Land Lines- Week 36

Week-36-Land-Stats-blog

Land Lines – Week 36

Multifamily and commercial construction spending nationally is up significantly, Utah continues to see steady growth in both the residential and commercial sectors. The debate over Public Lands is still heated, we will continue to add articles to the website.

If you are planning to appeal your property taxes September 15th is the deadline for most counties, we have a post discussing appealing property taxes coming out tomorrow, be sure to read it.

Many of you have received the 2Q Newsletter in the mail, if you haven’t here is the link: http://joom.ag/H55b. We are preparing 3Q now, if you aren’t on the list to receive a print version and would like to subscribe here.

There have been several great articles on www.utahlandowners.com discussing landowner concerns, market updates and land news; I will put the headliners at the bottom of this post. Don’t forget to visit the website often for the latest articles and reports, you can also subscribe to the RSS feed.

Below the headliners are Monday’s Market Numbers courtesy of the Urban Land Institute, we will be adding this to the weekly Land Lines email and post.

If you or someone you know has been on the fence about selling their land, fall is a great time to start the process, marketing and selling a raw or papered land deal correctly takes time and experience. If you would like to schedule a meeting to discuss selling your property now or in the future please call, I look forward to speaking with you.

If you would like to receive the weekly land stats and headliners click here to subscribe. Past editions are available on the website under the Land Lines topic. Feel free to share with friends and associates.

Sincerely,

 

Brooke GlaittliLand Sales – 801-554-2332 – www.brookeg.com

 

Week 36 Land Stats

8/30/2014-9/5/2014: Salt Lake, Utah Counties and Davis Counties*

8 land parcels sold, 9 sold in week 35.

63 properties were put on the market, as compared to 32 in week 35.

 

YTD along the Wasatch Front**

4,271 single family building permits have been issued, there were 4,154 issued as of week 35.

42 duplex/ twin home permits have been issued, 38 had been issued by week 35.

97 apartment/ condo permits have been issued, 96 had been issued by week 35.

160 commercial permits have been issued (this number does not reflect all types of permits), 151 had been issued by week 35.

 

*Source WFRMLS               **Source Construction Monitor

 

Eye On Housing

Existing home sales increased 2.4% in July, tallying the fourth consecutive month of increase. While the pace of existing home sales remains 4.3% below the July 2013 rate, the steady improvement for resales is positive news for the new home market because prospective repeat home buyers must sell their existing homes before buying a newly built residence.

The National Association of Realtors (NAR) reported July total existing home sales at a seasonally adjusted rate of 5.15 million units combined for single-family homes, townhomes, condominiums and co-ops, up from a downwardly revised 5.03 million units in June.

Read the complete article here.

 

Recent UtahLandowners.com Headliners:

 

Monday’s Market Numbers

 

The Trepp survey for the week ending August 22 showed average spreads literally unchanged. The implied rate for ten-year, modestly leveraged commercial real estate mortgages remained at 373 basis points, 81 basis points lower than at year-end 2013.

Asking Spreads over U.S. Ten-Year Treasury Bonds in Basis Points (Ten-year commercial and multifamily mortgage loans for properties with 50 percent to 59 percent loan-to-value ratios)
12/31/10 12/31/11 12/31/12 12/31/13 This week (8/29/14) Last week (8/22/14) Month earlier
 Office 214 210 210 162 150 145 141
 Retail 207 207 192 160 142 138 134
 Multifamily 188 202 182 157 140 138 132
 Industrial 201 205 191 159 140 136 132
 Averagespread 203 205 194 160 143 139 135
 10-yearTreasury 3.29% 2.88% 1.64% 3.04% 2.34% 2.34% 2.47%

The Cushman & Wakefield Equity, Debt, and Structured Finance Group’s monthly Capital Markets Update of commercial real estate mortgage spreads, dated August 7, showed spreads coming in approximately 5 basis points as compared with the prior survey (dated June 10) as lenders continue to compete for business; implied all-in cost ranges from 4.25 to 4.50 percent.

Ten-Year Fixed-Rate Commercial Real Estate Mortgages (as of August 7, 2014)
Property Maximumloan-to-value Class A Class B/C
 Multifamily (agency) 75–80% T +160 T +170
 Multifamily (nonagency) 70–75% T +155 T +160
 Anchored retail 70–75% T +175 T +185
 Strip center 65–70% T +175 T +185
 Distribution/warehouse 65–70% T +175 T +185
 R&D/flex/industrial 65–70% T +185 T +190
 Office 65–75% T +175 T +185
 Full-service hotel 55–65% T +235 T +255
 Debt-service-coverage ratio assumed to be greater than 1.35 to 1.

Year-to-Date Public Equity Capital Markets

Dow Jones Industrial Average: +3.38 percent

Standard & Poor’s 500 Stock Index: +8.62 percent

NASD Composite Index (NASDAQ): +9.73 percent

Russell 2000: +0.56 percent

Morgan Stanley U.S. REIT Index: +16.61 percent

Year-to-Date Global CMBS Issuance(in $ billions as of 8/29/14)
2014 2013
U.S. $56.4 $56.4
Non-U.S. 1.9 3.1
Total $58.4 $64.5
Source: Commercial Mortgage Alert.

 

Year-to-Date U.S. Treasury Yields

U.S. Treasury Yields
12/31/12 12/31/13 9/5/14
 3-month 0.08% 0.07% 0.03%
 6-month 0.12% 0.10% 0.05%
 2-year 0.27% 0.38% 0.54%
 5-year 0.76% 1.75% 1.72%
 7-year 1.25% 2.45% 2.15%
 10-year 1.86% 3.04% 2.45%