Salt Lake Realtor – February 2018

Salt Lake

REALTOR

®

Maga zine

slrealtors.com

February 2018

No Signs of Slowing for Housing Market p. 12

2018

18 2018 2018 2018 2018

Fourth Best Year for Home Sales p. 26 CRS Offers More Training p. 20

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A Bright Forecast for Salt Lake’s Housing Market

Table of Contents p. 11

Features 10 2018 Housing Forecast Breakfast 11 A Bright Forecast for Salt Lake’s Housing Market

Dave Anderton

12 2018 Salt Lake County

Residential Real Estate Market

James Wood

16 Follow this Advice to Help Your Clients

Curtis A. Bullock 20 CRS Designation Offers More Professionalism and Training

Matt Dulle

Columns 7 Exceeding Our Clients’ Expectations

Adam Kirkham – President’s Message

Departments 8 Happenings 8 In the News 26 Housing Watch

28 Realtor® Connections 28 On the Move

On the Cover: Graph: Kelley Anderson Photo left: ©Sergey Novikov / 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

®

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February 2018 volume 78 number 2 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.

2018 forecast takeaway...

“2018 is the year to go to your bosses and ask for a raise.”

- Matthew Gardner Chief Economist Windermere Real Estate

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Salt Lake

REALTOR

® ®

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President Adam Kirkham Summit Sotheby’s International First Vice President Scott Robbins Coldwell Banker Residential

Scott Colemere Colemere Realty Associates Kimberly Farber IMPOWER Real Estate Brian Gottfredson Coldwell Banker Residential Tony Ketterling Equity Real Estate

Second Vice President Alicia Holdaway Equity Real Estate

Mike Morgan Realtypath

Treasurer Matthew Ulrich Ulrich Realtors®

Mary Olsen Utah Key Real Estate Jodie Osofsky Utah Key Real Estate

Past President Troy Peterson Equity Real Estate

Steve A. Perry Realtypath Sophie Reece Berkshire Hathaway

Directors Cheryl Acker Utah Key Real Estate

Michael Rowe Berkshire Hathaway

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

Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Patrick Witmer Sales Staff Paula Bell Karen Malan Paul Nicholas

Office Administrator Cynthia Bell Snow Office Assistant Jessica Snow Administrative Assistant KellieAnn Halvorsen

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.

Exceeding Our Clients’ Expectations

I

t was another phenomenal year in 2017 for the real estate profession as continued low mortgage interest rates and a strong job market pushed demand for housing. Never has there been a better time to a Realtor®.

According to the 2018 Salt Lake Housing Forecast report, commissioned by the Salt Lake Board of Realtors®, last year was the fourth best year in terms of overall housing sales in Salt Lake County.

Our members sold roughly 18,000 units.

Only in the years 2005, 2006 and 2016 were more homes sold. Last year was also the biggest year for multifamily sales, with more than 4,500 units sold at a value of more than $1 billion.

What’s more, real estate commissions to our members in 2017 soared to $360 million. This year commissions are expected to surge to nearly $400 million. Why are commissions locally and nationally on the rise? The obvious answer is home sales are on the rise. However, it is important to note that buyer and seller use of agents remains at historical highs, 87 percent and 89 percent respectively, according to the National Association of Realtors®. Only 8 percent of home sellers chose to sell without an agent last year.

A fast-paced real estate market and the complexity and hightened liability of selling or buying a home has more people turning to trusted professionals. Nationally, the number of real estate agents has grown 60 percent in the past 20 years while residential real estate commissions have soared to more than $60 billion paid each year, according to The Washington Post.

Let’s make sure our level of service to our clients exceeds their expectations.

Demand for homes will continue to accelerate this year as rising in-migration and households are formed. Are you ready?

Adam Kirkham President

The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®.

Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs.

While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication.

Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

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

February 2018 | Salt Lake Realtor ® | 7

Happenings

In the News Unprofessional or Unethical?

Pictured: Seated: Vicki Fulkerson, left, Miriam McFadden, Sharon Spratley, Debra Sjoblom, Adam Kirkham, Linda Wolcott, Matt Ulrich. Standing: Troy Peterson, left, David Frederickson, Jim Bringhurst, Angie Nelden, Gary Cannon, Deanna Robbins, Bill Heiner, Cheryl Acker, Scott Robbins, Mary Ann Brady, Ryan Kirkham, Donna Pozzuoli, Russ Booth, Alicia Holdaway, Doug Richards, Al Mansell, and Curtis Bullock.

Past Presidents Recognized

Former presidents of the Salt Lake Board of Realtors® were honored at a luncheon in Cottonwood Heights in January. Curtis Bullock, CEO of the Salt Lake Board of Realtors®, thanked each of the past presidents for their service and continued commitment to the real estate profession.

Pictured: Adam Kirkham, left, president of the Salt Lake Board of Realtors®; Kristin Buta, Realtor® with KW Salt Lake City; Linda Burtch, Marcus Jessop, government affairs director; and Curtis Bullock, CEO of the Salt Lake Board of Realtors®.

Congratulations to Linda Burtch

Linda Burtch, a Realtor® with KW Salt Lake City, was the winner of a $2,500 trip to San Diego. Burtch was selected from more than 1,800 entries. Members who completed the online Code of Ethics course in January were automatically entered twice into the drawing.

In addition, for every $15 invested by a member in January to the Realtors® Political Action Committee, an entry was made.

8 | Salt Lake Realtor ® | February 2018

Reputation is everything in the real estate business.

Realtors® have an advantage because the Code of Ethics outlines what is acceptable in the way that the public and others in the Holly Robbins industry are treated.

Unresponsiveness to phone calls or emails, offensive language, uncooperative behavior or the unwillingness to talk about an issue or concern are a few examples deemed unprofessional behavior that have been either called in or complained about last year to the Salt Lake Board of Realtors®.

Being unprofessional in your business dealings not only causes frustration and ill feelings, but can also border on unethical behavior, thus violating the Code of Ethics. Many issues that deal with the use of the key box, the showing of a home, or with non-Realtors® that work in the real estate industry, have bordered between these behaviors.

Unethical behavior would be any actions that are inconsistent with the Code of Ethics and therefore are handled through the Board’s professional standards process to hold that party accountable for their actions.

To avoid unethical behavior try discussing your concerns directly with the other party. If that doesn’t work contact the Board and ask to have an Ombudsman step in. Keep the Golden Rule in mind and you are sure to expand your reputation as a Realtor® and business in the years to come.

Holly Robbins, Professional Standards Administrator, handles all incoming ethics complaints and arbitration requests for the Salt Lake Board of Realtors®. Please contact her with your complaint at holly@slrealtors. com or (801) 542-8856.

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2018 Housing Forecast Breakfast

N

early 800 people attended the annual Salt Lake Board of Realtors® Housing Forecast Breakfast. The event was broadcast live and watched by nearly 1,000 people on Facebook and at www.slrealtors.com. This year’s keynote speaker was Matthew Gardner, chief economist at Seattle-based Windermere Real Estate. James Wood, economist at the University of Utah, was a featured speaker.

10 | Salt Lake Realtor ® | February 2018

A Bright Forecast for Salt Lake’s Housing Market

By Dave Anderton

T

he Salt Lake metropolitan area will see household growth of 7 percent over the next five years, resulting in the building of 19,000 new owner-occupied housing units, according to Matthew Gardner, this year’s keynote speaker at the 2018 Salt Lake Housing Forecast breakfast and chief economist at Seattle-based Windermere Real Estate.

Gardner predicted 2018 would bring an expanding U.S. economy with rising GDP of 2.5 percent. He also said falling unemployment and rising wages would lead to a modest uptick in inflation (2.1 percent). Gardner praised Utah as one of only two states that were actually building houses. “You are one of the few markets that is actually pulling enough permits essential to meet that demand,” he said. “Nationally, there are less homes on the market today than there were in 1998. At the same time there are 47 million more people. This is not a balanced market. We have supply constraints across the country.”

Millennials, contrary to what some believe, do want to buy homes.

Gardner cited a survey that revealed 70 percent of millennials believed that buying a home would be the most astute financial investment they would ever make.

Gardner agreed with Jim Wood, a featured speaker at the Forecast breakfast and Ivory-Boyer Senior Fellow at the Kem C. Gardner Policy Institute, that Salt Lake home prices in 2018 would rise roughly 8 percent.

“I do not like any markets in the U.S. to go up by 10, 12, or 14 percent because they are unsustainable,” Gardner said. “Nothing good comes of it.”

Wood predicted Salt Lake County in 2018 would see household growth of 8,500 and net in-migration of nearly 7,000 individuals, both record levels. “This level of growth will support strong demand for housing,” Wood said. “Demand will also be given a boost by buyers jumping into the market hoping to beat higher interest rates. These demand conditions will push total sales above 18,000 units.”

Wood also said total residential real estate commissions would rise to nearly $400 million in 2018, up from $360 million in 2017.

The only bad news was a question of when the next recession would hit.

“At some point we are going to have a recession,” Gardner said.

“We are due. We are in the third longest period of U.S. economic expansion in modern history. My forecast is we will probably enter a business cycle downturn at the end of 2019 into early 2020. Recessions happen. We’ve had 47 of them as a country. We are going to have 47 more. It’s OK. It’s going to look like a lot like a 1992 recession, very shallow and not driven by housing. But we are going to have a slowdown in the next couple of years.”

Dave Anderton is the communications director of the Salt Lake Board of Realtors®.

Photos: Kent Shelton

February 2018 | Salt Lake Realtor ® | 11

©MaciejBledowski / Adobe Stock

2018 Salt Lake County Residential Real Estate Market Last Year Was the Fourth Best Year in Overall Home Sales and Biggest Year Ever for Multifamily Sales.

By James Wood | Ivory-Boyer Senior Fellow, Kem C. Garder Policy Institute, ® University of Utah | Commissioned by the Salt Lake Board of Realtors

S

alt Lake County’s residential real estate market benefited from another year of strong demographic and economic growth and very favorable mortgage rates. For the sixth consecutive year the average mortgage rate was below 4 percent.

Recap of 2017 A year-end snapshot of Salt Lake County’s real estate market compared to 2016 shows:® Single-Family Sales • 13,293 single-family homes sold, a slight decline of 3 percent.

12 | Salt Lake Realtor ® | February 2018

• •

The median sales price of a single-family home at $325,000, up 10 percent.

The value of single-family sales at $4.9 billion, an increase of 8 percent.

Multifamily Sales: (Condominium, Town Home and Twin Homes) • 4,500 multifamily units sold, up 4 percent.

Biggest year ever in multifamily sales.

• Median sales price of multifamily unit at $225,000, up 11 percent.

• For the first time multifamily sales exceeded $1 billion dollars.

20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000

Salt Lake City, West Jordan and Sandy are the Top 3 Cities for Highest Home Sales The combined sales in 2017 of single-family and multifamily homes in Salt Lake County totaled 17,804 units, the fourth highest year ever.

Only during the two years preceding the Great Recession (2005-2006) and 2016 were residential sales higher Figure 1. Salt Lake City captured by far the largest share of residential sales activity with nearly a 25 percent share; a total of 4,213 homes, far ahead of other top ranked cities. The next four highest ranked cities in number of home sales were: West Jordan (1,796 homes), Sandy (1,617 homes), West Valley (1,499 homes) and South Jordan (1,437 homes).

2,000 0

96 997 98 999 000 01 002 003 004 05 06 007 008 09 10 11 12 13 14 15 16 017 1 2 2 2 2 19 1 20 2 20 20 20 20 20 20 20 20 2 20 20 2

19

Single Family Sales

Condo, Twin and Town Home Sales

Total Sales

Source: UtahRealEstate.com

Figure 1 Residential Real Estate Sales in Salt Lake County (single-family, condominium, town home and twin home)

$340,000

$325,000

$320,000 $294,983

$300,000 $280,000 $260,000

The Median Income Can Still Afford 65% of the Homes Sold in Salt Lake County The median sales price of a single-family home in Salt Lake County increased by 10 percent in 2017, marking the sixth consecutive year of price increases Figure 2. Since 2011, the median sales price in Salt Lake County has increased by 50 percent, moving up from $216,431 to $325,000.

Housing price increases in the county rank among the highest in the U.S.

$240,000 $220,000 $200,000

$213,653

$216,431

$180,000

00 001 02 003 004 05 006 007 08 09 10 011 12 13 14 15 16 17 2 2 2 20 2 20 20 20 2 20 20 20 20 20 20 20 2

20

Source: UtahRealEstate.com

Figure 2 Median Sales Price of Single-Family Homes in Salt Lake County (2017 dollars)

February 2018 | Salt Lake Realtor ÂŽ | 13

Image licensed by Ingram Image

The Ups and Downs of Housing Prices What has the rapid rise in local housing prices done to housing affordability? Are a large number of potential buyers being priced out of the market? Will residential sales be hurt by rising prices? These are all legitimate concerns.

But despite Salt Lake’s rapid increase in housing prices housing affordability remains quite favorable. In the third quarter of 2017, according to the Wells Fargo/National Home Builders Housing Opportunity Index (HOI), a median income household could afford 65 percent of the homes sold in Salt Lake County.

The percent of homes affordable to the median income households becomes the HOI index number. Any index number above 50 indicates favorable housing affordability whereas a reading below 50 means housing affordability may be threatened. Housing affordability in Salt Lake County was last seriously threatened in 2007 then the HOI index dropped to 30. In contrast the HOI index hit a peak in affordability of 80 in the second quarter of 2012. It seems like a contradiction that in times of very rapid and prolonged housing price increases affordability could still be favorable.

This condition is explained by historic low mortgage rates.

Outlook for Mortgage Rates Will mortgage rates in 2018 deliver another year of favorable affordability for homebuyers and Realtors®? Most experts agree that rates

14 | Salt Lake Realtor ® | February 2018

probably won’t be quite as favorable, but few forecasters predict year-end rates above 5 percent.

Here are several predictions for the 30-year fixedrate mortgage from some of the largest housing and mortgage groups: • The Mortgage Bankers Association predicts the rate will rise to 4.6 percent in 2018.

• The National Association of Realtors® expects the mortgage rate to be around 4.5 percent at year-end.

• Realtor.com believes the mortgage rate will average 4.6 percent over the year but reach 5.0 percent by year-end.

• Freddie Mac’s forecast is for 4.6 percent rate by year-end 2018.

• CoreLogic’s consensus view from six forecasters has the rate at 4.7 percent in December 2018.

A mortgage rate below 5 percent, which most experts predict, will preserve favorable housing affordability for another year.

Shortage of Listings is Due to Strong Demand The number of listings for all types of homes in Salt Lake County has remained surprisingly consistent over the past four years at around 22,500 units. It appears that the perceived extreme shortage of listings is due more to strong demand generated by high rates of net in-migration and employment growth than a dramatic decline in listings. Listing activity,

however in some cities—most notably Salt Lake City—differs substantially from the countywide trend. Listings have dropped nearly 20 percent in Salt Lake City since 2014. Realtors® who work primarily in the Salt Lake City market have been affected by a substantial decline in listings.

Overall listing activity is expected to pick-up in the second half of 2018 as home builders increase production of new homes to over 3,000 units; giving current homeowners more options for moving. In addition the six years of positive equity build-up produced by higher prices should also nudge more home owners into the market.

Should We Worry About a Housing Bubble?

When housing prices increase by 50 percent in six years questions about a housing bubble will inevitably be raised. But in 2008 when the housing bubble burst conditions were very different.

Today lending requirements by financial institutions are much tighter, household debt has not ballooned—from 2004 to 2008 household debt in Utah increased more than 30 percent, flipping by real estate investors is not widespread, there

is no non-FHA subprime secondary market, and memories of falling housing prices hopefully serve as a check on “irrational exuberance” regarding prices.

Forecast for 2018 This year both household growth and net in-migration in Salt Lake County are projected to be at record levels. Net in-migration of 6,900 individuals and households growth of 8,500 are expected. This level of growth will support strong demand for housing. Demand will also be given a boost by buyers jumping into the market hoping to beat higher interest rates.

These demand conditions will push total sales above 18,000 units, but it is unlikely that they will break the all-time record of 18,987. Strong demand will put upward pressure on prices, but another year of a double-digit increase is unlikely. Prices will be up by 7-8 percent in 2018. The median sales price of a single-family home will be near $350,000 and the total value of residential sales will be $6.6 billion, well above the $5.9 billion in 2017. Finally, total residential real estate commissions will be close to $400 million up from $360 million in 2017.

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© sebra / Adobe Stock

Follow this Advice to Help Your Clients

By Curtis A. Bullock CEO, Salt Lake Board of Realtors® May the Buyer ask the Seller to pay a commission to the Buyer’s brokerage in the REPC? Yes, if done correctly Suppose Realtor® A has the listing. Realtor® A’s brokerage is offering a 1 percent BAC through the MLS. Realtor® B’s buyer makes an offer that includes language in an addendum that asks the seller (*not the listing broker) to pay Realtor® B 2 percent which would be in addition to the listing brokers 1 percent BAC. Is this a violation of the Code of Ethics?

Answer: No, there is no violation here. This

16 | Salt Lake Realtor ® | February 2018

case study comes directly from the NAR Code of Ethics Manual as described in Case #16-17.

As noted in this case summary, since Realtor® B’s buyer asked the seller (not the listing broker) to pay the commission, no violation of the Code of Ethics occurred. No attempt was made to alter the BAC in the REPC. Also, if Realtor® B’s buyer had demanded that a portion of Realtor® A’s commission be paid to Realtor® B there would likely have been a violation.

Article 16, Standard 16-16 states “Realtors®, acting as [buyer representatives] or brokers,

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shall not use the terms of an offer to purchase to attempt to modify the listing brokers’ offer of compensation to [buyer representatives] nor make the submission of an executed offer to purchase contingent on the listing broker’s agreement to modify the offer of compensation.”

Since the request for payment of Realtor® B’s fee was made directly to the Seller, and not the listing broker, Realtor® B was not in violation of Article 16. The offer also did not ask the seller to modify the listing agreement with Realtor® A which would have been an unwarranted interference with contractual relationship (see case study #16-16 on page 346).

Also, if the offer included language that asked the listing broker to change or increase the 1 percent BAC, there likely would have been a violation of Article 16. But that did not happen here.

Here is some sample language that could be included in an addendum if the Buyer wanted to ask the Seller to pay a brokerage fee to the Buyer’s brokerage - “Seller agrees to pay a brokerage fee in the amount of X percent of the acquisition price to Buyer’s Brokerage. Such brokerage fee shall be in addition to any other compensation being offered.”

Do you hold the earnest money at a Title Company?

If you or your brokerage routinely hold the earnest money at a Title Insurance Company, it is very important that the REPC be amended and that both buyer and seller agree on where the earnest money will be deposited. To amend the REPC, a new State approved form should be used.

** New State Approved form - the Utah Real Estate Commission and Office of the Attorney General recently approved the “Deposit of Earnest Money with Title Insurance Company Addendum to the REPC.” This form is now available on the State’s website www.realestate.utah.gov. It will soon be made available on your local MLS.

This form does two things: 1) it specifies what Title Insurance Company the EM will be held at, and 2) it informs the parties that the Title Insurance Company may require additional signatures from both the buyer and seller before the EM is released should the transaction fail.

If you have questions about this new form contact the Utah Division of Real Estate at (801)530-6747.

Referral fees vs. gifts/rebates to clients I’ve received some questions on what the rules are on giving referral fees or gifts/rebates to clients. Here are rules:

Utah Admin Rule 162-2f-401b - a licensee may give a gift valued at $150 or less to an individual in appreciation for an unsolicited referral of a

18 | Salt Lake Realtor ® | February 2018

prospect that results in a real estate transaction.

Utah Admin Rule 162-2f-401l - An inducement gift is permissible and is not an illegal sharing of commission if the principal broker or affiliated licensee offering the inducement gift to a buyer or a seller complies with the underwriting guidelines that apply to any loan in the transaction for which the inducement has been offered.

(2) A closing gift is permissible and is not an illegal sharing of commissions.

To summarize this, (1) if an unlicensed person refers a client to you, and that referral was unsolicited, you may give the referring individual something valued at $150 or less.

(2) If you want to give a “gift” (or whatever you call it) to your client, what you give them (i.e., gift card, cash rebate, etc) must comply with the underwriting guidelines that apply to the loan for that particular transaction. In most cases, lenders will not allow the buyer to pocket any cash, but will allow the rebate to be used for loan or closing costs. Other lender restrictions might apply so the buyer will need to discuss that with the lender.

If the Buyer cancels the REPC because of a low appraisal, does he get the earnest money back in full?

Suppose the Buyer is under contract with the Seller. The Due Diligence Deadline passes and a couple days later the appraisal comes in at a lower value than the contract price. The Buyer attempts to renegotiate price with the Seller but the Seller is unwilling to come down. Prior to the F&A Deadline, the Buyer submits the Notice of Cancellation along with the Notice of Appraised Value to the Seller as required by the REPC. Does the Buyer get all 100 percent of his earnest money refunded?

Yes. There has been some confusion between sections 8.2 (Appraisal) and 8.3(b)(i) (Financing) of the REPC. The thing to remember is that these two sections of the REPC are independent of each other. If the Buyer cancels because of a low appraisal (by sending written notification along with the notice of appraised value), section 8.2(a) indicates that the earnest money is refunded. On the other hand, if the Buyer cancels because of financing according to section 8.3(b)(i), then how that section is filled out will determine how much of the earnest money is returned to the Buyer.

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

For questions, be sure to contact the UAR legal hotline at (801)676-5222 on M, W or F.

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CRS Designation Offers More Professionalism and Training

By Matt Dulle What is a CRS? A CRS Realtor® is a Certified Residential Specialist—one of the top 3 percent of real estate agents in the U.S. CRS agents have more experience and training than the average Realtor® and they are part of a community of Realtors® dedicated to improving the real estate industry for homebuyers and sellers everywhere.

Why Should I be a Certified Residential Specialist Consumer expectations of the Realtor® professionalism are a great hurdle for the industry. Technology and reduced confidence in Realtor® services is an opportunity for a CRS to differentiate ourselves. Buying or selling a home is one of the biggest and most important decisions consumers make in their lifetime. The consumer needs a trustworthy Realtor® by their side, who is looking out for their best interests and is willing to put all their knowledge and experience to work.

You need to be a CRS.

Not all real estate agents are made the same: There are 14,391 real estate agents on the Wasatch Front Regional MLS, and their experience and dedication to their profession and clients varies widely. The threshold to becoming a real

20 | Salt Lake Realtor ® | February 2018

estate agent is surprisingly low. Requirements for licensure is a little 120 hours of training—compare that to the 1,000 hours that are typically required to become a hair stylist. CRS is the highest standard for Realtor® professionals. The consumers’ experience with a Certified Residential Specialist is significantly higher than transactions without a CRS. How to Become a Certified Residential Specialist To become a CRS, however, Realtors® must meet a number of stringent requirements that combine advanced hours of education and training, and experience in the marketplace.

CRSs are required to have between 60 and 150 transactions and between 16 and 30 additional hours of education beyond what’s required of the typical Realtor®. These are agents who are invested in their careers, in buying and selling real estate and in making sure their clients are satisfied. CRS is the sign of a true real estate professional. There are two paths to the CRS Designation, designed to meet you wherever you are in your career.

The Benefits of Being CRS Enjoy discounts on best-in-class education including live classroom courses taught across the

Choose Your Path t

t

60/30/30 Program

Pro Program

t

t

• 60 Transactions OR $30 Million in volume over the most recent/last 3 years AND

• 10+ years as a licensed real estate agent • 150 transactions total (OR an average of $1 million per year with at least 40 transactions)

• 30 hours of RRC Education

• 16 hours of RRC Education

country, self-paced eLearning, live and recorded on-demand webinars, video and more. As a council member, you are entitled to discounts of up to 50 percent on most education.

When you become a CRS Designee, you gain access to the Council’s Referral Network, one of the most effective resources for referrals in the industry. Designees are automatically listed in the Council’s online and print directories and can immediately give and get referrals from other CRS Designees. They are also eligible to join the Qualified Consumer Leads program powered by Referral Exchange and begin receiving leads from consumers prequalified and ready to buy or sell.

A free benefit to CRS Designees, Agentdesks is a collaborative networking platform for real estate agents and brokers. Designees can customize their appearance in the directory and position themselves for more referrals. Added member benefits include access to local networking groups for marketing listings and discovering properties as well as an easy-to-use mobile CRM and messaging app.

Attend events like our annual Sell-a-bration conference at preferred member pricing. Sell-

Service Directory Home Inspection

a-bration attracts hundreds of top-producing Realtors® seeking to improve their business and increase their referral networks through highquality education and networking. You won’t want to miss it.

Members get access to a host of complimentary leading news and information sources to keep you in the know like free subscriptions to Inman Select News (a $199 value) and The Council’s award winning magazine, The Residential Specialist in print and online formats.

The Council helps you leverage the value of the CRS Designation trademark and logo to stand out in your area with a variety of professionally branded materials. You can customize and market these resources yourself, such as sign riders, fact sheets or business cards, and the bi-monthly Your Home newsletter that can be personalized and sent to buyers and sellers.

Let’s get started at http://www.crs.com, then click “Join.” Use the code DULLE2018 for a 30 percent discount on your membership. Questions about CRS? Call our local CRS Ambassador Matt Dulle 801-381-6288.

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John Baque

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Housing Watch 2017 Was the No. 4 Best Year for Salt Lake County Home Sales 2 - C OLOR

S

alt Lake County home sales (all housing types) fell 1 percent in 2017 compared to 2016, but were the fourth highest level recorded for a single year, according to the Salt Lake Board of Realtors®.

Only during the years of 2005, 2006 and 2016 were residential sales higher.

In 2017, sales of singlefamily homes in the county fell to 13,313 sales, down 3 percent compared to 13,659 sales in 2016. In the final three months of 2017, single-family sales were up 0.5 percent.

The median price of a singlefamily home in Salt Lake County in 2017 increased to $325,000, up 10 percent compared to a median price of $295,000 in 2016. In the fourth quarter, the median price climbed 12 percent year-over-year.

The top five cities for singlefamily home sales across the Wasatch Front in the fourth quarter were: · Clearfield. . . . . . . . . . . . . . . 274 · Tooele. . . . . . . . . . . . . . . . . . 274 · Farr West. . . . . . . . . . . . . . . 239 · Lehi. . . . . . . . . . . . . . . . . . . . 214 · Eagle Mountain . . . . . . . . . 209

Home Sales Per Quarter

26 | Salt Lake Realtor ® | February 2018

The top five cities for most expensive median home prices in the fourth quarter were: · Alpine. . . . . . . . . . . . . $630,000 · Eden . . . . . . . . . . . . . . $533,400 · Emigration. . . . . . . . . $530,000 · Draper . . . . . . . . . . . . $489,000 · Avenues. . . . . . . . . . . $484,355 Multifamily sales in Salt Lake County in 2017 increased to 4,516 units sold, up 4 percent compared 4,338 units sold in 2016. Last year represented the biggest year for multifamily sales.

COUNTY ZIP CITY 2017 HOUSE % +/- 2017 Q4 MEDIAN % +/- 2017 CONDO % +/-

# SOLD CHANGE SALES PRICE CHANGE # SOLD CHANGE

2017 Q4 % +/- CONDO MEDIAN CHANGE SALES PRICE

2017 Q4 % +/AVERAGE CHANGE CDOM

S.L. CO

84006

COPPERTON

0

-100.00%

$0.00

-100.00%

0

n/a

$0.00

n/a

0

-100.00%

S.L. CO

84020

DRAPER

137

-4.20%

$489,000.00

23.17%

54

-12.90%

$254,250.00

-4.42%

49

-3.92%

S.L. CO

84044

MAGNA

122

11.93%

$226,750.00

15.69%

8

14.29%

$125,000.00

8.70%

31

-8.82%

S.L. CO

84047

MIDVALE

81

19.12%

$285,000.00

9.66%

58

-19.44%

$217,500.00

8.34%

37

19.35%

S.L. CO

84065

RIVERTON

150

11.94%

$375,455.00

4.31%

58

-38.95%

$274,031.00

8.10%

45

2.27%

S.L. CO

84070

SANDY

80

31.15%

$287,500.00

3.60%

21

-12.50%

$205,000.00

16.98%

29

-14.71%

S.L. CO

84081

WEST JORDAN

199

63.11%

$317,500.00

6.72%

16

-11.11%

$226,250.00

9.30%

47

14.63%

S.L. CO

84084

WEST JORDAN

98

-31.94%

$290,750.00

14.02%

35

-22.22%

$193,000.00

6.04%

36

33.33%

S.L. CO

84088

WEST JORDAN

110

-13.39%

$297,500.00

13.77%

19

18.75%

$233,000.00

13.00%

28

-12.50%

S.L. CO

84091

SANDY

0

n/a

$0.00

n/a

0

n/a

$0.00

n/a

0

n/a

S.L. CO

84092

SANDY

106

9.28%

$435,000.00

16.00%

8

n/a

$512,500.00

n/a

73

46.00%

S.L. CO

84093

SANDY

84

10.53%

$399,500.00

0.83%

2

100.00%

$407,000.00

53.01%

39

-9.30%

S.L. CO

84094

SANDY

91

2.25%

$308,900.00

8.39%

11

0.00%

$260,000.00

-5.11%

35

2.94%

S.L. CO

84095

SOUTH JORDAN

146

8.96%

$467,000.00

16.78%

45

-26.23%

$254,750.00

5.05%

55

-3.51%

S.L. CO

84096

HERRIMAN

177

-0.56%

$376,500.00

15.64%

177

240.38%

$259,999.00

19.13%

52

30.00%

S.L. CO

84101

SLC

7

40.00%

$405,000.00

109.95%

28

33.33%

$321,500.00

19.07%

56

-30.00%

S.L. CO

84102

SLC

29

61.11%

$345,000.00

-14.66%

25

4.17%

$228,000.00

6.17%

46

-16.36%

S.L. CO

84103

SLC

50

-3.85%

$484,355.00

-5.49%

35

-14.63%

$224,700.00

-2.73%

50

-18.03%

S.L. CO

84104

SLC

55

5.77%

$212,000.00

18.44%

2

0.00%

$85,500.00

11.11%

43

79.17%

S.L. CO

84105

SLC

82

-9.89%

$405,000.00

10.50%

1

0.00%

$156,000.00

22.35%

34

-10.53%

S.L. CO

84106

SLC

120

-8.40%

$342,000.00

8.57%

34

-5.56%

$216,250.00

19.48%

32

-11.11%

S.L. CO

84107

MURRAY

62

6.90%

$288,500.00

6.66%

61

3.39%

$190,100.00

26.73%

36

-7.69%

S.L. CO

84108

SLC

59

-6.35%

$530,000.00

11.34%

14

133.33%

$274,750.00

-20.17%

52

1.96%

S.L. CO

84109

SLC

83

22.06%

$420,000.00

4.58%

11

57.14%

$183,000.00

17.16%

50

21.95%

S.L. CO

84111

SLC

16

-5.88%

$257,822.00

-2.89%

24

60.00%

$208,750.00

-8.44%

37

15.62%

S.L. CO

84115

S SLC

73

-14.12%

$258,200.00

9.87%

18

-41.94%

$242,000.00

46.22%

27

-20.59%

S.L. CO

84116

SLC

69

18.97%

$231,500.00

8.18%

10

25.00%

$171,250.00

42.47%

34

-2.86%

S.L. CO

84117

HOLLADAY

72

50.00%

$449,950.00

-4.92%

53

1.92%

$201,250.00

30.47%

69

64.29%

S.L. CO

84118

TAYLORSVILLE/ KEARNS 177

-19.18%

$232,500.00

6.65%

11

1000.00%

$242,267.00

68.24%

30

15.38%

S.L. CO

84119

WVC

96

-12.73%

$237,000.00

8.47%

45

-8.16%

$175,000.00

10.76%

32

-3.03%

S.L. CO

84120

WVC

113

-24.16%

$245,000.00

12.90%

13

85.71%

$211,500.00

7.91%

38

0.00%

S.L. CO

84121

COTTONWOOD

144

0.00%

$375,000.00

3.02%

39

-11.36%

$249,000.00

11.53%

62

-1.59%

S.L. CO

84123

TAYLORSVILLE/ KEARNS 60

-25.00%

$279,750.00

6.31%

48

50.00%

$175,500.00

22.73%

29

-30.95%

S.L. CO

84124

HOLLADAY

79

19.70%

$450,000.00

-5.08%

20

-16.67%

$225,000.00

-33.13%

49

-16.95%

S.L. CO

84128

WEST VALLEY

105

2.94%

$259,900.00

13.02%

7

-56.25%

$256,000.00

45.37%

37

5.71%

S.L. CO

84129

TAYLORSVILLE

85

-13.27%

$268,200.00

11.40%

13

44.44%

$195,000.00

23.42%

27

3.85%

S.L. CO TOTALS

3217

0.47%

$325,000.00

12.07%

1024

7.90%

$228,025.00

8.58%

43

4.88%

DAVIS CO 84010

BOUNTIFUL

116

7.41%

$287,950.00

-1.97%

36

71.43%

$181,500.00

12.04%

41

-18.00%

DAVIS CO 84014

CENTERVILLE

30

-33.33%

$314,950.00

6.04%

19

-9.52%

$237,335.00

22.65%

40

11.11%

DAVIS CO 84015

CLEARFIELD

274

-3.86%

$227,000.00

1.79%

23

-28.12%

$147,000.00

8.53%

28

-12.50%

DAVIS CO 84025

FARMINGTON

54

-12.90%

$378,500.00

10.53%

17

-46.88%

$244,500.00

11.92%

50

-27.54%

DAVIS CO 84037

KAYSVILLE

94

-6.93%

$341,000.00

3.96%

6

50.00%

$221,000.00

10.09%

46

-25.81%

DAVIS CO 84040

LAYTON

91

10.98%

$293,000.00

7.42%

23

109.09%

$235,000.00

14.69%

36

-14.29%

DAVIS CO 84041

LAYTON

191

9.14%

$258,900.00

7.92%

11

-21.43%

$198,500.00

16.76%

34

36.00%

DAVIS CO 84054

N. SALT LAKE

55

-32.10%

$324,550.00

13.92%

20

0.00%

$226,800.00

10.50%

41

-26.79%

DAVIS CO 84075

SYRACUSE

113

-25.17%

$300,000.00

-5.60%

1

n/a

$203,500.00

n/a

50

8.70%

DAVIS CO 84087

WOODS CROSS

39

-22.00%

$285,000.00

1.24%

8

-20.00%

$242,550.00

5.82%

25

4.17%

1057

-7.28%

$281,900.00

4.52%

164

-0.61%

$216,000.00

13.15%

37

-11.90%

DAVIS CO TOTALS

February 2018 | Salt Lake Realtor ® | 27

REALTOR® Connections

On the Move

Dave Sauer Sky_diez © / Adobe Stock

High Homeownership Rate for Millennials in West Valley City

In its third annual study, SmartAsset has identified the U.S. cities where millennials are buying homes, and West Valley City ranks in the sixth spot. According to the report, the majority of West Valley City millennial households own their own home. To be more precise, 51.8 percent of millennial households own their home, the third-highest rate in our study.

That number is down 3.3 percent from 2007. But the average city in the study saw millennial homeownership drop almost 8 percent from 2007 to 2016, so West Valley City still ranks significantly better than average in that metric.

Millennials, for the most part, are a generation of renters. Only 34.7 percent of Americans under the age of 35 owned their homes as of 2016, according to a Census Bureau survey. But that’s not always by choice. According to a Pew survey, 72 percent of renters hope to become homeowners one day.

One big hurdle, especially for millennials, is that they are unable to buy affordable homes.

Cottonwood Title Acquires Founders Title Cottonwood Title Insurance Agency, Inc., a Utah-based title insurance company, announced the acquisition of Founders Title Company and Founders Title Company of Davis. The acquisition forms one of Utah’s largest commercial and residential title agencies offering a full range of title services to the Beehive State’s fast growing real estate market. For almost 34 years, Founders Title has been one of the most highly regarded companies in the industry, frequently trusted with some of the largest commercial transactions in Utah. The move will provide customers with greater access to many of the most experienced title and escrow professionals in the industry. “We are thrilled to welcome Founders Title to the Cottonwood Title family,” said Frank Ivory, president. “We have always had great respect for Founders Title and the integrity with which they run their business. Now, more than ever, we will have more resources available to our clients with increased speed and efficiency.”

28 | Salt Lake Realtor ® | February 2018

Glade McCombs, Regional Owner of EXIT Realty Utah, is pleased to announce the addition of EXIT Canyons Realty, under the direction of Dave Sauer, as an EXIT Realty franchisee. “Dave started out with EXIT Realty as a new agent and quickly recognized the value of everything EXIT Realty has to offer; the EXIT Formula, state-of-the-art technology, indepth training and more, and we are thrilled to have him join our growing EXIT Realty Utah family,” said McCombs. Sauer said he is excited to join the local business community and assist residents with their real estate needs. “At EXIT Realty we are committed to our customers’ satisfaction.”

According to financial website GetHearth.com, homeownership is the No. 1 element of the American Dream. The Top 10 most important elements of the American Dream: 1. Owning a home I love (19 percent) 2. Affording rent and living expenses without hardship (15 percent) 3. Starting a family (14 percent) 4. Finding a fulfilling career (14 percent) 5. Sending my child to college (10 percent) 6. Building retirement savings (9 percent) 7. Being able to afford luxuries (7 percent) 8. Owning a car (5 percent) 9. Earning more than my parents (social mobility) (3 percent) 10. Owning a pet (2 percent).

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MY WHY? i I see my goals as inevitable triumphs. Because, like the diehard agents at RE/MAX, I don’t let anything stand in my way. Not setbacks. Not surprises. Not even myself.

This is my tribe.

Why RE/MAX? The culture is my why. Š2018 RE/MAX, LLC. Each office is independently owned and operated. 17_235777

Find your why at joinremax.com

2018

HOUSING FORECAST

by Matthew Gardner, Chief Economist

MILLENNIAL HOME BUYERS Last year, I predicted that the big story for 2017 would be millennial buyers and it appears I was a little too bullish. In 2017, first-time buyers made up about 34% of all home purchases— below the 40% that is expected in a normalized market. Although they are buying, it is not across all regions of the country, rather they are currently attracted to less expensive markets such as North Dakota, Ohio, and Maryland.

This year, the number of millennial buyers should expand further and be one of the biggest influencers in the U.S. housing market. I also believe that they will begin buying in more expensive markets.

NEW HOME SALES New home sales should rise by around 8% to 655,000 units, with prices increasing by 4.1%. While housing starts—and therefore sales—will rise next year, they will still remain well below the long-term average due to escalating land, labor, materials, and regulatory costs. I do hold out hope that home builders will be able to help meet the high demand we’re expecting from first-time buyers, but in many markets it’s very difficult for them to do so due to rising construction costs.

INTEREST RATES Interest rates continue to baffle forecasters. The anticipated rise that many of us have been predicting for several years has yet to materialize.

As it stands right now, my forecast is for interest rates to rise modestly to an average of 4.4% for a conventional 30-year fixed-rate mortgage—still remarkably low when compared to historic averages.

EXISTING HOME SALES In 2018 we should expect existing home sales to increase by 3.7%—or 5.62 million housing units. In many areas, demand will continue to exceed supply, but a modest increase in inventory will help take some heat off the market. Because of this, home prices are likely to rise by 4.4%.

HOUSING BUBBLE With slowing home price growth, there should be a modest improvement in the number of homes for sale in 2018, and the total home sales will be higher than 2017. First-time buyers will continue to play a substantial role in the nation’s housing market, but their influence may be limited depending on where the government lands on tax reform

MATTHEW GARDNER Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics.

He is the former Principal of Gardner Economics, and has over 30 years of professional experience both in the U.S. and U.K.

For more information about Windermere, contact our principal broker, Grady Kohler, at 801-815-4663.

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