No Bus Stop

For $1 and a chance to win a virtual tour of Scipio, answer this: What’s losing money faster than a restaurant, bar, theater, or concert venue? UTA (the Utah Transit Authority)!  Why? Because COVID-19 has changed the way people move around from home to work, work to pleasure, from here to there.  Ridership this year is down almost 60% compared to before the virus came raging through our state. UTA itself did a survey as to why people weren’t getting on the bus/light rail/commuter trains and guess again what they found out? No big stretch for an answer-55% of those polled said they are working out of their homes now.  I can say as a real estate broker that this same fact is one of the reasons real estate sales are smoking hot. Folks are working, and will be working, at home and want space in their homes to have an office separate from typing on their laptop in bed and who want to stop renting and buy a first home or a bigger home/condo than where they are living now. The other big ish for people is safety-is public transportation safe to ride during a pandemic? My friends in my homes state of New York are very reluctant to hop on a subway there just as riders here aren’t sure buses are clean.  I did serve for two years on the UTA Board and had the opportunity to go behind the scenes where they clean the buses and trains and even got to drive a TRAX train in their training lot.  Every vehicle is cleaned and sanitized every night anyway, but they’ve added additional disinfecting measures to keep riders safe, including disinfecting all vehicles, stations, and facilities daily, implementing in-app wellness checks for riders and drivers on the ‘On Demand by Via’ (kinda their UBER-like program for riders), and periodically testing vehicle surfaces using ATP monitoring to verify the effectiveness of the disinfecting on the vehicles.  Also, on buses there is a plexiglass operator barrier installed on all buses to protect the drivers as well as riders, signs on buses to ask riders to board from the back, riders must wear masks and drivers are all wearing masks. On TRAX and FrontRunner there are ropes or signs to designate separation between operators and the riders to promote social distancing at the stations. The UTA cops that ride along won’t physically touch tickets/passes to see if passengers aren’t ripping off the system (although the ‘free fare zone’ downtown SLC is still free). UTA drivers provide complimentary face masks on most buses and trains and some vehicles have hand sanitizers on board. Safety isn’t just for your sake, it’s for the great people who drive us around every day at UTA. I’ve met many of their employees and know the paratransit buses who help those differently abled/handicapped patrons get on and off vehicles, drive designated or requested routes are the jewels of the crown of service in our public transportation fleet. Not to worry, UTA will get through this pandemic because they know how to adapt to rapid changes in demand and will continue to keep reaching further north and south from the Capitol City to expand services for more riders as our population grows and grows.

What To Do in 2021?

The #1 question people ask me about real estate is …will housing prices go up or down in 2021? Followed by, “Should we buy or sell?”  To me, the answers are easy. During the last 10 years Utah has had more growth per capita than any other state. Basically, more folks are moving here than leaving, and sans a pandemic, we are low in overall inventory of rentals, affordable housing, condos, homes, multi-plexes, mansions. Add on COVID19 with people wanting to (or being encouraged to) stay home makes for less properties available to buy. We REALTORS® sold more homes in the state than 2019 and we sold them for more money, too. Our National Association of REALTORS® has us at @10% over 2019 with Summit County, Wasatch, and Cashe Counties up over 50% over the previous year.I know that on December 31st of 2020 I was still frantically trying to find some buyers a home in their price range.  Just for shits and giggles I pulled up ALL residential properties for sale in Salt Lake County (homes, townhomes, condos, twin homes, mobile homes) in any price range. In recent years there would have been a few thousand homes for sale at the end of the year. There were 634 homes for sale-total.  To put that number in perspective, certainly there are more than 634 people/families looking for a place to buy as a home or investment right now, and there are almost 10,000 REALTOR® members in the Salt Lake Board of REALTORS® trying to help many of them. Now you understand why homes are flying off the market with multiple offers in hours or just a few days!Not only is it extremely tough for buyers to find a home right now, but it’s also just as tough for real estate agents to make a living, too. Luckily, most members are only part timers, and fact is, 10% of the members sell about 90% of the listings. If you’re thinking of changing careers to become a real estate agent let me lay some facts on you. First, Real Estate School costs around $600 for the required 120 hours of classes you need to take to take the State test. Once you pass the test it’s a few hundred bucks to get your license in order with the State, and twice that to join the Board of REALTORS® and another $50 or so each month for MLS fees. Then you’ll need cards, an ad budget and keyboxes.  Some brokerages might offer to pay much of the costs if you sign away your soul to work for them for a period until you pay the man off.Bottom line-prices on all properties are going to go up in 2021. I’m being conservative and predict a 10% jump in values in the next 12 months. DON’T stop looking because you think the market will loosen up, it won’t!

Insane Market

Pity the poor real estate buyer right now in today’s insane seller’s market. I listed a home in Millcreek a few weeks back with a specific marketing strategy that ended up getting the seller 24 offers within three days. Most buyers offered slightly above asking price but there were a few wild offers with ‘escalation clauses’ up to 20% over asking. Let me back track and explain that a seller’s market is when available inventory to buy is far less than the number of buyers wanting to buy homes. It’s not an exact number but I’m seeing about half as many homes for sale right now than there would have been a year ago. And an escalation clause in a buyer’s offer to purchase reads something like… “Buyer will offer seller’s asking price, but if there are multiple offers, buyer is willing to pay X over the highest bona fide offer, not to exceed Y”.  As an example, a home is listed at $450,000. Buyer offer’s $450,000 but seller gets 6 offers. Buyer’s escalation clause says that buyer will pay $1500 over the highest offer seller gets, not to exceed a sales price of $475,000.” The escalation clause doesn’t guarantee the buyer will win the battle for the home because the seller has free will to accept whatever offer they want.I have seen sellers accept lower offers because they were charmed by a letter the potential buyer(s) wrote to the seller or because they knew the buyer. What I am seeing more often is that the cash buyer is beating out all other buyers these days, especially cash buyers who write contracts with no contingencies.  What are purchase contract contingencies?  To paraphrase, there are three contingencies or protections built into the real estate purchase contract used by the Utah Association of REALTORSBuyer’s right to have the property inspected by anyone they choose and buyer can cancel the contract without penalty by a certain date;Buyer’s right to cancel the contract if the property does not appraise for the purchase price without penalty;Buyer’s right to cancel if buyer’s loan is denied by the lender. Cash buyers are often ‘flippers’ who intend to purchase, updated and sell/flip the home for a large profit. Savvy cash buyers will present offers with NO contingencies and offer a fast closing to the seller. If you currently own you probably get dozens of post cards per week that offer to ‘Buy your home for cash!’  Beware of those offers because many of their strategies is to get you to accept their offer and then will have the home ‘inspected’ and come back and tell you there’s a ton wrong with the home. And if you still want them to buy you will have to discount your price to get your money fast. These kind of flippers take advantage of people facing foreclosure and find them in public records of foreclosure notices. Whether you’re a buyer or seller in this real estate market know you need a strategy and call a

Landmarks

If you don’t know by now, I’m a bona fide history geek. I LOVE, when I’m getting ready to list a really old home, I do research to see if there’s some tidbit about the original owners that might give a smile to a potential buyer or even imply there may be ghosts in the proverbial closets.  Maybe it was the original house of Brigham Young’s third wife’s shoemaker, or the site of the stable where cannibal Porter Rockwell kept his horses. I’ve listed the home of Earl Glade, the longest serving mayor of SLC during wartime and helped turn KSL into a commercial arm of the LDS Church by broadcasting from his home on Highland Drive. I represented the estate of the late Edie Roberson in the Avenues where she created her fanciful art, and I was happy to point out hidden permanent art she had made part of the home.And as of last week, I’ve been appointed to serve on the Historic Landmarks Commission for Salt Lake City where I will volunteer with fellow commissioners to help determine if a property is worth saving or can be demolished. I served eight years as a Planning and Zoning Commissioner for my city and now I look forward to helping sort out property issues again. Old buildings, no matter what their condition have been a witness to the history of not just the owners but of time and connects us to the past. I feel they etch a sense of place that cannot be replaced by stucco boxes. When we save historic properties we save a piece of our culture, our cities soul.I picked up clients the other day to see condos downtown, and they pointed out what they thought was the ugliest sky scraper in Salt Lake-the vacant Public Safety building on the corner of 200 S. and 300 East. It sits tagged and run down and had several unsheltered people sleeping in the alcove of the front entry. They think it should be torn down. Built in 1958 and listed on the National Register of Historic Places in 2011, it is considered as one of the finest ‘Corporate International Style’ buildings’ west of the Mississippi. It was originally erected by Northwest Pipeline and built by contractors Del Webb and had new (at the time) heat resistant glass and aluminum louvers to shade windows on the south and west sides and was built of steel produced by Geneva Steel in Lehi. It will take millions of dollars to remove the asbestos from inside and millions to remodel /update it for commercial or possibly low income housing, but the owner (Salt Lake City Corp) has not announced any plans since ideas were presented to the public in 2015. Should we preserve this building? A building of the same era (1955)  was saved from the wrecking ball on Main and 400 South in 2007, rehabilitated and updated and now is owned by the Ken Garff Group. So, would you save the old ‘cop shop’?

Zoo Blues

I just watched the most recent Sir David Attenborough documentary “A Life on Our Planet.” It is so depressing that I almost wanted to step in front of a UTA bus. We’re killing our planet faster and faster and most of us humans aren’t doing anything to stop the pollution and destruction of wilderness, oceans, and species. Corporate greed has reduced the rainforests in Borneo by over 50% to cut down the jungle and replace it with palm oil plantations, thus tragically reducing habitat for the great Orangutans and other wildlife. Given the numbers of tigers, elephants, rhinos falling so quickly we will soon be living in a Sci-fi world where the remaining mammals on this planet will only be seen in Zoos. Ugh. Did you know that Liberty Park was home of the first Zoo in Utah? Back in the late 1800’s a plot of land was dedicated as Liberty Park (after earlier names of “Locust Patch, Forest Park and Mill Farm”. A zoo was established on the site in the early 1900’s and featured cages and enclosures of monkeys, a wild deer, and smattering of wild birds. School kids gathered donations of pennies and nickels and helped buy an elephant from a traveling circus named “Princess Alice”. She soon had a son named “Prince Utah” but accidently killed him when she rolled over on him in their sleep. Locals reported they could see tears come from her eyes and hear mournful cries for weeks in her sadness. In the 1930’s she was known to escape and run through Sugar House and Liberty Wells yards sporting laundry lines and attached clothing she broke through on her wanderings. Alice was called a vandal in local papers for her misdeeds and the need for a larger zoo space away from homes became quickly apparent.Enter the Hogle Family of Utah who donated a large parcel of land at the mouth of Emigration Canyon for the new zoo. A zoological society was formed to gather more donations for enclosures and infrastructure, and during the depression sold flowers to the public to pay for animal feed. Times were harsh and the Zoo was cut off from its fresh water supply for a $195 bill. For about 10 more years the place struggled, but our community rallied with donations and volunteers and saved the zoo, despite someone sneaking in, shooting and killing the polar bear just for fun. Princess Alice died in 1953 one of the zoo’s directors (Gerald deBary) was fatally bitten by a puff adder in 1964.This past week the chairman of the board of Hogle Zoo passed at age 83. James “Jim” Hogle had served on the board for 46 years. He worked tirelessly to find funding for the place and in the 1980s Salt Lake County (rather than the City) took over funding the operating expenses of the place. In the past 20 years or so Hogle helped create very successful money -makers like “Boo at the Zoo” for Halloween and holiday “Zoo Lights” and lobbied to get voters to help fund the place. Thank you to ALL the Hogles, and especially Jim. May your work to save the world’s animals continue.  www.hoglezoo.org (open daily during Covid)

Housing Help

If you’re lucky (or unlucky) enough to receive unemployment benefits form the State of Utah hopefully you know that you can apply for rental assistance through the Utah Department of Workforce Services/Homeless Prevention Plan. It’s hard to keep track of what help is available out there given 45 signing documents that may not hold up in court and a Congress who can’t seem to figure out much of anything. We do know that the $600 unemployment checks ran out and people are in danger of not being able to pay rent. The Emergency Assistance program through the State can help folks who don’t have enough money to prevent becoming homeless or having utilities shut off by giving money for rent/mortgage and or/utilities.  There are EIGHT conditions that must be met to get help:The family must have lost their home or be about to lose their home or their utilities because they have past-due payments that resulted from an event (a crisis) that happened beyond the control of the family.The family must be able to keep their housing or utilities or find new housing with a single rent, deposit, mortgage, or utility payment.The family must show how it will make past due payments and pay future months’ rent, mortgage, or utility payments after the crisis has been solved.The family must have already tried all other means of getting the money to pay or tried to set up a repayment plan.The value of all the household assets and things the family owns cannot be more than $2000.00. These include assets and possessions that are immediately available to the family members.The household’s total income per month cannot be more than 185% of the Standard Needs Budget (SNB), based on the household’s size. Click here to review the income limits.The payment is available once in a 12 month period.The household must have at least one dependent child who is under 18 living in their home.   You can apply at a Workforce Service location in the State or talk to nonprofit dealing with housing issues like the YWCA, Shelter the Homeless, Community Development Corp., etc.  Better yet, use the 211 hot line for Essential Community Services. It’s a free phone number like 911 but will help you find services and is especially good if you are elderly, disabled, don’t speak English as a primary language, are new to the area. The information and referral service was set up a few years ago and is priceless and works in EVERY state in the U.S. to help you find resources for housing assistance and emergency housing as well as a myriad of other services.  Help is just a phone call away and cross your fingers that more will come from Congress soon!

Rent Relief Again

Strange times. Last week, the Centers for Disease Control and Prevention, speaking for the Trump administration would bar evictions for most renters in the country until the end of the year. The press release said the new rule update to the current moratorium was necessary to stop the spread of the Corona virus and to avoid having renters wind up in shelters or other crowded living conditions, compounding the crisis.This moratorium has a wider reach than the previous emergency eviction rules that expired in July and isn’t automatic. To get the benefit of the new moratorium a renter would have to tell their landlord that they basically have no other options, no place to go except to live on the street. Tenants will have to fill out a form on the C.D.C. website that states they have a substantial loss of income for their household and can’t pay rent or can only pay partial rent.  The form will be available shortly (if not already at the time of this being published) on the C.D.C. website. Why is this necessary? Simply because Congress has not been able to come up with a new CARES Act or extension/update to the previous one that has expired. This may influence voters, don’t you think? IF tenants don’t get relief from rent will they vote for Trump or Biden? Understand that any relief is NOT forgiveness. You do NOT get out of paying your debt to your landlord. Nay, you only defer the payment until later. Here’s an example:Under the previous CARES Act there was a 120 day rent deferral option (from the end of March until the end of July). To make easy math here, use a rent of $1000 per month. You’d be three months ($3000) in arrears now had you opted for the deferral with your landlord. Now, you can…IF you would be homeless…opt for another deferral for four months=$4000. At the end of this year you would owe your landlord $7000 that you would have to pay back. How do you pay rent back? You’d hopefully arrange some payment program with the owner of the property or their property manager to repay the $7000. Seriously, will you be able to repay this? I’m thinking of so many folks around the country who have lost jobs and lost the $600 unemployment payments are getting more and more financially behind. Come springtime methinks bankruptcies and bad credit will run rampant and the ‘have nots’ will have even less.On the flip side of the coin, landlords don’t get relief due to the deadlock in Congress. If they have a mortgage, they must ask their lender for a payment deferral because their tenants aren’t paying them, and they can’t make their monthly loan payment.  I have many past clients who are landlords because they have inherited a property, bought one to add to personal wealth, purchased one for their college kid(s) rather than pay dorm costs or are just buying rentals because that’s their primary source of income. Also, if a property owner has asked their lender for a deferment then they can’t qualify for a refinance loan to get a better rate.

Glamping with Kolob

As a licensed broker in Utah I can sell any property any where in the state. Most agents are members of one Board of Realtors, but I am lucky enough to belong to both the Salt Lake Board and the Washington County Boards and just listed a home in Sun River in Bloomington. On my travels south to meet with the family I stopped to see my friend Julie who owns a flower shop in the old part of downtown Hurricane. I hadn’t been to that place in decades and thought for sure I had gone the wrong way from St. George to Hurricane because as soon as I headed out of one place I was at a Walmart and wall to wall housing! The patio-home retirement lifestyle has pushed out of St. George and is quickly eating up developable land like. The buzz tho among locals is not so much the growth of homes but a new type of temporary housing that has been quietly and now loudly coming to private property nearby. Many folks who travel to Zion National Park come through Hurricane and stay there because hotel and motel options are few and far between outside of the park. And if you don’t want walls there are glamping options at Zion Ponderosa Ranch and Moonlight Oasis in the area. The quiet beauty of the area is a treasure to locals and travelers alike and we’ve done a great job letting people know about our parks and landscapes so that now visiting them can be a nightmare of traffic and overcrowding. Glamping resorts are popping up to meet demand but one project called ‘Above Zion’ is being proposed on 1,700 acres in and around Kolob Reservoir and Kolob Creek, which could host up to 4,000 people at a time IF their game plan of 2,000 sites comes to fruition He wants to offer glamping sites, RV pads and primitive sites for more tourists to come to Southern Utah and to do so will have to bring in utilities, water and sewer as well as roads to his various planned locations. Locals have gotten wind of the plans and are justly concerned what such massive development will do to the roads, water system and ecosystems/nature in general. There has been one meeting already with local officials but there were so many people who wanted to chime in they had to end the meeting to regroup later. Above Zion’s owners will have to get a conditional-use permit issued from the local Planning and Zoning Commission to build what they need to get glampers up and above Zion to see the wonders of Kolob. It’s not a year round access area due to the high altitude (8000+ feet above sea level) and winter snows but it is a great place for night sky watching. Kolob is a star or planet described in the Book of Abraham, a Latter Day Saint text that was supposedly translated from an Egyptian papyrus scroll by Joseph Smith-and you might be able to see it if you look hard enough when you camp or maybe glamp up there this summer.

POST HOUSE

The mother of all downtown residential projects has just broken ground in downtown Salt Lake City. “POST HOUSE” will take up a full city block (10 acres-the size of Liberty Park) with five buildings and 580 residential units (461,921 sq. ft of housing) and 26,833 sq. ft of retail. MVE+ Architects say that ‘this project will be a catalyst for fostering the development of a sustainable urban neighborhood’ with the five buildings to be a completed block of old and new in a pedestrian-oriented development. Think of driving yourself from downtown and getting on I-15 on 500 South. At 300-400 West there was an old and vacant newspaper (Newspaper Agency Corp) building that many folks of recent, have used for skateboarding and clandestine videos. The Post District of Salt Lake got its name from the NAC building that sits on the site. To the south is the newly re-discovered Granery District and to the north is the Salt Lake Mission and what used to be a fruit and vegetable warehouse. The Mission is still there but the warehouse is being repurposed by the group. It suffered some minor earthquake damage just after COVID hit but is full steam underway to take off the layers of paint and age of time and will also be a part of the whole project.The developers dream is to have massive housing units, from studio apartments the size of small hotel rooms to 2000 sq. ft lofts combined with massive amenities like indoor and outdoor pools, rooftop decks and BBQ’s, a fitness center and areas for pedestrians and dogs to meander through the greenspaces surrounding the buildings. As I see it, imagine Liberty Park with five medium-sized residential buildings plopped around the grass and trees. Certainly, it would be a nicer area to live in rather than the five story boxes squeezed all over downtown, sans green spaces. I’m really interested in seeing how this all builds out because as a fan of history I love that the developers are wanting to keep many of the old buildings on the two sites and work them in as a major compliment to the new construction. Technically the project is located within an ‘Opportunity Zone’, which is a designation that Utah gives blighted and distressed areas within our borders. Having lived two blocks away from this area for many years I’d agree it’s needed some love and attention. Builders and investors will get incentives and tax breaks as , developers did in the Granery District. Drive south on 300 West past 500 South and you’ll see the deep trenches going in now for the foundations. Reports are that this will end up costing almost $150 million to erect but given the area and the desperate need for a variety of housing supply methinks this will rent out fast. The idea of the developers is to have a mix of rental priced housing, from the fancy penthouses to the starter studios.