Buyers Act Fast

Existing Homes Are Selling Quickly

Homes across the nation are selling at a breakneck pace—reaching levels not seen since the height of the housing boom more than a decade ago.

Sales of existing homes (which have previously been lived in) rose 5.6% last from October to November, according to the most recent National Association of Realtors® report. They were also up 3.8% year-over-year to reach a high of about 5.81 million sales. That's the fastest clip at which they've sold since December 2006. (Realtor.com® looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to account for seasonal fluctuations.)

Co-op and condo sales surged the most, vaulting 14.3% month-over-month and jumping 7.5% annually. Meanwhile, sales of single-family abodes, those classic residences that often come with a yard out back (if not a white picket fence), rose 4.5% from October and 3.2% from November 2016.

There may have been a bump in sales because home buyers are anticipating an increase in mortgage interest rates and they wanted to act before the rates went up.”

But given the high number of sales, and the fewest number of homes on the market since the 1980s, he predicts 'we're in a for a bumpy ride,' as the high sales growth simply is not sustainable.

Median home prices to rose to hit $248,000 in November. That's up 0.8% from the previous month and 5.8% over the previous year. It's great news for sellers and not-so-good news for buyers.

The most existing homes sold in November, about 41.5%, were in the $100,000 to $250,000 price bracket. An additional 34% were in the $250,000 to $500,000 range.

Only 10.8% were under $100,000. The rest, about 13.7%, were over $500,000.

Existing homes are still significantly cheaper than newly constructed abodes—about 27.2% more so. That's because land and labor costs are so high, so new construction is skewed toward luxury and custom homes.

Newly constructed homes cost a median at $312,800 in October, according to the most recent U.S. Census Bureau and U.S. Department of Housing and Urban Development data.

Nationally, sales of existing homes rose the most in the more-affordable Midwest, where many metros are experiencing resurgences. They jumped 8.9% from October and were up 7.2% over November 2016. The median home price was $197,500.

The region was followed by the South, with the number of sales up 7.3% month-over-month and 4.1% year-over-year. Some of that rush may be from buyers whose homes were damaged in Hurricanes Harvey or Irma and chose to buy new properties. The median home price was $220,200 in the region.

In the Northeast, sales were up 6.5% from the previous month, but were down 1.5% annually. The median price was $272,100. And in the West, where prices were the highest at $376,200, sales fell 6.3% from October. They were flat from a year ago.

'Move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month,' NAR's Chief Economist Lawrence Yun said in a statement. 'The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”

source: Nar News

Higher Loan Limits Coming Jan. 1

On Jan. 1, buyers will be able to get much larger mortgages, whether they’re applying for conventional or 

FHA-backed loans. Each year,Fannie Mae and Freddie Mac adjust their limits for conventional, conforming loans based on changes 

in median home prices. For 2018, the companies are increasing loan limits nearly 7 percent, to a maximum loan amount of $453,100. That’s up from $424,100. In the country’s most expensive markets, such as San Francisco and New York, loans can go as high as $679,650. (Special rules apply in Alaska, Hawaii, and some U.S. territories, which are eligible for even higher limits.)

View a county-by-country chart of 2018 Fannie, Freddie loan limits.

Most home loans are conforming, conventional loans, so the higher limits should help most borrowers. Conventional loans that exceed these limits are considered jumbo loans and aren’t backed by the federal government. That can make them pricier to get.

The Federal Housing Administration is statutorily required to peg its loan limits to Fannie and Freddie’s limits, so it will also start backing higher loans starting Jan. 1. Its loan limits are the same as those of Fannie Mae and Freddie Mac: $453,100 in most areas and $679,650 in high-cost areas

—REALTOR® Magazine

Contract Signings Post First Gains

Since June Pending home sales eked out a small increase in November on both a monthly and annualized basis.  

The increase was enough to make it the highest gain in contract signings since June as well, the National Association of REALTORS® reported Wednesday. 

But will it last? Existing-home sales and price growth are expected to slow heading in 2018 due to the impact from altered tax benefits of homeownership affecting some high-cost areas, according to NAR. 

NAR’s Pending Home Sales Index—a forward-looking indicator based on contract signings—inched up 0.2 percent month over month. NAR’s index reached a reading of 109.5 in November and is at its highest reading since June (110). The index is 0.8 percent higher than a year ago. 

“The housing market is closing the year on a stronger note than earlier this summer, backed by solid job creation and an economy that has kicked into a higher gear,” says Lawrence Yun, NAR’s chief economist. “However, new buyers coming into the market are finding out quickly that their options are limited and competition is robust. REALTORS® say many would-be buyers from earlier this year, stifled by tight supply and higher prices, are still trying to buy a home.” 

Existing-home sales are up 5.8 percent—more than double wage growth. Inventories remain tight at a 3.4-month supply of homes on the market, which is the lowest since NAR began tracking in 1999. 

“The strengthening economy, and expectation that more millennials will want to buy, serve as promising signs for solid homebuying demand next year, while also putting additional pressure on inventory levels and affordability,” Yun says. “Sales do have room for growth in most areas, but nationally, overall activity could be slightly negative. Markets with high home prices and property taxes will likely feel some impact from the reduced tax benefits of owning a home.”

Yun forecasts that existing-home sales will finish 2017 at around 5.54 million, which is an increase of 1.7 percent from 2016 (5.45 million). The national median existing-home price for 2017 is expected to increase to around 6 percent. 

Yun projects that in 2018, existing-home sales will see little change, declining just 0.4 percent to 5.52 million. He also forecasts that price growth will moderate to around 2 percent.

Source: National Association of REALTORS® 

Mortgage Rates Up Slightly This Week

Average mortgage rates inched up, but the 30-year fixed-rate mortgage remains below 4 percent and continues to offer home buyers and refinancers historically low rates.

“Thirty-year fixed mortgage rates have been bouncing around in a narrow 10 basis points range since October,” says Len Kiefer, Freddie Mac’s chief economist.

“The U.S. average 30-year fixed mortgage rate increased 1 basis point to 3.94 percent in this week’s survey. The majority of our survey was completed prior to the surge in long-term interest rates that followed the passage of the tax bill. If those rate increases stick, we’ll likely see higher mortgage rates in next week’s survey.

But even with yesterday’s increase, the 10-year Treasury yield is down from a year ago, and 30-year fixed mortgage rates are 36 basis points below the level we saw in our survey last year at this time. Mortgage rates are low.”

Freddie Mac reports the following national averages for the week ending Dec. 21:

• 30-year fixed-rate mortgages: averaged 3.94 percent, with an average 0.5 point, rising from last week’s 3.93 percent average. Last year at this time, 30-year-rates averaged 4.30 percent.
• 15-year fixed-rate mortgages: averaged 3.38 percent, with an average 0.5 point, increasing from last week’s 3.36 percent average. A year ago, 15-year rates averaged 3.52 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.39 percent, with an average 0.3 point, increasing from last week’s 3.36 percent average. A year ago, 5-year ARMs averaged 3.32 percent.

Source: Freddie Mac

How Much House Can I Afford?

Use the Home Affordability Calculator to determine what price range you can afford. Enter details about your income, monthly debt, and down payment to find a home within your budget.

Homes Selling Faster Than Ever

The time homes spent on the market hit an all-time low in 2017 at just three weeks, the National 

Association of REALTORS® reports. A low inventory of homes for sale mixed with strong buyer demand has helped to keep market times low from 2014 to 2017.

During the height of the housing boom from 2001 to 2005, homes sold within a month of being listed. But as the housing market began to slow in 2006, the median time jumped to six weeks, and then to 10 weeks by 2009. 

Tight inventories and a lack of construction of homes has helped to keep homes selling faster in recent years, NAR notes. 

Source: “Drop in Time on Market to Sell a Home,” National Association of REALTORS® Economists’ Outlook blog (Dec. 21, 2017)

Merry Christmas and Happy New Year

 

The Magic of Christmas never ends and its greatest of gifts are family and friends.

 

From all of us to all of you have a Merry Christmas and a Happy New Year,

 

Affordable Utah Housing and
www.PrecisionReal-T.com 

 

Please feel free to explore our website just click on our company name. And if you have any questions or would like to see  homes in person or to discuss your home's value, PLEASE give us a CALL today.

More New Homes Entering the Pipeline

Instant Reaction: November Housing Starts

The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Commerce Department report on November housing starts:

Housing starts are on the rise, reaching a post-recession high in November. The West and South regions of the country are seeing the bulk of the increase in new-home construction.

Housing starts—which include single-family and multifamily production—increased 3.3 percent nationwide in November to a seasonally adjusted annual rate of 1.3 million units, the Commerce Department and the U.S. Department of Housing and Urban Development reported Tuesday.

Broken out, single-family home construction increased 5.3 percent in November to a seasonally adjusted annual rate of 930,000—the highest rate since before the recession. Single-family starts are now 8.7 percent higher than a year ago. Multifamily starts, on the other hand, ped 1.6 percent to 367,000 units in November. However, that follows a strong reading in October.

“A welcoming trend is developing in the housing sector as builders are able to bring more supply to the market on a consistent basis,” says Lawrence Yun, chief economist of the National Association of REALTORS®. “There is still more room for improvement, as the latest figure is still not yet at the long-term 50-year average of producing 1.5 million units per year. If this rising trend continues, the worst of the supply shortage could soon end, which would help slow price appreciation in 2018. 

That would be a huge, welcoming relief for renters seeking to become homeowners.”

In November, housing production rose by the most in the West, increasing 19 percent month over month.The South saw an 11 percent gain. 

Housing starts plunged nearly 40 percent in the Northeast and by nearly 13 percent in the Midwest.

Housing permits—a gauge of future production— ped 1.4 percent in November to a seasonally adjusted annual rate of 1.3 million units. The decrease in permits is due to a in multifamily permits, which were down 6.4 percent to 436,000. Single-family permits increased 1.4 percent in November to a reading of 862,000.

'With low unemployment and increasing owner-occupied household formation, single-family starts should continue to make gains in 2018,” says Robert Dietz, the National Association of Home Builders’ chief economist.

source: National Association of REALTORS®

Allow Renters to Buy With Tiny Down Payments

New Mortgages

The down payment has been a big obstacle in recent years for renters looking to buy their first homes.

A new mortgage offering aims to ease the burden.

Home Partners of America, a rent-to-own company, is offering a new mortgage product to tenants that applies some of the appreciation in their home’s value during the time they have lived there toward reducing the down payment.

In areas with even modest home-price appreciation, that could reduce the down payment requirement to almost nothing.

To qualify, tenants must have paid their rent on time for two consecutive years and be considered first-time buyers, meaning they haven’t owned a home in the last three years.

The program harkens back to the housing bubble, when millions of Americans received mortgages for homes they couldn’t afford with little or no down payment.

Bill Young, co-founder and chief executive of Home Partners, said a critical distinction with his company’s program is that prospective buyers have been paying their monthly rent on the same home over a long period, demonstrating they can afford it and are committed to staying there. “Their skin in the game is they’ve proven they can pay their rent on time for 24 months,” Mr. Young said.

Home Partners, which was started about five years ago and has purchased nearly 8,000 homes in more than 50 metropolitan areas, plans to offer the product to current tenants and those who sign a lease over the next two years, the duration of the pilot program. The company won’t make the loans itself, but is working with New Penn Financial, a Pennsylvania-based lender.

The loans will be backed by mortgage company Fannie Mae, which recently has been experimenting with programs designed to ease credit for young buyers who are missing out on a recent surge in home prices because they haven’t saved enough for a down payment. 

Other pilots include a program under which Lennar Corp. will pay off a significant chunk of the student loan of a borrower who purchases a home from the Miami home builder. In another, buyers can receive up to $50,000 for a down payment if they agree to rent a room in their home on Airbnb.

Rent-to-own companies have a poor reputation in the housing industry for taking nonrefundable deposits from tenants who clearly won’t ever be able to qualify for a mortgage or afford a home. Home Partners doesn’t take a nonrefundable deposit, so if the home’s value declines or they decide not to buy for any other reason renters can simply walk away.


source: Realtor.com

You Inherit a House and Sell It,

How Are the Profits Taxed?

If you sell your house and make a profit, you must pay capital gains tax—so does the same rule 

apply when you inherit a house from a deceased relative?

The truth is that inheriting property can be taxing—both emotionally and financially. The amount you must pay when you sell an inherited property can indeed take a toll on your bottom line. 

But before we discuss the details, let's take a closer look at what capital gains tax actually is.

Capital gains tax

Typically when you sell a home for more than you paid for it, you have to pay capital gains tax. It can range from 0% to 20%, depending on your income. Your capital gain on your home sale is determined by subtracting the purchase price from the home's current value. And you could be eligible for an exclusion of up to $250,000 ($500,000 for a married couple) if you’ve lived in the property for at least two of the previous five years.

How much tax do you have to pay when you sell an inherited home?

However, if you inherit a home and sell it later, you will pay capital gains tax based on the value of the home on the date of the owner's death.
'This is known as the 'stepped-up' basis for paying taxes on an inherited home,' says Michele Lerner, author of 'Homebuying: Tough Times, First Time, Any Time.'
For example, if you inherit your grandmother’s house and it was worth $200,000 when she died, and you sold it later for $210,000, you would subtract the stepped-up basis of the home ($200,000) from the sales price ($210,000) to determine the taxable gain ($10,000). Therefore, you would have to pay tax on the $10,000 gain.
People who inherit property aren't eligible for any capital gains tax exclusions. But if you sell the home for less than the stepped-up basis, you can deduct the loss amount up to $3,000 per year. (Any more than that can be rolled over to next year to be deducted.)

Will home improvements on an inherited home lower your tax bill?

So what happens if you update the kitchen, redo a bath, or make other improvements to the property you inherited before you sell it? The good news is that you can use those improvements to reduce your tax bill and potentially increase your profit.
“If you have an inherited house, it's likely outdated,” says John Powell, chief development officer for Help-U-Sell Real Estate. “If you have the time to remodel it, you will make a better return on your investment.'
If you do decide to make some updates, you can subtract that amount from any capital gains taxes you owe when selling the property. So keep track of those receipts!

source: Realtor.com

Don't Buy a House Without Home Inspection

A home inspection checklist is a rundown of features throughout a house that might 

be faulty or need fixing. Home inspectors  use these lists while inspecting homes, and while they may vary by individual and geographic area, rest assured, this list is incredibly long—proving that a whole lot can go wrong with a home!

A home inspection checklist can keep inspectors from accidentally overlooking small things, thereby guaranteeing that their inspection is thorough. If you're hoping to buy a particular house, getting a good home inspection is crucial, since it can help you root out potentially costly problems before the house is officially yours. If any of these features don't pass muster, you can renegotiate with the seller (to lower the price or pay for repairs), or back out of the deal entirely.

What does a home inspection checklist cover?

'The checklist will vary depending on the inspector, but generally it's divided into sections, 'It will cover the exterior and interior elements.'
Here's a rundown of the main things a home inspection checklist will encompass:
Structural issues: 'Your home must properly support the weight of its own structure, 'Over time, critical elements may begin to fail.'
A home inspector will look for cracked foundation, sagging beams, wood rot, and uneven floors, identifying areas that may be compromised.
Roof problems: If the roof is sloped, Miller says, an inspector will look for curling or missing shingles, worn granules, cracks in skylight sealant, loose gutters, etc. If the roof is flat, the inspector will want to check for cracks in the seams and any kinds of divots or spongy areas.
'They’re looking for any signs that that roof is no longer structurally sound or may allow in water in the near future,' Miller notes.
Mechanical issues: From central air to water radiators, the heating and cooling systems in a house should be turned on by the inspector (regardless of the season) to ensure they're in proper working condition.
Plumbing concerns: Although a home inspector can inspect only plumbing that is visually accessible, the checklist will include keeping an eye out for leaks under bathroom sinks, signs of corrosion and rusting of cast-iron drain lines, and water pressure.
Electrical troubles: Electrical issues could spark house fires, which is why inspectors check outlets individually to ensure they're properly hooked up to power and grounded. They'll also check for code violations and gauge the age of the electrical system.
Overall condition: Do the doors stick? Are there windows that have been painted shut? Will the oven that's being sold with the house actually turn on? A home inspector's checklist includes walking through the house and checking on these basic elements, so that issues can be rectified before you buy.
Safety: The home inspection checklist will include items that may compromise the safety of you and your family. That list includes the following:

• Open stair risers that are too high
• Wobbly deck supports
• Loose or missing handrails
• Nonfunctional smoke and carbon monoxide detectors
• Peeling paint if the home was built before 1978
• Signs of mold
• Spongy subfloors
• Tripping hazards
• Signs that a chimney needs maintenance

Should home buyers read the home inspection checklist?

Since a home inspection checklist is extremely detailed, home buyers should not feel required to peruse it in depth. However, you should make sure your home inspector is working off one. No one, not even the best inspector, can remember everything!
After your home inspection, 'your home inspector should produce a report with detailed notes that analyze the condition and flag any potential problems,' says Lerner. This document is the one you'll want to scrutinize and discuss with your inspector. Even better: See if you can tag along during the home inspection so you can actually see any problems for yourself.

source: Realtor.com

Is Rental Boom Coming to End ?

The rental market's decade-long boom may soon reach its finale, as fewer new renter households are 

forming, rental vacancies are rising, and rent increases are slowing, according to the 2017 America’s Rental Housing report.
Still, rents remain high and continue to take a significant chunk out of households’ monthly incomes—more than what most experts consider “affordable.”

“This year’s report paints a complicated picture of the rental market.  “We’re finally seeing the record growth in renters slow down, but while the market has responded to rental housing needs for higher-income households, there are alarming trends that suggest a growing inability to supply housing that is affordable for middle- and working-class renters, let alone those with very low incomes.

Addressing these challenges will require bold leadership and hard choices from both the public and private sector.” While renters tend to skew younger and have lower incomes, a growing share are older and more financially stable, the report shows. The number of renter households earning more than $100,000 per year rose from 3.3 million in 2006 to 6.1 million in 2016. And more rental inventory is catering to the high end of the market. The share of new units renting for $1,500 or more rose from 15 percent in 2001 to 40 percent in 2016, according to the report.

Meanwhile, the share of new units renting for less than $850 per month ped from 42 percent to 18 percent.

Affordability continues to be a major problem in the rental market. Nearly half of the nation’s 21 million renter households are considered “cost-burdened,” devoting more than 30 percent of their income to housing. About 11 million households pay more than 50 percent of their income toward housing.


Source: Joint Center for Housing Studies at Harvard University (December 2017)

Overcoming Down Payment Hurdle

You're ready to buy a home, but the down payment seems like an insurmountable hurdle. Don't throw in the towel yet. It might be easier than you think.

Here are two important things to know.

You don't need a 20% down payment. The need to put 20% down when buying a home is a common misconception — most people pay less. In fact, according to the National Association of Realtors, the average down payment among first–time homebuyers in 2016 was 6%, and 14% for repeat buyers. Plus, options like our Home Possible^® mortgages allow qualified borrowers to put down as little as 3%.

Assistance is available. Pulling together enough money for a down payment may be a challenge, but you don't necessarily have to go it alone.  Grants and second loans are just two examples of the types of assistance programs that may be available to you.

• Grants — Grants are funds that you do not have to pay back as long as you own and occupy your home for a certain period of time.
• Second mortgage loans — The most common down payment source, many second mortgage loans offered by state and local governments have low or zero interest rates. Payments on second mortgage loans are deferred over a specified time span and, in many cases, the loan is completely forgiven over time.

Certain programs have specific criteria you must meet, such as those targeted to first–time homebuyers, and/or low– and moderate–income homebuyers. You may also be required to take homeowner education counseling, which is always a good idea and can help prepare you for long-term successful homeownership.

Resources are available to help you explore available programs in your area. For example, check out Down Payment Resources' handy online tool, or explore HUD's listing of available programs by state.

To find out more about buying a home, visit My Home^® by Freddie Mac for useful information, resources and tips on buying and owning.

Mortgage Rates Rise

Loan demand ped 2.3 percent last week as a slight increase in rates may have spooked potential home buyers and refinancers.

The Mortgage Bankers Association reported that applications to refinance saw the bulk of the decrease last week, ping 3 percent for the week. Applications to purchase a home saw a 1 percent decrease for the week. However, applications to buy are still 10 percent higher than the same week a year ago, the MBA reports.

The average 30-year fixed-rate mortgage increased from 4.19 percent to 4.20 percent last week.

2018 may be prompting some buyers to make a move before the end of year. Some local REALTOR® associations have recently reported a sizable jump in newly signed contracts for purchasing existing homes.

For example, 'the residential market in Northern Virginia during November provided some impressive sales statistics, counter to historical trends where the month is generally one of the quietest for selling,' Tracy Comstock, principal broker of SilverLine Realty & Investment, said in a report from the Northern Virginia Association of REALTORS®.

Source: “Weekly Mortgage Applications Fall 2.3% as Rates Rise,” CNBC (Dec. 13, 2017)

How to Pay Off Your Mortgage Early

But Why It Might Not Be Wise

If you're a homeowner, you've likely thought about how to pay off your mortgage early.

That bill for your home loan arrives like clockwork every month, so it only makes sense for you to devise a fast and furious plan to pay it off altogether. Imagine the freedom!

Because the sooner you can pay off your mortgage, the easier it should be to handle the other bills that come with being a grown-up, right?

Well, you might be surprised to learn that shaving months—or even years—off your mortgage early is not always the best choice for everyone. It sounds crazy, but bear with us. The experts we spoke with explained the benefits and disadvantages of paying off your mortgage in full before the end date.

Pros of paying off a mortgage early

If you can swing paying your mortgage off early, there can indeed be significant savings—literally thousands of dollars that stay in your pocket if you play your cards right. That's because paying your mortgage off early reduces your long-term interest costs, says Dan Green, founder of financial education site Growella.

It's also good for your overall credit to show that you have less debt, and that you have the ability to manage it responsibly, even paying debt off before it's due in full.
But paying off your mortgage early can also have its drawbacks

Cons of paying off a mortgage early

Many financial advisers are against paying off a mortgage early. Why? For one, you won't be able to take advantage of mortgage interest deductions, or the tax write-off you get from paying interest on your mortgage.

Because interest is what you're cutting by paying a mortgage early, you're also losing some of that benefit, says Chris Meyer, the co-founder and CEO of the loan aggregating website Magilla Loans. 'You will not be able to take mortgage tax write-off to its fullest extent,' he says.

Another disadvantage of shoveling money into your mortgage is that the money will be become 'illiquid,' Green warns, 'which means that the cash you put toward your home can't be reaccessed in an emergency.'

How to pay off your mortgage early

If you've weighed the benefits and disadvantages and actually want to get moving, Meyer offers these tips to actually make it happen:

• Make a payment at the end of year once you see what extra cash you have. Specifically make the payment to the principal so it reduces the amount of interest you will pay in the future.
• Make an extra payment monthly in a separate check citing 'principle' in the memo line.
• Make one-thirtieth of the payment every day to make certain no interest ever accrues.
• If you have mortgage insurance, track your loan-to-value ratio on the house and refinance once you hit 85% LTV. This could mean hundreds in savings each month which can be applied to the principle balance rather than the bank's insurance.

 

Source Realtor.com

Fix Layout Problems Without Changing Walls

Help your clients add more private living space within an open plan, or make a traditional layout of separate rooms feel more spacious and connected.

It’s no secret that builders, developers, and architects have favored open-plan layouts in the past decade or two. Bigger kitchens that spill out into family and dining rooms are the new norm, and the aesthetics and healthfulness of outdoor living space often extends inward, thanks to seamless glass doors and floor-to-ceiling windows.

The shift toward openness is due to several factors. Technological advancements in construction permit longer open spans as steel has replaced wood in supporting headers or beams, says Orren Pickell, whose eponymous building firm is located outside Chicago. Also, he notes that an open plan adds a feeling of greater square footage without having to actually add physical space to a home’s footprint.

Strategies to Close Up Wide-Open Space

• Build in an architectural feature. If construction seems like the best solution, homeowners can consider building a bookcase, banquette, fireplace, soffit, glass door, or column into the home instead of a wall. In one project, Pickell repeated stone used on the exterior of a house in columns in a kitchen. It extends from the counter to the ceiling, setting off the area without obstructing views. Other strategies he’s used to make an area more intimate include lowering ceilings; installing beams, coves, or coffers; and adding an interior glass door that keeps the line of sight open between areas but still dampens sound. Los Angeles designer Lori Gilder, owner of Interior Makeovers, often suggests banquettes to section off an eating space, rather than adding a table and chairs, which tend to float in the middle of a room. Dickinson notes that newer gas or gel capsule fireplaces are easy to vent and don’t require a chimney, making them simpler to place and less costly to install than with traditional log-burning fireplaces of years past.
• Differentiate areas with flooring, paint, and wallpaper. Changes in material, color, or texture on a floor, wall, or ceiling are more visual than structural but still can fool the eye into thinking there’s separation. Deep intense hues that some manufacturers are debuting as their 2018 Colors of the Year—Sherwin-Williams’ rich oceanside blue and Benjamin Moore’s deep barn-red caliente—help make rooms feel smaller and more nurturing. Certain dark wallpapers and paneling have a similar effect. The upside is that these choices can be changed fairly easily to reopen space; the downside is that they won’t deflect noise as well as structural changes.
• Use furniture to create vignettes. This also doesn’t involve a permanent, structural redo, just positioning existing furniture to suggest a distinct room within a larger space. Simply pulling sofas, chairs, and tables away from walls and setting them atop an area rug can accomplish the intended effect. An edgier option could include floating curtains from the ceiling rather than at windows and doors.
• Use light effectively. Lighting can make a big difference in how open or closed rooms appear. With the advanced controls LEDs and smart fixtures offer, homeowners can adjust bulb color and temperature (lower and warmer light conveys small, intimate space, while cooler and brighter lights accomplish the opposite). Recessed lights are a more permanent, costly option but new longer-lasting, energy-efficient LEDs help keep costs down in the long run.

Methods for Opening Up Separated Rooms

• Remove doors, walls, and cabinetry. An easy, affordable solution—even for DIYers—is to remove doors and jambs, then patch and paint so there’s a clear view between adjoining rooms, says Maria Elena Holguin with Robb & Stucky Interiors (though homeowners should save the doors for future buyers who may want them restored to their former location).
• Raise the ceiling. Raising a roof is “crazy expensive—starting at $50,000 and up from there,” says Dickinson. A more affordable approach to add height and openness is to raise angled ceilings when there’s a pitched roof. This option can range from between $3,000 and $6,000, Dickinson says. However, he cautions that adding insulation, lighting, and HVAC can double that cost. “You’ll need an experienced builder or architect. For larger projects, these professionals would bring in an engineer,” Dickinson says. Before any major change is done, your clients should consider having a plan drawn to visualize the possibilities and drawbacks.
• Install skylights or add windows. Less involved, these treatments can still make a room feel larger and more open. But the price can add up quickly. Nathan Kipnis, principal of Kipnis Architecture + Planning in Evanston, Ill., suggests three, five, or six windows, depending upon the room. “One will bring in light and ventilation, but won’t open up the space sufficiently,” he says. Kipnis likes to group several windows in a grid, and perhaps adding a transom above. A project like this may run clients anywhere from $3,000 to $6,000 just for the windows, plus several thousand more for the structure around them. But even just two windows can run far higher. Oldenburg reported a recent project where just two windows cost around $20,000, mostly due to the need to punch openings out of a brick facade. Skylights themselves may run between $1,000 and $1,500 each, according to Kipnis, but the ancillary costs vary there too. “If you need to rework the structure, then it will add $5,000 to $10,000,” he says.
• Blur room lines with furniture groupings and design choices. Separate rooms can feel more like one entity if lines are intentionally blurred between them. The trick is to use floor materials, wall colors, and even furniture groupings to bridge the spaces, says Mary Cook, principal of Mary Cook Associates, a national commercial interior design firm based in Chicago. Be sure to use furniture that’s finished on all sides since it’ll be viewed from all around, advises Kipnis.
• Use mirrors. Reflective surfaces that extend vertically up to ceilings and horizontally along entire walls have an effect of opening up space and allowing light to bounce around more freely, says Dickinson. Even using mirrors along smaller expanses—say on bookshelves or backsplashes—can help.
• Go light and repeat. One of the reasons white remains one of the most popular colors in design is that it opens up space more than deep intense hues and woods do. And today there are literally hundreds of white and off-white paint shades to consider, as well as light beiges and grays. Repeating the same wall, ceiling, and trim color offers an even more effective approach.

Mortgage Rates Climb This Week

Mortgage Rates Climb This Week

Borrowing costs are increasing, but home buyers can still snag an interest rate that is lower than a year ago.

“This week’s survey reflects last week’s uptick in long-term interest rates, with the 30-year fixed mortgage rate up 4 basis points to 3.94 percent,” says Len Kiefer, Freddie Mac’s deputy chief economist. “The 30-year mortgage rate has been bouncing around in a 10 basis point range since September. 

While long-term rates have been relatively steady week-to-week, shorter term interest rates have been on the rise. The spread between the 30-year fixed mortgage and the 5/1 Hybrid ARM rate was 59 basis points this week, down 43 basis points from earlier this year. With a narrower spread between fixed and adjustable mortgage rates, more borrowers are opting for a fixed product.”

The Mortgage Bankers Association reported this week that the ARM share of conventional mortgage applications was 16.7 percent, down from more than 20 percent in the spring.

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 7:

• 30-year fixed-rate mortgages: averaged 3.94 percent, with an average 0.5 point, increasing from last week’s 3.90 percent average. Last year at this time, 30-year rates averaged 4.13 percent.
• 15-year fixed-rate mortgages: averaged 3.36 percent, with an average 0.5 point, increasing from last week’s 3.30 percent average. A year ago, 15-year rates averaged 3.36 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.35 percent, with an average 0.3 point, rising from last week’s 3.32 percent average. A year ago, 5-year ARMs averaged 3.17 percent.

Top Misconceptions About Homebuying

While 2017 may have been the best year for housing in a decade, The survey respondents, which 

consisted of 1,000 U.S. adults and 500 millennials, indicated that lack of down payment, credit concerns and student loan debt prevented many from achieving homeownership.

Additional findings:

• The average millennial thinks the minimum required down payment is 21 percent.
• Seventy percent of adults feel they don't have enough money saved for a down payment.
• Seventy–four percent of adults and 84 percent of millennials perceive the homebuying process as complicated

The survey found that general confusion about down payment requirements was compounded by a lack of awareness about assistance programs. Approximately 73 percent of all consumers and 62 percent of millennials said they were not aware or are unsure about down payment assistance programs in their communities for middle–income homebuyers.

If you're in the market to buy a home, it's important to understand your down payment options and separate the facts from the myths. Did you know the average down payment among first–time homebuyers in 2016 was 6 percent and 14 percent for repeat buyers? You can even put down as little as 3 percent through mortgage options like the Freddie Mac Home Possible Advantage® 

And, while you'll have to pay private mortgage insurance for a conventional loan with a down payment of less than 20 percent, you'll still be able to take advantage of the 30–year fixed rate mortgage that can offer you security and peace of mind throughout the life of your loan. There are also hundreds of millions of dollars available for down payment assistance.

A great place to start is right where you live. Many state, county, and city governments provide financial assistance for people in their communities who are well qualified and ready for homeownership. Here are some downpayment assistance programs available in Utah: Utah First Time homebuyers ,Grant of $5,000.00. Forgiven after 5-years. HOUSING SERVICES OF UTAH VALLEY .

                             

Homebuying doesn't have to be complicated.

Source: Freddie Mac

How much is your Home Worth?

Home sellers often get well-meaning advice from friends and family on how to market their home. But trust the real estate experts—some of those tips can lead you seriously astray. 

Please feel free to explore our website at Precision Realty & Assoc. LLC and if you have any questions or would like to see  homes in person or to discuss your home's value, PLEASE give us a CALL today.