Land Lines- Week 37 Land Stats

Utah Land

Land Lines – Week 37

Here in Utah the average lot size is approximately .18 acres, of course there are a wide variety of factors that come into play when determining that number, we posted an interesting article prepared by the NAHB discussing the “typical American subdivision”.

For subdivisions of single-family detached homes, the summary statistics are as follows:

  • Median size: 22 acres.
  • Median number of housing units: 48.
  • Median gross density: 2.1 units per acre.
  • 4% include retail space.
  • 4% include other (non-retail) commercial space

Along the Wasatch Front, a good portion of the subdivisions are smaller than 22 acres due to the number of geographical blocks. And, some cities have a much denser makeup than others.

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 these 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.

Enjoy,

 

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

 

Week 37 Land Stats

9/6/2014-9/12/2014: Salt Lake, Utah Counties and Davis Counties*

6 land parcels sold, 8 sold in week 36.

42 properties were put on the market, as compared to 63 in week 36.

 

YTD along the Wasatch Front**

4,427 single family building permits have been issued, there were 4,271 issued as of week 36.

42 duplex/ twin home permits have been issued, 42 had been issued by week 36.

99 apartment/ condo permits have been issued, 97 had been issued by week 36.

166 commercial permits have been issued (this number does not reflect all types of permits), 160 had been issued by week 36.

*Source WFRMLS               **Source Construction Monitor

 

Housing News

Buying a home is likely the largest purchase most Americans will ever make. But while in some areas homeowners are more easily able to afford to buy, in others they need to spend much more of their income on their house. A home’s affordability varies considerably depending largely on where the buyer lives, but also on a variety of other factors.

Real estate tracking firm RealtyTrac calculated income-to-price affordability ratios for 2,270 counties across the U.S.. The affordability rate is the percentage of the area’s estimated median household income that is needed to make monthly payments on a median-priced residential property in that area. A higher ratio means the affordability is lower, and vice versa. Based on RealtyTrac’s data, Chattooga County Georgia residents have the most affordable houses in the nation.

Read the rest of the article here.

 

Recent UtahLandowners.com Headliners:

 

Monday’s Market Numbers

The implied rate for ten-year, modestly leveraged commercial real estate mortgages equaled 3.85 percent, 79 basis points lower than at year-end 2013.

The Trepp survey for the week ending September 5, 2014, again showed average spreads literally unchanged as the markets got back after the three-day holiday weekend, rested and ready to take on the world’s challenges. If you are planning financing and/or refinancing this year, now is the time to put the pedal to the floor. Lenders are checking their dance cards, matching borrowers with available capital. Absent a “black swan” event, rates should trade in a narrow range through year-end.

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 (9/5/14) Last week (8/29/14) Month earlier
 Office 214 210 210 162 146 150 148
 Retail 207 207 192 160 143 142 140
 Multifamily 188 202 182 157 140 140 138
 Industrial 201 205 191 159 140 140 138
 Average spread 203 205 194 160 143 143 141
 10-year Treasury 3.29% 2.88% 1.64% 3.04% 2.42% 2.46% 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 percent to 4.50 percent.

Ten-Year Fixed-Rate Commercial Real Estate Mortgages (as of August 7, 2014)
Property Maximum loan-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: +2.48 percent

Standard & Poor’s 500 Stock Index: +7.42 percent

NASD Composite Index (NASDAQ): +9.36 percent

Russell 2000: –0.26%

Morgan Stanley U.S. REIT Index: +10.09 percent

Year-to-Date Global CMBS Issuance

(in $ billions as of 8/29/14)

  2014 2013
U.S. $59.3 $56.7
Non-U.S. 1.9 8.5
Total $61.3 $65.1
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% 0.02%
 6-month 0.12% 0.10% 0.05%
 2-year 0.27% 0.38% 0.58%
 5-year 0.76% 1.75% 1.53%
 7-year 1.25% 2.45% 2.29%
 10-year 1.86% 3.04% 2.62%