Spring Home Buying Season on the Horizon

Remind Buyers to Unfreeze Credit, Following last year's Experian data breach, many people froze their accounts to safeguard them from potential identity thefts.

But with the spring homebuying season on the horizon, don’t forget to remind potential home shoppers that they may face some hassles getting approved for a mortgage if they don’t remember to unfreeze their credit first.

Lenders tend to pull reports from the three main credit bureaus—Equifax, Experian, and TransUnion—when approving a buyer for a mortgage.

For those who froze their accounts during the Equifax data breach, they’ll need to remember where they froze it and to unfreeze it, says John Danaher, president of consumer interactive at TransUnion. “You may want to take a day or two to unfreeze them before you apply, but definitely make sure they are all unfrozen.”  “It could potentially cause an issue if they can only get one or two out of the three.”

Security freezes are to prevent credit reporting companies from releasing your credit report without your consent and to prevent thieves from opening an account or getting credit using your personal information. But a freeze can also potentially delay, interfere, or prohibit timely approval of any financing request or application, such as with a mortgage, rental housing, new loans, utilities, and more.  

Many Americans rushed to freeze their credit last year when a massive data breach within Equifax was exposed. Hackers stole personal data, including Social Security numbers, birth certificates, addresses, and some driver’s license numbers, of an estimated 143 million Americans.

When you freeze a report, you’re often given a PIN that allows you to freeze or unfreeze the report at your own discretion. Or, you can contact the three nationwide credit bureaus to learn about unfreezing credit:

• Equifax — 800-349-9960
• Experian — 888‑397‑3742
• TransUnion — 888-909-8872

Source: “TransUnion Exec Talks Credit Scores and Real Estate,” ABC News (Jan. 28, 2018) and “Here’s Why You Probably Don’t Want to Freeze Your Credit,” Huffington Post (Sept. 14, 2017)

Roughly 20% of Existing Home Sales were All-Cash

On December 2017 Cash sales accounted for 8 percent of new-home sales in the fourth quarter of 2017,

matching a high that has not been seen since 2014, the National Association of Home Builders reports on its Eye on Housing blog. Cash sales make up an even larger share of existing-home sales—about 20 percent in December,according to the National Association of REALTORS®.  Cash hardly makes up the bulk of financing options for buyers, however. The share of new homes financed with conventional mortgages has ped slightly from 73.2 percent to 72.7 percent. 

VA loans backed just 2.4% of new home purchases during the housing boom, on average. The chart illustrates how different types of financing are used in different economic environments.

In the fourth quarter of 2017, 12.9 percent of new-home buyers used FHA loans. The share of sales financed with FHA-backed mortgages has ped 4 percentage points since reaching a peak in the second quarter of 2015.

“Different sources of financing serve distinct market segments, which is revealed in part by the median new-home price associated with each,” the NAHB reports. “In the second quarter, the national median sales price of a new home was $321,100. Split by types of financing, the median prices of new homes financed with conventional loans, FHA loans, VA loans, and cash were $347,800, $233,900, $294,400, and $349,300, respectively.”


Source:National Association of Home Builders’ Eye on Housing blog (Jan. 26, 2018)

Mortgage Rates Jump Again

Fixed-rate mortgages increased again this week, the third consecutive week to see a rise.

“Rates keep climbing,”  Freddie Mac’s chief economist. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions.

Borrowers may still pay closing costs which are not included in the survey. Mortgage rates, in turn, followed the surge in Treasury yields. The 30-year fixed rate mortgage jumped 11 basis points to 4.15 percent, its highest level since March of last year.”

'The release of the December existing home sales data confirms that 2017 was the best year for home sales in over a decade. Will 2018 home sales outpace 2017?  

Homebuyer affordability will be a challenge, with mortgage rates moving higher and robust house price gains across the country. The FHFA reported that house prices increased 6.5 percent from November 2016 to November 2017, with all regions showing positive 12-month changes.'

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 25:

• 30-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.5 point, increasing from last week’s 4.04 percent average. Last year at this time, 30-year rates averaged 4.19 percent.

• 15-year fixed-rate mortgages: averaged 3.62 percent, with an average 0.5 point, increasing from last week’s 3.49 percent average. A year ago, 15-year rates averaged 3.40 percent.

• 5-year hybrid adjustable-rate mortgages: averaged 3.52 percent, with an average 0.4 point, increasing over last week’s 3.46 percent average. A year ago, 5-year ARMs averaged 3.20 percent.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers


Source: Freddie Mac

SLC Housing Market Booming

Prices Growing by 10%/year,

 The housing market in Utah – particularly around Salt Lake 
County – is booming, now more than ever.
Real estate prices grew last year and that trend is continuing. So, if you’re thinking of buying a house, there’s no time like the present.

To get Started, Please feel free to explore our website and if you have any questions on homes that interest you we're here to help or if you would like to discuss your home's value, 

PLEASE give us a CALL (801) 809-9866 today.

Realtors say prices have been growing by around 10% each year. For example, a single-family home in Salt Lake City sold for an average price of $275,000 back in 2015. Today that same house, could sell for more than $350,000.

Prospective homeowners say it’s very tough to get an offer accepted. Many have to go over and above asking price to get their foot in the door.


Source: KUTZ

Strong Demand and Weak Supply

The American housing market is constrained. Not by price so much as by the continuing lack of houses on the market; 

and this, according to Realtor.com’s 'State of the Housing Union' report, released Thursday, is “pressuring potential home buyers striving to attain the American Dream,” despite a strong U.S. economy.

“Strong demand and weak supply continue to set the tone for the industry.' 
Sales growth of existing U.S. homes actually cooled. 

Housing sales grew a mere 1.1 percent in 2017, compared to the 3.8 percent growth that occurred in 2016. At the same time, inventory fell 8.8 percent nationally in 2017, versus a 10.7 percent dip during the comparable period a year earlier.

Tight supply, the report stated, was the single biggest factor affecting the market. Even with a sharp increase in new construction‒‒single-family housing starts jumped 8.4 percent last year‒‒inventory shortages persisted. As has been the case with the housing economy over the past two years, millennials are feeling the biggest brunt.

Demand for houses is high among millennials, the report found. But constrained supply that leads to bidding wars and higher prices are in the way. In 2017, housing prices, on average, gained 6 percent. 

'Builders will need to focus more on homes geared for moderate incomes, partner with the government on initiatives to transform distressed urban neighborhoods, and overcome labor shortages through a combination of workforce development training and pressure to ease artificial restrictions on the supply of labor,' Kirchner said.

“Last year, 2.5 percent of all mortgages in blue states were more than $750,000 and will be directly impacted by the capping of the mortgage interest deduction in 2018,” the report stated. “Conversely, only 0.4 percent of mortgages in red states will be impacted.”

Realtor.com tracks and analyzes market trends and makes timely and insightful information available at realtor.com/research. Data snapshots, affordability distribution and market 'hotness' are just some of the resources available at the portal.

Mortgage applications jump 4.5%

Home Buyers in a Rush to Beat Higher Rates

Mortgage rates are moving higher, and that has some home shoppers rushing to locking in rates before they edge up even more.

Mortgage applications for refinancings and home purchases increased 4.5 percent last week compared to the previous week on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday. 
Loan applications are now 6.1 percent higher than the same week a year ago. Broken out, applications to purchase a home surged 6 percent during the week and reached their highest level since April 2010, the MBA reports. Loan applications for home purchases are now 7 percent higher than the same week a year ago.

'A combination of being left on the sideline last summer due to a lack of inventory for sale and the prospect of slowly rising interest rates over the near term appears to have buyers in a hurry to start the spring buying season,' says research and economics.

Mortgage applications to refinance a home increased 1 percent for the week. Typically, refinance applications move lower when interest rates rise, but borrowers are showing some concern for missing an opportunity to refinance at lower rates.
The 30-year fixed-rate mortgage averaged 4.36 percent during the week, its highest average since March, the MBA reports.

'The increases that we've seen so far have only gotten people off the couch and into the market.' 'People are worrying that they need to hurry and buy a house now before rates go up further.'

Please feel free to explore our website and if you have any questions on homes that interest you we're here to help or if you would like to discuss your home's value, PLEASE give us a CALL today.


Source: “Mortgage Applications Jump 4.5% as Buyers Rush to Beat Higher Rates,” CNBC (Jan. 24, 2018)

Don't Be Shocked by These Hidden Costs of Buying a Home

When you're thinking about buying your first home, it might seem like it's all 

about the down payment. You save for years to have it, and you base a good portion of your home-buying budget on it.

If you've figured out how to tackle those two huge expenses, you might think you have it made in the shade. With lemonade! But the hard truth is that those are far from the only expenses you’ll incur when you buy a house.

Expenses you’ll learn about while home shopping

1. Closing costs and other fees

The house has to be appraised to find its fair market value, the property records must be checked to make sure the seller has full rights to sell you the home, the real estate agent has to be paid for her work, and so on.

The seller might pick up some of these costs, but you'll have to shoulder some of the burden. We're talking about fees that, all together, can add up to a few thousand dollars. And you can expect closing costs to run from 2% to 5% of your home's value.

Your mortgage lender must explain all the fees to you, so if anything confuses you, ask for more information.

2. Home inspection

This is a must to make sure you’re not buying a home with major structural issues. A home inspection will take a few hours and cost up to $500, but it can save you a lot of grief in the future.

3. Home warranty

If you’re buying an older home with appliances that are no longer covered by manufacturer warranties, getting a home warranty could be a good call. They generally cost a few hundred dollars per year and protect things such as kitchen appliances, ceiling and exhaust fans, plumbing, the furnace, and the sump pump. Inevitably, you’ll face a major repair on your new home, so consider whether a home warranty will save you from that expense.

Expenses you'll encounter after you move in

Owning a home is full of hidden costs. Some cost you actual money, while others cost you time, energy, and happiness (which, let’s face it, also have an equivalent in money!). So even though you might not have to deal with these expenses until after you move in, you should definitely factor them into your decision.

1. HOA and condo fees

If your new home is a condo, or part of a community with a homeowners association, you’ll pay a monthly fee toward maintenance of shared community features. The more amenities you get (e.g., a pool, doorman, roof deck, or community center), the more you’ll pay.

The upside: Your HOA might care for things that save you money and time, like maintaining the landscaping around your townhouse.

If you’re considering a condo, ask for information about the HOA's budget and cash reserves. If it decides to make a repair to the building that’s not part of its annual budget, you and your neighbors could be slapped with a special assessment to raise money for the unanticipated project—and this could cost you a few thousand bucks!

2. Maintenance, repairs, renovations, and redecorating

Maintaining your home—e.g., cleaning windows and gutters, keeping up the landscaping, and making small updates—typically costs about 1% of your home’s value each year. And that’s not including large unexpected repairs, which can get pricey. Plus, once you move into your new home, you’re going to want to put your stamp on it.

“People always buy new furniture when they move. The apartment furniture isn't good enough for the new house,”.  “This can be really expensive, and I've known a few people who've financed the furniture, but then they spend more than they were planning on.”

You might also opt to renovate part of the house right when you move in; if that's the case, make sure to take that into account when considering what home you can afford.

3. Utilities

Those first few utility bills might shock you. For one thing, renters often don’t pay separately for water, trash pickup, and sewer. And if your new home is larger than your previous rental, you’ll pay considerably more for electricity and gas.

4. Commuting

If your daily commute changes, you might need to buy a new car, or pay more to maintain and fuel the car you have.

A longer commute also bleeds into your free time. Don’t underestimate how much you’ll be affected by “just” another 15 minutes each way.

5. Community

Sometimes finding a home that has the amenities you want for the price you can afford means moving to a totally different part of town—and leaving your neighborhood friends behind.

“The big thing I see is how much it changes their lifestyle. It might not be as convenient to do the activities they love or see their close friends, so they miss out on a lot of these things.” she said. “They have to create a whole new community. One thing we often don't ask ourselves is: What is the price of community?”

—————

Video: FIRST-TIME HOME BUYERS: MISTAKES TO AVOID

 

About 32 percent of home buyers in the U.S. are first-time buyers. The decision to purchase your first home can be stressful but it’s easier if you know what pitfalls to avoid. See some of the most common mistakes.  

In fact, there are lots of hidden costs to anticipate. These fees might affect your overall budget, timeline for buying, and what kind of home you want to buy. It’s important to consider them early in the process, before you fall in love with a place you can’t afford.

 

Next comes the mortgage. How much will you owe each month in principal, interest, taxes, and insurance? How does that compare with how much you currently pay as a renter?

What’s the Price?

More Than We Ask, Say Homesellers, 

Homesellers have had a windfall in 2017 with buyers paying more than the list price on 24.1 percent of home sales during the year according to a report by real estate. 

The report said that approximately one in four U.S. homes sold above the asking price as a combination of factors led to sellers netting an average of additional $7,000 over their initial price over.

The report indicated that the share of homes selling above list price has grown considerably since the beginning of the housing recovery in 2012 when slightly more than one in six home sales closed above asking price. This share of homes selling above their asking price has risen every year in the past three years. The typical price increase for homes that sold above the listed price was 3.1 percent in 2017.


Cities where the lucrative tech market is booming were more likely than others to see this trend, according to the report. More than half the sellers in San Jose, San Francisco, Salt Lake City, Seattle, and Provo sold their homes for more than their asking price.

Low mortgage rates, limited supply and high demand, demographic shifts, and a strong economy were some of the factors that have led to this surge in prices, the report said. 

Additionally, a shortage of home inventory, especially at the entry level and a growing demographic of young first-time buyers looking to start families have also been responsible for this kind of a market.

The report indicated that in each of these markets, on an average, sellers made at least an additional of $20,000 over their initial asking price. The largest difference in asking price and what a house sold for was found in  San Jose, where the average home sold above list netted sellers an additional $62,000.

Source: DSNews.com January 12, 2018

Your Resolution, Your Home

If one of your New Year's resolutions for 2018 is to purchase a home, or save for a down payment and related costs,  following are some steps to help get you started. 1. Determine how much you can afford. If you're just starting to think about buying a home, you can get a very rough estimate of your affordable home price range by multiplying your annual gross income by 2.5. However, you'll also need to consider down payment and closing costs, your monthly expenditures (current and future) and a financial cushion for life's unexpected emergencies. It's estimated that 40% of America's families make New Year's Resolutions. That's more than watch the Super Bowl. Stick to your goals! 2. Get Pre-approved. If you're a serious buyer and ready to begin looking for your home now, reach out to your lender to get pre-approved. Your lender will evaluate your 4 Cs to determine how much money you can borrow. Having a pre-approval letter in hand allows you to house hunt with greater confidence and alerts sellers that you're a serious buyer. 3. Save and stay focused. If saving for a down payment and associated costs is part of your goal, work with your lender or a housing counselor to develop a responsible, yet reasonable, savings plan. Stick to this plan and keep your end goal in mind. 4. Identify your 'must have' home attributes. Take some time to answer the following questions to narrow down your home search. Where do you want to live and how far are you willing to drive to work and/or schools? How many bedrooms and bathrooms do you need? Do you need a garage or perhaps a backyard? Does the home need to be move-in ready? What qualities would make a house a deal breaker without even looking?  5. Get educated. No matter if you're still saving or ready to move forward and look at homes, getting educated on the homebuying process is a must and will provide a much better homebuying experience. Learn more about: The important role of mortgage rates. Which mortgage product is best for you. The importance of credit and how you can improve it. Your down payment options. How to assemble your homebuying team. The financial obligations of homeownership. Preparing to buy a home is a very exciting time. Just remember, the better prepared you are, the better your experience will likely be. Visit My Home by Freddie Mac® for information, resources, and tools to help you understand your options, the homebuying process and the importance of finding the right team.

New Home Building Dropped

Sharply at the end of 2017,The number of housing units that began construction 

fell sharply at the end of  2017, but still capped a solid year of new single-family home construction that could soon relieve rising home prices.

Housing starts fell 8.2% in December from a month earlier to a seasonally adjusted annual rate of 1.19 million, the Commerce Department said Thursday. Residential permits, which can signal how much construction is queued up, also fell, ping 0.1% to an annual pace of 1.30 million last month.

Last month’s housing starts decline came after two strong months of growth that stemmed from rebuilding efforts occurring in the wake of hurricanes that ravaged the southern and eastern U.S. Such large back-to-back growth usually isn’t sustainable and appears to have corrected back to a normal level in December. Economists surveyed by The Wall Street Journal had expected a decline, but a smaller at 1.5% for housing starts and a larger 0.8% decline for permits.

December also saw inclement winter weather in the South and East that likely significantly impacted home construction. The South saw housing starts 14.2% and the Northeast ped 4.3% to the lowest level since May 2017.

“Starts were always likely to correct after overshooting… But the severe weather in late December likely did extra damage, and the first half of January likely will be depressed too.

Housing-starts data can be volatile from month to month and can be subject to large revisions. Looking past monthly volatility, starts were up 2.4% in 2017 when compared to 2016, and permits increased 4.7% in the same period, signaling solid construction in 2017 that coincided with rising demand that has pushed up prices amid a chronic homes shortage.

The median sales price for existing homes hit $248,000 in November, up 5.8% from a year earlier, which is a more rapid rise than both inflation and wage growth.

But construction of new single-family homes appears to be ramping up at a solid pace. Permits and starts both increased by about 9% in 2017 from the previous year.

“Should more construction come about, the much needed additional inventory will help calm home price appreciation. That would be a good trend for housing affordability,” National Association of Realtors chief economist Lawrence Yun said in a press release.

New residential construction hit a postrecession high in October 2016 but has trended lower since as multifamily construction has declined. It remains far below the levels reached during the years leading up to the 2008 financial crisis.

Still, home builders are feeling upbeat about the housing market. The National Association of Home Builders’ Housing Market Index, which gauges home builder sentiment about the market for single-family homes, fell in January, but remained near an 18-year high.

Best and Worst States to Retire

Here Are 2018's Each year, countless workers rack their brains trying to determine whether the time is right to bring their careers to a close. But while deciding what age 
to retire is certainly important, it's just as crucial to figure out where to retire. After all, once you stop working, you'll move over to a fixed income, at which point you'll need to put more thought into how much you're spending each month.

Furthermore, since you'll have a lot of time on your hands in the absence of a full-time job, you'll probably want to live someplace that offers a decent array of local amenities and entertainment.

With all of that in mind, WalletHub recently compiled a list of the best and worst states for retirees this year. The data you're about to see is the result of various factors, including cost of living, amenities and attractions, and senior health services -- and it might actually help you land on the best state for your golden years.

Where should you retire?

There are numerous points to take into account when determining where to retire. As a starting point, however, here's how WalletHub's rankings shake out for the current year:

Overall Rank	State	Overall Rank	State
1	Florida	26	Oregon
2	Colorado	27	South Carolina
3	South Dakota	28	North Carolina
3	Iowa	29	Michigan
5	Virginia	30	Alaska
6	Wyoming	31	Illinois
7	New Hampshire	32	Indiana
8	Idaho	33	Nebraska
9	Utah	34	Connecticut
10	Arizona	35	Tennessee
11	Minnesota	36	Oklahoma
12	Wisconsin	37	Georgia
13	Montana	38	Maryland
14	Pennsylvania	39	Vermont
15	California	40	New York
16	Nevada	41	Alabama
17	Kansas	42	Hawaii
18	Missouri	43	New Mexico
19	Massachusetts	44	Louisiana
20	Ohio	45	West Virginia
21	Washington	46	Arkansas
22	Texas	47	Mississippi
23	Maine	48	Rhode Island
24	North Dakota	49	New Jersey
25	Delaware	50	Kentucky

Of course, that table speaks to the 50 states' overall rank, but as a near-retiree, you may be inclined to base your decision heavily on cost of living. The following table ranks all 50 states in terms of senior affordability alone:

Affordability Rank	State	Affordability Rank	State
1	Florida	26	Iowa
2	South Dakota	27	Kansas
3	Alabama	28	Pennsylvania
4	Wyoming	29	New Hampshire
5	Tennessee	30	Alaska
6	South Carolina	31	Oregon
7	Oklahoma	32	Wisconsin
8	Nevada	33	Michigan
9	Texas	34	Washington
10	Mississippi	35	North Dakota
11	Idaho	36	Maine
12	Missouri	37	California
13	Ohio	38	Kentucky
14	Montana	39	New Mexico
15	Delaware	40	Illinois
16	West Virginia	41	Nebraska
17	Louisiana	42	Minnesota
18	Virginia	43	Massachusetts
19	Indiana	44	Maryland
20	Arkansas	45	Connecticut
21	Arizona	46	New York
22	Utah	47	Vermont
23	Colorado	48	Rhode Island
24	Georgia	49	Hawaii
25	North Carolina	50	New Jersey

Notice that while some states, like Florida and South Dakota, align pretty well in terms of overall rank and affordability, other states sport a pretty notable gap. For example, New Hampshire ranks seventh overall yet falls into the bottom half of all states as far as cost of living goes.

Now if money is a huge sticking point (and frankly, it should be), then you'll need to pay close attention to affordability when making your decision. Remember, as a general rule, you can typically withdraw around 4% of your savings per year without running the risk of depleting your nest egg prematurely. If you're planning to retire soon, take a look at your balance and see what that 4%, plus Social Security and other sources of income you'll have access to, will provide. From there, you can research your options countrywide and see what sort of lifestyle your income will buy you.

That said, if you've saved nicely and have some breathing room, you should feel free to focus on other factors that will make for a more pleasant retirement on a whole. Take climate, for instance. You might think you're used to cold winters or scorching summers, but as you age, your tolerance for temperature extremes might start to wane. 

Similarly, think about how you're planning to get around town, keeping in mind that as you get older, the idea of driving may not hold much appeal. If you move someplace with solid public transportation and infrastructure, you might fare better than if you were to relocate to a more remote corner of the country.

Finally, keep in mind that you don't necessarily need to land on a single state. The beauty of being retired is the flexibility to spend your winters in one place and your summers in another, so if your savings allow for that leeway, you might really end up getting the best of multiple worlds.

The Fastest Growing States '1. Utah'

May See Housing Boom

The population of the U.S. is growing, rising by 2.2 million people in 2016, according to the latest Census data. But the population growth is not even across the country. For instance, the South and West saw their populations rise by 1.1 percent in 2016, while the Northeast and Midwest saw just a 0.1 percent uptick.

 

A number of common factors affect migration patterns throughout the country.Americans move for economic and educational opportunities as well as quality of life factors such as environment and cost of living. Many of the fastest growing states are home to affordable, midsize cities with quality school systems and low unemployment.

Eight states saw populations grow by more than 1.6 percent in 2016. Many of the fastest-growing states tend to be affordable, midsize cities with quality school systems, and have low unemployment.

24/7 Wall St. reviewed one-year populations for all 50 states from 2015 to 2016 Census data. (The population estimates listed are from July 1 of each year.)
The fastest growing states are:

1. Utah

• 1-year population growth rate: 2.03%
• Current population: 3.05 million
• 2015 population: 2.99 million
• 10-year population growth rate: 20.82%

The population of Utah grew by 2.0% in 2016, nearly three times the 0.7% national population growth rate and the fastest pace of any state. Unlike most fast-growing states, the majority of Utah’s population increase was due to natural growth. Utah has the largest average family size in the country, and there were 1,854 births per 100,000 people in Utah in 2016 — far more than the national rate of 1,286 births per 100,000 Americans.

Utah also has the lowest death rate in the country. While Utah’s high birth-to-death ratio accounted for most of the state’s population growth, Utah’s population also grew more from inbound migration than many other states. The state’s population increased by 0.8% due to net migration in 2016, more than double the 0.3% national figure and the ninth highest rate of any state.

2. Nevada

• 1-year population growth rate: 1.95%
• Current population: 2.94 million
• 2015 population: 2.88 million
• 10-year population growth rate: 16.55%

3. Idaho

• 1-year population growth rate: 1.83%
• Current population: 1.68 million
• 2015 population: 1.65 million
• 10-year population growth rate: 14.60%

Meanwhile, the states that are seeing their populations shrink by the fastest amounts are: West Virginia and Illinois. West Virginia’s one-year population growth rate ped by 0.54 percent; its 10-year population growth rate is projected to be 0.17 percent. Illinois saw its one-year population growth rate decline by 0.29 percent, but its 10-year population growth rate is 1.25 percent, according to the study.

View more detailed findings on the study.

Owners Get Real About Home Values

Owners and Appraisers Closer to Seeing Eye-to-Eye on Home Value
The gap between homeowners’ and appraisers’ perceptions on the value of properties is continuing to close. Homeowners, 

in general, still tend to slightly overestimate the price of their home, but not by nearly as much as they did a year ago.
Home appraisals were, on average, 0.5 percent lower than what owners expected in December, according to the latest National Quicken Loans Home Price Perception Index. The gap is closing; a year ago, homeowners were overestimating their property values by a full 1 percent more than appraisers.


Home values are increasing, which helps value estimates align. Quicken Loans’ index showed the average appraisal value increased 0.65 percent from November to December 2017. This is 6.17 percent higher than a year ago.

“Appraisers and real estate professionals evaluate their local housing markets daily,” says Bill Banfield, Quicken Loans executive vice president of Capital Markets. “Homeowners, on the other hand, may only think about their housing market when they see For Sale signs hit front yards in the spring or when they think about accessing their equity. 

This is reflected in the [index]. The housing markets that are rising quickly, like those in the West, are having appraisal values increasing above owner estimates because owners don’t realize just how quickly those markets are advancing.”

Source: Quicken Loans

Buying Better Than Renting in 54% of Markets

Despite rising prices, buying a home makes more sense than paying increasingly high rents in 

more than half of the U.S. Buying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447—or 54 percent—of U.S. counties analyzed, according to a new report released by ATTOM Data Solutions, a real estate data firm.

Renting a three-bedroom property requires an average of nearly 39 percent of weekly wages across the 447 counties analyzed for the report. The least affordable markets for renting are: Marin County, Calif. (where it takes 79.5% of average wages to rent); Spotsylvania County, Va. (75.5%); Honolulu County, Hawaii (71.9%); Sonoma County, Calif. (67.6%); and Kings County, N.Y. (67.4%).

But a rentals are still often a better deal in highly populated areas. “Although buying is still more affordable than renting in the majority of U.S. housing markets, that majority is shrinking as home price appreciation continues to outpace rental growth in most areas,” says Daren Blomquist, vice president at ATTOM Data Solutions.

Rents rise faster than wages in 60 percent of markets

Average fair market rents rose faster than average weekly wages in 266 of the 447 counties analyzed in the report (60 percent), including Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona; and San Diego County, California.
Average weekly wages rose faster than average fair market rents in 181 of the 447 counties analyzed in the report (40 percent), including King County (Seattle), Washington; Clark County (Las Vegas), Nevada; Bexar County (San Antonio), Texas; Middlesex County (Boston), Massachusetts; and Suffolk County (Long Island), New York.