Salt Lake Realtor December 2014

Salt Lake

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2014 Annual Report to Members p. 10 Commercial Real Estate Forecast p. 14 Credit Access Limits Recovery p. 30

Welcome to our team We are excited to announce that Ace Allak has joined Guaranteed Rate

“I

am excited to join Guaranteed Rate as Branch Manager in Midvale, UT. Our goal is to impact the lives of our buyers, referral partners and the community.

We now have unsurpassed products, technology and pricing to help our referral partners approve more buyers and get them home. Using these tools, I look forward to growing our market.”

Ace Allak

Branch Manager Midvale, Utah

For more information about Guaranteed Rate, contact Julia Borst at 801-617-1200, or julia.borst@guaranteedrate.com 6900 South 900 East Suite 150 • Midvale, UT 84047 Guaranteed Rate is an Equal Opportunity Employer

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Major investors to RPAC at an all-time high in Salt Lake Board of Realtors® p. 18

Table of Contents Features 10 Salt Lake Board of Realtors® 2014 Annual Report to the Members Curtis A. Bullock

14 Commercial Real Estate Demand is Holding Steady Despite Overseas Concerns NAR

18 2014 Realtor® Party Review Justin Y. Allen 30 Credit Access Limits Recovery

Robert Freedman National Association of Realtors®

Columns 7 High Expectations Angie Domichel Nelden – President’s Message

Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move

On the Cover: Snowbird, Utah Photo: Dave Anderton

Photo left: Utah State Capitol © Chris Boswell / Dollar Photo Club

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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December 2014 volume 74 number 12 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.

Wishing you a wonderful holiday.

May the season bring you and your family an abundance of cherished moments.

844-542-5626 | LOANS@SNMC.COM | 6965 UNION PARK CENTER | COTTONWOOD HEIGHTS, UT 84047 SECURITYNATIONAL MORTGAGE COMPANY | NMLS# 3116 | WWW.SNMC.COM

Gives Back

Coldwell Banker

In 2014, the Coldwell Banker Community Foundation gifted to the communities of Utah over $60,000.

Since the foundation’s inception, the employees and Independent Associates of Coldwell Banker Residential Brokerage have continually shown suppor t, compassion and an overwhelming desire to pay it forward.

We are proud to have par tnered with these organizations, and others, in 2014 and look forward to another great year of giving, sharing and growing!

The Sharing Place • Christmas Box House • Ronald McDonald House The Road Home • Turn Communities • Primar y Children’s Hospital Utah Food Bank • South Davis Community Hospital Safe Harbor Crisis Center UtahHomes.com | 801.563.7600 ©2014 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor sales associates and are not employees of Coldwell Banker Real Estate LLC, Coldwell Banker Residential Brokerage or NRT LLC.

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President Directors Managing Editor Angie Domichel Nelden Dave Anderton Cheryl Acker Coldwell Banker Residential

Copy Editor

M. Brock Andersen First Vice President Georgia Cuthbert Prudential Utah Real Estate Dave Robison Communications Committee Jared Booth Robison & Co. Coldman Banker Lori Lee – Chairwoman Annie Hedberg – Vice Chairwoman Tom Colemere Second Vice President Colemere Realty Publisher Troy Peterson Inc.Linda Geer Equity Real Estate Mills Publishing,Coldwell Banker Residential www.millspub.com Shirley Jacobson President Sales StaffReal Estate Treasurer Windermere Miller Paula Bell Adam Dan Kirkham Lisa Jungemann Kirkham Real Estate Bill LinesReal Estate Windermere Office Administrator Karen Malan Cynthia Bell Snow Tony Ketterling Paul Nicholas Past President Equity Real Estate Art Director Don Nothdorft Dave Frederickson Mike Morgan Jackie Medina Keller Williams Keller Williams Administrative Assistant Magazine Designer ChloéMichael Herrman Rowe Erin Tripp CEO Prudential Utah Real Estate Office Assistant Curtis Bullock Graphic Design SharonSnow Spratley Jessica Prudential Utah Real Estate Erin Tripp Ken Magleby Patrick Witmer Advertisinginformation informationmay maybe beobtained obtainedby bycalling calling Advertising (801)467-9419 467-9419ororby byvisiting visitingwww.millspub.com www.millspub.com (801)

Managing Editor Directors President DeAnna Dipo Dave Anderton Cheryl Acker Distinctive Properties

High Expectations

At Home Realty

At Home Realty

First Vice President Publisher Jillinda Bowers Purdential Utah Donna PozzuoliMills Publishing, Inc. Daniel Christensen Prudential Utah www.millspub.com Coldwell Banker

Second Vice President President Sarah M. Colbert Dave Frederickson Dan Miller Summit Sotheby’s Keller Williams Art Director Tom Colemere Treasurer Jackie Medina Colemere Realty Charlotte Thomas Kim Farber-Lynch OfficeEquity Administrator Graphic Design Keller Williams Real Estate Cynthia Bell Snow Leslie Hanna Lisa Hyte PastKen President Magleby RE/MAX Canyons Office Assistant Bill Heiner Patrick Witmer JessicaJacobson Snow Shirley

S

omeone once said, “High expectations are the key to everything.” As 2014 comes to an end I am pleased to report that we have achieved great things as an association this year. First, our members continue to step forward and freely give of their time and talents in making the real estate profession a better place. I personally want to thank each of you for your dedication and commitment to your careers and the attention you have given to the association, our committees, events and the professionalism in how you do your work. Thank you.

In particular, the Salt Lake Board of Realtors® ended the year with 128 major investors to the Realtors® Political Action Committee, each one investing $1,000 or more. This number is the most of any local association in the entire country and even surpasses total major investors compared to 35 state association totals. Congratulations!

Next, the housing market this year represented incredible opportunities for our members. Last year home sales reached a seven-year high. This year closings are a bit slower, but demand remains strong. In fact, in the first 11 months of this year there were 13,433 home sales in Salt Lake County, down less than 3 percent compared to the same period last year. On the other hand, home prices have inched up roughly 3 percent this year, more in line with historical price trends.

RE/MAX Associates

Sales Staff Chief Executive Officer Paula Bell Bryan Kohler Karen Malan Paul Nicholas

Windermere

Administrative Assistant Fred Law Kyrsten Holland Law Real Estate Angie Domichel-Nelden Coldwell Banker

Troy Peterson Equity Real Estate

Salt Lake Board: (801) 542-8840 Salt Lakee-mail: dave@saltlakeboard.com Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.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 equal housing opportunity the nation.

We The Saltachievement Lake Board ofofREALTORS is pledged to thethroughout letter and spirit of U.S. policy encourage and support the affirmative advertising throughout and marketing for the achievement of equal housing opportunity the program nation. Wein which thereand are support no barriers obtaining advertising housing because of race, color, religion, encourage thetoaffirmative and marketing program in sex, handicap, familial or national origin. which status, 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 ® persons quoted in articles are their own and do not necessarily expressed by writers is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions The Salt Lake REALTORand reflect positions of theand Saltpersons Lake Board of REALTORS expressed by writers 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 well and photographs this issue, provided proper is given to The Salt Lake REALTOR®, as Permission will beingranted in most cases, uponcredit written request, to reprint or reproduce articles ® as any writers and photographers whose names appear withtothe andREALTOR photographs. , as well andtophotographs in this issue, provided proper credit is given Thearticles Salt Lake While unsolicited original manuscripts and photographs related to the real estate profession as to any writers and photographers whose names appear with the articles and photographs. are welcome, no payment is made for their in the publication.

While unsolicited original manuscripts and use 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 ® ® not necessarily by theand Saltadvertising Lake Board content of REALTORS REALTOR Views andare opinions expressedendorsed in the editorial of the. However, The Salt Lake advertisers do not make publication of this magazine so consideration products and necessarily endorsed by the Saltpossible, Lake Board of REALTORS®.ofHowever, REALTOR® are services listed greatly appreciated. advertisers doismake publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

On the communication front, the association launched a new website this year with a new design. The site offers easier functions for our members to sign up for classes and events, join as a member and make a contribution to RPAC. Our previous website was more than five years old. Visit our site at www.slrealtors.com.

Finally, it has been my privilege to serve as president of this remarkable association.

What makes it remarkable is you. I am amazed and surprised everyday by the work and passion I see in each of you. It inspires me to be a better Realtor® and person.

Thank you for a fantastic year!

Angie Domichel Nelden 2014 President

OFFICIAL PUBLICATION OF THE OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ®® SALT LAKE BOARD OF REALTORS REALTOR is a registered mark which identifies a professional in real estate who subscribes ®

® . toREALTOR a strict®Code of Ethics asmark a member of the NATIONAL ASSOCIATION REALTORS is a registered which identifies a professional in realOFestate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®.

October 2005

October 2005

Salt Lake Realtor® December 2014

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Happenings In Memoriam of Dan Simons

Pictured: Wilburn McDougal, Kenny Parcell, and Dan Simons.

Dan Charles Simons, a former president of the Salt Lake Board of Realtors® and the Utah Association of Realtors®, passed away on Saturday Nov. 22. He was 78 years old. Dan started a career in the real estate profession in 1959 and quickly became recognized by clients and peers as a professional and expert in both residential and commercial properties. He was recognized by his colleagues with several awards including: Salesman of the Year, Realtor® of the Year, and the President’s Award.

His passion and involvement in the real estate profession brought many leadership opportunities. In addition to being elected as president to local and state associations, Dan served as president of the Utah Apartment Association, regional vice president of the National Association of Realtors® and the National Apartment Association.

He is survived by his wife, Sally, eight children, 33 grandchildren and 31 great grandchildren.

“Dan was one of the most influential members and early pioneers of our Realtor® organization,” said Chris Kyler, CEO of the Utah Association of Realtors®. “He built the foundation of our political involvement in Utah and in our nation’s capital.” H. Blaine Walker, former president of the Utah Association of Realtors®, knew Dan since 1978 and served with him on the UAR Board of Directors. “He was a genuine individual willing to help his fellow Realtors®,” Walker said. “He had a desire to see people be successful.”

Committees Recognized

Pictured: Chairs and vice chairs of the 2014 committees.

The Salt Lake Board of Realtors® in November held a special breakfast for those members who served on committees during 2014. Roughly 100 people were recognized for their dedication and service in helping the Board fulfill its fourfold mission of advocacy, service, knowledge and communication.

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Salt Lake Realtor® December 2014

In the News The Fastest Growing Suburban Cities

Dave Robision, 2014 presidentelect of the Salt Lake Board of Realtors®, was recently quoted in a national story, “What’s Behind the Fastest-Growing Suburban Cities in America.” The story appeared in the Realtor® Magazine and on Realtor.org.

Robison, broker at goBE Realty, talked about the explosive growth of his hometown – South Jordan, a city he has lived in since he was four.

He says it’s steadily shifted from not having a gas station when he was a kid to growing at a faster clip in the past 10 years.

A “huge contributing factor,” says Robison, has been Daybreak, a master-planned community the National Association of Home Builders has twice rated the nation’s number-one housing community.

South Jordan went from a population of 12,220 to 29,461 from 1990-2000. That number spiked to 50,418 in 2010. City officials place the current population at 61,000.

Rounding out the top five fastest-growing suburban cities in the country were: Frisco, Texas; Carmel, Ind.; Sugar Land, Texas; and Franklin, Tenn.

“These suburban cities are booming because they’re more than suburbs. They’re destinations for families and businesses,” the article noted. “They’ve got character and a uniqueness — things so hard to find in the mass of cookie-cutter and strip-mall-dominated suburbs.

They’re also the result of diligent planning.”

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Salt Lake Board of Realtors® 2014 Annual Report to the Members Our government advocacy efforts, led by Government Affairs Director Justin Allen, is one of the most crucial services we provide our members and their clients.

By Curtis A. Bullock

As 2014 quickly comes to an end, I wanted to take this opportunity to present the Salt Lake Board of Realtors® Annual Report to the Members. First I want to thank you all for being a member of the Salt Lake Board of Realtors®!

I want to also thank this year’s Board President, Angie Nelden, who has provided great leadership to the Board and has given so much of her time and talents in an effort to improve our industry. Thank you Angie!

As you know, the Salt Lake Board of Realtors® is one of the longest standing private trade associations in the country, being founded in 1917. Along with our current leaders, we have a rich heritage of great real estate professionals and leaders that have helped shape our industry on a local and national level. We have been fortunate enough here at the Salt Lake Board to have had Past President’s Russ Booth and Al Mansell both serve as President of the National Association of Realtors® - an organization of more than 1.1 million members strong.

This past year, many of you served on various committees and in a wide variety of leadership positions, also giving of your time to our industry. I wanted to personally thank you for that! Every day that I come to work, I am amazed at the commitment that many of you have to our industry.

With that, let me share with you some of the highlights of 2014.

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Salt Lake Realtor® December 2014

I. Salt Lake Board of Realtors® Financial Status.

I am very pleased to first report that the Board is in outstanding financial condition. Each year the Board creates an annual budget that it strictly adheres to. The Finance Committee and Board of Directors always operate under a balanced budget.

On a weekly basis, I personally review Board finances and constantly monitor areas where we can be more efficient. Then, on a monthly basis, the full Board of Directors review financial statements prepared by our CFO as another check and balance.

As many of you know, the Salt Lake Board of Realtors® owns the first and second floor of the Realtor® building here in Sandy. A large portion of that owned space is leased out to tenants. In fact, 100 percent of our leasable space is rented out to tenants who pay rent and CAM expenses each month, thereby offsetting much of the cost to be in the building. This building is a great asset to our members and other industry partners who visit it frequently to attend all sorts of educational and networking events.

Recently the Board reviewed the final last months of the 2014 budget year. They were pleased to find that in nearly every expense category, we were under spent. That can simply be attributed to a strong culture of fiscal responsibility here at the Board. We continue to make conservative decisions regarding Board finances and strive to operate as efficiently

Pictured: Chris McCandless, left, (Realtor®), Curtis Bullock (CEO, Salt Lake Board of Realtors®), Justin Allen (government affairs director, Salt Lake Board of Realtors®), Angie Nelden (president, Salt Lake Board of Realtors®), Wayne Niederhauser (president, Utah State Senate).

“Over 320 people attended our Real Salt Lake soccer game RPAC event in August which raised several thousand RPAC dollars.” as possible. I, along with the Finance Committee, Executive Committee and full Board of Directors take great pride in ensuring that your dues dollars are used wisely.

II. Our mission here at the Board is simple – it is to be the leader in providing support to the professional Realtor® through Advocacy, Knowledge, Communication and Service. With that as the backdrop, let me share a few more things we accomplished this year. (i) Advocacy.

Our government advocacy efforts, led by Government Affairs Director Justin Allen, is one of the most crucial services we provide our members and their clients. It is because of this program that Utah is a regulatory paradise for Realtor® members. A lot goes on behind the scenes to make sure this happens.

We work hard to promote attainable homeownership, protect consumers, improve neighborhoods and communities, strengthen residential and commercial real estate, and help create an environment where all Realtors®, brokers, and affiliate members can be successful without a lot of government interference.

The way we do that is to raise RPAC funds.

Raising RPAC is a big priority for the Salt Lake Board of Realtors®. RPAC dollars are used to help elect candidates that are Realtor® friendly, regardless of party affiliation. People that are friendly to private property rights and free enterprise are whom we support. Having good people in local office is so important to the well-being of our industry. Utah has one of the strongest RPAC and advocacy cultures in the entire country. We fundraise through various events and initiatives to increase the number of our members who are invested in the Realtor® Party effort.

Our RPAC Golf Tournament was a great success

again this year. Over 325 people also attended our Real Salt Lake soccer game RPAC event in August which raised several thousand RPAC dollars.

By year’s end, we were very pleased to reach our UAR assigned goal and finished the fundraising year with over $239,000 raised. We ended the year with an amazing 128 total RPAC Major Investors ($1000 or more invested) - by far the most of any local association of our size in the country. This is an amazing accomplishment and we thank all of you who invested in your industry! (ii) Knowledge.

We pride ourselves in providing good quality educational events and classes for our members and are constantly looking for ways to improve. This year we continued to provide many live classes here at the Board offices on a variety of topics. We had over 250 members attend our annual Tech Fair this year and had 70 members attend our Realtor® personal defense and safety training course. In 2015, effort will be made to provide more and more courses on improving the professionalism and ethical standards of the Realtor® member. We really need to continue to raise the bar of our industry. (iii) Communication.

Communication is a key service that we provide our members. The Board strives to be the No. 1 source for all things real estate to our friends in the local media. On a regular basis, we send out press release communications to many different media outlets. The market stats and information contained in these releases generate many positive news articles for our members. When clients read or hear these positive media stories, it translates into more homes sales for our members.

From Jan. 1 to nearly the end of this year, there were 51 media stories that were run by Salt Lake area media outlets (broadcast, print, radio, and web).

These media stories reached hundreds of thousands of people and had a total calculated publicity value of $27,260 according to Total News Tracking. All of this coverage is aimed at educating the public on important real estate matters that in the end is a benefit to you, our members.

Another service we provide our members with is regular updates and important information through our podcasts, eNewsletters and magazine articles. We try to reach as many of our members in a variety of different ways and hope to be able to provide you with useful information that will help you in your business.

In 2014, we also launched our new Board website!

We were able to do most of this web development inhouse with a goal to streamline and simplify the site.

A calendar of events, information about RPAC, Supra keys, contact information and other useful links are now on the new website. If you haven’t had a chance, check it out at www.slrealtors.com.

Salt Lake Realtor® December 2014

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Pictured: KSL-TV news reporter Richard Piatt with Angie Nelden, president of the Salt Lake Board of Realtors®.

(iv) Service.

In 2014 the Salt Lake Board of Realtors® continued to provide service and community support with its two annual charitable events. The Charity Gala raised over $38,000 in donations for The Road Home and The Christmas Box House. This marks the 29th year that the Board has hosted this gala. These monies are used to help both the families staying in the homeless shelter and for children who have been neglected, abused, or abandoned. Realtors® strive to give back to the community.

Additionally, more than 50 Realtors® and Affiliate members assisted in the 23rd annual Christmas In July event. This year nearly 300 shelter occupants (more than half children) were given backpacks full of basic daily living necessities, back-to-school items, blankets and clothing. This event is held in the middle of the summer when donations are at their lowest point.

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III. Board Governance Structure.

As I explained in my annual report the last couple years, the Board maintains a lean but very high quality staff to serve its 6,400 members. They are great professionals and eager to help you be successful. From helping you with your keys and key box systems, to greeting you when you attend a CE class, they are anxious to serve you and always appreciate seeing a smile on your face.

For those of you who aren’t as familiar with how the Board governance structure is set up, let me give a brief explanation. The Board is governed by a 16 member Board of Directors who meet regularly to discuss important issues facing the Board and its members. I would encourage any of you to give feedback to any of our Directors or myself if you would like to see an improvement in a certain product or service the Board offers.

Below is an organizational chart that shows how the Board is structured in accordance with its fourpart mission statement.

Again, I want to thank each of you for your support. Whether it be an RPAC investment that you made, or simply giving of your valuable time while serving on a committee, we can’t thank you enough! I look forward to 2015 and all of us here at the Board hope to be able to continue to serve your needs at the highest level.

Best of luck and Merry Christmas!

Curtis A. Bullock is the CEO of the Salt Lake Board of Realtors®.

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Image licensed by Ingram Image

Commercial Real Estate Demand is Holding Steady Despite Overseas Concerns Commercial activity is expected to progress at a gradual pace heading into 2015

D

espite a slowing global economy, forward economic momentum in the U.S. should keep commercial real estate activity on firmer footing, according to the National Association of Realtors® quarterly commercial real estate forecast.

Lawrence Yun, NAR chief economist, says commercial activity should progress at a gradual pace heading into 2015. “Solid economic growth in the third quarter proved that the second quarter wasn’t an anomaly, as business spending increased, commercial

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Salt Lake Realtor® December 2014

construction rose and the labor market continued to make positive strides,” he said. “Job growth is the catalyst to improved demand for commercial real estate leasing and new construction projects.”

However, Yun does caution that softening in the global economy will likely widen the trade deficit in the U.S. and could trigger some weakening in the overall economy. “GDP growth in the fourth quarter will be sluggish at around 2 percent behind stalling exports. Although GDP will likely climb to near

3 percent in 2015, the current pace of job growth could slow and ultimately impact commercial real estate activity if sluggishness in the global economy persists,” he said.

National office vacancy rates are forecast to decrease 0.5 percent over the coming year due to job growth exceeding inventory coming onto the market. Improved manufacturing activity should lead to a declining vacancy rate for industrial space (0.4 percent), while retail space is forecast to decline 0.2 percent behind a boost in consumer spending from personal income gains and lower gas prices.

“Low housing inventory and the sizeable demand for rentals will continue to spur multifamily construction as well as keep rents rising above inflation through next year,” says Yun.

NAR’s latest Commercial Real Estate Outlook1 offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas is provided by REIS Inc., a source of commercial real estate performance information.

Office Markets

Office vacancy rates are forecast to slightly decline from 15.7 percent in the fourth quarter to 15.6 percent through the fourth quarter of 2015.

The markets with the lowest office vacancy rates in the fourth quarter are Washington, D.C., at 9.3 percent; New York City, 9.6 percent; Little Rock, Ark., 11.6 percent; San Francisco, 12.2 percent; and Seattle, at 12.8 percent.

Office rents are projected to increase 2.4 percent in 2014 and 3.3 percent next year. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is likely to total 35.6 million square feet this year and 48.8 million in 2015.

Industrial Markets

Industrial vacancy rates are expected to fall from 8.8 percent in the fourth quarter to 8.4 percent in the fourth quarter of 2015.

The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 3.6 percent; Los Angeles, 3.7 percent; Seattle, 5.8 percent; Miami, 6.0; and Palm Beach, Fla., at 6.5 percent.

Annual industrial rents should rise 2.4 percent this year and 2.9 percent in 2015. Net absorption of industrial space nationally is expected to total 110.7 million square feet in 2014 and 102.5 million square feet next year.

Fairfield County, Conn., 3.9 percent; San Jose, Calif., 4.6 percent; Orange County, Calif., 5.2 percent; and Long Island, N.Y., at 5.3 percent.

Average retail rents are forecast to rise 2.0 percent in 2014 and 2.5 percent next year. Net absorption of retail space is likely to total 11.4 million square feet this year and jump to 18.9 million in 2015.

Multifamily Markets The apartment rental market – multifamily housing – should see vacancy rates slightly increase from 4.0 percent currently to 4.3 percent in the fourth quarter of 2015. Vacancy rates below 5 percent are generally considered a landlord’s market, with demand justifying higher rent.

Areas with the lowest multifamily vacancy rates currently are Orange County, Calif., and Sacramento, Calif., at 2.2 percent; Providence, R.I., and New Haven, Conn., at 2.3 percent; and Hartford, Conn., at 2.5 percent.

Average apartment rents are projected to rise 4.0 this year and 3.9 percent in 2015. Multifamily net absorption is expected to total 216,300 units in 2014 and 171,200 next year.

The NAR commercial community includes commercial members; commercial real estate boards; commercial committees, subcommittees and forums; and the NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.

Approximately 70,000 NAR and institute affiliate members specialize in commercial brokerage and related services, and an additional 283,000 members offer commercial real estate services as a secondary business. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Retail Markets

Vacancy rates in the retail market are expected to decline from 9.7 percent currently to 9.5 percent in the fourth quarter of 2015.

Currently, the markets with the lowest retail vacancy rates include San Francisco, at 3.5 percent; Image licensed by Ingram Image

Salt Lake Realtor® December 2014

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Register your client with me and your commission* is protected regardless of what Ivory homes they tour or buy without you. * Please contact Lisa Seeborg to register your client in advance or accompany your client on their first visit to the Ivory model home. For Ivory’s traditional mainline catalog homes you’ll receive 3% commission on both spec (move-in ready) and new build homes. For California Collection homes, you will receive a 3% commission on spec (move-in ready), and 2% on new build homes. For Ivory townhome sales, you will receive a 2% commission. Commission rates subject to change at any time without notice. For updated commission information, please refer to each individual listing on the WFRMLS.

Lisa Seeborg Senior Sales Consultant Ivory Homes

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2014 REALTOR® Party Review We were very pleased to reach our assigned RPAC fundraising goal of $206,000 before September and finished the fundraising year with more than $239,000 raised.

By Justin Y. Allen

One of the most valuable benefits of Realtor® membership is Realtor® Party Advocacy on behalf of members and their clients. The Salt Lake Board of Realtors’® Government Affairs/RPAC Committee members and Salt Lake Board staff play an important role in advocating to local government on behalf of Realtors® and their clients by educating local elected

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Salt Lake Realtor® December 2014

officials about housing issues, encouraging Realtors® to get involved politically, supporting Realtor®friendly political candidates, and raising money for our political and policy initiatives.

The Salt Lake Board of Realtors®, along with the Utah Association of Realtors®, has long prioritized advocacy in its mission. The UAR and Salt Lake

Board are recognized by the National Association of Realtors® and among our peers as having one of most sophisticated and effective advocacy and elections programs in the country. As our members continue to invest generously of their time and resources to RPAC, we will further improve Utah’s regulatory environment and strengthen the economy and housing market.

Issue Advocacy and Community Outreach

The Salt Lake Board conducts issue advocacy in a variety of ways. Each member of the Government Affairs/RPAC Committee is assigned a city within Salt Lake and south Davis counties to be responsible for monitoring issues that might affect housing and private property rights.

The Board engages directly with local government and the public to advocate on Realtors’® behalf when an issue arises such as sign ordinances, business licensing, impact fees, and responsible growth. Earlier this year, South Jordan City made some questionable decisions regarding their housing policy. Using a NAR Issues Mobilization Grant, we engaged in a small public relations campaign to educate South Jordan voters on the value of transit-oriented development, the need for a variety of housing types to meet all housing needs in their community, and the importance of continued smart, long-term planning in their community.

In June, we hosted our annual Elected Officials Appreciation Lunch and Issues Forum where over 40 mayors and city council members from Salt Lake and Davis counties heard a presentation from land use attorney Craig Call on best practices for impact fees that meet state law. Soon after, we used a NAR Housing Grant to conduct two housing studies in Salt Lake and south Davis counties—a study of impact fees charged per housing unit by every municipality and service district, and then a study of the status of every community’s moderate income housing plan that are required to be maintained and updated every two years by the State of Utah. We are beginning an outreach effort to use these completed studies to educate city staff and elected officials about the connection between impact fees and housing affordability, as well as the need to adequately plan for our future housing needs.

We continue to partner with the UAR on state issues that affect local government, such as protecting affordable housing by limiting costs of development at the local level.

One of the most important ways the Realtor® Party conducts issue advocacy is on federal Calls for Action. It only takes a minute to follow-up on responding to a call for action. We underestimate the impact of thousands of Realtors® uniting their voice on an issue. Currently, there is a critical Call for Action out on extending the Mortgage Tax Forgiveness provision. Please do your part by responding to every Call for Action.

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Salt Lake Realtor® December 2014

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“Our RPAC Golf Tournament was a great success again this year.”

REALTOR® Political Involvement and Awareness

Another part of the Salt Lake Board Government Affairs mission is to encourage greater political involvement and awareness among our membership.

Using a NAR grant, we partnered with the National Association of Hispanic Real Estate Professionals (NAHREP) to conduct a political party caucus participation training for members in March and a Political and Community Involvement Forum in June. We put together a Herriman City Forum for Elected Officials and Realtors® from Herriman to meet and discuss issues facing the community.

The Government Affairs/RPAC Committee enjoyed information updates on their respective communities from Herriman Mayor Freeman, Riverton Mayor Applegarth, and Draper Coucilman Rappleye.

In April, attendees at our annual RPAC Major Investor Appreciation Lunch heard a great presentation from Salt Lake County Mayor Ben McAdams, as well as a legislative recap from UAR CEO Chris Kyler.

Last summer we took advantage of a large NAR Game Changer Grant to partner with the Utah Transit Authority on a Rideshare Initiative that distributed thousands of transit passes to the general public and members. This initiative provided the Salt Lake Board with some fantastic publicity and served as a demonstration of our commitment to improving Utahns’ quality of life through better air quality.

County Election Involvement Members of the Government Affairs/RPAC Committee’s Elections Subcommittee and the RPAC Trustees spent countless hours working on county elections this year. We engage in county elections by conducting a transparent Candidate Interview Process, RPAC Disbursement by a RPAC Trustee group consisting of current and past Board leadership, and offering Campaign Services assistance to Realtor® and Realtor®-friendly candidates. We partnered with UAR and NAR to put on a candidate training academy that included several of our endorsed county

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Salt Lake Realtor® December 2014

candidates. We received generous RPAC support from UAR to supplement our RPAC monies to make an enormous impact on behalf of our endorsed candidates. In all, we provided around $50,000 in direct and in-kind support for our candidates.

We were pleased to see all of our endorsed general election candidates win in November. The RPAC Trustees provided significant RPAC support to former Democratic Councilwoman Jenny Wilson and appointed Republican Councilwoman Aimee Winder Newton – making a big difference in their competitive campaigns. We also supported victorious Davis County Commissioner incumbent Bret Millburn and Commissioner-elect Jim Smith through competitive convention and primary elections in Davis County.

REALTOR® Political Action Committee (RPAC) Fundraising

Utah has one of the strongest RPAC and advocacy cultures in the entire country. We fundraise through various events and initiatives to increase the number of our members who are invested in the Realtor® Party effort. Our RPAC Golf Tournament was a great success again this year. More than 320 people attended the annual REAL Salt Lake soccer game. We were very pleased to reach our UAR assigned goal of $206,000 before the UAR convention in September and finished the fundraising year with over $239,000 raised. The Salt Lake Board of Realtors® ended the year with an amazing 128 total RPAC Major Investors (each investing $1,000 or more), by far the most of any local association in the United States and more than 35 state totals. The UAR and its 264 Major Investors ranks No. 5 in the country in total number of major investors. We sincerely appreciate all of our members who invest in RPAC throughout the year to strengthen the Realtor® Party effort.

Please Get Involved in 2015 The Government Affairs/RPAC Committee is always open to all members. In 2015, the committee will continue its local government outreach efforts through monitoring and political forums, work to educate and engage members, engage in a very busy local election year, and raise the ambitious RPAC goal. The committee meets generally on the first Wednesday of each month at 9 a.m. at the Realtor® Campus in Sandy. Our first meeting in 2015 will take place on Wednesday, Jan. 7. For more information about government affairs or RPAC, please contact me at justin@slrealtors.com.

Justin Y. Allen is the director of the government affairs for the Salt Lake Board of Realtors®.

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Housing Watch Salt Lake Home Sales in October Rise Above Year-Over Levels

A

rebound in home sales in Salt Lake County in October pushed sales to above year-over-year levels, according to the Salt Lake Board of Realtors®.

Salt Lake home sales (all housing types) rose 7 percent to 1,331 sales in October compared to the same month last year. It was third month this year marking a rise in year-over-year sales.

6

The median home price in October in the Salt Lake area increased to $234,000, a 6 percent rise compared to a median price of $220,000 in October 2013. Nearly three out of every four homes sold (70 percent) in October in Salt Lake County were priced below $300,000.

Pending home sales in October rose 2.2 percent compared to October 2013. “In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash,” said Lawrence Yun, NAR chief economist. “Demand is holding steady but would be more robust if it weren’t for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents.”

There were 1,246 homes under contract in October in Salt Lake County, an 8 percent increase compared to 1,152 pending sales last year during the same month.

The U.S. median home price in October was 208,300, 6 percent higher than October 2013. Yun added that the increase in median prices for existing homes has leveled off.

In Davis County, home sales in October climbed to 395 sales, an increase of 23 percent compared to October 2013. The median home price in Davis County in October fell slightly to $214,000, down 3 percent compared to October 2013.

Yun is forecasting existing-home sales this year to fall slightly below 2013 (5.1 million) to 4.9 million, and then increase to 5.3 million next year and 5.4 million in 2016.

Yun expects the national median existing-home price to rise 4 percent both next year and in 2016.

3

Salt Lake County Sales (all housing types) Year-Over-Year (up 7%)

1,239 26

Home sales nationally in October were above yearover-year levels for the first time in a year, rising 3 percent from last October, according to the National Association of Realtors®.

Salt Lake Realtor® December 2014

1,331

Salt Lake County Median Price (all housing types) Year-Over-Year (up 6%)

$220,000

$234,000

2 - C OLOR

1 Salt Lake County Days on Market (all housing types) Year-Over-Year (up 20%)

2 36

30

5

Sales $ Davis County Median Price (all housing types) Year-Over-Year (down 3%) $214,000

$220,200

Salt Lake County

Pending Sales (up 8%)

1,246

1,152

4

Sales

Davis County Sales (all housing types) Year-Over-Year (up 23%)

395

321 Salt Lake Realtor速 December 2014

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REALTOR® Connections Q&A: Lawrence Yun Lawrence Yun is the chief economist for the National Association of Realtors®.

On the Move Melissa Wright Makes The List

What is the quit rate?

One of the better indicators about the strength of the job market is the quit rate or how many workers are quitting their jobs? Recent trends show increased quit rates and increased job opening rates. Two out of 100 employed people quit their jobs in the latest month, the highest quitting rate since mid-2008.The rising incidences of quits, which reached 2.75 million in October, are congruent with more job creations in the economy.

What profession has the lowest quit rate, the highest?

Government workers are least likely to quit. Only 0.8 percent did so in the latest month. Rarely do we hear of a government worker getting excited about the latest work project. The low quit rate is therefore probably related to good pension and easy work load and not about the interesting aspects of their job. People working in lodging and food service have the highest quit rate at 4.2 percent.

What is the quit rate for Realtors®?

Realtor® membership experiences about a 15 to 20 percent turnover rate over the course of a year, translating into around 1.5 percent monthly quit rate. More dynamism in the labor market generally spills over into the real estate market as well. Some of the quits will necessitate a selling and buying of a house. Dynamism is also good for the economy. It implies mobility. Andrew Carnegie delivered newspapers and Warren Buffet threw peanuts at baseball games before quitting and moving on.

Members Sign Up for Committees

Mortgage Executive Magazine recently recognized Utah resident, and Axiom Financial CEO, Melissa Wright, as one of the Top 100 Most Influential Mortgage Executives in America. This announcement comes the same week Axiom was named one of Utah’s Top Workplaces. Wright has been with Axiom Financial since its inception in 1996. This is the second time Wright has been named as one of Mortgage Executive Magazine’s Top 100 Most Influential Mortgage Executives in America.

Davis Realtors® Raise $4,400 Davis County Realtors® held their first “Bowling for Bucks” event in November with a “Gangster” theme.

Agents and affiliates dressed from the era of Al Capone. Eighteen teams of six each, bowled with prizes given for best dressed team, best team name and highest score. The event raised $4,400 and will be donated to a variety of charities at the end of the year.

Members gathered at the Realtor® Campus in November to sign up for one of the Board’s 10 committees. The annual Committee Sign Up Day is a way for members to join a committee and take an active part in 2015 in helping to fulfill the Board’s fourfold mission: advocacy, knowledge, service and communication.

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Salt Lake Realtor® December 2014

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Credit Access Limits Recovery NAR Chief Economist Lawrence Yun outlines the hurdles still hampering the recovery.

By Robert Freedman National Association of Realtors®

The economy is recovering, household wealth is at its highest level ever, and the housing market is improving, but until lenders increase access to credit, sales will continue to underperform and demand will remain pent up, NAR Chief Economist Lawrence Yun said Friday.

Since the economic recovery began in 2010, home owners on a national basis have seen their equity position improve. That’s a trend that should continue in the years ahead thanks to steady U.S. economic growth, solid job increases, improving consumer confidence, and continuing low interest rates.

These conditions make it a good time for households to buy and start accumulating wealth, Yun said. But credit policies among lenders that add restrictions above what’s required by Fannie Mae, Freddie Mac, and FHA are making it too hard for many households, particularly those in the millennial generation, to buy.

He pointed out that, even factoring in the housing downturn, today’s home owners nationally have accumulated an average $200,000 in wealth, 36 times the average $5,500 in wealth of renters.

Yun said the share of first-time buyers, about 30 percent of the market, is at its lowest level in 30 years despite research showing that 75 percent of young households want to buy. “Living with their parents

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Salt Lake Realtor® December 2014

is not their vision of the American dream,” Yun said, eliciting chuckles from the audience.

And it’s not just young households having trouble buying. Yun said homeownership levels dropped by one million households between 2010 and 2014, despite the recovery in home equity, while the share of renters has increased by four million during that period.

Mel Watt director of the Federal Housing Finance Agency, which oversees secondary mortgage market companies Fannie Mae and Freddie Mac, in remarks he made to REALTORS® at the session with Yun, said his agency has been wrestling with lenders’ restrictive credit policies and is encouraging them to align their policies with what Fannie Mae and Freddie Mac require.

“It would be nice if [lenders] would come up to the plate and help us,” he said. “We’re trying to create the atmosphere and the circumstances” for them to feel comfortable enough that they can ease their credit restrictions above what Fannie and Freddie require.

One group of buyers whose market share is poised to grow is the 10 percent of Americans who have substantial exposure to Wall Street, because the stock market has been rising dramatically for the last several years. Flush times for those households should help grow sales of high-end homes and vacation properties, Yun said.

Yun is forecasting U.S. economic growth of 2.7 percent next year and 2.9 percent in 2016, about 2.5 million new jobs in each of those years, and interest rates to stay historically low, although they’ll likely start rising in early 2015.

Households “aren’t buying because there’s a fence in front of them,” said Yun, who encouraged Watt to continue its efforts to get lenders to ease their credit standards to a more reasonable level.

Reprinted from Realtor® Magazine Online, November 2014, with permission of the National Association of Realtors®.

Copyright 2014. All rights reserved.

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