Facebook
Twitter
Pinterest
Copy Link
May SunCrest Market Update
Follow along: Newsletter | Facebook | Instagram
Appraisals, appraisals, appraisals
It’s no secret that SunCrest home values have increased dramatically over the past two years. Gone are the days of homeowners drowning with an “underwater” mortgage (yay!) and many SunCrest homeowners who purchased at the bottom of the market are sitting on substantial amounts of equity. However, in a hot SunCrest real estate market, buyers and sellers are being faced with a challenge: The Appraisal.
Unless it’s an all cash purchase, each home must be sold twice. First to a prospective buyer who makes an offer, and second to the appraiser who must agree that it’s worth what a buyer is offering. When a market sees rapidly rising prices, appraisal values may lag behind and that second sale can be more difficult than the first.
In a sizzlin’ SunCrest real estate market, SunCrest homes are receiving multiple offers and offers above list price. The appraiser is then tasked with supporting the buyers and sellers opinions of value. The problem? In many cases, the appraiser’s opinion of value is different than the contract price. According to a recent report by Quicken Loans, the gap between homeowners opinion of value and that of an appraiser continues to widen. This growing gap is causing some hiccups to an already emotional process.
Our take:
The appraisal came in low. Now what? Our advice: be prepared. At the time an offer is submitted and reviewed, discuss the options of the “what if the appraisal comes in low?” Are the REALTOR and seller prepared to dispute the value if they feel it is wrong? Does a buyer have the ability to pay above the appraised value and/or work with their lender to restructure a loan? Having a professional on your team who is able to support, educate, and most importantly communicate the contract value may not only help a buyer or seller achieve their SunCrest real estate goals but save potentially thousands (even tens of thousands) in the event of a challenging appraisal value.
Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market. The previous month’s SunCrest housing information and future editions are released monthly.
January SunCrest Market Update
Follow along: Newsletter | Facebook | Instagram
2016 SunCrest Real Estate Review
With 2016 now in the books, it’s a good time to reflect on the last year, and look ahead to the next. In 2016, we saw the highest levels of activity in a decade. Homes sold more quickly, inventory was scarce, and interest rates remained low. Like you’re annual checkup with your doc, here’s the report on the last year of SunCrest real estate.
SunCrest Homes sold quicker
In 2016, SunCrest homeowners saw their homes spending less time on the market. The average days spent on the market was 53 days, nearly half (91 days) of what it was in 2015.
2016 SunCrest Market Summary
SunCrest Inventory was scarce
Buyer demand continues to outpace the supply of homes for sale. Nationally, year-over-year inventory levels have dropped each of the last 18 months. Inventory now stands at a 4-month supply, well below the 6-month supply needed for a ‘normal’ market. In SunCrest, we are below a 2-month supply and have been for the past year. Based on this theory, if nothing else was listed and the current demand remained the same, every home currently on the market in SunCrest would be sold in 2 months.
Interest rates remained low
In addition to rising home prices and limited inventory, mortgage rates were a hot topic in 2016 resulting in an active real estate market. The presidential election, however, did impact rates. Rates increased nearly three quarters of a point (or approximately 3.5% to 4.25%) but have since stabilized. Further, citing an improved economy and further job growth, the Federal Reserve recently raised interest rates. It’s anticipated they’ll do this three times, in each of the next two years.
Our take:
We are often asked, “How’s the market?” Our answer: “Which segment of the market? Townhomes? Custom homes? Starter? Move up?” Depending on what segment may impact the answer. Townhomes are selling in a matter of days, whereas the average time for half million dollar and above homes is nearly double (or triple!) the average of all SunCrest. And new construction? Well, you get the point. It certainly can be a good time to buy or sell, but everyone’s timing, housing need, work situation, and/or family decision is different. We believe in analyzing and arming you with relevant information to make an informed decision specific to your needs.
Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market. The previous month’s SunCrest housing information and future editions are released monthly.
November SunCrest Market Update
Say hello! Newsletter | Facebook | Instagram
SunCrest Area Land – What’s the latest?
There’s a lot of hubbub regarding the future of SunCrest right now. As many know, the original SunCrest developer declared bankruptcy, a few potential purchases didn’t materialize, and Draper City was able to purchase about 2,400 acres for $5.6M exactly 4 years ago. This, along with the failed development, effectively nixed the original master plan that had been approved, and has given the City an opportunity to set forth their own vision for the area.
In 2015, Draper City put the wheels in motion to develop an “Open Space Master Plan.” With the help of outside consultants, countless hours of input, open houses, and surveys, this plan was adopted early 2016 to serve as an “open space element of the general plan.”
As part of their overall plan, a few parcels are being sold for development, and Draper City will soon hold another meeting regarding the surplus (sale) of additional SunCrest land. With development on the horizon, we thought we’d take a look at the history of other surplus land, and their status today since being purchased.
Image courtesy of Draper City
1- Mercer Mountain Estates
This ~20 acre parcel neighbors Hidden Canyon Estates and will provide pristine mountain and city views. This particular parcel was used to facilitate a settlement between the City and a private owner.
2-Lakeview Heights
This ~20 acre parcel neighbors the current Maple Hollow subdivision and zoning allows for multiunit density. This too was used to facilitate a settlement between the City and private owner.
3-Blue Bison Development
This ~100 acre parcel was formally put up for sale in 2014 and recently went under contract with Blue Bison Development for likely residential development.
4- December 2016 Surplus Proposal
Draper is currently considering a surplus of an additional 30-40 acres located along the road leading into the Blue Bison Development parcel.
Our take:
As more SunCrest land is being sold, open space plans put into place, new trails made, and the Hidden Canyon Estates and Edelweiss subdivisions bring new a wave of new construction not seen since the “boom” of the 2000’s, it’s certainly a busy time up here. Whether you’re new or old to SunCrest, for or against development, an avid outdoor enthusiast or homebody, we encourage voicing your comments, concerns and compliments when change is presented. Collectively, we’re a passionate group and that’s what makes this neighborhood such a unique and diverse community.
Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market. The previous month’s SunCrest housing information and future editions are released monthly.
July SunCrest Market Update
Say hello! Newsletter | Facebook | Instagram
Lack of listings
As we move towards a complete housing recovery, we believe that the housing crisis is behind us. High five! Doesn’t it feel so good to say that? The total number of SunCrest homes that have sold is up. SunCrest homes are selling faster. SunCrest homes are appreciating. Distressed property sales (think: short sales and foreclosures) have almost completely disappeared in SunCrest.
However, a new challenge has surfaced to affect the SunCrest real estate market — a lack of SunCrest homes for sale. As predicted, buyer demand has remained strong throughout the summer, but there just aren’t enough homes for them to buy. A lack of sellable inventory could be causing a slowing to the SunCrest market.
Last month we discussed how the price of any item is determined by the supply of that item, and the market demand. We closely follow something called “absorption rate,” which basically measures how many homes sell over a given period of time. In 2016 so far, the current monthly absorption rate in SunCrest is 11.33. Or, roughly 11 homes are selling per month in 2016. Our current inventory? Just 22 homes for sale, or a 2-month supply of homes. You picking up what we’re putting down?
Our take:
A lack of listings could be great news for people selling this summer. Sellers may see multiple offers, spend less time on the market, or face less competition for others who aren’t quite ready. Now may be a time to list if you’ve be considering selling. For buyers, even though there’s more competition for fewer homes, interest rates remain at historic low, keeping the cost to own affordable for many.
Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market. The previous month’s SunCrest housing information and future editions are released monthly.
April SunCrest Market Update
SunCrest Appraisals
“The appraisal came in low.” Those are five words you never want to hear in a real estate transaction. Basically, it means that a transaction was based on a home being worth a certain amount of money, but certified appraisers have evaluated the home and in their estimation, determine it’s just not worth that much. It affects sellers, buyers, and may unravel a mortgage company’s ability to lend money.
In SunCrest, as well as the market as a whole, we’re seeing more “low appraisals” in 2016 than we’ve seen in nearly a decade. Why? The law of supply and demand. When demand is high and supply is low, it creates a challenge for appraisers, homeowners, and realtors. Certified appraisers look backward to see what comparable homes have sold for in the past, and when prices are increasing as they have been this year, it can become difficult for appraisers to find adequate, recent comparable sales to defend the current sale price of a home. Although upticks and trends in the market can be considered, appraisals are really rooted in homes sold in the recent past.
If your appraisal comes in low, are you prepared to dispute the value? How about a second opinion? Can you support your value? Were the comparable sales the appraiser used accurate? What about things like view, upgrades, condition, and location?
Our take:
We often tell our clients their house has to be sold twice: first to a prospective buyer who makes an offer, and second to the appraiser who must agree that it’s worth what a buyer is offering. With rising prices, the second sale can be more difficult than the first. Systems, data, and algorithms account for quantifiable data. Having a professional on your team who is able to defend, educate, and most importantly communicate the contract value may save you thousands in the event of a low appraisal.
March SunCrest Market Update
Hidden Canyon Estates – Coming Soon!
Get ready for some new neighbors in our mountaintop community — Hidden Canyon Estates is coming soon (Don’t miss a beat— sign up for development updates here). This development sits on approximately 103 acres located east of SunCrest Drive.
What To Expect
Currently, the development is approved for a maximum of 300 single-family homes, each with a minimum 7,500sq/ft (.17-acre) lot. Since there is only one access point off of SunCrest Drive right now, they will be limited to 50 homes until a second access point is built.
This parcel and 2 other parcels were part of a settlement agreement between the existing property owner and Edge homes in 2014. The preliminary plat passed the Draper City Planning Commission is headed to City Council for approval. Upon approval from the Council, the subdivision will include nine phases—the first eight by Edge Homes, and the final phase by the original property owner. View the full plats below.
And What About…?
SunCrest HOA: As of this writing, it’s unclear if they will join the SunCrest HOA.
Open Space: The plat includes two parcels of open space. A .31 acre parcel in Phase 1, and a second .18 parcel next to the city’s existing detention basin.
Parks and Trails: $500,000 will be given to Draper City and be used in the first or second phase trail and trailhead improvements
Traverse Ridge Special Service District: Any subdivision on the property will be a part the Traverse Ridge Special Service District.
Our take:
You may be wondering, “How will new construction impact my home’s value?” New development in any community presents more choices for buyers and sellers. Depending on the size, style, and lot size, new homes can bring new competition to finished homes when it comes time to sell, but they will also bring a lot more people up the hill who are interested in buying in SunCrest. Buyers and sellers all have different goals, timing, and lifestyles that make each experience unique. Finished basements, full mature landscaping, established neighborhoods, and different scenery are all strong features of homes already built, so we expect to see existing home sales remain strong, even with new development looming. Working with a team to help position yourself to stand out in a bigger (and newer) crowd, however, will become even more important for any SunCrest homeowner looking to sell.
January SunCrest Market Update
Say hello! Newsletter | Facebook | Instagram
January SunCrest Market Update
2015 marked the best overall year for SunCrest homeowners since 2007 thanks to steady demand, attractive interest rates, and a healthy Utah job market. As we start our 16th year assisting families with their SunCrest real estate needs, let’s look back at 2015:
Q1 2015
If you recall, last winter was pretty dry (yes, we mean moisture). The lack of flurries in the air could have helped contribute to the fact that sellers got more money per square foot for their homes in this quarter, than at any time all year long. Buyers paid an average of $109.71 per square foot during that three-month period.
Q2 2015
Bump. Set. Spike! We see it every year. As the snow melts and families start planning for spring and summer, we see a spike in SunCrest homes coming to the market.
Interesting fact! Did you know that 72% of all SunCrest homes listed in 2015 actually sold? This is up from 63% in 2014.
Q3 2015
SunCrest sellers and buyers were feeling like the market was hot, hot, hot! Homes spent an average of 39 days on the market during this quarter, as opposed to the overall 2015 average of 94 days.
Q4 2015
SunCrest buyers and sellers didn’t leave as much room for negotiation in the 4th quarter of 2015. On average, homes sold for 98.65% of asking price — over 1% higher than the yearly average.
Our take: We are often asked, “When is the best time to buy or sell in SunCrest?” Our answer is always the same—when you’re ready. Everyone’s timing, housing need, work situation, and/or family decision is different. We believe in arming you with the information you need to make the best decision available. Facts are just facts; but being able to research, understand, analyze, and interpret the facts will help you make an intelligent and informed decision.
December SunCrest Market Update
Earlier this month, our phones were buzzing with questions from clients wondering if mortgage rates would be impacted from the Federal Reserve’s decision to raise the key fund rate. “If only we had a crystal ball,” was what we found ourselves saying.
It’s important to note that home mortgage rates are not directly tied to the Federal Fund Rate. Revolving lines of credit, on the other hand (think: home equity loans or credit cards) are more closely related. Mortgage rates follow bond yields, specifically the 10-year treasury.
While we don’t have that crystal ball, analysts and economists from organizations like the Mortgage Bankers Association or government-sponsored funders like Fannie or Freddie are predicting that mortgage rates may increase gradually over the next year. Take a peek at the chart below for what they’re predicting. 
FHA Loan Limits Increase Throughout SunCrest
Also this month, the Federal Housing Administration (FHA) increased FHA loan limits to both counties within SunCrest boundaries. The FHA loan limit for Salt Lake County is now $312,800 (up from $304,750) while Utah County is $303,600 (up from $293,250).
Our take: There’s no need to hit the panic button; in the big historical picture, mortgage rates are still very low. However, if you believe the predictions, then now is the time to buy and you’ll only pay more interest the longer you wait. We had also hoped the FHA limit changes would be more substantial, but there are still SunCrest homes available that fall in those guidelines, and can be had for minimal down payment.
November SunCrest Market Update
In addition to our hyperlocal SunCrest focus, we’re also involved in national real estate issues. We recently attended the National Association of Realtors conference, a gathering of over 20,000 Realtors. Below we recap a big takeaway from this year’s event.
Shiny new objects
Technology is changing the way the real estate industry operates, and the way Realtors are doing business. From online listing websites, to virtual home tours, to mobile apps that tell you when you’re near a house for sale, there are countless new ways to go about finding or selling a home.
As a consumer, you can now research the entire buying or selling process, sift through listings online, educate yourself about the school system in a neighborhood you’re interested in, or get a “free market analysis in 30 seconds” all from the comfort of your home.
Walking through the trade show this year was quite eye opening. Technology is creating a sense of urgency for Realtors to chase the latest and greatest “shiny new objects” being marketed. We saw everything from online sales leads, apps that predict how likely someone is to sell their home, software that scans your social media posts to find potential clients, and companies that offer to track and communicate with your past clients so Realtors can relax all year long.
Our Take:
Technology streamlines processes and increases education. It empowers buyers and sellers to make the best buying and selling decisions out there. However, just chasing the “shiny new objects” is no replacement for experience and know-how. Not all technology is created equal, and knowing which tools have been proven and which are smoke and mirrors is not always easy. There’s no substitute for sitting down at the table with someone to talk about your personalized options, or having a trusted advisor to help navigate during one of life’s unexpected events. Technology can’t answer the phone to work through a stressful negotiation with you or celebrate with you when you close on your new house.
July SunCrest Market Update
Pricing Your SunCrest Home
The number of homes for sale is currently lower than expected. In a market like this, real estate professionals are often pressured by sellers to put a premium price tag on their listing, or to float a high asking price and just “test the market.” Many have seen a neighbor’s home sell quickly and for a higher price than they anticipated, so the temptation is understandable.
Selling Your SunCrest Home Now Versus Later
This strategy to list high and think, “If it doesn’t sell, we can always lower it later,” can potentially create a few problems as you are trying to sell your SunCrest home.
Pricing too high can potentially:
- Limit the number of likely buyers who are interested in your home because you’ve priced it higher to allow for “negotiation room.”
- Paint a negative picture in the buyer’s mind. If buyers thinks your price is too high, they may jump to the conclusion that you’ll be unreasonable in negotiations.
- Keep your home from selling quickly. The longer your home is on the market, the less likely it may be that you get a strong price. Think of when you were looking for homes. When you found a home had been on the market for long period of time, what did you think? What’s wrong with it? Why hasn’t it sold?
Pricing Your SunCrest Home Right The First Time
Of the SunCrest homes sold from January 1 to June 30 2015, the homes that got closest to their listing price were also the ones sold the fastest.
Our Take
Accurate pricing comes down to having a full understanding of our niche neighborhood, style, and size of homes–just to name a few factors–and it’s not just throwing together a quick, free, comparative market analysis. Oak Vista is not the same as Eagle Crest. DR Horton will not be the same as the future developments in SunCrest.
If you’re selling your home, ask the agent being interviewed to explain his/her strategy on their pricing recommendation. How long will it take to sell at that price? How close to their recommendation will it actually sell for? In our opinion, great agents will tell you what you need to know rather than what you want to hear.
