FHFA Raises Conforming Loan Limits Again

The Federal Housing Finance Agency announced it will raise its conforming loan limit on Jan. 1, 2018.

Mortgage financing giants Fannie Mae and Freddie Mac will allow maximum conforming loan limits for mortgages in most parts of the U.S. to be $453,100.

For 10 years, the FHFA had set the conforming loan limit in most places at $417,000. But as home prices started rising, the FHFA bumped up the conforming loan limit in 2017 to $424,100. As prices continued to move higher this year, the FHFA has raised limits again for 2018.

The Housing and Economic Recovery Act requires the conforming loan limit of the government-sponsored entities to be adjusted each year to reflect any changes in the average U.S. home price. Average home values have risen by 6.8 percent since the third quarter of 2016, according to the FHFA’s latest House Price Index. 

The maximum conforming loan limit will now rise by 6.8 percent too.
Home buyers are not eligible for the baseline limit in places where the local median home value is more than 115 percent of that limit. HERA permits higher limits in some locales, but the highest is 150 percent of the baseline limit. High-cost areas may see a baseline, therefore, of up to $679,650.

The FHFA provides the following interactive chart to check conforming loan limits in your area.

Source: Federal Housing Finance Agency

Real Estate Trends Will Be Game-Changers in 2018

We’re almost there: the long-awaited home stretch of 2017. And quite a year it's been! Already, we can’t help imagining 

what developments next year might bring to the wild world of U.S. real estate. So we asked our realtor.com® data team to give us the inside scoop. The team sifted through historical real-estate data and other major economic indicators to come up with a realistic forecast of just what might be in store next year.
And it looks like a sea change is brewing.

From housing inventory to price appreciation to generational and regional shifts, these are the top trends that will shape, and reshape, real estate markets in 2018. Buckle up! It's going to be quite a ride.

Game-changer no. 1: Supply finally catching up with demand

After three years of a crushing shortage of homes for sale, the realtor.com economics team is predicting that the shortfall will finally ease up in the second half of 2018. “We expect the relief to start in the upper tiers, and it will make its way down to the lower tiers,” Hale says. Specifically, most of the initial inventory growth will be in the mid- and upper-tier price ranges, $350,000 and up.

“Overall, prices are expected to increase, and we’re expecting to see more of that in lower-priced homes,” Hale says. “It will get a bit worse before it gets better for buyers of starter and midprice homes.”

Game-changer no. 2: Millennials starting to come into their own

The housing market in 2018 will continue to present challenges for millennials—sorry, all of that student loan debt isn’t just going to disappear—but there are some bright spots on the horizon for these millions of Americans.

Millennials seem to be having more success at taking out mortgages on homes at varying prices, and not just starter homes, Hale says. They probably shouldn't wait too long to buy, either—mortgage rates are expected to reach 5% by the end of 2018 due to stronger economic growth, inflationary pressure, and monetary policy normalization.

Game-changer no. 3: Southern homes selling like crazy

When it comes to home sales growth, bet on Southern cities to beat the national average in 2018. We’re especially looking at you, Tulsa, OK; Little Rock, AR; Dallas; and Charlotte, NC. Those markets are expected to see 6% growth or more, compared with 2.5% nationally.

The South has been luring corporations and individuals to its balmy cities with its low costs of real estate, and living in general. The resulting strong economic growth and strong household growth, combined with an accommodating attitude toward builders, is setting the stage for an accelerating boom in homeownership, Hale says.
As soon as there are more homes to sell, these places will be selling strong.

Game-changer no. 4: Tax reform (maybe)

source: Realtor.com

New Homes Are Getting Smaller

Developers are continuing to shrink the size of new single-family homes, according third-quarter housing data compiled by the National Association of Home Builders. 

The median square footage of a single-family home was 2,378 square feet in the third quarter.

In the years following the Great Recession, builders were focused on the higher end of the market, catering to larger-sized homes. But more recently, builders have renewed their focus on the entry-level market, and NAHB predicts square footage of new homes to continue to decrease.

“Typical new-home size falls prior to and during a recession, as home buyers tighten budgets, and then sizes rise as high-end home buyers, who face fewer credit constraints, return to the housing market in relatively greater proportions,” NAHB explains at its Eye on Housing blog. 

“This pattern was exacerbated during the current business cycle due to the market weakness among first-time home buyers. But the recent declines in size indicate that this part of the cycle has ended, and the size will trend lower as builders add more entry-level homes into inventory.” 

Source: “Declining New Home Size Trend Continues,” National Association of Home Builders’ Eye on Housing blog (Nov. 17, 2017)

Reasons to Buy a Home This Fall

For many, fall is undeniably one of the most coveted seasons of the year. What's not to love? The leaves are beautiful, pumpkin spice abounds, football spirit is in high gear, it's cool but not cold.

What many don't know is that fall is also one of the best times of the year to buy a home. Here's why:

Less competition. Spring and summer are the prime months for buying and selling homes and competition can be fierce. In the Fall, however, there are fewer people in the market, typically resulting in fewer bidding wars and the pressure to sign a contract so quickly. Because the market is quieter, sellers will take your offer seriously.

Sellers are serious. If a home is for sale in the fall, it's usually because of a life event that triggered the sale, such as a job transfer. The power of negotiation is typically in your hands, whether it's price, timing or home updates as they're needing to move versus wanting to move.

Sellers are worn-out. The sellers who listed their home in the spring or summer with aggressive price points or in a saturated market are just plain tired. They've likely lowered their price and, due to the slow movement of the market in the fall, they're willing to negotiate.
If you're in the market to buy, now may be the time as you'll have the upper hand in most cases. Plus, if you're a first-time home buyer and you close before the end of the year, you can take advantage of tax breaks.

source: Realtor.com

Hope to Sell Your Home Next Year

5 Holiday Splurges to Avoid

If you are looking to sell in the next year, you may want to watch it with the festive cheer. Some holiday traditions could end up making your home tougher to sell. Realtor.com®highlighted a few, including:
Decorations: Some decor could actually damage a home, leaving behind holes in the wall, marks on the floor, or screws along a home’s exterior. Also, realtor.com® warns those with live Christmas trees to make sure water doesn’t spill on their hardwood or laminate flooring. It can warp or stain the surface.

Holiday debt: It's tempting to splurge on gifts, but those who plan to buy a home need to be cautious over how much debt they accumulate. Opening up new credit cards or taking on a car loan could hamper one's chances of getting approved for a mortgage. “Speak with your lender if making a real estate purchase after the sale on how much you can spend on big-ticket items,” advises.

New pets: Tell your clients to try to resist the adoption drives this holiday season if they plan to sell soon. House training a puppy or teaching a new cat not to scratch may not be ideal right before putting a property on the market. House showings with a pet can be a challenge, and even more so with a new pet.




Source: “5 Holiday Splurges to Avoid if You Hope to Sell Your Home Next Year,” realtor.com® (Nov. 22, 2017)

Home Sales Up 2% in October

Existing-home sales increased in October to their strongest pace since earlier this summer,

but continual supply shortages led to fewer closings on an annual basis for the second straight month, according to the National Association of Realtors®.
The Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes.

Days on the market estimated 34 days one year ago was 41 days, inventory still low only 3.9 month supply.

Next release: Existing-Home Sales data release for November 2017 is scheduled for Wednesday, December 20, 2017.

Happy Thanksgiving!

Sending you warm wishes from home to home and from 

heart to heart to wish you a very Happy Thanksgiving!

May this day be a beautiful reminder of

the wonderful things in life.

Home Prices Are Continuing to Fall

By How Much
Home buyers pinching their pennies should rejoice: Existing-home prices are continuing to . Sorry, sellers!

The median price of an existing home (i.e. one that has previously been lived in) fell 0.24% from September to hit $247,000 in October, according to the most recent National Association of Realtors® report. And as cash-strapped would-be buyers are well aware, every little bit helps.

In fact, prices have been falling each month since hitting a high of $263,300 in June. That seasonal adjustment is fairly typical, as prices usually soar in summer as the market is flooded with buyers hoping to close on homes before the school year begins.

'We usually see prices go down as we move into the fall. Buyers who are in the market now are usually looking for smaller properties that tend to cost less,' says Chief Economist Danielle Hale of realtor.com®. '[But] in spite of the month-to-month price decline, it's still a pretty tough market for buyers. There aren't very many options of homes available for sale.'

Existing homes are also considerably easier on the wallet than newly constructed abodes, which cost a median $319,700 in September, according to the latest available government data. That's about a third, or 29.4%, less.

However, median prices were still up 5.5% year-over-year. Single-family homes were a median $248,300, while condos and co-ops sold for a little less at $236,800.
The number of October home sales nudged up 2% over September, but were down about 0.9% from a year earlier, according to the seasonally adjusted numbers in the report. (That means the numbers have been smoothed out over 12 months to account for seasonal fluctuations in the market.)

Monthly closings were up across the nation, but they dipped annually in the U.S. particularly in the South, by 1.8%, and the Midwest, at 1.5%. The slight  in the South may be due to Hurricanes Harvey and Irma, which hammered the Houston area and much of Florida and paused many sales temporarily.

'Job growth ... is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home,' Lawrence Yun, NAR's chief economist, said in a statement. 'While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.'


Source: Realtor.com

Housing Market Still Not Meeting Potential

The housing market still wasn’t living up to its potential in October 

2017, with new data from First American ^[1] highlighting a market performance gap that is the largest since November 2016.

According to First American’s Potential Home Sales model ^[2] for the month of October, potential existing-home sales got a 0.4 percent month-over-month bump, reaching a 5.89 million seasonally adjusted, annualized rate (SAAR).

However, First American says the market for existing-home sales is under performing its potential by 455,000 (SAAR) sales (7.7 percent).

Market potential was on the upswing, increasing by an estimated 26,000 (SAAR) sales between September 2017 and October 2017.

The October 2017 potential existing-home sales were down by 4.3 percent compared to the same month last year, however, although the October numbers were still 95.7 percent higher than the market potential low point from December 2008. As of October 2017, potential existing-home sales are 8.2 percent below the pre-recession peak of July 2005.

First American Chief Economist Mark Fleming’s monthly analysis explained that continuing supply problems are going head-to-head with strong demand to shape the current state of the market. The number of homes for sale has declined on a year-over-year basis for the past 38 months in a row. Moreover, according to Realtor.com ^[3],active inventory is down by 7.6 percent and homes are selling 7.6 percent faster than a year ago. Per the First American Real House Price Index ^[4], affordability was down 9.6 percent in August 2017, as compared to August 2016.

In Fleming’s October market analysis, he said:

Tight supply and strong first-time home buyer demand continue to be the dominant factors driving the current state of the housing market. Existing homeowners remain reluctant to list their homes for sale for fear of not being able to find a home to buy, keeping supply levels low. At the same time, a healthy number of potential home buyers continue to enter the market, so house prices are increasing and affordability is declining. Historically low rates offer some relief in the form of strong borrowing power, however rates are expected to rise in the months to come, so if you are renting and thinking of buying, now is the time.

Source: DSNew

Mortgage Rates Bounce Up

The 30-year fixed-rate mortgage reached its highest average since July this week.

“The 10-year Treasury yield ticked up 6 basis points, while the 30-year mortgage rate jumped 5 basis points to 3.95 percent,” says Sean Becketti, Freddie Mac’s chief economist. “Today’s survey rate is the highest rate in nearly four months.” 
Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 16:

• 30-year fixed-rate mortgages: averaged 3.95 percent, with an average 0.5 point, rising from last week’s 3.90 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
• 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.5 point, rising from last week’s 3.24 percent average. A year ago, 15-year rates averaged 3.14 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.21 percent this week, with an average 0.4 point, falling slightly from last week’s 3.22 percent average. A year ago, 5-year ARMs averaged 3.07 percent.

Source: Freddie Mac

Smart Reasons to Buy a Home During the Holidays

Turkeys and tinsel, dreidels and pumpkin pie. Yes friends, the holidays are here again, and it's the perfect time for ... house hunting? 

OK, we know you're busy enough planning family feasts and much-needed vacations while dealing with blustery weather, but hear us out. While it might seem counterintuitive to put a big-ticket item like a home on your holiday shopping list, it really does make sense.

Don't believe us? Check out these surprisingly smart reasons to let everyone else hit the mall to buy half-off sweaters while you make the purchase of a lifetime: a new house to ring in the New Year.

1. Less competition from home buyers
Most buyers take the month off to celebrate the holidays, attend parties, host out-of-town guests and, quite frankly, avoid trudging around in inclement weather to look at houses. Or, maybe they’ve heard that this is a lousy time to buy a house. Whatever the reason, shopping for real estate at a time when fewer buyers are in the market can pay off big. That’s because competing with multiple offers is one of the most stressful parts of the home-buying process.

2. Motivated (OK, desperate) home sellers

The December seller is likely to be serious and motivated—and therefore more open to negotiation. So what you might lack in choice of available homes could be balanced out by dealing with a more flexible seller. Most sellers have a compelling reason for putting their house on the market during the holidays. (Let’s face it: It’s no holiday party for them to have strangers wandering through their house.) They might be facing a relocation and want to get their kids settled before the new term. Or they might just be feeling some stress if they listed their home in the fall and it’s still languishing post–Turkey Day, making them just a little more desperate and anxious to deal.

3. Tax advantages

In case you weren't aware, the tax benefits go both ways. Buying now can help you save in April and beyond. Homeownership brings numerous tax perks, from deducting mortgage interest to property taxes. Also, many closing fees are tax-deductible if you itemize—although you should always double-check with your accountant about any tax questions.

4. A realistic picture of the house

What house doesn’t look amazing in the typical spring buying season, with newly planted flowers and plenty of sunlight streaming through the windows? Checking it out during the miserable winter season, on the other hand, might give you a more accurate idea of what you might be living with the rest of the year.

5. Greater accessibility to professionals

“Since December is usually a slower month all around, you will have easier access to movers, inspectors, and mortgage brokers, In addition, motivated real estate agents will bend over backward to provide service with fewer client demands and will share your desire to get it done and in the books before the new year rolls around.  Ditto on your mortgage broker, who is bound to speed your closing through.

source: Realtor.com

Values Increasing at a Steady Pace Month-Over-Month

Home Values in Sync

According to a study published Tuesday, the gap between opinions of values from appraisers and homeowners continue to narrow. 

The study states that according to the study Home Price Perception Index (HPPI), actual appraisals were 0.99 percent lower than homeowners thought they would be.

According to study, homeowners estimate that their home’s values rose by an average of 0.99 percent over the actual appraisal value. Study goes on to state that this finding marks the fifth consecutive month that the value opinions narrowed. Additionally, the study found that the HPPI is currently the closest it has been to equilibrium since April 2015.

Overall, study found that the trend is for homes in Western cities to have an appraisal value that surpasses the homeowner’s estimate. Dallas is a particularly noteworthy example of this, as the study found that appraisals there were as much as 3.13 percent higher than expected.

Although this is the case for the West, study found that the opposite is true for homes in the East and Midwest, where home values are more likely to be appraised below the homeowner’s estimate.

“Based on the HPPI, it appears homeowners in the markets where prices are rising faster than the national average—like Denver, Seattle and San Francisco—are continuing to underestimate just how quickly home values are rising, so the average appraisal is higher than the homeowner estimate,” said Bill Banfield, Executive Vice President of Capital Markets.

Study goes on to state that despite appraisers and homeowners still continuing to differ, that appraisal values continue to rise. For October 2017, home values are up by an average of 0.71 percent while they are up 4.76 percent compared to October 2016.

This is where home value index, the measure of home value change based on appraisal data, comes in. The study said that the HVI showed values increasing at a steady pace month-over-month while increasing at greater amounts yearly. The 0.71 percent jump from September to October along with a 4.76 percent year-over-year jump illustrates this.

source: DSNews

10 Cities With the Largest Rent Increases

Rents have been slowing in many areas, but exceptions are still giving renters sticker shock. Rents in the nation’s largest cities, in particular, continue to grow.

Almost half of renters (46%) spend more than 30% of their income on rent, according to Census Bureau data. This means they are classified as housing cost-burdened based on guidelines from the Department of Housing and Urban Affairs.

Rent vs. Buy Calculator, especially in the biggest cities in the country. Below we compare rents and incomes to find the cities with the largest rent increases.SmartAsset, a personal finance website, analyzed data median household incomes and average rents and compared them in 2013 to 2016.

Four of the top 16 cities with the largest rent increases are in California, according to the analysis. But it’s New Orleans that saw the steepest run-up in rental costs from 2013 to 2016. Rental costs increased 10.5 percent in that time, more than any other U.S. city analyzed.

Source: “Top 10 Cities With the Largest Rent Increases—2017 Edition

Home Features, Not Brands, Attract Young Buyers

Home features—particularly those that are technology-based—have a stronger pull on millennial home shoppers than the promotion of brand names, according to a new survey by John Burns Real Estate Consulting, conducted with 20,000 new home shoppers. Millennials tended to show a preference for tech-focused amenities that could make their lives simpler.

Young adults born in the 1980s and 1990s are half as likely as their parents’ generation to rank brand as the most important factor when selecting products in the home. They do check reviews online before buying, so the survey showed online reputation is also important to them.

The young adults born in the 1990s are more likely to pay an extra $3,500 for a smart-tech refrigerator than older adults. Younger adults may have less income to spend, but they showed a higher preference for technology, according to the survey.

“We believe that understanding your buyer will help you make better decisions,” notes Steve Basten, senior consultant, and Todd Tomalak, vice president of research, for John Burns Real Estate Consulting. 



Source: “Millennials Pay More for Features and Less for Brands,” John Burns Real Estate Consulting (Nov. 13, 2017)

Housing Boom Is Officially Back

 Housing prices have returned to the “boom levels” of a decade ago, but this time around, the fast appreciation is being fueled by strong supply-and-demand dynamics rather than predatory lending practices, investor speculation, and too much construction, according to new realtor.com® data released Monday.

“As we compare today’s market dynamics to those of a decade ago, it’s important to remember rising prices didn’t cause the housing crash,” says realtor.com® Chief Economist Danielle Hale. “It was rising prices stoked by subprime and low-documentation mortgages, as well as people looking for short-term gains—versus today’s truer market vitality—that created the environment for the crash.”

 The national median price for a home in 2016 was $236,000—2 percent higher than in pre-recession 2006—according to realtor.com®. Out of the country’s 50 largest housing markets, 31 have returned to their levels during the last housing bubble. Realtor.com® researchers finger Austin, Texas, as the city that has posted the largest increases in home prices—63 percent—over the past 10 years. Denver and Dallas have also seen some of the biggest gains, at 54 percent and 52 percent, respectively. Salt Lake City Utah Change Home Prices 2016 vs. 2006: 33.6 percent and Year 2016: Median Home Prices 272,136 from 2006 Price of 203,766.

On the other hand, three markets remained more than 20 percent below their 2006 highs: Las Vegas (25 percent below); Tucson, Ariz. (22 percent); and Riverside, Calif. (22 percent). 

source: Realtor newsletter

Mortgage Rates Dip Slightly

Mortgage rates were down across the board this week, lowering borrowing costs for potential home buyers and refinancers.
“After holding steady last week, rates dipped slightly this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 10-year Treasury yield fell roughly 7 basis points, while the 30-year mortgage rate ped 4 basis points to 3.90 percent.” 
Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 9:

• 30-year fixed-rate mortgages: averaged 3.90 percent, with an average 0.4 point, ping from last week’s 3.94 percent. Last year at this time, 30-year rates averaged 3.57 percent.
• 15-year fixed-rate mortgages: averaged 3.24 percent, with an average 0.5 point, falling from last week’s 3.27 percent average. A year ago, 15-year rates averaged 2.88 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.22 percent, with an average 0.5 point, ping from last week’s 3.23 percent average. A year ago, 5-year ARMs averaged 2.88 percent.

Source: Freddie Mac

Utah has the Hottest Markets

Homes Sales on the Move

Homes are selling quickly: a median of 28 days, the fastest pace

on record. Before this summer, that number had never dipped below 30. Utah has the hottest markets, with the typical home in the state selling in just 20 days. Wyoming, with its hard-hit energy sector, has the slowest, at 105 days on market. Here are states with the fastest and slowest home sales.

 A glimpse at the current state of the housing market. 

 

Job growth is boosting the economy and housing demand, but

sales are hemmed in by low inventories in many parts of the country. When houses go on the market, they’re selling fast. Tight demand is sending prices up, at a rate of about 6 percent a year, far outpacing wage growth. As that gap widens, more households will be priced out of the market.

12 Reasons to List During Fall & Winter Months

12 Reasons to List During Fall & Winter Months

Why Acting NOW Could BENEFIT You… NOW!

1. Inventory of Competition is Lower. Law of Supply and Demand works! Your home stands out with serious buyers who have less to choose from now. Your odds of selling go UP during this time of year. The % of total inventory sold is great during these months.

2. Only SERIOUS Buyers are out in the fall/winter. Fewer people are in the house, yet are more likely to make an offer.

3. Taking Exterior Photos with Holiday Decorations. This can be a big asset before being left with full-on-winter, dead landscaping… and nothing to dress it up!

4. Homes Show Better While Decorated. Fireplaces, evergreens, and scented candles, all add to the beauty inside… when it’s not so pretty outside. This Contrast can cause YOUR home to show BEST NOW.

5. Little Know Fact: It’s perfectly OK to have specific “no showings-times” during the Holidays. In fact, it’s expected. Just because you’re planning a few days of no showings is no reason to not be for sale the REST of the time. “None this weekend” is perfectly OK.

6. Houses Feel More Like “Homes”. Coming in from the cold… some cozy-home-feelings causes emotion you can’t get other time of the year. People are generally just grateful and happier during this time of year. That can equal a Sale since a lot of Buyers buy on emotion.

7. Online Searches Go Way Up. People stay indoors and tend to do more home research online during times they were outdoors over the spring/summer. If you aren’t listed, they can’t find you online. If you don’t play, you can’t win!

8. End of Year Buyers May Even Pay More. End of year buyers may have mental or actual deadlines they want to meet. With less time to negotiate AND fewer homes competing that could = the BEST price for YOU. Often the % of asking price received is statically higher Nov-March.

9. More Day-time Showings mid-November through January. With holiday time-off, daytime showings increase during this time of year leaving your home free for you during evenings and weekends.

10. End of Year Buyers often has an “urgency factor” they must meet. Many employers hire to start January. There are also tax benefits and other urgency factors that may affect Buyers in Nov/Dec. If you don’t list now, you miss those buyers. They’ve already bought before you ever go on the market if you wait until the new year.

11. Late occupancies are common during this time. Many that need to buy by end of year don’t have to occupy right away, allowing a real win-win. They win buying now, and you may be able to negotiate your move for later while taking your profit out now. This happens over the holidays more than any other time of year.

12. Decreased Demand on Vendors means easier quicker closings. Lenders, appraisers, home inspectors, movers and other vendors are less busy during this time of year, resulting more time for YOUR transaction to be smoother & easier. A huge reason to do this NOW rather than with the “crowds”. 

Think of the Peace of Mind you’ll have to be “all done” while others are just starting! --- Not listing now could cause you to miss YOUR perfect buyer who needs to buy NOW.

What’s the real downside to listing NOW… when there are so MANY good reasons NOT to wait?

The Question really is – Why delay?

Buyers Need to Know about Smoke Alarms

Smoke alarms are an important defense against injury or death in house fires.

Statistics from the National Fire Protection Association show that nearly two-thirds of home fire fatalities occur in homes with non-working or missing smoke detectors. Most building codes now require smoke detectors in all residential structures, which has resulted in a steep in fire- and smoke-related deaths. Homeowners should check with their local public safety office or fire department for specific information on these requirements.

• As in real estate, location is key! Smoke alarms should be in installed every bedroom, outside every ing area, and on each level of the home.

• Alarms should be placed high on a wall or on the ceiling. It’s best to follow the manufacturer’s instructions for placement. High, peaked ceilings have dead air space at the top; in these instances smoke alarms should be placed no closer than 3 feet from the highest point.

• For areas close to the kitchen, use a detector with a “hush button” that can be used to silence nuisance alarms triggered by cooking smoke or steam. Alternatively, consider installing a photoelectric alarm near the kitchen, which will not be triggered by cooking. No matter which type is used, never remove the unit’s battery to stop or prevent nuisance alarms.

• There are two primary types of smoke alarm technology: ionization and photoelectric. According to the National Fire Protection Association, ionization alarms are more responsive to flames, while photoelectric alarms are more sensitive to smoldering fires. For the most comprehensive protection, both types or a combination unit should be installed.

• Test each alarm monthly. It’s helpful to put a reminder in the calendar to do this on the first or last day of the month, for example. The units have a test button that will sound the alarm for a moment or two when pressed. Any alarm that fails to sound should have the battery replaced. If the test button fails with a new battery, replace the entire detector immediately. Monthly testing is also an ideal time to dust off the unit so that it continues to work properly.

• Replace the batteries at least once a year. A common rule of thumb is to do this when changing to or from Daylight Saving Time in fall or spring. Remember, a non-working alarm is no better than no alarm at all. Some alarms now come with 10-year lithium batteries that eliminate the need for new batteries, but the unit itself must be replaced after its stated lifespan.

• If the alarms are hard-wired to the home’s electrical system, make sure they are interconnected for maximum effectiveness – meaning that if one alarm is triggered, all of the others will sound as well. Any hard-wired alarms, interconnected or not, should be installed by a licensed electrician for safety and proper operation.

• The newest type of interconnected alarms are wireless. This technology allows detectors to communicate with one another and, like their hard-wired cousins, will sound all of the units at the same time even if just one is triggered initially.

source: The Pillar To Post Inspection Report

FSBOs hit record low

For the third year in a row, for-sale-by-owner (FSBO) transactions accounted for only 8 percent of recent home sales, the lowest share that the National Association of Realtors (NAR) has recorded in its annual Profile of Home Buyers and Sellers since the report was first released in 1981.

FSBO sales hovered between 12 percent and 14 percent from 2001 to 2008. In addition, the share of recent homesellers who sold with an agent remained at a record high of 89 percent in the last year.
NAR Managing Director of Survey Research Jessica Lautz says FSBO sales have flattened due to current market conditions where sellers need a competitive edge that only an agent can provide.

“What we do see is that sellers are working with agents to help market their homes to potential buyers, sell it in a specific time frame and price the home competitively,” she said. “Pricing the home competitively is really important for sellers today, especially because everything is rapidly changing with prices.”

“So knowing how to price that home so they can sell quickly is important, and that’s difficult for FSBOs to do,” she added.

Fifteen percent of FSBO sellers said getting the right price was their biggest obstacle, followed by selling it within a certain timeframe (13 percent) and understanding and performing paperwork (12 percent).

According to NAR, the median FSBO sales price rose slightly from $185,000 to $190,000 last year, compared to the median price of a home sold using an agent, which stands at $250,000.
FSBO homes sold more quickly on the market than agent-assisted homes. Fifty-eight percent of FSBO homes sold in less than two weeks — often because these homes are sold to someone the seller knows. The median age for FSBO sellers is 55 years. Seventy-four percent of FSBO sales were by married couples that have a median household income of $103,100.


source: NAR Managing Director of Survey Research Jessica Lautz

Mortgage Rates Mostly Flat This Week

Mortgage rates mostly held steady this week after posting a sizable jump last week. 
“Following a strong surge last week, rates held relatively flat this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate remained unchanged at 3.94 percent, while the 10-year Treasury yield dipped roughly 4 basis points. The markets’ reaction to the 

upcoming announcement of the next Fed chair may impact the movement of rates in next week’s survey.” 
Freddie mac reports the following national averages 
with mortgage rates for the week ending Nov. 2:

• 30-year fixed-rate mortgages; averaged 3.94 percent, with an average 0.5 point, the same average as last week. Last year at this time, 30-year rates averaged 3.54 percent.
• 15-year fixed-rate mortgages: averaged 3.27 percent this week, with an average 0.5 point, rising from last week’s 3.25 percent average. A year ago, 15-year rates averaged 2.84 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.23 percent, with an average 0.5 point, rising from last week’s 3.21 percent average. A year ago, 5-year ARMs averaged 2.87 percent. 

Source: Freddie Mac

Today's Market…Salt Lake City Area

View market statistics for Salt Lake City.

Home Ownership matters…to people, to communities, and to America. Why? • For every two homes sold, one job is created in the U.S. • Each purchase generates as much as $60,000 in economic activity over time. 

Buying is cheaper than renting in 74 percent of the nation’s largest cities. Low home prices and “rock-bottom” interest rates as well as tax advantages of homeownership are the reasons why it’s now cheaper to BUY a 2-bdrm home than to rent one.

Learn more: Salt Lake Market

Rental Vacancies Poised to Drop

As lease expirations decline on single-family rental securitizations, vacancies have started to level off. And according to Morningstar Credit Ratings recent Single-Family Research, those vacancies are likely to drop in the near future.

According to Morningstar’s research, which looks at property-level information across rental securitizations, lease expirations slipped from 9 percent in July—its 2017 high—to 6.2 percent by September. Average vacancies stayed largely steady for the month, ticking up just 0.1 percent since August.

But that slight increase likely won’t continue, Morningstar reports.

“The average vacancy rate increased slightly to 5.9 percent in September, but the decline in expiring leases could indicate a corresponding decline in the average vacancy rate soon,” the report stated.

Delinquencies on rental securitizations rose incrementally for the month, increasing 0.8 percent. Nine securitization deals showed delinquency rates of 1 percent or higher—up from just four deals the month before.

Rents also rose across single-family rental pools as well, jumping about 3.5 percent in September. Rents rose most on recently renewed properties.

“For August, the latest month for which data is available, the rent change for vacant-to-occupied properties was 1.5 percent, while the rent change for renewal properties was at 4.4 percent,” Morningstar reported.

Still, despite upticks, rents are largely on pace with estimates set out by RentRange, an online tool offering rent comparisons and rental estimates. The biggest exception was the Sarasota-Bradenton-Venice metro area, where renewal rents were actually lower than most RentRange estimates.

source: DSnews