access to recreational areas and safe spaces to work and play have more positive feelings regarding their communities. By The Knight Foundation As American cities begin to decide when and how to reopen, they are assessing what matters most to residents. Understanding the value of urban amenities that help anchor us to our communities — such as arts, cultural activities and recreational spaces — is more important than ever as cities look for a way forward in the postpandemic future. A landmark report commissioned by the John S. and James L. Knight Foundation and conducted by Urban Institute prior to the Covid-19 shutdowns, leverages a survey of 11,000 Americans to create one of the richest datasets available on what drives attachment to one’s city and what cities might do to deepen that sense of connection to their community. One of the largest surveys of its kind,

14 | Salt Lake Realtor ® | June 2020

“Community Ties: Understanding what attaches people to the place where they live,’’ sampled residents in 26 metro areas and a national sample, without taking a position on the timing of reopenings, to create one of the richest national datasets available on community attachment. As cities begin to reopen, recover and reimagine, the report provides knowledge for public officials and other leaders to help make communities more resilient and think anew about how to build places where people want to live, work and play. The report’s key findings include:

•

Of all urban amenities studied, access to arts and culture stands out as not only related to greater feelings of community attachment but also greater investment of time and resources in the community. (continued on page 18)

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• Residents who feel they have easy access to recreational areas and safe spaces to work and play have more positive feelings regarding their communities. • The study shows people of color and lowincome residents have a harder time accessing certain quality of life community amenities that boost their attachment. • People who regularly come into the main city of a metro area — whether for work or cultural or sporting events — say they feel more attached to their community. They are more satisfied with it as a place to live, are more likely to stay in the metro area, invest their time and money, and find it a good culture and lifestyle fit. Quality of life matters in people’s decisions to move or stay, and it drives how attached they feel to their metro area. Across the U.S., quality of life accounts for about a third of moves to metro areas, and a third of resident decisions to stay. Natives usually define quality of life in very general terms, saying that they just like the area, its vibrancy, its strong economy or its affordability. People who move from other places are more likely to talk about quality of life in more particular terms like the quality and affordability of housing (24 percent) or particular neighborhood amenities (25 percent). “Covid-19 is causing us to rethink the future

18 | Salt Lake Realtor ® | June 2020

of our communities,” said Sam Gill, Knight’s chief program officer and senior vice president. “People are reevaluating what matters to them. In some cases, the pandemic has left us yearning for the parks and gathering spaces we are now denied. In other cases, it’s leading us to ask how people can safely come together and connect.” Local data from 26 communities can help inform officials and organizational leaders in the shortterm as they evaluate how to reopen, and in the long-term, as they reinvest in their community’s quality of life, which has been challenged by the shutdowns. “Building resilient communities where people want to live began long before Covid-19,” said Evette Alexander, Knight’s director of learning and impact. “By shedding light on what helps connect us to the places where we live, this report can be a useful guide to creating vibrant cities for the future.” Knight Foundation is a national foundation with strong local roots. We invest in journalism, in the arts, and in the success of cities where brothers John S. and James L. Knight once published newspapers. Our goal is to foster informed and engaged communities, which we believe are essential for a healthy democracy. For more, visit kf.org.

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Be Safe Extends to Online Activity While working from home, use these tips to safeguard video calls, watch out for coronavirus-related scams, and protect your business in case of data breaches. By Tracey Hawkins Even as state governors begin to relax stay-athome restrictions and move to slowly reopen business, the real estate industry has adapted to what is likely a long-term shift to more virtual means of conducting transactions. For the foreseeable future, agents and brokers will be using apps like Zoom, FaceTime, and others as primary tools to communicate with clients and colleagues. But because these apps are susceptible to security issues, personal and

20 | Salt Lake Realtor ® | June 2020

business safety is no less a concern. Instances of “Zoombombing”—in which intruders hijack a Zoom video call and post hate speech and offensive images—have been a problem recently, and those hosting a Zoom call are responsible for controlling the security of their events. Burton Kelso, owner of technology company Integral in Lee’s Summit, Mo., offers a few tips:

careful how much revealing information you include on social media profiles. What Shouldn’t Be Visible in Your Video Stream Since, in many instances, clients can’t physically visit homes because of stay-at-home orders, agents are using video walkthroughs to document and show as much detail of a property as possible. Remember that criminals are looking for these videos, too, for the opportunity to case homes virtually. Stacey Johnson-Cosby, GRI, a sales associate with ReeceNichols in Kansas City, Mo., advises keeping a brisk pace during the walkthrough and taking care not to reveal too much of the homeowner’s personal property. For example, avoid showing valuables such as jewelry, expensive clothing in closets, art collections, and weapons like a gun rack. Take the same precautions yourself if you’re making videos or participating in live video meetings from your own home. The Dangers of Live Video Going live is an excellent opportunity for agents to be present and in the moment while providing great hyperlocal content. However, going live can be a concern, especially if you’re broadcasting from a location other than your home, because you’re not only telling the world where you are at the moment—but where you’re not. That can leave your home vulnerable to burglary. Kateryna©/ Adobe Stock

• Disable Zoom participants’ ability to share and record video and audio. • Block participants from joining the call late. • Use a different, randomly generated Zoom ID for every call • Require meeting participants to wait in a Zoom “waiting room” until the meeting starts. • Assign a password each time to access the event. Zoom data breaches are another type of security risk surfacing. This isn’t necessarily a hacker breaking into the Zoom platform but a criminal who gleans personal information from someone’s social media accounts and uses it to guess the person’s Zoom login data. So, be

AgentSafeWalk is a safety app for agents that, when activated, enables the smartphone camera to capture and broadcast the agent in real time to another location. A live monitor in the agent’s office, for example, can watch the video feed and have a two-way conversation. The monitor can send first responders at any moment if a dangerous situation arises. Agents should make sure their home is secure and locked in case a burglar decides to target their home, knowing they are not there. Since stalking can be an issue with real estate agents, keep your location private when going live. Kama Burton, SFR, a sales associate with Pro-One Investments in Riverside, Calif., chooses not to share the address of open houses or showings. “I give the particulars of the home and tell visitors to fill out the online form or comment for more information,” Burton said. “Then I can use that information as a lead capture.” She also advises turning off the GPS on your phone when live.

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Image licensed by Ingram Image

Beware of Social Engineering Posts Social media is designed to be a place to connect and share. But some innocent posts may inadvertently solicit personal information that criminals can use to guess your passwords. Think twice if a user is encouraging others to post photos of their first car, senior pictures, or age comparison. These items often provide clues to the answers to your security questions, which are designed to help reset passwords and gain reentry to financial accounts. Be cautious about the nature of posts like these and consider how criminals could use such information. Cybersecurity in the Age of the Coronavirus John Torvi, vice president of marketing and sales at the Herbert H. Landy Insurance Agency, warns that cybercriminals have registered thousands of internet domain names using the terms “COVID” and “coronavirus” and related terms for phishing activities. Greater care must be taken in opening links and attachments. “With people working at home, security protocols used in the office setting may be relaxed or absent, especially if people are using personal computers,” Torvi said. “This is partly due to system limitations, but people also may develop a more relaxed attitude about things in general if working at home in their pajamas and slippers.” This is why virtual technology companies may be useful to individual salespeople or small- and medium-sized brokerages. Smaller companies without formal IT teams may consider outsourcing those services; Kelso has clients

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throughout the U.S. who consider such services essential in their operations. Torvi added that with more companies than ever working online, cyber insurance policies are important to help cover a business’s liability in the event of cyber fraud or a data breach. “There are limitations that need to be addressed as part of regular practices and procedures. If staff members or agents are working on a personal computer for company business, there may be no coverage,” Torvi said. He advises real estate companies to have a cyber policy that the brokers regularly review for coverage language and issues. A Safer ‘New Normal’ “With limited in-person house viewings, now buyers must be preapproved and/or have a contingent offer,” said Regina P. Brown, a sales associate with California Coast & Country Homes in Carlsbad, Calif. “That allows us to require buyers to be qualified and serious— something we have always wanted anyway. Popup buyers and looky-loos are a thing of the past.” Most services related to real estate are now being done virtually as well. Title companies have accommodated drive-thru closings and socially distant meetings in their parking lots as clients stay in their cars. “Luckily for us, we are in the business of providing one of life’s bare necessities: shelter,” Brown said. “I worked with a client who needed to notarize documents. That was quite an experience! We all wore face masks, kept our distance, and the notary sanitized everything before and after. Business is still being done—just differently.”

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NAR Identifies Top 10 Housing Markets for Millennials during the Pandemic By The National Association of Realtors® The National Association of Realtors® identified 10 markets with favorable conditions for millennial homebuyers during the coronavirus pandemic. In alphabetical order, the markets are:

• • • • • • • • • •

Austin-Round Rock, Texas Dallas-Fort Worth-Arlington, Texas Des Moines-West Des Moines, Iowa Durham-Chapel Hill-Raleigh, North Carolina Houston-The Woodlands, Texas Indianapolis-Carmel-Anderson, Indiana Omaha, Nebraska/Council Bluffs, Iowa Phoenix-Mesa-Scottsdale, Arizona Portland, Oregon/Vancouver, Washington Salt Lake City, Utah

“Record-low mortgage rates have improved housing affordability, bringing more buyers into the market, and multiple offers for starter homes could become common in these metro areas,” said NAR’s Chief Economist Lawrence Yun. “With relatively better employment conditions and a strong presence of millennials in these markets, more new home construction will be required to fully satisfy the housing demand as the economy reopens.” NAR identified the top 10 metro areas for millennial homebuyers by analyzing current

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housing affordability, local job market conditions during the coronavirus pandemic, the share of millennials in the area and inventory availability in the largest 100 metropolitan statistical areas across the country. “Nationally, millennials make up the largest share of homebuyers and these metropolitan areas, in particular, offer great opportunities to realize the dream of homeownership,” said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, CA. “As states and cities begin to reopen, millennials will play a significant role in the housing market’s recovery.” Nationwide, the typical household can afford to buy 40 percent of the homes currently listed for sale compared to 34 percent a year earlier, according to the Realtors® Affordability Distribution Score, a collaboration between the National Association of Realtors® and realtor.com®. The score measures the affordability of current for-sale homes overall as well as at different income levels. In these top 10 markets, affordability increased more this year than it did nationwide. For example, a household earning $100,000 in Dallas can afford to buy 56 percent of homes currently listed for sale compared to 45 percent last year.

SHARE YOUR STORY USE #SLREALTORSRISE Share Your Story Fear is a powerful thing. It can hold us back or make us stronger. We want to hear your stories about overcoming fear. How are you meeting the challenges presented by the Covid-19 pandemic? What are you doing differently in your business practices? How are you adjusting to meet your clients' needs? How are you coping with feelings of fear and uncertainty and helping others? Inspire others by sharing your story on social media. Use the hashtag #slrealtorsrise.

©/ Adobe Stock

According to April 2020 employment data, employment declined by an average of nearly 13 percent in the largest 100 metro areas compared to last year. However, in Dallas, Houston, Salt Lake City and Phoenix, employment dropped 8 percent from a year earlier. The 10 markets listed had a smaller share of workers, on average, in industries most affected by the pandemic-induced economic lockdown. For example, in Durham and Des Moines, 15 percent and 17 percent of employees, respectively, work in industries at high risk from coronavirus. The average for the largest 100 metropolitan areas is 21 percent. Another common factor among these markets is better-than-average inventory availability. For Des Moines and Omaha, the number of active listings in April 2020 increased by 5 percent and 1 percent, respectively, according to realtor. com®. However, inventory declined 18 percent on average in the largest 100 metro areas.

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Three in 10 residents in these markets – 30 percent – are millennials. With millennials making up the largest cohort of homebuyers, these areas are expected to see many of their millennial residents become homeowners. To view NAR’s Top 10 Most Favorable Areas for Millennials During the Pandemic report, visit https://www.nar.realtor/research-and-statistics/ research-reports/top-10-most-favorable-areasfor-millennials-during-the-pandemic. June is National Homeownership Month and NAR encourages current and future homeowners to visit https://homeownershipmatters.realtor/ or search #CreatingHome to learn more about the benefits of owning a home as well as policies and programs that promote homeownership. The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

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APRIL HOUSING WATCH April Home Sales were down, but the Housing Market is Rebounding Lawrence Yun, chief economist for the National Association of Realtors®, predicted that if the virus shutdown lasted less than three months, there would be a quick, robust rebound to the housing market. Nationally, and in Utah, the housing market is making a remarkable comeback.

The coronavirus pandemic and subsequent quarantines and business shutdowns led to a steep drop in home sales in April. Home sales in Salt Lake County fell to 1,150 units (all housing types), down 29 percent from 1,609 units sold in April 2019. On a percentage basis, other Utah counties saw even bigger declines during the same month. Summit County home sales were down nearly 50 percent. Grand County saw its sales fall 63 percent. Statewide, home sales were down 19 percent. Other counties fared better. Home sales in neighboring Davis County were down just 7 percent year-over-year (30 fewer sales). In Weber County, home sales climbed 11 percent. Box Elder and Cache counties each saw sales rise 3 percent.

From January through April, home sales in Salt Lake County were down 7 percent (326 fewer sales) compared to the same four-month period in 2019. Nationally, sales decreased year-over-year, down 17.2 percent from a year ago (5.23 million in April 2019). Lawrence Yun, chief economist for the National Association of Realtors®, predicted that if the virus shutdown lasted less than three months, there would be a quick, robust rebound to the housing market. Nationally, and in Utah, the housing market is making a remarkable comeback. New-home sales were predicted to tank in April but instead moved slightly higher. The average interest rate on a 30-year fixed-rate mortgage fell to 3.15 percent on May 28, the lowest rate in 50 years, spurring refinancing and home purchases. “The economic lockdowns – occurring from mid-March through April in most states – have temporarily disrupted home sales,” said Lawrence Yun, NAR’s chief economist. “But the listings that are on the market are still attracting buyers and boosting home prices.” The median price of Salt Lake homes sold in April increased to $365,500, up 8 percent year-over-year. Across Utah, the median home price increased to $335,000, a 6 percent rise over last year. The median U.S. home price for all housing types in April was $286,800, up 7 percent from April 2019 ($267,000), as prices increased in every region. April’s national price increase marks 98 straight months of year-over-year gains. “Record-low mortgage rates are likely to remain in place for the rest of the year, and will be the key factor driving housing demand as state economies steadily reopen,” Yun said. “Still, more listings and increased home construction will be needed to tame price growth.” First-time buyers were responsible for 36 percent of sales in April, up from 34 percent in March 2020 and 32 percent in April 2019. NAR’s 2019 Profile of Home Buyers and Sellers – released in late 2019 – revealed that the annual share of firsttime buyers was 33 percent.

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June 2020 | Salt Lake Realtor Â® | 29

JUNE IS HOMEOWNERSHIP MONTH! SOURCE: NATIONAL ASSOCIATION OF REALTORS®, SALT LAKE BOARD OF REALTORS®

Homeownership provides stable monthly payments, and is cheaper than rennng over nme. Homeownership is one of the best ways to build long-term wealth. There is a lower crime rate among homeowners and people living in a stable housing environment. S eventy-ﬁve percent of non-homeowners believe homeownership is part of their American Dream, while nine in 10 current homeowners say the same. The borrowing cost of money to buy a home is currently at a 50-year low.

We Believe in Your Dreams

Integrity and optimism have always been at the heart of Berkshire Hathaway HomeServices Utah Properties. During these unprecedented times we continue to celebrate you and your real estate goals. Now more than ever we believe in your dreams. Visit BHHSUtah.com to search all active listings in Utah or text “UTAH” to 435.292.8822 to download our mobile real estate search app.

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We are here for you. SALT LAKE CITY 801.990.0400 PARK CITY | ST. GEORGE | MOAB ©2020 BHH Affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.

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All in, for you. We recognize that the world is changing rapidly. By delivering meaningful innovation, like our new Safe Showing Center and complimentary Zoom accounts, we help our agents take their businesses to the next level and move their clientsâ€™ dreams forward. While the past few months have kept us apart, our Windermere family has never been more connected to each other, and to our clients.

Call or text and letâ€™s connect your career goals to success Monica Draper / 435-313-7905 Learn more online winutah.com/joinus

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