Issuu

Salt Lake

REALTOR

Magazine

August 2020

Salt Lakeâ€™s Housing Market is RED HOT

Collaboration is not an option. It’s a promise.

When we work with Homebuyers, we build homes around their lives – not the other way around. The same is true when we work with you. At David Weekley Homes, we work hand-in-hand with you and your Team to ensure that your Clients’ path to homeownership is as seamless and fulfilling as possible – and so is your experience in helping them get there. That’s The Weekley Way.

Homes from the low $300s to mid $500s in the Salt Lake City area Last Chance!

Coming Soon!

Now Selling!

Rockwell Park in Draper

Copperleaf in South Jordan

Envision and Lifestyle at Daybreak

Cedar Canyon in Cedar Hills

13833 South Bangerter Parkway, Draper, UT 84020 Only a Few Homes Remain

1598 W Oakbrook Dr, South Jordan, UT 84095 Join Our VIP List

11588 S Skyward Road, South Jordan, UT 84009 Model Homes Now Open! Virtual Tours Available

4697 W. Daisy Lane, Cedar Hills, UT 84062 Model Home Open Ask About Special Incentives

From the Mid $400s

Coming Soon!

From the $320s

From the $440s

Learn more about our Quick Move-in Homes by contacting 385-232-2999 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 (SLCA99514)

Stability.Reliability.Security. With a robust portfolio of standard and distinct loan programs, SNMC is committed to providing strategic support to REALTORS® and clients with the following: On Time Loan Closings

Develop Your Business

By offering internal processing, underwriting, and funding, SNMC is able to deliver quick turn around times as well as a seamless loan experience.

SNMC is focused on empowering agents with tools to develop their business. Our marketing resources will help generate leads, build your brand, and create lasting impressions on your clients.

Great Loan Programs SNMC has a variety of loan options, including: Conventional, Down Payment Assistance, FHA, Investor, Jumbo, Land, New Construction, USDA, VA, and Foreign National Investment.

Take Aim

In-house Decision Making

SNMC allows you to focus on your business by eliminating your concerns for your client’s financing. We support you in doing what YOU do best, by expertly doing what WE do best.

Loans are underwritten internally, allowing for quick loan decisions, effective communication and increased accountability.

For more information visit: www.snmc.com

SecurityNational Mortgage Company (SNMC) is a division of Security National Financial Corporation which is publicly traded in the NASDAQ© index under SNFCA. SNMC has been in the mortgage business since 1993, and has the stability, reliability, and security of a strong parent company.

www.snmc.com This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Interest rates and program guidelines are subject to change without notice. Assistance and Grant Programs are offered and provided by third-party entities which set the regulations, restrictions, and qualifications criteria. Some programs require repayment and/or conditions which may trigger repayment, while others may not. SecurityNational Mortgage Company is not responsible for non-qualification, program availability, nor conditions of the program.

Turning Houses into Homes®

Table of Contents

How your response to COVID-19 can attract clients

Features

p. 20

10 Realtor® Day in Herriman 12 Wasatch Front Real Estate Market Heats Up

Dave Anderton 18 How the Pandemic Pushes Home Prices to a Record High amid Historic Economic Downturn Clare Trapasso

20 How Your Response to COVID-19 Can Attract Clients

Clare Trapasso 24 Don’t Forget the Local Races Marcus Jessop 26 7 Clients Behaviors Emerging From COVID-19

Melissa Dittmann Tracey

Columns 7 Moving Forward with Hope Alicia Holdaway – President’s Message

Departments 8 Happenings 8 In the News 28 Housing Watch

On the Cover: Cover: ink drop©/ Adobe Stock Photo left: Andres©/ 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.

Salt Lake

REALTOR slrealtors.com

Maga zine

August 2020 volume 80 number 8

slrealtors.com

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.

TOWNHOMES.COM

Thank You

Over 85% of Sales with RealtorÂ© Co-Operation Over $1.25 Million Dollars in Commission Paid Over 100 Happy Homeowners Now Selling Final Phases - 45 Units Remaining Multiple Move-In Inventory Available

Summer Promotion FREE SONOS Play1 Speaker* ONE for You the Realtor & ONE for Your BUYER

future phase

SOLD

SOLD SOLD

SOLD

SOLD SOLD

SOLD SOLD SOLD

SOLD

SOLD SOLD

SOLD

SOLD SOLD

SOLD

SOLD SOLD SOLD SOLD

SOLD SOLD

SOLD

SOLD SOLD SOLD SOLD

SOLD SOLD

SOLD

SOLD SOLD SOLD SOLD

399,000

SOLD

From

SOLD

future phase

SOLD SOLD

in the heart of SAnDY

SOLD

SOLD SOLD SOLD

SOLD

SOLD SOLD SOLD

SOLD

SOLD SOLD SOLD

SOLD

future

SOLD

SOLD SOLD SOLD DECORATED MODELS

ConnieDANIELS (801) 618.2619 * All offers accepted before September 22, 2020. Speakers presented at Close of Escrow.

SOLD SOLD SOLD

SOLD

DECORATED MODELS 10600 South 260 East Sandy, Utah RedSageTownhomes.com

AdamKLAWE

SOLD SOLD

SOLD

SOLD SOLD

phase future

phase

SOLD SOLD

SOLD

future

SOLD

phase

SOLD SOLD SOLD

future

future phase

CLUBHOUSE

SOLD SOLD

phase

We’re hiring We’re getting more and more business with loan applications beyond our already growing capacity, and as a result, we’re looking for operations personnel as soon as possible. Guaranteed Rate is hiring for the following roles:

Closers Loan Processors Underwriters And more operation positions

Guaranteed Rate, Inc. is an Equal Opportunity Employer that welcomes and encourages all applicants to apply regardless of age, race, sex, religion, color, national origin, disability, veteran status, sexual orientation, gender identity and/or expression, marital or parental status, ancestry, citizenship status, pregnancy or other reason prohibited by law.

Contact me today to learn more! Julia Borst

SVP, Divisional Manager

O: (801) 890-7660 C: (801) 362-7159 www.rate.com/JuliaBorst julia@rate.com Julia G. Borst NMLS ID:275440; UT - 5495305 | NMLS ID #2611 (Nationwide Mortgage Licensing System www.nmlsconsumeraccess.org)

9350 South 150 E., Suite 140 Sandy, UT 84070

Salt Lake

REALTOR

Maga zine

slrealtors.com

Jennifer Gilchrist Utah Key Real Estate

President Alicia Holdaway Summit Sotheby’s

Moving Forward with Hope

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 Assistant Jessica Alder

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®.

The Salt Lake City housing market took a significant hit when Covid-19 surged earlier this year. Although prices didn’t fall dramatically, the number of sales fell significantly. In April and May, Salt Lake County home sales took a nose dive, down 27 percent and 24 percent respectively, according to UtahRealEstate.com. However, it didn’t take long for things to turn around. In June, home sales increased 5 percent year over year. The comeback has been simply remarkable. What’s more, home sales across the Wasatch Front in the first six months of 2020 have surged as the spring home buying season was pushed to the summer months. In the Januarythrough-June period there were roughly 18,500 home sales, the third highest number of home sales in a January-through-June period since the MLS started keeping records. At the start of the pandemic, Lawrence Yun, chief economist of the National Association of Realtors®, predicted that if the virus shutdown was less than three months, there would be a quick, robust rebound to the housing market and perhaps even no change in the annual home sales closings. Yun’s prediction was, as usual, right on the mark for Salt Lake City. While many states halted real estate transactions, Utah designated real estate an essential service. Every Realtor® should be grateful for the behind-the-scenes work of our local and state associations, and especially the Realtors® Political Action Committee, in urging the governor, and county- and city-elected officials to keep real estate essential. While the pandemic isn’t over, we remain hopeful that solutions will soon be available. Our nation is full of incredibly smart and innovative humans! Here in Utah, it appears Covid-19 cases are finally on the decline. Americans deserve safe places to live, especially during a pandemic. Realtors® continue to play a crucial role in helping meet an unprecedented demand for housing. Now, more than ever before, the skills and expertise of our members are needed.

Alicia Holdaway President

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.

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

August 2020 | Salt Lake Realtor ® | 7

Happenings

In the News

Image licensed by Ingram Image

Realtors® Say They’re Prepared for Second Wave

Is the Worst Behind Us? Following three months of declines due to Covid-19, home sales in Salt Lake County made a remarkable comeback in June, increasing 5 percent year over year. Across the Wasatch Front, there were 18,481 housing units sold in the first six months of 2020, a 3 percent decline compared to the same six-month period in 2019. It appears the worst may be over, as buyers rush to take advantage of record-low mortgage interest rates.

30-Year Mortgage Rate Drops Below 3% Source: FreddieMac.com | Rates reflect an average 0.7 points/fees. The average 30-year fixed-rate mortgage fell below 3 percent in July. It was the first time rates fell below 3 percent in 50 years, according to FreddieMac. The drop has led to increased homebuyer demand. In addition, the low rates have been capitalized into asset prices in support of the financial markets.

Real estate, like many other industries, was forced to adjust to the COVID-19 pandemic, from changing home tour procedures to embracing virtual or socially distant closings. Now some cities and states are reversing their reopening plans as coronavirus cases surge—but many real estate professionals say they’re better prepared for the impact on their business. Nineteen percent of Realtors® say they’re “very prepared” for a second wave of COVID-19 cases, and 39 percent say they’re “somewhat prepared,” according to the National Association of Realtors®’ Market Recovery Survey, which is based on responses from about 2,300 members. Of those who believe there might be a second wave, 30 percent say they feel more prepared because they have a better idea of what to expect. Twentyseven percent of Realtors® say they’re concerned enough about the ongoing threat of the coronavirus that they have shifted their business practices to better prepare. The biggest way real estate pros have adapted their businesses centers on showing properties virtually. Online home tours have influenced more buyers to submit offers on homes they’ve never physically visited, with 26 percent of respondents saying their buyers who put contracts in this week took such a course of action.

8 | Salt Lake Realtor ® | August 2020

Sick of your deals not closing on time? We have all loan products, we go down to 580 credit score and we even have a 10 day close! Give us your turned down clients and weâ€™ll save them and make you the HERO!

See more at

CCMAgent.com CrossCountry Mortgage, LLC | 6975 S Union Park Center, Suite 420 | Cottonwood Heights, UT 84047 | NMLS1914653. This piece is for professional realtor use only. It is not intended for consumer use. All loans subject to underwriting approval. Certain restrictions apply. Call for details. CrossCountry Mortgage, LLC. NMLS3029 (www.nmlsconsumeraccess.org). Equal Housing Opportunity.

Realtor® Day in Herriman

ore than 200 Realtors® and affiliate members gathered in Herriman on July29th for Realtor® Day at the Cove. The event included a lunch and tour of three homes featured in the Salt Lake Parade of Homes. The event was sponsored by Sage Homes, Salt Lake Parade of Homes, Salt Lake Board of Realtors®, and Mountain America Credit Union.

Photos: Dave Anderton, Gavin Krushensky 10 | Salt Lake Realtor ® | August 2020

August 2020 | Salt Lake Realtor Â® | 11

Wasatch Front Real Estate Market Heats Up In the first half of 2020, there were 18,489 home sales on the Wasatch Front, the third highest number of home sales in a January-throughJune period since the MLS started keeping records. By Dave Anderton

The Covid-19 pandemic dampened Wasatch Front home sales in April and May. However, the downturn in residential real estate appears to be short lived. One contributing factor is the recordlow mortgage interest rates that are fueling more people to buy homes.

through-June period since the MLS started keeping records.

Wasatch Front home sales were up 6 percent in this year’s first quarter, but fell 8 percent in the second quarter as the pandemic spread. Overall sales were down just 3 percent in the first six months of 2020 compared to the same period in 2019. In the first half of 2020, there were 18,489 home sales on the Wasatch Front, the third highest number of home sales in a January-

An agent in her office recently represented a buyer who made an offer of $310,000 on a West Jordan home listed at $289,000. “They were competing with 21 other offers,” Gunn said. “They did not get the home. They were outbid by $10,000.”

12 | Salt Lake Realtor ® | August 2020

Klair Gunn, associate broker with Keller Williams South Valley, said she has never seen anything like today’s market in her 43 years of selling real estate.

Gunn said multiple offers are common, especially in the lower price ranges. Even blind real estate

“An agent recently represented a buyer who made an offer of $310,000 on a West Jordan home listed at $289,000. They were competing with 21 other offers. They did not get the home. They were outbid by $10,000.” Klair Gunn The competition could become more intense as more people migrate to Utah. According to a July article in Forbes magazine, “professionals have begun migrating en masse from America’s biggest cities to urban areas with hot job markets, more affordable costs of living and comparable lifestyles. Additionally, businesses are seeking a break from state income taxes. Many states with great income-to-cost-of-living ratios also have the least tax liability.” Alicia Holdaway, president of the Salt Lake Board of Realtors® and an agent with Summit Sotheby’s International Realty, said she is currently representing clients moving from California, Arizona, and Maryland. When Covid hit, Holdaway said one of her clients packed up everything and moved from San Francisco to Park City. The client decided to stay in Utah and is currently under contract on a townhome.

Andy©/ Adobe Stock

offers, where a buyer hasn’t seen the property, are being made. A lack of housing inventory, especially first-time home buyer properties, aggravates the situation.

Urban families spurred by the pandemic are moving out of cities, according to The Wall Street Journal. “This whole thing is catastrophic and petrifying for families in urban areas,” Alison Bernstein, founder and president of Suburban Jungle, a company that specializes in matching city clients with their ideal suburban town, told

Long-Term Rental. No Long-Term Commitment. Looking for a great alternative to leasing or even purchasing? It’s time to rethink your personal or business transportation needs and try our Long-Term Rental Program. You can choose a new model vehicle for a competitive monthly rate. No cost for preventative maintenance and generous monthly miles are included. Best of all, no long-term commitment.

August 2020 | Salt Lake Realtor ® | 13

the Journal. “People want out of the city and now.” Some are prompted by safety concerns. Others worry the shelter-in-place edict will drag on, confining them to small city apartments. A recent survey identified the fastest-growing cities in America. The rankings included: Salt Lake City, Orem, Provo, Sandy, West Jordan, West Valley, Ogden, St. George, and Layton. “These rapid-growth cities have thousands of new arrivals each month who need places to live. As a result, real estate developers — especially multifamily developers — find themselves in one of the hottest markets in decades,” the Forbes article stated. James Wood, Ivory-Boyer Senior Fellow at the University of Utah’s Kem C. Gardner Policy Institute, said new residential building permits

14 | Salt Lake Realtor ® | August 2020

issued in Utah January through May of 2020 set an all-time record. Nearly 12,000 permits were issued in that period, the highest number of new residential permits in a five-month period ever. More than half of those permits were for multifamily units or apartments. Wood added that Covid-19 is not affecting housing prices, but has impacted renters and people employed in the retail, recreation, leisure, health care, and hospitality industries. “I’m continually blown away by the record sales numbers we go over every week,” Holdaway said. “A lot of Utahns are at work and staying at work. There’s a lot of confidence in the market. The interest rates are just mind blowing.” Dave Anderton is the communications director of the Salt Lake Board of Realtors®.

Sc an w i th you r s mart ph o n e cam e r a t o experi en ce collectionsmedia.com

COLLECTIONSMEDIA .COM Announcing the launch of Collections Media House, the creative home of Summit Sotheby’s International Realty, our agents and our in-house advertising agency. You’ve seen the globally recognized print publication, now experience the best in curated o r i g i n a l co n t ent . F r om film s t o fash i o n , i n te ri o rs to co o k i n g , co l l e cti o n s m e d i a. com is t h e n ew est i n nov a t ion fr om S um mi t S o th e b y ’ s I n te rn a ti o n a l R e a l ty , d ri vi n g traffic to o ur p r o p er t i e s, our sa le s assoc iat es a n d o u r d e ve l o p m e n ts . ©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. Each Office Is Independently Owned And Operated. An Equal Opportunity Company. Copyright© Summit Sotheby’s International Realty 2020.

YOUR CLIENTS DESERVE TO BE IN THE 2'S NMLS ID 85855 | 79053 | 137701

1260+ reviews (4.9 stars)

2.750% 30 YR. RATE

2.828% APR Rate as of 7.27.2020

expect to save money Get an instant 2nd opinion online.

citycreekmortgage.com/find-your-best-rate to find out more OR Call us at 801-501-7950 We will help keep more of their hard earned money in their pockets each month, while making you the hero of their story.

3X WINNER

BEST OF STATE MORTGAGE BROKER

2018, 2019, 2020

How the Pandemic Pushed Home Prices to a Record High amid Historic Economic Downturn The total inventory of U.S. homes on the market is about a third less — roughly 440,000 properties short — than what existed last summer. By Clare Trapasso Who would have thought that this summer, with the number of COVID-19 cases surging and new rounds of restrictions and shutdowns, would yield one of the most competitive housing markets in recent memory? Nonetheless, home prices have hit record highs as buyers are battling it out across the nation over a limited selection of reasonably priced abodes.

at the same time that demand for them had skyrocketed. This happened despite the economy shrinking by 9.5 percent in the second quarter of the year from the previous one, as the U.S. Commerce Department reported Thursday. Gross domestic product, aka GDP, the value of goods and services produced, dropped the most in the more than 70 years that it has been recorded.

In July, the median home price shot up 8.5 percent year over year, to hit a new all-time high of $349,000, according to the most recent realtor. com® data. And those mind-boggling high prices, shooting up in the middle of a recession with the worst unemployment since the Great Depression and an economy undergoing a historic contraction, are a direct result of the pandemic.

“When the pandemic helped tip the U.S. economy into recession, most homeowners and home buyers braced for falling house prices,” said Realtor.com Chief Economist Danielle Hale. “That’s what happened in the last recession. But that’s not what we’re seeing in today’s market. We had a housing shortage already, and the pandemic has created conditions that have only worsened it.”

Buyers paid a median $27,000 more for a home in July than they did last year because the supply of available properties for sale plummeted

18 | Salt Lake Realtor ® | August 2020

The total inventory of homes on the market is about a third less — roughly 440,000 properties

short — than what existed last summer. In some parts of the country, new home construction was delayed or paused in the spring in the beginning of the pandemic. Meanwhile, many sellers nervous about contracting COVID-19 from buyers touring their homes put off plans to list their residences or pulled them off the market. Many of those listings have yet to go back up. This intensified housing shortage collided with scores of buyers hoping to quarantine in larger abodes and take advantage of the lowest mortgage interest rates ever. Buyers who were sidelined by the virus in the spring are now jockeying with those who had planned to buy in the summer. And they’re competing with those who had no plans to move until the stay-at-home orders created a burning desire for additional square footage and a big backyard in which to ride out the crisis. Record-low mortgage rates have added fuel to the fire as homeownership is now more affordable for buyers. They dipped below 3% for the first time in the week ending July 16, according to Freddie Mac. (They have since ticked up to 3.01% in the week ending July 23.) Those shrunken rates can greatly reduce monthly mortgage payments. The reduced rates are a consequence of the federal government’s actions and the response of investors to the turbulent economy. “We have this market imbalance tipped pretty solidly in favor of sellers at this point,” said Hale. “Yet many homeowners believe that now is still not a good time to sell.” This has led to a return to bidding wars and offers over asking price, which is helping to drive up home prices. And it doesn’t look like they’ll be coming down anytime soon. Prices shot up even more in the latter half of the month, rising a median 9.1% in the weeks ending July 18 and July 25 compared with the previous year, according to realtor.com data.

Metro areas include smaller towns, cities, and suburbs. These areas outside of the densely packed cities where buyers can get more square footage and outdoor space for their money and have an easier time maintaining social distance have become more popular as the pandemic has dragged on. Pittsburgh was followed by Los Angeles, where prices rose 24.3 percent year over year, to $994,154. Next up was Philadelphia, up 18.5 percent, to $340,000; Cincinnati, up 18.5 percent, to $339,950; San Francisco, up 15.3 percent, to $1,054,210; Cleveland, up 13.5 percent, to $235,050; Boston, up 12.5 percent, to $675,050; Kansas City, MO, up 12.3 percent, to $351,025; Washington, DC, up 11.6 percent, to $529,995; and Providence, RI, up 11.4 percent, to $434,500. “The U.S. housing market performance is closely mirroring COVID[-19]’s path, which is providing clues into what we can expect for various housing markets in the months to come,” Hale said in a statement. “After being particularly hard hit in March and April, new coronavirus cases remain stable in the Northeast and we’re seeing buyers return to the market in force.” Home prices fell in only two of the nation’s 50 largest metros: Miami, where they dipped 1.5 percent compared with last year, and Orlando, FL, where they ticked down 0.9 percent. Median home prices were $403,826 in Miami and $320,050 in Orlando. The Florida cities have been hard-hit by the coronavirus, which may help to explain the declines. Clare Trapasso is the senior news editor of realtor.com and an adjunct journalism professor at the College of Mount Saint VIncent. She previously wrote for a Financial Times publication, the New York Daily News, and the Associated Press. She is also a licensed real estate agent. Contact her at clare.trapasso@ realtor.com.

Where are home prices rising the most—and where are they down? Some Northeastern housing markets that were devastated in the spring by the pandemic have rebounded — and then some — as their number of positive cases has fallen. But prices are also up in California and Midwestern cities where the residents are currently being infected at higher rates. Of the 50 largest metropolitan areas, annual prices rose the most in Pittsburgh. Median prices in the Steel City and surrounding area were 25 percent higher in July than the previous year, hitting a median $249,950. Image licensed by Ingram Image

August 2020 | Salt Lake Realtor ® | 19

How Your Response to COVID-19 Can Attract Clients Researchers have developed a five-step guide for managing business relationships during a crisis. Get ideas for how to apply them to your real estate operations. By Melissa Dittmann Tracey

In a relationship-driven business like real estate, it may seem impossible to keep physical distance yet still feel emotionally connected. But practitioners are finding new ways to form bonds with their clients during the coronavirus pandemic and increase their customer pipelines. To do that, take “HEART.” Texas Tech University researchers, as well as professors Ted Waldron and James Wetherbe, developed the HEART framework to guide small businesses through their response to the crisis. The model, which reviews seven decades of business practice and scientific research, consists of the following steps:

20 | Salt Lake Realtor ® | August 2020

• Humanize your company • Educate about change • Assure stability • Revolutionize your offerings • Tackle the future •

‘H’ is for Humanize

Leverage empathy by acknowledging the unique circumstances your past and current customers are facing during this time. Be careful about blending “caring” messages with a sales message, Waldron and Wetherbe noted. Also, don’t be afraid to address the grimness of the current reality. If your business webpage or

marketing doesn’t mention COVID-19 at all, you risk looking irrelevant, Chris Smith, co-founder of the digital marketing company Curaytor, told attendees during a recent realtor.com® webinar. Reach out to customers in a variety of ways, from sentimental to humorous gestures. Connie and Dan Carlson, founding partners of Ansley Atlanta in Marietta, Ga., launched a “Marietta Strong” blog at their website, promoting a “we are all in this together” message. A video at the site shows community hot spots and local businesses, along with a message of hope, resilience, and unity in the face of COVID-19. Even seemingly small gestures can have a big impact. Brad Inman, founder of Inman News, recently shared how the makings for a dinner treat—chicken and leg of lamb—was unexpectedly left on his doorstep. “It was from my local real estate agent,” he said on a recent podcast. “No card, no expectation, and exactly what I needed. Never before have smart, caring agents proved their value more so than right now.” Fun and humorous ways of connecting may inspire the greatest following. Kristina McCann,

broker-owner of Chroma Realty in the San Francisco area, started a ‘mingo’ movement that other real estate professionals in California have replicated. In the evening hours, pros stake out a flock of plastic pink flamingos in people’s yards with “happy birthday” messages for those missing out on special celebrations during the pandemic. The gesture is not about marketing their companies. “My intention was to just spread joy and happiness to people during this time,” said Anthony Marguleas, broker-owner of Amalfi Estates in Pacific Palisades, Calif. “We just wanted to put a smile on people’s faces.” Likewise, Terry Wolak and his alter ego, “The Messy Chef,” are becoming an internet sensation. Wolak, a sales associate with Howard Hanna Real Estate in Penfield, N.Y., shows off his culinary talents in Facebook Live videos shot from his “quarantine kitchen.” His humorous cooking shows also occasionally feature a friend—keeping distance from one another, of course—such as one captured playing a guitar outside his kitchen window. “I think right now people yearn for the humor, the connection, the interaction,” Wolak told Spectrum News about his videos.

HEY REALTORS FIRST-TIME

NO DOWN PAYMENT

100% FINANCING AVAILABLE! VISIT US ONLINE AT UCREDITU.COM OR CALL 801.481.8840

Federally Insured by NCUA

August 2020 | Salt Lake Realtor ® | 21

‘E’ is for Educate Share with customers via social media, e-newsletters, and on your website how they can interact with you during the pandemic. Let them know the business changes you’ve made, too. As Chicago issued its stay-at-home orders in March, Erica Cuneen, CIPS, GREEN, broker-owner of Beyond Properties Realty Group, was quick to reach out to customers with weekly emails informing them of how real estate was adapting. The brokerage’s emails detailed in a simple format steps that were being taken among four customer categories: for sellers closing, buyers purchasing, active sellers, and active buyers. Eric Rollo, CIPS, a sales associate with William Raveis Real Estate in Boston, launched a “COVID-19 Resource Hub,” a one-stop website where visitors can learn about health department updates as well as guides on how to access emergency aid. The site culls links on the latest number of coronavirus cases in the Boston area and the state of Massachusetts, homeowner mortgage assistance information, rental assistance and small business help, unemployment aid, and volunteer opportunities.

‘A’ is for Assurance As the economic and personal toll of the virus mounts, customers may look to companies for assurance. Connie Carlson, associate broker for Ansley Atlanta in Marietta, Ga., posts weekly market snapshots on social media, which include the number of homes listed, under contract, and sold. “We do this to reassure that the market is still continuing on,” said Carlson, who recently listed seven new properties in one week. “Sellers still need to sell, and buyers still need to buy.” Carlson also requires her clients to sign a COVID-19 release form prior to home showings, which she says puts them at ease. The form asks buyers to verify that they aren’t currently ill and to keep their hands in their pockets during tours. Sellers are asked to turn on all lights and open closet doors prior to any showing. “We want to limit how much people have to touch things in the properties,” Carlson said. “We have our clients sign these forms to feel more comfortable that everyone is doing their part to prevent the spread of germs from house to house.”

‘R’ is for Revolutionize “Technique often lags behind technology,” Wetherbe said. “The pandemic has forced innovation in doing things differently.” Real estate professionals are using tech tools for showings, such as virtual tours and agent-

22 | Salt Lake Realtor ® | August 2020

led video walkthroughs. Carlson is doing a Matterport 3D tour for all her properties, enabling online house hunters to walk through a property virtually, assessing a home in all directions, and even peeking inside closet doors. She’s also holding virtual open houses on Sundays, where online visitors can tune in to livestreams of house tours. Kara Keller, SFR, a broker at Baird & Warner in the Chicago area, is using a drone to show off her listings (video above). She teamed with Doola, a digital marketing company, to send a drone inside properties to capture video footage. Keller then narrates the drone-led video tours and promotes them on the MLS and her website as a way buyers can tour properties remotely.

‘T’ is for Tackle (the Future) As your company innovates, look for ways to adopt new processes for the long haul. After all, “some of this technology being embraced could help real estate professionals ultimately sell even more houses in less time,” Wetherbe said. For example, relying on face-to-face showings before the pandemic may have been time-consuming. Now brokerages have developed new ways to virtually show homes and keep people from having to spend time traveling to a property. Businesses should not be quick to abandon new processes once the pandemic is over, the researchers noted. These new ways of doing business could prove to be a differentiator in the future. Companies that are quick to return to older business methods may ultimately fall behind. “I believe the companies that will stand out will be doing things a different way in the future, too,” Waldron said. As businesses sort out the future, the researchers say that a customer-centric attitude and awareness of what people need right now is key. “Companies can emerge from this crisis with strengthened relationships with customers,” the researchers note in an article published in the Harvard Business Review. “Give consumers your HEART during this difficult time. It will cultivate long-lasting goodwill with past customers and help ensure they will stay with you in the future.” 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. Reprinted from Realtor® Magazine Online, May 2020, with permission of the National Association of Realtors®. Copyright 2020. All rights reserved.

Don’t Forget the Local Races Some election races – like the city council – will literally come down to a coin toss. By Marcus Jessop I remember like it was yesterday. An incumbent councilmember was in a neck-and-neck race against another very good candidate. When the final election results came in, both candidates got exactly the same number of votes. In those rare cases that both candidates receive the same number of votes, the city conducts a recount. Over the next several days, the city counted the votes to determine the winner. Interestingly, after the recount, both candidates were still tied in terms of votes received. Election law states that after an election and recount, if both candidates are still tied, then the election is decided by a game of chance. Both candidates decided to flip a coin to decide the winner, and, as logic would assume, only one candidate came out victorious

24 | Salt Lake Realtor ® | August 2020

– the sitting incumbent. I learned an important lesson that day: every vote literally does count. The election season is heating up. Many are aware that election coverage has primarily focused on what is happening at the federal level: the president, members of Congress, etc. This dominant news coverage has led many people to focus on who is running at the top of the ballot and ignore those at the lower end of the ballot. Take a look at your ballot next time: • President • Congressional seat candidates • State-wide races (like governor or attorney general) • State Senate and House Races

• Local county races (like county mayor) • State Board of Education or local School Board • Judges There is definitely a lot to vote on this coming election, and it can seem a daunting task to get informed and vote your conscience; however, I know you can do it. We can all make a difference this election season by remembering to vote local!

Down Ballot Elections Let me go over a scenario that shows how the number of total votes cast decreases as you get further down the ballot. In the 2016 Salt Lake County election, 423,743 ballots were counted for some candidate running for President of the United States. As a reminder, we are only focusing on votes counted in Salt Lake County. The number of votes counted starts to drop as you get into more local elections: • Salt Lake County Mayor: 402,485 votes cast (21,258 fewer votes than the presidential election; a 5% drop) • Salt Lake County at-large: 392,300 votes cast (31,443 fewer votes than the presidential election; a 7% drop). It is even more interesting when you look at the 4th Congressional District where 230,718 votes were recorded in 2018 - and yet, the two county council districts that represent most of the 4th Congressional District showed only 92,831 votes1. That’s 137,887 fewer votes than votes cast in the 4th Congressional District race – a whopping 59% drop in down ballot voting! This data indicates that many people are voting for candidates at the top of the ticket, but as you get to the races that are less “media heavy,” voters are not showing up in high numbers like they do at their federal counterparts.

Straight Ticket Voting - Gone I want to add a short caveat to this discussion. In past elections, straight ticket voting was a way for people to vote for every Democrat, Republican, or other partisan political party on the ballot, without actually filling in the bubble next to every candidate name that is running in that particular political party. This method of voting was overturned by the legislature in the last session. No more voting straight ticket – that’s gone. This means that you have to vote for each individual on the ticket, which, in my estimation, will increase the number of people not voting for lower-balloted candidates. My hope is that after this article is over, you will understand the importance of voting for every candidate down ballot – not just the highprofile races.

All Politics Is Local You may have heard the phrase that all politics is local. Well, not all politics is local, but a lot of what affects our lives in terms of taxation, school policy, whether a business is deemed essential, etc., all happens at the local level. During the COVID-19 shutdown in Utah, the Salt Lake County Mayor had a lot of discretion on what businesses were deemed essential. Ultimately, the Salt Lake County Mayor deemed real-estate essential. However, the COVID-19 crisis has demonstrated the importance of studying each candidate, federal and especially local, and making sure that your vote counts!

Image licensed by Ingram Image

Here’s another example. Have you seen your last property tax bill? There’s nothing on there about federal taxes. You might be interested to see that most taxes levied on your property are from the school district, the county, city, sewer, etc. None of those elections are going to draw big numbers like the presidential race, but they have a big impact on your family and finances.

Conclusion This brings me back to my original story. Every election from presidential to congressional to local races could come down to just a few hundred votes that will decide if your candidate/ party is governing or sitting on the sidelines. Some races – like the city council race – will literally come down to a coin toss. We have a ton of important issues coming up this election; not just taxes and real-estate related issues, but also social issues that have sparked many of the protests we see today. All these issues are usually solved at the local level. Rarely are they decided in the halls of Congress. Don’t stop voting after you vote presidential and congressional races, etc. Keep going! If you are unsure about who to vote for, then ask, research, and take the time to understand the local issues before casting your vote. You can go to vote. utah.gov, enter your address and information, and find which candidate will be on your ballot before you get it in the mail in October. Once again, I want to encourage everyone, whatever your political affiliation, to make your voice heard in 2020! Remember to vote down ballot, and don’t forget those all-important local races. Marcus Jessop is the government affairs director of the Salt Lake Board of Realtors®.

1 Salt Lake County Council District 1 and 2 elections are opposite years. Council District 1 election was held in 2018, while Council District 2’s election was held in 2016. 48,694 people voted in Council District 1 in 2018 and 44,137 people voted in Council District 2 in 2016. 230,718 people voted in the 4th Congressional race in 2018; in 2016 – 230,770. I decided to use 2018 as a good reference. August 2020 | Salt Lake Realtor ® | 25

7 Client Behaviors Emerging From COVID-19 The delayed spring market is definitely occurring now in the summer months. By Melissa Dittmann Tracey As the effects of the pandemic continue, nine in 10 Realtors® say their housing markets are in recovery mode, with many even saying their markets are hotter now than a year ago, recent member surveys from the National Association of Realtors® show. “The delayed spring market is definitely occurring now in the summer months,” said Jessica Lautz, NAR’s vice president of demographics and behavioral insights. The housing market is seeing unprecedented monthly jumps in existing-home sales, and home price appreciation remains strong. Lautz noted several insights, culled from recent NAR research, that show how buyers’

26 | Salt Lake Realtor ® | August 2020

and sellers’ behavior is changing during the coronavirus health crisis. She highlighted those findings at Thursday’s “REvive! From Crisis” virtual conference that featured an all-day lineup of industry leaders and speakers. 1. Buyers are in a rush. Last year, buyers looked at an average of nine homes before making a home purchase. Now, they’re looking at three to four homes before initiating a contract. “Buyers are fast-forwarding their transactions,” Lautz said. Homes are selling in an average of just 24 days. More than a quarter of Realtors® report their buyers are acting with greater urgency over recent weeks, particularly those making home purchases in rural areas. (continued on page 30)

August 2020 | Salt Lake Realtor Â® | 27

JUNE HOUSING WATCH Second Quarter Home Sales Drop, but June is a Bright Spot The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown. This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.” Lawrence Yun, chief economist of the National Association of Realtors® spring home buying season has been pushed to summer months.

The coronavirus pandemic and subsequent business shutdowns affected home sales across the Wasatch Front. Single-family home sales in the second quarter in Salt Lake County dropped to 3,274 units sold, a 14-percent decline from a year earlier and a seven-year low for overall second quarter sales. One bright spot in the second quarter was the rise in single-family home sales in the month of June, which increased 5 percent compared to sales in June 2019. Lawrence Yun, chief economist of the National Association of Realtors®, said that if the virus shutdown was less than three months, there would be a quick, robust rebound to the housing market. In Salt Lake County, that is proving to be the case as the

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” Yun said. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.” June’s sales increase suggests the worst might be over, as record-low mortgage interest rates drive buyers to purchase homes. Prior to June, single-family home sales had fallen three consecutive months: March sales were down 3 percent; April sales dropped 25 percent; and May sales were down 22 percent year over year. Other Wasatch Front counties saw similar declines in the second quarter: Davis County sales were down 7 percent; Tooele County saw sales drop 17 percent; Utah County sales were down 6 percent. Weber County sales were flat, falling just 0.2 percent. The top 5 ZIP codes with the highest number of single-family home sales in the second quarter were (percent change year over year): Lehi (84043) 314 sales, down 6 percent Eagle Mountain (84005) 300 sales, up 13 percent Tooele (84074) 290 sales, down 19 percent Herriman (84096) 285 sales, up 2 percent Clearfield (84015) 278 sales, down 6 percent Salt Lake County’s median home price in the second quarter climbed to $404,193, up 6 percent from a year earlier. Weber County posted the lowest median home price at $300,000, up 8 percent year over year. In the second quarter, the typical Salt Lake home was on the market 31 days before it sold, down from 36 days on the market in the second quarter of 2019.

28 | Salt Lake Realtor ® | August 2020

August 2020 | Salt Lake Realtor Â® | 29

particularly younger buyers—wanting to live closer to their family. The top reasons to move before the pandemic were a new job, marriage, or baby. But now most moves are being driven by young millennials—twenty-somethings— who want to be near their family or friends. “The family unit appears to be becoming more important, and I think COVID could increase this trend,” Lautz said.

7 Client Behaviors (continued from page 26) 2. Wish lists are shifting. Home shoppers are changing some of their priorities for home features. For example, NAR research shows that the top feature desired by buyers is a home office. Many households may need more than one. Also, more home buyers are sizing up outdoor space, showing an increasing desire for a pool, garden, or just more space to enjoy the outdoors. 3. Buyers are less concerned about commutes. As remote work grows, 22 percent of about 2,300 Realtors® surveyed by NAR said their buyers are becoming less concerned about commute time when shopping for a home. Freedom from the bounds of the commute has allowed some buyers to expand their searches beyond city centers to the suburbs and exurbs— which may also offer more affordable housing. A quarter of Realtors® report their buyers are looking away from the city center and toward to the suburbs or smaller towns. “If workplaces keep changing and there’s this greater acceptance of remote working, this trend could stick around longer,” Lautz said. Also, second homes may be in greater demand. “If they can work from any place, we could see more buyers embrace second homes in rural areas,” Lautz said. 4. Multigenerational households may grow more common. One in six Generation Xers and younger baby boomers purchased a multigenerational home pre-COVID. Lautz suggested that trend could increase as more generations, including aging parents and adult children, all come under the same roof during the pandemic. “Moving forward, that could mean your buyers will be looking for larger singlefamily homes,” Lautz said. “They also may want to make sure they have a sizable living space on the first level” for an aging parent. Also, recent surveys show a growing desire of buyers—

30 | Salt Lake Realtor ® | August 2020

5. Pets could drive purchase decisions. The pandemic has sparked a surge in households that want a pet. NAR surveys have shown that pets can influence when and where people buy. Forty-three percent of households say they’d be willing to move to better accommodate their pet, according to NAR’s 2020 pets in real estate study, “Animal House: Pets in the Home Buying and Selling Process.” “We see consumers actually want to buy a property because of a pet, and then they may want a fenced-in yard and extra space for their animals,” Lautz said. 6. A first-time buyer wave could emerge. Consumers may show more commitment to their home than to long-term relationships. In the 1980s, 75 percent of first-time buyers were married. In 2019, that dropped to 53 percent. Young adults are waiting longer to get married. Meanwhile, unmarried couples are buying homes at the highest levels ever recorded by NAR: 17 percent. Also, NAR research has seen a rise in roommates pooling their incomes to purchase a home together. NAR’s research shows that percentage at a mere 4 percent, but Lautz noted it’s the highest share that NAR has ever recorded. Overall, in 2019, first-time buyers comprised 33 percent of the housing market, still a low number by historical standards. “But there could be an uptick, particularly in affordable places further out,” Lautz said. “If young professionals become less tied to a metro area for work—in metros where it can be difficult to afford a property—they may increase their purchases.” 7. Housing tenure could fall. Over recent years, homeowners have stayed put in their homes longer than they have in past—an average of 10 years, which is longer than the traditional six-year average. Americans are not moving longer distances like they did in the 1980s. As cities urged stay-at-home restrictions during the pandemic, consumers may start to question whether their home fits their current needs. “Interest rates are at all-time lows; [consumers] may want to move and find a home where they can work from and the kids can too, and they want more yard space to relax,” Lautz noted. “This change in homeowner tenure could be one we see coming soon.”

Our agents are all in. Are you? Our Hub App keeps you connected to information and resources like our Safe Showing Center and exclusive education events

Safety kits and supplies help keep you ready to show homes on the fly

Weekly economic videos by our Chief Economist Matthew Gardner and automated drip emails

Partnered with Distillery36 to create branded hand sanitizer

Love making peopleâ€™s dreams come true? Text Monica at 435 313 7905