Salt Lake
REALTOR
ÂŽ
slrealtors.com
Maga zine December 2016
The 2016 Annual Report p. 14
2017 National Housing Forecast p. 22
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Table of Contents The staff of the Salt Lake Board of Realtors® wishes its members a very Merry Christmas and Happy New Year.
Features 12 Bountiful Bowl Event Raises $12,000 for Charities
14 Salt Lake Board of Realtors® 2016 Annual Report to the Members Curtis A. Bullock
22 Realtor® 2017 National Housing Forecast
Columns 7 Attitude of Gratitude …
and Then Some! Cheryl Acker – President’s Message
Departments 8 Happenings 8 In the News 26 Housing Watch 28 Realtor® Connections 28 On the Move
On the Cover: Kyla Vigil, left, Hayley Miller, Ashley Mordwinow, and Megan Johnson. Photo: Dave Anderton Photo left: © Lane Erickson / 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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Maga zine
December 2016 volume 76 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.
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Salt Lake
REALTOR
® ®
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slrealtors.com slrealtors.com
President Cheryl Acker Utah Key Real Estate
Directors
First Vice President Troy Peterson Equity Real Estate Second Vice President Adam Kirkham Summit Sotheby’s International Treasurer Jared Booth CBC Intermountain Past President Dave Robison goBE Realty CEO Curtis A. Bullock
M. Brock Andersen Berkshire Hathaway J. Scott Colemere Colemere Realty Associates Kimberly Farber-Bowen Equity Real Estate Kevin Larsen Coldwell Banker Residential Mike Morgan Realtypath Jodie Osofsky Utah Key Real Estate Steve A. Perry Realtypath Scott Robbins Coldwell Banker Residential Michael Rowe Berkshire Hathaway Randal Smith Equity Real Estate Matthew Ulrich Ulrich Realtors®
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 Leslie Hanna Ken Magleby Patrick Witmer
Office Administrator Cynthia Bell Snow
Sales Staff Paula Bell Karen Malan Paul Nicholas
Administrative Assistant Ruth Gainey
Office Assistant Jessica Snow
Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. 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
Attitude of Gratitude … and Then Some!
“G
ratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into acceptance, chaos into order, confusion into clarity. It can turn a meal into a feast, a house into a home, a stranger into a friend. Gratitude makes sense of our past, brings peace for today and creates a vision for tomorrow.” – Quote by Melody Beattie
As this is my last monthly article, my heart is full of gratitude and appreciation for everyone’s contribution in helping to improve the Salt Lake Board of Realtors®. It doesn’t matter if you are new to the real estate profession or have been a Realtor® for 40 years, or if you are an affiliate or staff, all of our involvement is helping to shape the future for our Board and our profession. I am amazed how many people have stepped up to volunteer to help our committees, improve our board and to make a difference in our communities. With everyone’s involvement (committee members, staff, and everyone who attended the events), we were able to have outstanding results. Thanks to everyone! Christmas in July committee helped collect items needed for 300 backpacks and also sponsored a clothing drive to provide business clothes to homeless people for job interviews. Charity Challenge committee held an event and raised money to sponsor corporate days with Habitat for Humanity. More info and help will be needed once the corporate days are scheduled. Commercial Alliance has worked with Utahrealestate.com on improving the commercial forms and search functions. They also hosted three successful Town Hall meetings. Education committee had over 715 registrations for this year’s education conference. The New Member Orientation was overhauled to include a new professionalism component, improved interactive trainings, 4 CORE hours of CE and nearly eight hours of instruction. Grievance & Professional Standards committees worked with two new programs; the ombudsman program as well as the professional standards citation program. Those programs are going strong and have successfully resolved nearly 20 grievance cases. Government Affairs/RPAC committee held several successful RPAC fundraisers including our annual REAL Salt Lake and Golf Tournament. Affiliates Advisory Board held a new event this year at Top Golf and also helped raise money for RPAC. They have also had a great impact in our New Member Orientation class. Young Professionals Network (YPN) held some well attended Roundtables including their latest event in October, which hosted over 100 Realtors and Affiliate members. They are seeking out new opportunities to serve in the community as well. Blood Drive - A special recognition needs to go to Tobi Roberts for helping us with the blood drive for the past 17 years. These are just a few highlights from 2016! My few words of thanks cannot adequately express my immense gratitude and appreciation for all the time and effort donated by everyone. All of your efforts helped make a difference! “We are Realtors® . . . and then some”
Cheryl Acker 2016 President December 2016 | Salt Lake Realtor ® | 7
Happenings
In the News Smart Home Certification
Pictured: Miranda Robinson, left, Loni Larsen, Shirley Jacobson, JoLynn Nelson, and Shelly Despain.
Thank You 2016 Committee Members The Salt Lake Board of Realtors’® Affiliate Advisory Board in November held a special appreciation breakfast to thank its more than 100 committee members for their outstanding service over the past year. This year, members served on ten different committees. Their service helped the Board fulfil its fourfold mission of government advocacy, knowledge, communication, and service.
Pictured: Bryan Colemere, left, vice chairman of the Government Affairs Committee; Justin Allen, government affairs director; Riverton Mayor Bill Applegarth, Curtis Bullock, CEO of the Salt Lake Board of Realtors®; and Becky Grubel, chairwoman of the Government Affairs Committee.
Riverton Mayor Addresses Realtors® Riverton Mayor Bill Applegarth recently talked to members of the Government Affairs Committee and to Realtors® who live in Riverton City about the future of the city’s developments in housing, office space, and retail centers. The Salt Lake Board of Realtors® champions economic development. New job growth and housing not only help the economy, but offer more opportunities for Realtors® to be successful in their businesses.
8 | Salt Lake Realtor ® | December 2016
As smart homes become more popular among consumers, buyers and sellers are showing greater interest in those homes and smart-home technologies and Realtors® in a certification to acknowledge their experience and expertise in those features. This is according to the National Association of Realtors®’ inaugural Smart Homes and Realtors® report, which found that Realtors® are becoming more interested in a smart home certification, despite the fact that only 15 percent of agents are receiving questions about smart home technology from their clients. According to the report, which analyzed the importance of smart home technology to Realtors®, 42 percent of respondents stated they are interested in acquiring a smart home certification, while 22 percent are not interested and 36 percent were undecided. “More homeowners are adopting smart-home technology and that will likely impact buyers’ purchase decisions in the future. While consumer interest in this trend is still developing, Realtors® are becoming wellversed in successfully marketing smart homes and their features, such as devices and appliances,” said NAR President William E. Brown, a Realtor® from Alamo, California and founder of Investment Properties, a division of his family real estate business. The mission of NAR’s Center for Realtor® Technology is to track emerging technologies that will affect real estate, educate its members, advocate for the proper use of technology, and innovate when there is a gap between what is needed and what is available.
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Saratoga Springs — One of Utah Counties Fastest Selling Communities
If you’re looking for Utah Valley’s top-selling community, look for a 35-foot wooden water tower — the remarkable entry monument to Legacy Farms, D.R. Horton’s new master-planned community in Saratoga Springs.
Once you’ve selected the floorplan that’s right for you, D.R. Horton’s award-winning design team will help you select a beautiful interior. Or, you can choose from the gorgeous, designer-styled homes built and ready for a quick move-in.
There’s something special about Legacy Farms,
“It’s easy to see why Legacy Farms is the number-one Utah Valley community based on sales, permits and closings for 2016,” said D.R. Horton division president Boyd Martin. “We are setting records in terms of sales and production in one community with one builder. The vibe is very young and energetic. You’ve got amazing architecture, beautiful parks and lots
it’s really exciting because there’s nothing else in Utah County quite like it.” Legacy Farms offers a modern twist to a classic American community, at an affordable price. It’s unique mix of beautiful single-family and townhomes are situated on 183 acres in one of Utah’s fastest-growing cities. Townhomes start in the $190’s, with single-family homes starting in the $250,000 range. They are thoughtfully designed and beautifully constructed by D.R. Horton, America’s number-one builder for 15 years in a row. Buyers can choose from more than 20 floorplans in five different architectural styles. This broad selection of styles and floorplans gives Legacy Farms a harmonious look without a cookie-cutter feel.
Visit d.r.horton.com/utah for more information. *D.R. Horton is America’s #1 Homebuilder per Builder Magazine.
of green space. Homes are selling quickly, but there are still plenty of prime lots and models to choose from.” Legacy Farms’ blend of townhomes, starter homes and mid-level family homes provide an opportunity to stay in the same neighborhood, even as housing needs change. Legacy Farms was designed to be the type of community residents will never want to move from. D.R. Horton spent years planning this one-of-a-kind development. “They definitely went the extra mile to really be mindful of how everything lays out,” said Richard McCann, lead designer for the project. “So much time, effort and energy was put into getting it right. Every part of the community is carefully styled to evoke a modern-day farm, with an American, ‘down-home’ feel.” Even some street names were inspired by historic registered farms in the United States. Krisel Travis, entitlements and land acquisition manager said, “The theme of the community shows through from the amenities right down to the architecture of the home. It just creates a fantastic environment in which to live.” The rapidly developing community is bursting with amenities including a resort-style swimming pool, a spacious clubhouse resembling a barn that is large enough to hold neighborhood gatherings and parties. There are 12 neighborhood parks of varying sizes ranging from 6,000 sq. ft. to 6 acres, two of which feature restored vintage tractors for children to play on. There will be more than 38 acres of green space with parks, walking trails, a basketball court, a bike track and a skate park. Legacy Farms offers this unique lifestyle along with opportunities to connect with others in the community. The brand new public elementary school allows for a safe environment close to home. “There’s something special about Legacy Farms,” said Boyd. “It’s really exciting because there’s nothing else in Utah County quite like it.”
• 183-acre master-planned community along Redwood Road and only seven miles from I-15 • Convenient access to Pioneer Crossing and Lehi’s tech corridor • Townhomes start in the $190’s • Single-family homes start in the $250,000 range • Single-family homes range from 1,275 to 4,445 sq. ft. with lots ranging from 3,400 to 10,000 sq. ft. • Single-family home plans offered in five styles including Farmhouse, Craftsman, Traditional, Prairie and Modern • Resort style pool and 2,568 sq. ft. clubhouse resembling a barn • New elementary school inside the community • Beautiful views of the Wasatch mountains • 38 acres of green space with parks, walking trails, a basketball court, a bike track and a skate park • 12 neighborhood parks varying in size from 6,000 sq. ft. to 6 acres
Bountiful Bowl Event Raises $12,000 for Charities
R
ealtors® from Davis County and surrounding communities dressed in their favorite movie-themed costumes at an annual bowling fundraiser in November at Bountiful Bowl. More than $12,000 was raised for five charities: Bountiful Food Pantry, Coats for Kids, Make a Wish Foundation, Ladies of Charity, and Inn Between. Jenni Barber, a Realtor® with Berkshire Hathaway Home Services Utah and chair of the event, said the money raised this year nearly doubled what was raised three years ago when the event first started. I attribute the success of the event to the amazing people who came and participated,” Barber said. “As a group we truly care about our community and each other.” The South Davis Chapter leadership team includes (pictured opposite page bottom left): Michael Grey (president elect), Michelle Sisam (committee chair), Jenni Barber (president), Tony Reece (treasurer), Brock Andersen (director Salt Lake Board of Realtors®), and Kim Townsend (affiliate rep).
12 | Salt Lake Realtor ® | December 2016
Photos: Dave Anderton
December 2016 | Salt Lake Realtor ÂŽ | 13
The 2016 Salt Lake Housing Forecast breakfast.
Salt Lake Board of Realtors® 2016 Annual Report to the Members By Curtis A. Bullock
I
want to take this opportunity to present the Salt Lake Board of Realtors® Annual Report to the Members. Let me first start by thanking each of you for being a member of the Salt Lake Board of Realtors®. You are a member of one of the longest standing trade organizations in the country which is now 100 years old. This is a great profession to be part of as we are able to help our friends, family and clients realize the American dream of homeownership. This report is intended to give you an accounting of what the Board has accomplished during the past year and what we will be working on in the future. It has been a great year serving with Cheryl Acker as our President. She truly led by example this past year on many fronts. She led the Board by reaching 100 percent RPAC participation in her brokerage, helped tell our story to several different news outlets, and has encouraged many members to get more involved with the Board. She is a great leader who has had a positive impact on many in our profession. It has also been a great honor to have had the opportunity to work closely with our leadership team, Board of Directors and the many committee chairs, vice chairs and committee volunteers. As I
14 | Salt Lake Realtor ® | December 2016
have said before, I have really come to appreciate the saying that “there is nothing stronger than the heart of a volunteer!” With that, let me share with you some of the highlights of 2016. I. Membership Figures This past year has seen tremendous growth in terms of our new membership. On average, our association has seen roughly 100 new agents join become Realtor® members each month. We have a total membership of just over 7,500 members including brokers, agents, affiliates, appraisers and secondary members. Thirty-eight percent of the brokerages are single broker offices, 94 percent of the brokerages have 1-20 Realtors® and about 6 percent of our brokerages have 20-500 Realtors®. With the high number of new members joining the industry each month, we have a great opportunity and also a challenge to help educate each and every person on what is expected in our industry from a professionalism standpoint. We all have a duty to help raise the bar in our profession. I would encourage you all to reach out and help a new member next year better understand our important Code of Ethics and the (continued on page 18)
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Westwood Cove, Lot 2 in Farmington
Westwood Cove, Lot 7 in Farmington
Tivoli Traditional home design
Galileo Lakefront home design
Torino Traditional home design
884 S. Tippet's Lane Farmington, UT 84025
908 S. Tippet's Lane Farmington, UT 84025
922 S. Westwood Place Farmington, UT 84025
Rambler Finished Sq Ft: 1,973 • Total Sq. Ft: 4,011 • Lot Size: 16,728 sq. ft. • Bed: 3 / Bath: 2.5 • Garages: 3 • MLS #1400266 • Price: $512,500 • •
Rambler Finished Sq Ft: 1,656 • Total Sq. Ft: 3,330 • Lot Size: 16,778 sq. ft. • Bed: 3 / Bath: 2 • Garages: 3 • MLS #1400268 • Price: $465,215 • •
Rambler Finished Sq Ft: 1,881 • Total Sq. Ft: 3,743 • Lot Size: 16,856 sq. ft. • Bed: 4 / Bath: 2.5 • Garages: 3 • MLS #1378911 • Price: $479,800 • •
Eastwood Cove, Lot 1 in Farmington
Farmington Hollow, Lot 118 in Farmington
East Brentwood Estates, Lot 10 in Farmington
Torino Traditional home design
Carlisle Traditional home design
Mayflower Mountain home design
43 W. Glovers Lane Farmington, UT 84025
1837 N. Stayner Drive Farmington, UT 84025
1709 N. 400 W. Farmington, UT 84025
Rambler • Finished Sq Ft: 1,881 • Total Sq. Ft: 3,743 • Lot Size: 17,162 sq. ft. • Bed: 4 / Bath: 2.5 • Garages: 3 • MLS #1378910 • Price: $468,300 •
Rambler • Finished Sq Ft: 2,046 • Total Sq. Ft: 4,174 • Lot Size: 17,424 sq. ft. • Bed: 3 / Bath: 2.5 • Garages: 3 • MLS #1378295 • Price: $574,500 •
Two-story • Finished Sq Ft: 2,616 • Total Sq. Ft: 3,975 • Lot Size: 12,196 sq. ft. • Bed: 3 / Bath: 3 • Garages: 3 • MLS #1404469 • Price: $764,900 •
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 a variety of educational and networking events. III. Our mission here at the Board is simple and straight forward – it is to be the leader in providing support to the professional Realtor® through Advocacy, Knowledge, Communication and Service. With that in mind, let me share a few more things we all accomplished this year.
When clients read or hear these positive media stories, it helps our members better represent their clients.
proper etiquette that we should all demand of one another. It makes life that much easier when all Realtors® operate and conduct themselves at a high level. Deals get done faster and without as much trouble and our image as a profession is continuously improved. II. Financial Status & 2016 Audit Report I am very happy to report that the Board is in excellent financial condition. In 2016, the Board received an independent audit of its year ended 2015 financial statements. The Board enlisted the services of Tanner LLC, a professional accounting firm, to conduct the audit and to provide feedback on the Board’s internal controls and practices. Tanner LLC provided a detailed audit report in both written and verbal format to our Board of Directors. During that report, the Board was given high marks on both its financial statements and internal controls. The auditors complimented the Board for its excellent financial condition and noted that the Board is being run efficiently and professionally. As many of you know, the Salt Lake Board of Realtors® owns the first and second floor of the Realtor® building here in Sandy. Utahrealestate. com and the Utah Association of Realtors® own the other floors (three through five). A large portion of our space is leased out to tenants. In fact, 100 percent of our leaseable space is rented
18 | Salt Lake Realtor ® | December 2016
(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. A big thanks go to Becky Grubel and Bryan Colemere for leading our Government Affairs committee in 2016! It is because of our advocacy efforts 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 has always been and always will be a huge priority for the Salt Lake Board of Realtors®. RPAC dollars are used to help support candidates that are Realtor® friendly, regardless of party affiliation. It doesn’t matter if they are democrat, republican or independent. What we care about is whether the candidate is friendly to our issues private property rights and free enterprise. Having reliable government officials in local office is so important to the success 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 dollars for RPAC. By year’s end, we were very pleased to reach our UAR assigned goal and finished the fundraising year with over $300,000 raised. Wow! We will surpass 135 Major Investors ($1,000 or more invested) - by far the most of any local association of our size in the country, and will likely beat over 30 individual states entire RPAC fundraising efforts. We also had 17 members attain the Presidents Circle status which means
these 17 members invested a minimum of $1,000 in RPAC and an additional $2,000 that was given directly to members of Congress that support Realtor® issues. Another impressive record we will set this year is achieving 40 percent RPAC participation. This means that 40 percent of our members will have invested a minimum of $15 in RPAC. This has never been done before! On the local elections front, our Government Affairs and RPAC Committee spent dozens of hours interviewing local candidates this past summer and made recommendations on endorsements and support to the RPAC trustees. After the November elections, we enjoyed a very high success rate helping candidates in local elections in Salt Lake and Davis County. We provided strong backing to all Salt Lake County incumbent candidates who won reelection including Democratic Incumbent Mayor Ben McAdams, Republican Incumbent County Councilman Richard Snelgrove, and Realtor® Republican Incumbent County Councilman Max Burdick. We also successfully supported all winners in the Millcreek City elections this year. This past year we conducted successful Mayor Forums with Herriman Mayor Carmen Freeman, Riverton Mayor Bill Applegarth, and Draper Mayor Troy Walker. We also invited South Jordan Councilmembers Brad Marlor and Tamara Zander (a Realtor®) to address our Government Affairs Committee earlier this year. These are amazing milestones and accomplishments and we thank all of you who invested in your industry and participated in our advocacy efforts! Utah Realtors® take their profession seriously and it shows. At the end of 2016 we were very excited to hire Marcus Jessop to be our new Government Affairs Director. He will be working alongside Justin Allen who will continue to be part of the Board’s advocacy team. Marcus joins us with an impressive background in national and local politics. He worked as the Political Director for Senator Mike Lee, Congressman Chris Stewart and also managed several political campaigns on the local level. Justin Allen, who has worked as our Government Affairs Director for the last 10 years has taken a position with TargetSmart Communications, a D.C.-based political data and consulting firm. However, Justin is going to continue to work with the Board on an outside consulting level so we are excited to keep him around (and his record collection!). With Justin, and now Marcus added to our team, I’m excited to see what we can accomplish in the coming years. (ii) Communication. The Salt Lake Board of Realtors® is the No. 1 voice for real estate. We always try to be the go-to
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source for all things real estate to our friends in the local media. Many press releases were sent to different media outlets that included market stats and other positive news articles dealing with real estate. When clients read or hear these positive media stories, it helps our members better represent their clients. One of our big stories shared with the media this year was the record-setting price of singlefamily homes sold in Salt Lake County. Singlefamily home prices in the third quarter of 2016 climbed to a median price of $301,000. The previous peak home price was in the third quarter of 2007 when home prices topped $298,085 in inflation-adjusted dollars. This past year, the Board provided information for 20 separate media stories that were run by broadcast, print, radio and web media outlets in the Salt Lake area. We saw media coverage in Utah Business Magazine, The Salt Lake Tribune, Deseret News, The Enterprise, KSL-TV, KSL, Radio, KUTV-CBS News, KSTU-Fox News, and KTVX-ABC News. The stories reached an estimated audience of 417,000 people and had a total publicity value of $32,337. In 2017 we intend on doing a media campaign including news stories, press releases and possible billboards on the benefits of using a professional Realtor® to buy or sell a home. We increased our presence on social media including our Board Facebook page and Instagram account. Thank you Hayley Miller, our social media guru, for helping out on this! Since our efforts this fall began, we have gained many more
December 2016 | Salt Lake Realtor ® | 19
The 2016 Christmas in July was a tremendous success again this year.
Facebook followers and our posts have reached up to 125,000 people in one week. It has been our goal to provide our members with content that they might use to help them be successful in their business. Things like market statistics, legal tips, classes, events and other interesting articles are used to help inform our members and help them be better at what they do. Watch out for more to come as we continue this effort in 2017. (iii) Knowledge. A big thanks go to Miranda Robinson and Vann Larsen for leading our Education Committee to a great year. This committee focuses on providing good quality course offerings whether it be live or online. This year we focused on the NAR Code of Ethics course which all 7,500 of our members were required to take by year’s end. Many of you took our awesome online course and others attended a live Code class. The NAR recently made a change to require that all Realtor® members will need to take the COE class once every two years. We had over 700 members attend our first ever Education Summit here in the Board auditorium! During that three-day event, members were able to earn all 18 hours of their CE. We intend on doing this event in 2017 with more classes designed to help our members become even better experts in their craft. Realtor® safety was also a priority this year. Personal safety classes were conducted and Realtor® safety tips were provided to our members on a continual basis throughout the year. (iv) Service. In 2016 we hosted a new event that was
20 | Salt Lake Realtor ® | December 2016
designed to help assist the Road Home Shelter. The Realtor® Charity Challenge headed up by Robyn Buckwalter and Nicole Quealy raised several thousand dollars for the homeless shelter. Thank you to all who helped with that fun event! The 2016 Christmas in July was a tremendous success again this year! Many thanks to Chris MacPherson and Leo Perez and some great committee members for leading this effort. Christmas, including a visit from Santa, Mrs. Claus, Olaf, Anna, Elsa, was provided for over 325 men, women and children in the shelter. Donated backpacks full of basic daily living necessities, back-to-school items, blankets and clothing were also provided. A full lunch was donated by Apollo Burger. A huge thanks to Heather Nelson for donating $4,000 of her own money that was used to purchase toys for many children at this event. Who does that?! Thank you Heather, you are amazing! I want to thank each of you for your membership and support for the greatest and strongest trade organization in Utah! For those of you that served on a committee, attended a Board event, or just said hi to our awesome staff, I thank you! I look forward to next year and all of us here at the Board hope we can continue to serve you better every day. Curtis A. Bullock is the CEO of the Salt Lake Board of Realtors®.
The Salt Lake Board of Realtors® Presents:
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A
6 1 0 F2
O T S BE
Realtor® Campus | Friday, Feb. 24th | 12:00 p.m. Nominations Open Wednesday, Jan.4th | 10 a.m.
© Chris Hinkley / Adobe Stock
Realtor® 2017 National Housing Forecast T
he 2017 housing market will be a year of slowing, yet moderate growth, set against the backdrop of a changing composition of home buyers and a post-election interest rate jump that could potentially price some first-timers out of the market, according to the Realtor.com® 2017 housing forecast.
2017 National Housing Forecast The 2017 national real estate market is predicted to slow compared to the last two years, across the majority of economic indicators. Home prices are anticipated to increase 3.9 percent and existing home sales are forecasted to increase 1.9 percent to 5.46 million homes. Interest rates are expected to reach 4.5 percent due to higher expectations for inflationary pressure in the year ahead. Realtor.com® is forecasting the homeownership
22 | Salt Lake Realtor ® | December 2016
rate will stabilize at 63.5 percent after bottoming at 62.9 percent in 2016. New home sales are expected to grow 10 percent, while new home starts are expected to increase 3 percent. The forecast is based on GDP growth of 2.1 percent, a 2.5 percent increase in the consumer price index and unemployment declining to 4.7 percent by the end of the year. Prior to this month’s election, demographics and an improving economy were laying the foundation for a substantial increase in first-time buyers in 2017, but due to mortgage rate increases over the last few weeks Realtor.com® predicts first timers will face new hurdles as they navigate the qualification and buying process. These higher rates are associated with anticipation of stronger economic and wage growth next year, both of which favor buyers. However, higher rates will make qualifying for a mortgage and finding
Midwestern markets, Realtor.com® expects this trend to continue in 2017 even as interest rates increase.
Image licensed by Ingram Image
affordable inventory more challenging. “We don’t expect the outcome of the election to have a direct impact on the health of the housing market or economy as we close out 2016. However, the 40 basis points increase in rates in the days following the election has caused us to increase our interest rate prediction for next year,” said Jonathan Smoke, chief economist for Realtor. com®. “With more than 95 percent of first-time home buyers dependent on financing their home purchase, and a majority of first-time buyers reporting one or more financial challenges, the uptick we’ve already seen may price some firsttimers out of the market.” Top Housing Trends for 2017 Next year’s predicted slowing price and sales growth, increasing interest rates and changing buyer demographics are setting the stage for five key housing trends: 1. Millennials and boomers will dominate the market — Next year, the housing market will be in the middle of two massive demographic waves, millennials and baby boomers – that will power demand for at least the next 10 years. Although increasing interest rates have prompted Realtor.com® to lower its prediction of millennial market share to 33 percent of the buyer pool; millennials and baby boomers will still comprise the majority of the market. Baby boomers are expected to make up 30 percent of buyers in 2017 and given they’re less dependent on financing, they are anticipated to be more successful when it comes to closing. 2. Midwestern cities will continue to be hotbeds for millennials — Midwestern cities are anticipated to continue to beat the national average in millennial purchase market share in 2017 with Madison, Wis.; Columbus, Ohio; Omaha, Neb.; Des Moines, Iowa; and Minneapolis, leading the pack. This year, average millennial market share in these markets is 42 percent, far higher than the U.S. average of 38 percent. With strong affordability in 15 of the 19 largest
24 | Salt Lake Realtor ® | December 2016
3. Slowing price appreciation — Nationally, home prices are forecast to slow to 3.9 percent growth year over year, from an estimated 4.9 percent in 2016. Of the top 100 largest metros in the country, 26 markets are expected to see price acceleration of 1 percent point or more with Greensboro-High Point, N.C.; Akron, Ohio; and Baltimore-Columbia-Towson, Md., experiencing the largest gains. Likewise, 46 markets are expected to see a slowdown in price growth of 1 percent or more with Lakeland-Winter Haven, Fla., Durham-Chapel Hill, N.C.; and Jackson, Miss., undergoing the biggest shift to slower price appreciation. 4. Fewer homes on the market and fast moving markets — Inventory is currently down an average of 11 percent in the top 100 metros in the U.S. The conditions that are limiting home supply are not expected to change in 2017. Median age of inventory is currently 68 days in the top 100 metros, which is 14 percent – or 11 days – faster than U.S. overall. 5. Western cities will continue to lead the nation in prices and sales — Western metros in the U.S. are forecast to see a price increase of 5.8 percent and sales increase of 4.7 percent, much higher than the U.S. overall. These markets also dominate the ranking of the Realtor.com® 2017 top housing markets, making up five of the top 10 markets on the list (Los Angeles, Sacramento and Riverside, Calif., Tucson, Ariz., and Portland, Ore.) and 11 of the top 25 (Colorado Springs, Colo.; San Diego; Salt Lake City; Provo-Orem, Utah; Seattle. and Oxnard-Thousand Oaks-Ventura, Calif.) Top 2017 Housing Markets Despite a more moderate housing market overall in 2017, strong local economies and population growth will continue to fuel the nation’s hottest markets. The Realtor.com® 2017 top 10 housing markets based on price and sales gains are: 1. Phoenix-Mesa-Scottsdale, Ariz.; 2. Los Angeles-Long Beach-Anaheim, Calif.; 3. Boston-Cambridge-Newton, Mass.-N.H.; 4. Sacramento–Roseville–Arden-Arcade, Calif.; 5. Riverside-San Bernardino-Ontario, Calif.; 6. Jacksonville, Fla.; 7. Orlando-Kissimmee-Sanford, Fla.; 8. Raleigh, N.C.; 9. Tucson, Ariz.; and 10. Portland-Vancouver-Hillsboro, Ore.-Wash. Salt Lake City ranked No. 16 of the top 100 largest U.S. metros. Home prices in Salt Lake are expected to increase nearly 7 percent in 2017. Home sales will rise by 5 percent.
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Housing Watch October Home Sales Rise in Salt Lake and Davis Counties
H
ome sales in Salt Lake and Davis counties in October showed strong year-over-year growth. In Salt Lake, there were 1,459 homes (all housing types) sold by Realtors®. Salt Lake home sales typically represent about one-third of all home sales across Utah. In Davis County, more than 440 homes closed, up 14 percent compared to sales in October 2015. With the 30-year fixed-rate mortgage interest rate now rising above 4 percent, economists are predicting a rush of home buyers in 2017 trying to beat further rising rates. More millennials in 2017 will purchase homes. Also, more than 2.5 million boomerang buyers, those who lost homes to foreclosure during the Great Recession, but now qualify to buy again, are expected to enter the housing market next year. Housing inventory levels continue to remain at about three months. The “months of supply” is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. A normal housing market is typically characterized by a five- to six-month supply of housing inventory. Levels below five months represent a seller’s market. Home buyers gain the advantage when levels start rising above six months. Nationally, first-time buyers were 33 percent of sales in October, which is down from 34 percent in September but up from and 31 percent a year ago. NAR’s 2016 Profile of Home Buyers and Sellers — released last month — revealed that the annual share of first-time buyers was
6
3
Salt Lake County Sales (all housing types) Year-Over-Year (Up 5%)
1,384 26 | Salt Lake Realtor ® | December 2016
1,459
35 percent (32 percent in 2015), which is the highest since 2013 (38 percent). On the subject of first-time buyers, NAR President William E. Brown, a Realtor® from Alamo, California, says the Federal Housing Administration’s low-downpayment mortgage option helps many young and moderate income borrowers achieve homeownership. FHA’s just released actuarial report shows the Mutual Mortgage Insurance Fund is on consistently solid financial footing, and FHA should take responsible steps to continue managing their risk while also addressing the high premiums and lifetime insurance requirements that often times dissuade would-be buyers from considering a FHA mortgage. “To alleviate the cost for borrowers and better reflect the current risk in the marketplace, Realtors® encourage FHA to reduce mortgage insurance premiums and consider eliminating ‘life of loan’ mortgage insurance,” he said. “These two moves would help the current homeownership rate recover from its near all-time low and give more prospective first-time buyers a more affordable financing option.” All-cash sales were 22 percent of transactions in October, up from 21 percent in September but down from 24 percent a year ago. Individual investors, who account for many cash sales, purchased 13 percent of homes in October, down from 14 percent in September and unchanged from a year ago. Sixty-one percent of investors paid in cash in October.
Salt Lake County Median Price (all housing types) Year-Over-Year (Up 9%)
$245,700
$268,500
2 - C OLOR
1 Salt Lake County Days on Market (all housing types) Year-Over-Year (Down 30%)
16
2
5
Davis County
Median Price (all housing types) $253,000 Year-Over-Year (Up 10%)
$230,000
Pending Sales (Up 3%)
1,469
1,432
23
Sales $
Salt Lake County
4
Sales
Davis County Sales (all housing types) Year-Over-Year (Up 14%)
441
387
December 2016 | Salt Lake Realtor ® | 27
REALTOR® Connections
On the Move
Q&A: Marcus Jessop
Marcus Jessop is the new Government Affairs Director at the Salt Lake Board of Realtors®.
Marcus Jessop
Q: What is your background? A: Most recently I was the political director for U.S. Sen. Mike Lee’s (R-Utah) reelection campaign. I also worked for Congressman Chris Stewart and have managed several political campaigns at the local level. Tobi Roberts
Q: What are your main responsibilities as government affairs director? A: My job is threefold: 1. Meeting with local elected officials and community members insuring our industry is protected at the local level. 2. Fundraising – We receive generous donations from our members towards RPAC every year. These donations help us be the continued industry watchdog for the thousands of Realtors® within the Salt Lake Valley. 3. Elections – The Salt Lake Board is always supporting and recruiting future and current elected officials that are friendly towards private property rights, home ownership, and Realtor® issues. Q: Why is political advocacy important at the local level? A: I remember a quote that stood with me in regards to political advocacy. It read, “You may never know what results come of your actions, but if you do nothing, there will be no results.” We all live busy lives. For some of us, political advocacy can be an afterthought. As the new incoming Director of Government Affairs, I hope to instill the importance of being involved at the local level to our members. I want to make sure that we don’t just watch the political movements in our industry when times are bad, but, most importantly, when times are good.
Get Ready for the Best of 2016 Realtor® Awards
T
he American Red Cross offered its thanks to the Salt Lake Board of Realtors® for its Nov. 9 blood drive. The drive collected 45 units of blood, enough blood for 135 patients. “By holding regular Red Cross blood drives, which you have since 1997, your efforts help ensure blood is available for patients in need,” said Sheri Vanbibber, a spokeswoman for the American Red Cross. “We couldn’t perform this lifesaving work without your help. These blood drives often foster a sense of unity and teamwork among those who give so much to help others.” Tobi Roberts, an affiliate member of the Board and who is chief marketing officer of City Creek Mortgage, has organized the blood drives for more than 15 years.
K
Pictured: Ryan Kirkham, recipient of the 2015 President’s Award, and Dave Robison, 2015 president of the Salt Lake Board of Realtors®.
Want to review the requirements and point system for the “Best of 2016 Realtor Awards?” Visit slrealtors.com/awards. The application and submission process will open on Wednesday, Jan. 4, 2017.
28 | Salt Lake Realtor ® | December 2016
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