Salt Lake
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Magazine November 2019
Millennials Race to Buy Homes p. 10
Vacation Home Purchases Climb p. 18
Preparing for the Big One p. 22
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Table of Contents Features
Don’t miss the 2019 Holiday Social
10
Young Homebuyers Scramble as Prices Rise Faster than Incomes Josh Boak and Larry Fenn
18
Rising Financial Wealth Boosts Demand for Vacation Homes The National Association of Realtors®
22
No One is Coming for You Ed Blake
30
Realtor® Code of Ethics Article 2 – Disclose What? Holly Rawson
The Grand America Hotel Dec. 6 | 11:30 a.m. to 1:30 p.m.
Columns 7
Why Do We Do What We Do? Scott Robbins – President’s Message
Departments 8
Happenings
8
In the News
26
Housing Watch
28
Realtor® Connections
28
On the Move
On the Cover: Cover: ©jonbilous / Adobe Stock Photo left: ©Pixel-Shot / 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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November 2019 volume 79 number 11
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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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President Scott Robbins Summit Sotheby’s
Michael Morgan Realtypath LLC Scott Colemere Colemere Realty Associates
First Vice President Alicia Holdaway Summit Sotheby’s
Jodie Osofsky Signature Real Estate Utah Mary Olsen Utah Key Real Estate
Second Vice President Matt Ulrich Ulrich Realtors®, Inc.
Sophie Reece Berkshire Hathaway
Treasurer Steve Perry Wise Choice Real Estate
Rob Ockey Century 21 Everest Dawn Stevens RealtyOne Group Signature
Past President Adam Kirkham Summit Sotheby’s
Brian Gottfredson Coldwell Banker
CEO Curtis Bullock
Tony Ketterling Equity Real Estate
Directors
Ryan Henderson Realtypath LLC
Michael Rowe Berkshire Hathaway 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 Katie Steckler Patrick Witmer
Sales Staff Paula Bell Paul Nicholas Chad Saunders
Office Administrator Cynthia Bell Snow
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.
Rising Home Prices and Climbing Incomes Fuel Our Market
I
t is no surprise that house prices are climbing. House prices have been on the rise in Salt Lake County since 2012. In fact, in the second quarter of this year, home prices in Utah increased 7.7 percent, the second highest percentage increase of all states, according to the Federal Housing Finance Agency. Over the past five years Utah home prices have climbed 49 percent. Rising home prices mean home owners are far more likely to be equity rich than seriously underwater.
Despite the large price increases, 87 percent of all homes sold on the Wasatch Front in the first nine months of 2019 were for homes priced under $500,000. More than two-thirds of the homes that sold under the half-million dollar mark were for homes priced under $350,000. Rising home prices are partly the result of many U.S. homeowners staying in their residences much longer than before, keeping many homes off the market, according to a recent article by The Wall Street Journal. Wall Street Journal reporter Laura Kusisto, who wrote the story, reached out to me and other Realtors®, on why people are staying put. A lot of it has to do with aging baby boomers who are staying healthier and choosing not to downsize. Plus there is a growing concern of not being able to find a place to move to. “More homeowners staying put has helped cause housing inventory to dwindle to its lowest level in decades, which has also helped push up prices on homes for sale,” the article said. “The shortage of homes is especially acute in the Salt Lake City metropolitan area, where there are nearly 60 percent fewer homes for sale than there were nine years ago. Around Salt Lake City, owners now typically remain in their homes for more than 23 years, or nearly nine years longer than they did in 2010.” There are some optimistic trends that may help alleviate the crisis, particularly rising home starts. The other aspect that is fueling our market is the fact that Utah incomes have increased at the fourth highest rate of all states, according to a new report by the Bureau of Economic Analysis. From the first quarter to the second quarter, personal incomes in Utah climbed 6.9 percent. Nationally, incomes were up 5.4 percent during the same personal period. This is another sign that the Utah market is strong will continue to be healthy.
Scott Robbins President
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.
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
November 2019 | Salt Lake Realtor ® | 7
Happenings
In the News
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Members of the Board’s Charity Committee present a $5,000 check to Jacob and McKinley.
American Dream Grant Awarded to First Responder Jacob and McKinley Nielson were awarded a $5,000 American Dream Grant in October by the Salt Lake Board of Realtors®. The grants are awarded to first-time home buyers to help with the down payment cost of buying a home. The McKinley’s Realtor® is Jenn Mayer of KW Salt Lake. This is the third grant awarded by the Board this year. The grants are available to single parents, school teachers, first responders and veterans. Jacob works for the Utah Highway Patrol.
A $6.9 million listing in Olympus Cove.
Photo Credit: Casey Halliday/Windermere Real Estate
More Million-Dollar Homes are Selling Million-dollar home sales are on the rise. In the first nine months of 2019 there were 311 sales of million-dollar homes along the Wasatch Front (Salt Lake, Davis, Tooele, Utah, and Weber counties), a 29 percent increase compared to 241 sales in the same period last year. Yet, while homes selling over the million-dollar mark are rising, their overall market share is small. Approximately 87 percent of all homes sold on the Wasatch Front from January through September were for homes priced under $500,000. Homes that sold from $500,000 to $999,999 made up 12 percent of the mix. Million-dollar home sales represented just 1 percent of the total market share.
8 | Salt Lake Realtor ® | November 2019
Study: Down Payment Assistance Grows Homeownership Down payment assistance programs are helping more consumers become homeowners, according to a new study. Researchers with CBC Mortgage Agency, a national housing finance group, found that more than nine out of 10 home buyers would not have been able to purchase a home without down payment help. Further, more than half of the 1,100 buyers surveyed that received assistance were racial or ethnic minorities. Also, more than a third say they are the first in their family to buy a home. “We conducted this study to illuminate the importance of [down payment assistance] to lenders and borrowers across the country, and the findings are compelling,” said CBCMA President Richard Ferguson. “It’s clear that without DPA, millions of Americans would be shut out of the home buying market. With it, creditworthy buyers and their families can reap the many benefits of homeownership, which creates healthier communities and other positive outcomes for our nation.” The borrowers who used DPA say that saving for a down payment had been the chief reason why they had been delaying a home purchase. Lenders surveyed say that DPA is particularly helpful for buyers who carry student loan debt. They also reported that many of their clients had been paying more in rent than the cost of their new monthly mortgage.
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YOUNG HOMEBUYERS SCRAMBLE AS PRICES RISE FASTER THAN INCOMES The Salt Lake City area is among the hottest spots for first-time buyers in part because of a staggering burst of home construction and a surge of high-tech jobs. By Josh Boak and Larry Fenn Editor’s Note: AP reporter Josh Boak traveled to Salt Lake City earlier this year and interviewed Scott Robbins, president of the Salt Lake Board of Realtors®, and other Realtors® and home owners. This story appeared in several national and international publications including: The New York Times, The San Francisco Chronicle, Seattle Times, The Boston Globe, and the Daily Mail.
estate industry data provided by CoreLogic.
SALT LAKE CITY (AP) — For millennials looking to buy their first home, the hunt feels like a race against the clock.
“They do want all the same things that previous generations want,” said Daryl Fairweather, chief economist for the brokerage Redfin. “They just have more roadblocks, and they’re going to have to come up with more creative solutions to get the homes that they want.”
In the seven years since the housing crash ended, home values in more than three-quarters of U.S. metro areas have climbed faster than incomes, according to an Associated Press analysis of real
10 | Salt Lake Realtor ® | November 2019
That gap is driving some first-timers out of the most expensive cities as well as pressuring them to buy something before they are completely priced out of the market. The high cost of home ownership is also putting extreme pressure on 20- and 30-somethings as they try to balance mortgage payments, student loans, child care and their careers.
A Redfin analysis found these buyers are leaving
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Reporter Josh Boak talks with home owner Parry Harrison.
too-hot-to-touch big-city markets — among them, San Francisco and Seattle, where the tech boom has sent housing prices into the stratosphere. The brokerage found that many millennials are instead buying in more reasonably priced neighborhoods around places like Salt Lake City, Oklahoma City and Raleigh, North Carolina. That, in turn, is driving up housing prices in those communities. Jake and Heather Rice, both 35, moved to Utah last year from Mountain View, California, where the biggest employers are tech giants such as Google, Symantec and Intuit and the median home price is a dizzying $1.4 million or so. The couple and their three children settled into a 4,500-square-foot house in fast-growing Farmington, just far enough away from Salt Lake City to feel rural but minutes from a major shopping center and Heather’s sister. They did not disclose the purchase price for the sake of privacy, but they said their monthly mortgage payments will be $3,000, roughly the same as the rent for their former two-bedroom, 1,000 squarefoot apartment in Mountain View. “We didn’t expect to stay in California because of
12 | Salt Lake Realtor ® | November 2019
Photo Credit: Dave Anderton
how ludicrous the prices had become,” said Jake, a mechanical engineer who works in the medical device sector. Nationally, home prices since 2000 have climbed at an annual average rate of 3.8 percent, according to the data firm CoreLogic, while average incomes have grown at an annual rate of 2.7 percent. And in the metro areas with the strongest income growth — for example, parts of Silicon Valley — home prices have risen even faster. The Salt Lake City area is among the hottest spots for first-time buyers in part because of a staggering burst of home construction and a surge of high-tech jobs. The suburb of Lehi, which served as a film location for the 1984 Kevin Bacon movie “Footloose,” about a rural town that banned dancing, is in what is now known as “Silicon Slopes” because Adobe, eBay and Microsoft have opened offices there. Of course, the influx of people from unaffordable cities is contributing to the very problem they were trying to escape: Home prices in the greater Salt Lake City area surged 10.8 percent in the past year, while average incomes rose only 3.9 percent, according to figures from CoreLogic and
the U.S. Bureau of Labor Statistics. Scott Robbins, president of the Salt Lake Board of Realtors®, sees the price growth as having changed the habits of first-time buyers. They are putting less money down and carrying more debt. And some first-time buyers are looking at condos and duplexes instead of houses. There is also more pressure on families to earn two incomes, rather than letting one choose to be the stay-at-home parent. This could be a particular challenge in the Salt Lake City area, where families are generally larger, mostly because of the influence of the Church of Jesus Christ of Latter-day Saints, and about 28 percent of the population is under 18, compared with nearly 24 percent nationwide.
Andy and Stacie Proctor made a bid on a house in the Salt Lake City suburbs, only to rescind it upon learning there were 13 rival offers. At one NoDownPayment-realtormag.pdf
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Photo Credit: Dave Anderton
“The one thing that really would make it even more sustainable is if wages would increase,” Robbins said. “Whereas before you could have a young couple buy a place and only one of them would work. Now, you need both of them to work.” Scott Robbins, president of the Salt Lake Board of Realtors®, chats with reporter Josh Boak.
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Realtor® Seth Roth, former Salt Lake Board President Dave Robison, and AP reporter Josh Boak.
point, they almost decided not to buy a house just yet, figuring the bubble was going to burst eventually, said Andy, a 35-year-old who hosts the podcast “More Happy Life.” But there was also the opposite risk: “There is the question about whether it’s going to keep going up,” his 31-year-old wife said. The couple ultimately made a successful offer on a three-bedroom house for $438,000 in Vineyard, Utah. It includes an apartment that could be rented out to defray their mortgage payments. That will make it easier for them to afford starting a family. Roughly 1 in 6 homes sold in the Salt Lake Valley since 2004 have been in a 4,100-acre development called Daybreak, being built on land once owned by mining giant Rio Tinto. About 5,500 homes have been constructed, with an additional 14,500 units planned — enough in total to house roughly 65,000 people. The homes range from $180,000 to $1 million.
14 | Salt Lake Realtor ® | November 2019
One of the guiding principles is that homeowners can upgrade or downsize without having to move out of the neighborhood. But that cycle of upgrading might not continue as it did for past generations. Home values need to rise for people to build equity that they can use to buy a new house. Yet if they rise too fast, it will become too expensive for many people to move up. Parry Harrison, a 26-year-old divorced father of two small children, bought a townhouse in Daybreak for $309,000 in March. His down payment came in large part from selling his previous home, which appreciated a robust 25 percent in the two years he owned it. He hopes to upgrade again in five years, when his children might need more space. “It’s definitely not a forever home,” he said. “It’s a lot more convenient if I have move-up opportunities that are right next door.” Copyrighted 2019. Associated Press. 2114046:1019PF
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Rising Financial Wealth Boosts Demand for Vacation Homes Between 2013 to 2018, the median sales price in vacation home counties increased at a slightly higher pace of 36 percent compared to the pace of increase of all existing and new homes sold, at 31 percent. By The National Association of Realtors® Increased financial wealth and low mortgage rates boosted the demand for and price of vacation homes, according to the National Association of Realtors® 2019 U.S. Vacation Home Counties Report. Between 2013 to 2018, the median sales price in vacation home counties increased at a slightly
18 | Salt Lake Realtor ® | November 2019
higher pace of 36 percent compared to the pace of increase of all existing and new homes sold, at 31 percent. Median price increases occurred across both expensive and inexpensive areas. The counties with the highest price increases during this five-year span were in three states: Pennsylvania, which includes Pike and Monroe
counties; Wisconsin, which contains Price and Washburn counties; and Massachusetts, which includes Nantucket. Lawrence Yun, NAR’s chief economist, said the present figures are telling, especially when compared to data from 10 years prior. “As of 2018, household net worth reached an all-time high of $100.3 trillion – that’s nearly double from a decade ago when wealth declined during the recession. Some of this tremendous growth in wealth, although concentrated, increased demand for vacation homes.” Although most homebuyers purchase their residence with an intent to use the property as a primary home, that is not the case for all buyers. In fact, a portion of homeowners purchase a second home expecting to use it as a general family vacation spot, as a tenant rental, a means to gain equity, or – upon retirement – a future primary residence. The NAR report uses the U.S. Census Bureau’s American Community Survey data to examine “vacation home counties.” These areas are counties where the vacant housing for seasonal,
recreational or occasional use, made up 20 percent or more of the county’s total housing stock. Of 3,141 counties, 206 counties (6.6 percent) were identified as vacation home counties. Additionally, NAR identified the most and least expensive and affordable vacation home counties, and exactly who is able to afford to purchase a second home. Top Vacation Home Counties According to the NAR report, the top 26 vacation home counties – the counties with the largest percentages of vacant seasonal, recreational, or occasional use housing units – include those with nationally-known sites, as well as local destinations. Though less populated, this group includes a large number of counties along northern Michigan, Wisconsin, and Minnesota. Leading the list are counties in Massachusetts (Nantucket and Dukes, 56 percent; Barnstable, 41 percent), New Jersey (Cape May, 51 percent), Colorado (Grand, Summit Eagle, Jackson and Pitkin, 51 percent), Wisconsin (Vilas, Lincoln,
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Langlade, Forest and Oneida, 43 percent), and Michigan (Roscommon, Ogemaw, Gladwin, Iosco and Arenac, 42 percent). “Some people may visualize the common popular vacation destinations in the U.S. when considering a vacation home, such as counties in Florida or California,” said Yun. “And although those locations have their share of vacation properties, we see that some homeowners prefer some of the other counties, including those in Massachusetts and New Jersey. These areas are often known for harsh weather conditions, but are popular nonetheless.” Some other notable vacation home counties are found in Maine, Pennsylvania, New York, New Hampshire, Maryland, Delaware, North Carolina, Vermont, Florida, California, Georgia, South Carolina, Arizona, Idaho and Oregon. Most Expensive Vacation Home Counties The areas identified as the top 25 most expensive
20 | Salt Lake Realtor ® | November 2019
vacation home counties included many wellknown summer and winter getaways. Using Black Knight property records data, Nantucket, Mass. emerged as the most expensive vacation home county in 2018, with the median sales price at $1 million. Following were other counties in Massachusetts, including Dukes, a portion of which includes Martha’s Vineyard. Other places of note were Colorado, which contains counties like Pitkin, Eagle, Summit and Grand that are popular Rocky Mountain summer and winter destinations; Florida, which includes Monroe and Collier, known respectively for the Florida Keys and Naples; California, which contains the counties of Mono, Alpine and Inyo, among others, all of which are near Yosemite National Park; and Arizona, which includes Coconino county, home of part of the Grand Canyon. Taking into account the 2018 median sales price and the income of a typical family in the top 25 most expensive areas, the typical family – that
is, a family earning the median income only – would be unable to afford to purchase a home in these counties. Least Expensive Vacation Home Counties Data from Black Knight property records showed that the median price for a vacation home was usually less than $100,000. The most inexpensive vacation home counties were found in Maine (Aroostook, Piscataquis, Somerset, Franklin, Oxford, Washington and Waldo), New York (Chenango and Franklin), Pennsylvania (McKean, Venango, Clarion, Elk, Potter, Clearfield and Jefferson), Missouri (Miller), and Michigan (Gogebic, Lake, Arenac, Iosco and Cheboygan). The expected annual mortgage on a 30-year mortgage with a 20 percent down payment for a home purchased at the median sales price is less than $5,000. Under such a scenario, the mortgage payment would account for less than 10 percent of the income of a typical family that purchased a vacation home in one of the top least expensive vacation destination locations. Owning a second home is more affordable for families living in these particular areas.
Also on that list, among other areas, was California, which has Alpine and Mono counties; New York, which has Hamilton and Delaware counties; and, among others, Colorado, which is the location of Grand and Summit counties. Most of the borrowers who obtained mortgages for second homes earned around $100,000 or more. Among borrowers for second homes, the estimated mortgage payment to income ratio ranged from 4 percent to 12 percent in the vacation home counties. The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries. Statement of Ownership, Management and Circulation 1. Location of known Office of Publication: 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 2. Location of known Headquarters of General Business offices of the Publisher: 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 3. Publisher: Mills Publishing, Inc., 772 E. 3300 S., Suite 200, Salt Lake City, Utah 84106 4. Editor: Dave Anderton, Salt Lake Board of Realtors, 230 W. Towne Ridge Parkway, Suite 200, Sandy, Utah 84070 5. Owner: Salt Lake Board of Realtors, 230 W. Towne Ridge Parkway, Suite 200, Sandy, Utah 84070 6. Known bondholders, mortgages, and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: None. 7. Extent and nature of circulation:
Other Significant Findings Buyers purchasing a vacation home usually pay all-cash or opt to obtain a mortgage, and typically make a 20 percent down payment. Recent low mortgage rates made it more affordable to borrow to purchase a second home. Cape May, New Jersey, topped the list of vacation home counties where second home mortgages accounted for the largest share of home purchase loans.
Average No. Copies Each Issue During Preceding 12 Months
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1,342
1,314
2. Mailed In-County Paid Subscriptions
7,194
7,067
3. Paid Distribution Outside the Mails, including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Outside USPS
0
0
4. Paid Distribution by Other Classes of Mail
0
0
C. Total Paid Distribution
8,536
8,381
D. Free or Nominal Rate Distribution
0
0
1. Free or Nominal Rate Outside-County Copies
0
0
2. Free or Nominal Rate In-County Copies
0
0
3. Free or Nominal Rate Copies Mailed at Other Classes through the USPS
50
50
4. Free or Nominal Rate Distribution Outside the Mail
125
125
E. Total Free or Nominal Rate Distribution
175
175
F. Total Distribution
8,711
8,556
G. Copies Not Distributed
29
44
A. Total Numbers of Copies Printed B. Paid Circulation
H. TOTAL
8,740
8,600
I. Percent Paid
97%
97%
8. I certify that all statements above are correct and complete.
Dan Miller, President of Mills Publishing, Inc.
Image licensed by Ingram Image
November 2019 | Salt Lake Realtor ® | 21
puckillustrationsŠ/ Adobe Stock
No One is Coming for You! I worry that people believe emergency services will be at their door following a disaster. The fact is that no one is coming for you. Your ability to survive is your responsibility. By Ed Blake
Preface: On the day I completed this article, July 6, Southern California experienced a 7.1 magnitude earthquake and endured thousands of after-shocks. Now is the time for you prepare for the inevitable Utah earthquake. It is Dec. 2 and there are two feet of freshly fallen snow along the Wasatch Front. It is 10 a.m. and the snow is already turning grey from dust in the air. The Wasatch Front just experienced a 7.2 magnitude earthquake and people are in the streets fearing aftershocks. The cracks that are evident on their walls may cause a complete collapse with more shaking. The freeway overpasses on I-15 have collapsed. There is no surviving bridge over the Jordan River. All east side hospitals are not operational. A 15-foot escarpment travels along 1300 East creating an impassible cliff. I am informed this cliff runs for many miles from Ogden to Provo. Transportation was instantly cut-off from Spanish
22 | Salt Lake Realtor ÂŽ | November 2019
Fork to Brigham City and from Parleys Canyon to Tooele. All motorized transportation is gone. All communications are also inoperable and probably will be for some time. You are at work 10 miles away from your home and loved ones. The view outside is rubble and there is a cloud of dust over the valley darkening the morning sky. It will soon change the snow on the ground from white to grey. Another snow storm, a larger one, is coming in two days. Now what? Where do I go? How do I find my loved ones? I am reading the above scenario while sitting at my station in the State Emergency Operations Center (SEOC) under the Utah State Capitol Building. We are participating in a three-day exercise to improve our disaster skills. FEMA
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YOUR AUDIENCE AWAITS.
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has spent more than a year preparing a realistic experience. There are local news reporters on monitors around us providing stories of damage and deaths. It is all meant to immerse us in the gravity of the disaster. Phones begin to ring at the 20 desks around the room. I hear my colleague answer the phone for Air Support. He begins taking notes and realizes helicopters will be the only access to the Wasatch Front for some time. The Health Services table has a call and she is taking down information regarding the damage to area hospitals. My phone rings at the Mass Care station, and I am informed people are congregating at a church. “Is this where they should go and how do we get resources like food and water to them?” the caller asked. People on the other end, who begin each call with the words “This is an exercise,” have also been preparing their scripts for this day. The room is instantly overwhelmed. “No one is coming for you!” I worry that people believe emergency services will be at their door following a disaster. The fact is that no one is coming for you. Your ability to survive is your responsibility. When I finished the exercise above I calculated the time it would take me to get to my wife from my office following this earthquake. The best-case scenario was five days. The worst case was eight. We sat down and revised our disaster plan. We needed
24 | Salt Lake Realtor ® | November 2019
to fortify the resiliency of every family member. It is my hope to help you fortify yours. For Christmas last year we purchased 25 “go bags” for family members. What is a “go bag”? It is a backpack that is stocked with items that you might need in an emergency. Some items to include in your emergency go bag are: water (one gallon per day), food for three days, prescriptions, toilet paper, sleeping bag, batteries, clothing, pet food, tools, matches, and gloves. Visit Ready.gov or RedCross.com for more information. If you are building your own backpack and wish to keep the costs down, I would suggest visiting a low budget recreation store like Recreation Outlet in Salt Lake. They sell the all of the basic items needed in a backpack for $29, including the backpack. You will need to add more items but you cannot buy these items separately for that low price. If you prefer just visit to the Red Cross site or Amazon and buy one. The quality is better, but the price is much higher. Make certain to update your bag every year. Those protein bars will be getting stale. Ed Blake is the past State President of Voluntary Organizations Active in Disaster (VOAD), The CEO of Salt Lake Valley Habitat for Humanity and a member of the Salt Lake Board of Realtors®. He has witnessed the destruction of the Nepal earthquakes and provided assistance after hurricane Harvey in Texas.
SEPTEMBER HOUSING WATCH Salt Lake County Home Sales Flat in September; Davis Sales up 16% Salt Lake County home sales (all housing types) were flat in September, while sales in neighboring Davis County, where the median home price is 9 percent lower, were up 16 percent. Single-family home sales in Salt Lake County for the third quarter (July through September period) were flat (up less than 1 percent). In Davis County, single-family sales in the same period were up 10 percent. Utah and Weber counties saw their third quarter sales rise 12 percent each. Salt Lake County had the highest median single-family home price along the five-county Wasatch Front area in the third quarter at $381,500, up 7 percent from a year earlier. Weber County had the lowest single-family median home price at $275,800, up 10 percent from the third quarter of 2018. Nationally, overall existing-home sales were up 3.9 percent in September from a year ago (5.18 million in September 2018), according to the National Association of Realtors®. Lawrence Yun, NAR’s chief economist, said that despite historically low mortgage rates, sales have not commensurately increased, in part due to a low level of new housing options. “We must continue to beat the drum for more inventory,” said Yun, who has called for additional home construction for over a year. “Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home sales growth potential.” The median U.S. existing-home price for all housing types in September was $272,100, up 5.9 percent from September 2018 ($256,900), as prices rose in all regions. September’s price increase marks 91 straight months of year-over-year gains. Total U.S. housing inventory at the end of September sat at 1.83 million, approximately equal to the amount of existing-homes available for sale in August, but a 2.7 percent decrease from 1.88 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, up from 4.0 months in August and down from the 4.4-month figure recorded in September 2018. Properties typically remained on the market for 32 days in September, up from 31 days in August and even with September 2018. Forty-nine percent of homes sold in September 2019 were on the market for less than a month. First-time buyers were responsible for 33 percent of sales in September, up from 31 percent in August and 32 percent recorded in September 2018.
“Nationally, overall existing-home sales
were up 3.9 percent in September from a year ago (5.18 million in September 2018), according to the National Association of Realtors®.”
26 | Salt Lake Realtor ® | November 2019
Salt Lake & Davis County
MEDIAN CDOM
MEDIAN PRICE
HOME SALES
Salt Lake County UP 0.3%
Davis County UP 16%
1,531
1,527
396
459
SEPTEMBER 2018 SEPTEMBER 2019
SEPTEMBER 2018 SEPTEMBER 2019
UP 8%
UP 0.8%
$323,000
$349,000
$316,500
$319,000
SEPTEMBER 2018 SEPTEMBER 2019
SEPTEMBER 2018 SEPTEMBER 2019
UP 39%
UP 43% 25
18
SEPTEMBER 2018 SEPTEMBER 2019
14
20
SEPTEMBER 2018 SEPTEMBER 2019 November 2019 | Salt Lake Realtor ® | 27
REALTOR® Connections
Pictured: Jonny Stewart, director of the Utah Division of Real Estate (left), Scott Robbins, president of the Salt Lake Board of Realtors®, Marty Carpenter, moderator, Alicia Holdaway, president-elect of the Salt Lake Board of Realtors®, and Joel Hair, chairman of the Professional Standards Committee.
The Most Common Real Estate Violations The top three real estate violations include: improper advertising, failure to obtain a written agency agreement, and failure of broker supervision, according to Jonny Stewart, director of the Utah Division of Real Estate. Another violation includes keybox access by unauthorized users and agents failing to make an appointment before showing a home. These topics and more are discussed in the latest podcast episode of the Salt Lake Board of Realtors®. The podcast is now available on the podcast app (Apple, Google Play and Spotify).
On the Move
Two members of the Salt Lake Board of Realtors®, Shawn Kenney, broker and owner of Integra Realty, and Mac Brubaker, broker and owner of Tate & Brubaker, took part in a four-hour rescue of a 190-pound mastiff named Floyd. The dog became exhausted after hiking with its owner to Grandeur Peak in Millcreek Canyon on Sunday, Oct. 13. Shawn and Mac are members of the Salt Lake County Sheriff’s Search and Rescue team. The rescue made national and international headlines, including The New York Times, CNN, Fox News, and the Today Show.
Reed Snyderman
Realtors® Tour New Airport Mary Olsen, associate broker with Utah Key Real Estate, organized a group of Realtors® to tour the new Salt Lake City International Airport. The $3.6 billion remodel includes a new parking garage, terminal, two linear concourses, two tunnels and an elevated roadway. The first phase of the airport will open in September 2020. The new airport will include existing restaurants Cafe Rio, Market Street Grill, Smashburger and Squatters. New eateries include: Fillings & Emulsions, Granatos, Pago, Panera Bread, Silver Diner and Shake Shack. All restaurants will offer breakfast, lunch and dinner menus. A welcome dining option pre-security on the second level will house Blue Lemon and a Starbucks will be located presecurity on level one. 28 | Salt Lake Realtor ® | November 2019
Nancy Russell
Windermere Real Estate Utah announced Reed Snyderman has joined the Windermere family. Reed is a former U.S. Development Team Freestyle mogul skier with a passion for the outdoors. Reed enjoys skiing in Little Cottonwood Canyon, flying on his speed wing, and mountain biking. Windermere also welcomes Nancy Russell, who has been practicing real estate for 16 years. Russell is a professional mountain bike coach and backcountry ski guide. Aubrey & Associates welcomes the following new agents: Monico Segura, DeVon Robinson, Susana Clar, Ralph Bohn, Scott Nagle, Amie Jensen, Bonnie Young, Ana Siqueira, Bessy Nielson, Philip Stringham, Sydnee Harris, and Robert Holt.
KURT ANDREWSEN First American Title Insurance 801-870-2860 kandrewsen@firstam.com LESA BEUCHERT | NMLS #192201 Elevate Home Warranty 801-671-3741 lesa@elevatehw.com TRICIA BRUGGEMAN Gateway Mortgage Group 801-891-2664 Tricia.Bruggeman@gatewayloan.com JOHN GONZALES | NMLS #242963 South Towne Mortgage 801-718-1626 john@southtownemortgage.com
Successful Realtors® Build Teams. Have You Built Your Affiliate Team?
KIMBERLY HENDRY| NMLS #288635 Veritas Funding 801-688-0599 khendry@vfund.com JULIE KRUSHENSKY KRUSHENS First American Title Insurance 801-598-7391 jkrushensky@firstam.com LONI LARSEN Pillar to Post 801-244-5255 lonilarsen@comcast.net lonila BROCH LASSIG | NMLS #340314 OneTrust Home Loans 801-637-3409 blassig@onetrusthomeloans.com JOLENE LEHMAN All-Points Home Inspec�ons 801-518-7355 jolene@allpointsinspect.com JEFF LOVELAND | NMLS #1465556 OneTrust Home Loans 970-210-6603 jloveland@onetrusthomeloans.com KELLIE STONE | NMLS #260533 Graystone Mortgage 801-792-4974 kstone@graystonemortgage.com DEANN TAYLOR Monument Title 801-205-3122 deann@monumen�tle.net
Sandy Day
COMMITTEE CHAIR Stewart Title 801-918-9669 | sandy.day@stewart.com
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COMMITTEE VICE CHAIR Inspiro Financial| NMLS #261036 801-755-4988 | mviselli@inspirofinancial.com
Gorodenkoff©/ Adobe Stock
Realtor® Code of Ethics Article 2 – Disclose What? By Holly Rawson
Article 2 of the Realtor® Code of Ethics is an ongoing complaint issue. It is also an issue that can easily turn into a lawsuit. Article 2 is one of the shorter articles addressed in the code but important because it covers many of the responsibilities of a Realtor®. It is also an important article in that it guarantees honestly, truthfulness and the protection of consumers of real estate services. Article 2 states “Realtors® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or transaction.” The article further states: “Realtors® shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law.” The definition of exaggeration is representing
30 | Salt Lake Realtor ® | November 2019
something as better or as worse than it actually is. Watch what you publish in your listings and advertisements. Provide as much detailed and accurate information as you can. Do not misrepresent pertinent information about the property. As with any profession, Realtors® can act within their area of expertise and help navigate the consumer through the purchase or sale of real estate all while protecting their best interests. Do not point out, give advice, or diagnose possible problems with a property outside of your expertise. Refer your clients to the appropriate professional if they have questions or concerns. Doing all of these things will avoid a possible ethics complaint and any other issues as well as keep the integrity and professionalism our industry stands for. Holly Rawson is the professional standards administrator at the Salt Lake Board of Realtors®.
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