We’re in the Hottest Home Buying Season of all time

As more and more listings come to the market “The pace of U.S. home 

sales has officially reached a seasonal andhistorical high, but we’re also beginning to see slight signs of deceleration.”

When it came to inventory declines, Javier said that while the new listings provided a ray of hope for homebuyers, the total listings volume still remained highly dependent on new construction “much of which is still out of the price range of first time buyers—the largest segment of buyers.”

Just Listed: https://www.utahrealestate.com/1528493

“Even as inventory recovers, the mix of what’s available versus what shoppers are looking for could become an even more pronounced mismatch,” Vivas said. “Unfortunately for buyers, median list prices continue to show strong yearly growthand fail to hint that home values will stall any time soon.”

The upcoming summer home buying season might just provide the respite that many first-time buyers have been waiting for—more homes being listed for sale. According to the May monthly housing trends report released by Realtor.com on Wednesday, inventory declines are starting to lose momentum as more and more listings come to the market.

The report noted that even though home prices hit an all-time high of $297,000, they sold faster than ever in May, within 55 days of being listed. However, the report noted that the market was seeing signs of deceleration, part of which could be attributed to 557,000 new listings hitting the market in May. This was the highest number of listings in a single month since June 2015.

In terms of numbers, the data showed inventory declined 6 percent year over year in May and increased by the same percentage when compared to April 2018. Median listing prices grew 8 percent year over year for the third consecutive month and were below February’s high of 10 percent.

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

 #RealEstateForSale #Homeownership #UtahRealEstate #Newlisting

Shows Pride of Ownership!

Just Listed: Hurry don't miss out out on this Beautiful Contemporary Daybreak Townhome (PUD) shows pride of ownership! This is NOT in litigation!!
This is one you won't want to miss. 3 bedroom, 2 full and 1 half bath. Butler pantry off the kitchen as well as a full pantry in the kitchen.
 https://www.utahrealestate.com/1528493




Granite countertops in kitchen and all three bathrooms. SS appliances, Gas Stove, 10 ft ceilings, Master and Living Room are braced for ceiling fan installation should buyer choose to install.
Extended garage that is being used as a work-out room. Keyless entry to the front door. Many more upgrades to mention. Move-in ready and beautiful.
Property Features

 Interior Features Include

• Closet: Walk-In
• Dishwasher, Built-In
• Gas Log
• Range: Gas
• Granite Countertops
• Floor Coverings: Carpet; Hardwood; Tile
• Window Coverings: Blinds
• Air Conditioning: Central Air; Gas
• Heating: Gas: Central
• Basement: (% finished) Slab

• 3 Total Bathrooms
• Floor 3: 2 Full
• Floor 2: 1 Half
• Other Rooms:
• Floor 3: 1 Laundry Rm(s);
• Floor 2: 1 Family Rm(s); 1 Kitchen(s);
• 1 Bar(s); 1 Semi formal Dining Rm(s);

Square Feet

• Floor 3: 773 sq. ft.
• Floor 2: 773 sq. ft.
• Floor 1: 332 sq. ft.
• Total: 1878 sq. ft.

Status Active  MLS #1528493  

Days on Market 1 Type Single Family  Style Townhouse; Row-end  Year Built 2016. 

 

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

 #RealEstateForSale #Homeownership #UtahRealEstate #Daybreak

Leveraging Your Mortgage Rate

As Mortgage rates were on the rise again this week, reaching their highest 

level since 2011. The 30-year fixed-rate mortgage rose six basis points last week to an average of 4.66 percent. 

“Mortgage rates so far in 2018 have had the most sustained increase to start the year in over 40 years,”

We all like to stretch our dollars. Whether it's buying an item on sale or getting a large coffee for the price of a small one, it feels good and makes financial sense. The same applies when it comes to shopping for mortgage rates – the lower the number, the better.

Let's say you've been working with your financial planner and pinpoint your “homeownership comfort zone” – a $200,000 loan, or a monthly mortgage payment that doesn't exceed $1,100.

Check out the two ways you can win with the power of lower mortgage rates.

Scenario 1: You can save your hard-earned dollars.
In the following scenario, using a $200,000 loan amount with a 30-year fixed-rate mortgage as the constant, you see the effects of varying rates on your monthly payment.  Over the life of the loan, you can save tens of thousands of dollars with the lower rate.

Scenario 2:  You can buy more home.
In the following scenario, you’re trying to keep your mortgage payment at $1,100. Here, you can see the power of lower mortgage rates and how they can help you buy more home – up to $13,000 more in one instance.

*Payment does not include the cost of taxes and insurance

One of the most important things you can do when looking for a home is to shop around for the most competitive mortgage rate. Rates differ from lender to lender, just like the price of milk differs at different grocery stores. It’s advised that you talk with at least three lenders to compare rates, mortgage terms and fees. You’ll learn a lot in the process and will be glad you took the extra step.

Are you Ready to get Started? , We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

 #RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Deals this good Don't last Forever!

Just Sold:  Riverton, Utah

Riverton, Utah, is a prime location to live, work and play in the 

Salt Lake Valley. The city provides easy access to I-15,Bangerter Highway and Mountain View Corridor.

Families enjoy a safe and fulfilling quality of life in Riverton. The city boasts an exceptional school system, a culture of service, committed leadership, and abundant opportunities for fun and recreation.

 

Events such as the annual Town Days celebration, concerts in the park, family-oriented holiday celebrations, and others make Riverton a fulfilling hometown destination.

Riverton is an excellent location for recreational activities of all kinds. The city has 30 community parks, and is home to Riverbend Golf Course, the CR Hamilton Sports Complex, and the South County Pool. A wide variety of thriving recreation programs are offered in the city, include adult sports and youth sports.

Businesses enjoy a thriving economic environment. With a population of over 40,000, the city is one of the fastest growing areas in the United States. The combined population with directly adjacent cities is over 200,000. Businesses of all types have the opportunity to flourish in Riverton and take advantage of new plans for continued growth in the coming years.

In addition to an array of restaurants, retail shopping, and business services, Riverton is home to Primary Children’s Outpatient Center and the Intermountain Riverton Hospital, which has been named as one of the Top 100 Hospitals in the country by Truven Health Analytics.

Are you Ready to Sell or Buy? , We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

  #RealEstateForSale #Homeownership #UtahRealEstate #JustSold #RivertonUtah

Hey, Buyers: Common Home Inspection Myths

Inspectors Can Predict the Future, After seeing dozens of duds, you’ve

found the perfect house. You’re all set with pre-approved financing and a grand vision of how you’ll make this place look fabulous. Best of all, after some nail-biting negotiations, the seller has finally accepted your offer.

You’re done, right?

Well, not quite yet. There's still the home inspection—arguably the most important step of the home-buying process. Simply put, it can make or break the sale.

Of course, you probably know that the inspection is meant to, well, inspect the house and suss out any problems. But you may very well be making some sweeping—and perhaps false—assumptions about how these professionals work.

It can be confusing, we know. So join us as we debunk some of the most common home inspection myths.

Myth No. 1: A home inspection is the same thing as a home appraisal

In fact, these two things could not be more different, 
“An appraiser’s function is to determine the value of a house on behalf of the lending institution.' 

'Home inspectors are only interested in the safety of the home—not the value.”

That means if the seller offers up a glowing appraisal report, you shouldn't be swayed into thinking you’ve just saved yourself the price of a home inspection.
Got it?

Myth No. 2: Home inspectors can advise you on whether to buy the house

“That's not my field of expertise,' “Often people ask, ‘Would you buy this house?’ I can only tell you about the functioning portions of the house, not whether you should buy it.”

And don't forget: Even though most inspections are done at the buyer's request, inspectors are impartial. If you think inspections are meant to help the buyer renegotiate the purchase price, think again.

Myth No. 3: It doesn't matter which inspector you hire

In the U.S., only 30 states require licensing for home inspectors, according to the ASHI. But even licensed inspectors have various levels of training or certification, so it’s up to the buyer (you) to find a competent professional.

“Just because someone is licensed doesn't mean they're qualified,'  'It means they have met a minimum requirement for their license.”

Do your homework by getting referrals from professional associations, agents, and other homeowners, and then checking references thoroughly.

Myth No. 4: The inspector will uncover every single thing that's wrong with the house

Much as you wish they could, home inspectors simply cannot check every nook and cranny.

Home inspectors are guests in the seller’s home, which limits what they can do.
“We're there for a visual inspection of readily accessible areas of the home, so if there's a china cabinet in front of something, we're not going to move it.”

That said, home inspectors do use specialized tools such as infrared cameras and moisture meters that allow them to gather more information. But buyers should be realistic about what they’ll learn.

For example: If you're buying a house in the middle of the winter, an inspector probably won’t be able to check a roof with 3 feet of snow on it. Instead, they’ll check the attic sheathing for signs of leaks.

Myth No. 5: Buyers don’t belong at the home inspection

It doesn't matter whether you know anything about home construction and maintenance. “Buyers absolutely should be there, without question,” Lesh insists. “I can go into more detail [than in the report], and you’ll have a three-dimensional view.”

Lesh also encourages all buyers—especially first-timers—to ask questions. While home inspectors can't tell you whether to buy the house, they canshare maintenance tips and advice.

Myth No. 6: Brand-new homes don’t need to be inspected

Faulty construction can lead to all kinds of repair nightmares in the future, so sparkly new houses need to be checked—maybe even more carefully than older ones.

“With a house that's already been lived in ... I can see whether there are signs of leakage, mold, or anything that occurs over a period of time,” he explains. 
“If it’s a brand-new house, nobody has showered in that shower or used the appliances, so it absolutely should be inspected, even though it’s under warranty.”

Myth No. 7: Home inspectors can predict the future

“A home inspection is a snapshot in time,”  “We can tell you how old certain appliances are, and what the useful life of something is. ... But we don't know when a plumbing leak is going to happen or when a fuse will break on an electric panel.'
Lesh does, however, tell clients that everything in the house will need to be replaced at some point. Best practice? Budget 1% of the value of the house per year for maintenance.

Myth No. 8: A good house will ‘pass’ the inspection

Home inspection reports will never indicate whether a property passes or fails. That’s because everything depends on a buyer's tolerance level: What’s acceptable for one buyer could cause another to walk away.

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 


#RealEstateForSale #Homeownership #UtahRealEstate #HomeInspection

Are Home Prices Slowing Their Pace?

Home prices in the U.S. rose 1.7 percent in the first quarter of 2018 according to the Federal Housing Finance Agency's (FHFA's) House Price Index (HPI). The FHFA said that house prices rose 6.9 percent from the first quarter of 2017 and the first quarter of 2018.

'Home prices continue to rise across the U.S. but there are signs of tapering,' said Dr. William Doerner, Senior Economist at FHFA.'Since housing markets began to rebound in 2012, house prices appreciation has been positive because demand has outpaced supply.

In the last month, however, some regions reflect a slowing or even flattening of house price growth.' 

In this video, Doerner gives a breakdown of how prices performed across regions. 

But Sales Struggle to Overcome Housing Shortages

Total existing-home sales—which are completed transactions that include single-family homes, townhomes, condos, and co-ops—decreased 2.5 percent to a seasonally adjusted annual rate of 5.46 million in April. Sales are now 1.4 percent below a year ago. This also marks the second consecutive month sales have fallen on an annual basis. 

However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford.” 

For the inventory that is out there, homes are selling fast. Strong buyer demand mixed with low inventory levels are prompting homes to sell at a record pace. 

Here’s a closer look at some of the key indicators from NAR’s latest housing report:

Home prices: The median existing-home price for all housing types in April was $257,900, up 5.3 percent from a year ago. 
Inventories: Total housing inventory at the end of April rose 9.8 percent to 1.80 million existing homes available for sale. Inventories are still 6.3 percent lower than a year ago. Unsold inventory is at a four-month supply at the current sales pace.“What is available for sale is going under contract at a rapid price,” Yun says. 

Days on the market: Properties stayed on the market an average of 26 days in April, down from 29 days a year ago. Fifty-seven percent of homes sold in April were on the market for less than a month. 

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

Regional Breakdown
The following is a breakdown of existing-home sales across the country in April:

Northeast: existing-home sales dropped 4.4 percent to an annual rate of 650,000, and are now 11 percent below a year ago. Median price: $257,200—2.8 percent higher than a year ago.

Midwest: existing-home sales were unchanged month-over-month at an annual rate of 1.29 million in April, and are 3 percent below a year ago. Median price: $202,100—up 4.6 percent from a year ago.

South: existing-home sales dropped 2.9 percent to an annual rate of 2.33 million in April, but are still 2.2 percent above a year ago. Median price: $227,600—up 3.9 percent from a year ago.

West: existing-home sales dropped 3.3 percent to an annual rate of 1.19 million in April and are 0.8 percent below a year ago. Median price: $382,100—up 6.2 percent from a year ago.



Source: National Association of REALTORS®
#RealEstateForSale #Homeownership #UtahRealEstate

'12-Month Low' New-Home Prices Have Fallen

Get One While You Can: For years, all home buyers have heard is that , 
prices are and going up up away. 

But the cost of buying a newly constructed abode has fallen to its lowest price point of the last 12 months.

 So if you've been wanting to buy a home that's never been touched by another owner, we give you permission do a happy dance.

The median price of a new home ped nearly 6.9% from March to April to reach $312,400, according to a joint report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. That was only up 0.4% from April 2017, less than inflation.

This could be a sign that builders are trying to build at lower price points,' says Chief Economist Danielle Hale. That would be a boon to the many would-be homeowners, particularly first-time buyers or those on a tight budget, who are being priced out of the market. 'The largest share of home buyers and home shoppers in the market are looking to buy entry-level homes.'

Hale pointed out that 5% of new-home sales were for abodes priced under $150,000. That may not sound like much, but it's the largest share we've seen at that super-desirable price point since August 2016.

However, new homes were still about 24.8% more expensive than the $250,400 median cost of an existing home (one that has previously been lived in), according to the most recent data available from the National Association of Realtors®.
That's because new homes have pricier finishes and appliances, with no wear and tear on anything. Plus, land, labor, and building materials costs have been on the rise.

Meanwhile, the number of new homes sold and for sale dipped 1.5% from the previous month to about 662,000, according to the report. They rose, however, 11.6% from the same month a year earlier.

(Realtor.com® looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to compensate for ups and downs at certain times of year.)

The Midwest saw the biggest annual bump in the number of homes sold or for sale in April.  About 91,000 home hit the market or were closed on in April, rising a whopping 26.4% from the same month a year earlier, but remaining flat from the previous month.

The West came in second, with a 18.9% year-over-year rise. But the 176,000 abodes for sale or sold were down 7.9% from March.

In the South, the 355,000 homes on the market or changing hands were up 6% annually and increased 0.3% from the previous month. In the Northeast, the number was up 5.3% year-over-year and 11.1% month-over-month, with 40,000 new homes.

'The absolute level of [new-home] sales remains quite low compared to current demand levels and the overall population. But you can’t sell what hasn’t been built,' Freddie Mac Deputy Chief Economist Len Kiefer said in a statement.

'As long as single-family home construction remains at a low level, so too will new home sales.'

Are you Ready to Buy or Sell? If you’re interested on a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

#RealEstateForSale #Homeownership #UtahRealEstate #Newconstruction

Americans Are Fleeing High-Priced Housing Markets

For More Affordable Alternatives, Americans are migrating from 
high-priced, less affordable markets in favor of more reasonably priced areas, according to a new analysis by ATTOM Data Solutions, a real estate data firm.

Population trends show residents are leaving less affordable markets—like Los Angeles County, Calif., and Kings County, N.Y.,—and are instead choosing places with median prices in the $250,000 to $300,000 range.

Three of the four top markets with the largest positive net migrations in 2017 had median prices in the $250,000 to $300,000 range—Maricopa County, Ariz. (Phoenix); Clark County, Nev. (Las Vegas); and Denton County, Texas (Dallas).

The fourth market—Riverside County, Calif., in Southern California—had a slightly higher median price of $360,000. 

Where Home Price are Affordable (or not) for Average Wage Earners

Homeowners are moving away from pricier markets because they’re being priced out, research shows.

Median home prices in the first quarter of 2018 were not affordable for average wage earners in 304 of 446 U.S. counties—or 68 percent—of those analyzed, according to ATTOM Data Solutions. On average, among those 446 counties, the average wage earner would need to spend 37.2 percent of their wage to purchase a median-priced home. 

Ready to Buy or Sell? If you’re interested on a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.

#RealEstateForSale #Homeownership #UtahRealEstate

Do You Know the Difference?

Exurbs vs. Suburbs: If city living sounds undesirable, buying in the suburbs or 

exurbs might be more your speed. While moving to the heart of a big city means being near major employers, top hospitals, schools, and culture, owning outside major metropolitan areas has a whole different set of advantages.

Exurbs and suburbs came about from a desire for more space and privacy within proximity of city features. And while suburbs and exurbs do share many similarities—more square footage, less noise, less pollution, more privacy—there are substantial differences.

The difference between exurbs and suburbs

The biggest distinction between these two types of communities is where they're located. Suburbs lie just outside of the city, whereas exurbs are areas farther out, beyond the suburbs. Exurbs tend to be situated in more rural areas. They can be near farmland.

“Suburbs provide a functional lifestyle close to shopping, schools, and transportation,” “Exurbs provide a remote location free from noise and congestion.”

Life in the suburbs

One of the biggest advantages of life in the suburbs is that homeowners have full access to everything in the shadow of the city: Entertainment, restaurants, and top-notch medical facilities are still within a reasonable drive.

Even though many suburbs have excellent public transportation options, you will most likely need a car to get from Point A to Point B.

A move to the suburbs may be difficult for those who've grown accustomed to the frenetic pace of the city. The good news is that the level of comfort and peace found in the suburbs often replaces the void over time. (Note: We did say 'often.')

Life in the exurbs

For homeowners craving complete privacy, the exurbs are the way to go: You have more usable land, fewer industries or nearby neighbors, and less crime and noise pollution.

“Exurbs are great for someone who works from home or is looking for a second home/vacation property.” 

However, exurbs tend to be spread out and less walkable than cities and many suburbs.

“Pedestrians tend to find life more difficult in the exurbs. There are less likely to be sidewalks, and destinations are more likely to be beyond walking distance. This is particularly difficult for children and the elderly,” a producer for 'Perils for Pedestrians,' a TV program that looks at the problems confronting pedestrians in communities.

The future of suburbs and exurbs

According to research from the Urban Land Institute, the suburban housing market in the United States shows no signs of slowing down. As long as the demand for life outside the city remains high, the overflow to the suburbs will continue, and those communities will expand outward. Helping accelerate the growth: Technology makes it easier for more folks to work from home, sans the city commute.

However, as growth into major metropolitan areas extends beyond the city, predicts that some suburbs and exurbs will naturally be absorbed, perhaps becoming their own incorporated entity or merging with a nearby municipality.

'Even as cities expand, new suburbs and exurbs, beyond the current ones, will naturally come into being.' 

Ready to Buy or Sell? If you’re interested on a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

#RealEstateForSale #Homeownership #UtahRealEstate #Suburbsvsexurbs

Modest Growth in Sales

New construction is key to inventory woes, but small builders are largely absent. Yun is predicting a 1 to 2 percent uptick in sales this year, to about 5.6 million units. Given favorable demographic trends and how well the economy is doing, that increase is much more restrained than it could be. 

“This is really about lack of inventory,” Yun told thousands of REALTORS® at a residential economic forum he hosted.

Persistent low inventories are driving up home prices and making homes increasingly unaffordable for many households. Over the last half dozen years or so, home prices have grown 48 percent nationally while wage growth has increased just 15 percent.

New construction is the best way to bring prices down, but the number of new units coming on the market remains historically low (about 1.3 million now, compared to almost 2.5 million in the early 1970s), in part because small builders, who traditionally have built the bulk of housing in the country, are largely absent from the market.

They’re having trouble getting construction financing from the community banks they’ve always relied on, and their labor and material costs are going up.

That’s left the market mainly to bigger builders, and they’re focusing mainly on higher end homes. There are 250,000 fewer new starter homes—those under $200,000—than there were three years ago. 

“New units aren’t helping inventory that much,” because the new homes are mainly for move-up buyers.

The best way to bring home price increases down so that they’re more in line with people’s wages is to provide relief to community banks so they can start making construction loans to small builders again, Yun said.

At the local level, he called on municipalities to relax land use restrictions, modify condominium defect laws, and offer free training in welding, carpentry, and other construction trades for people displaced from other jobs. Modifying condo defect laws would ease the legal threat hanging over builders for minor construction defects.

Ready to Buy or Sell? If you’re interested on a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.

#RealEstateForSale #Homeownership #UtahRealEstate #NewConstruction

Townhouse Construction making gains.

Builders Speed Up Townhome Construction, Townhouse construction continues making gains as buyers’ appetites once again increase for this type of single-family attached housing.

Over the last four quarters, ending with the first quarter of 2018, townhouse starts were 7 percent higher than the prior four quarters. Townhouses accounted for 21,000 starts during the first quarter of 2018. 

The market share of new townhouses now stands at 12.3 percent of all single-family housing starts, according to an analysis from the National Association of Home Builders.

Over the last two decades, the peak market share for townhome construction was reached in the first quarter of 2008, when the share was at 14.6 percent of total single-family construction. 

“I expect future gains in the share as townhouses are a useful bridge from rentership to homeownership for younger prospective home buyers in high-cost markets, among other market opportunities.”  “The long-run prospects for townhouse construction are positive given the large numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities.”

Mortgage rates reversed course and soared to the highest averages in seven years, Freddie Mac reports. The 30-year fixed-rate mortgage averaged 4.61 percent this week, which matches the highest level since May 19, 2011. 
“Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season. While this year’s higher mortgage rates have not caused much of a ripple in the strong demand levels of buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.” 

Ready to Buy or Sell? If you’re interested on a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Source: Freddie Mac,National Association of Home Builders’ Eye on Housing blog (May 17, 2018)

Housing Outlook covering 2018 and into 2019.

Strategic Research Group’s May 2018 Economic and Housing Outlook predictscontinued economic growth throughout the rest of 2018. As we enter 2019, however, the GSE forecasts a potential change in that momentum.

According to Fannie’s May 2018 Economic and Housing Outlook, the GSE forecasts 2018’s full-year growth to hold steady at 2.7 percent.

Fannie’s Outlook also predicts the Fed will institute two more interest rate hikes before year’s end.

“We remain confident that, despite a first-quarter hiccup, economic growth will pick up through the rest of 2018,” said Fannie Mae Chief Economist Doug Duncan. “There are signs that consumer spending is poised to strengthen in the months ahead, and we believe recent fiscal policy actions are likely to contribute to growth this year.”

But for 2019, the Outlook predicts a deceleration to 2.3 percent growth.

“Come 2019 … we expect the fiscal boost to fade, and we adjusted our forecast lower accordingly,” Duncan said.
“We also note mounting downside risks to our projections, including growth-constraining protectionist trade policies and rising oil prices, among others.

Meanwhile, housing’s upward grind should continue, despite a lackluster first quarter. We expect home sales to post modest gains both this year and next, as prices rise and affordability declines amid low for-sale inventory.”

Fannie forecasts 1.3 million housing starts by year’s end, compared to 1.2 million in 2017. Single-family housing starts are expected to experience 7.9 percent year-over-year (YOY) growth in 2018, as compared to 8.6 percent in 2017 and a predicted 5.4 percent in 2019.

Fannie anticipates new single-family home sales to grow 11.8 percent in 2018. In 2017, that number was 9.3 percent, but the forecast 2019 number s all the way to 3.8 percent year-over-year. Existing-home sales are expected to remain mostly steady, with a predicted 1.5 percent YOY change in 2018 and 2019 forecast to come in at 1.2 percent.

Total home sales are anticipated to come in at 2.5 percent YOY for 2018, with 2019’s forecast slipping to 1.5 percent, slightly below 2017’s 1.9 percent growth.

The decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Source: Precision Realty & Assoc. LLC

To read all of Fannie Mae’s Economic and Housing Outlook data for May 2018, click here.

Did Buyers Just Miss Their Chance

Mortgage rates are edging noticeably higher this week, and would-be home buyers and refinancing homeowners may have missed out on a chance to lock in a lower rate. 

The 30-year fixed-rate mortgage ped to 4.77 percent last week, the MBA reports.

But on Tuesday, interest rates jumped to a seven-year high, following a major sell-off in the bond market reports.

The average 30-year fixed-rate averaged 4.875 percent for the highest creditworthy borrowers and 5 percent for the average borrower, according to Mortgage News Daily. 
More buyers are turning to adjustable-rate mortgages, which offer lower introductory rates for a set period before rising. But ARMs are on the rise too. “Jumbo and 5/1 ARM rates increased, with the 5/1 ARM rate increasing to its highest in our survey at 4.09 percent,” says Joel Kan, an MBA economist. 

Mortgage application volume for refinancings and home purchases ped 2.7 percent last week on a seasonally adjusted week-to-week basis. Mortgage application volume is 4.5 percent lower than the same week a year ago.

Applications for refinancings posted the biggest last week.Volume plunged 4 percent to the lowest level since August 2008.

Refinancing applications tend to be more rate sensitive than applications for home purchases. Refinancing applications are nearly 17 percent lower than a year ago when interest rates were much lower.

“Homebuyer demand has remained positive and shaken off the higher rate environment so far this year,” says Sam Khater, Freddie Mac’s chief economist.

“However, after years of very low mortgage rates, the symbolic risk of a 5 percent mortgage, on top of higher gas prices, may cause a slowdown in home buyer demand, particularly in western states and exurbs that are affected more by gas prices than the typical consumer.” 

 Mortgage rates are surging to the highest level in 7 years

The decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates


Source: Precisionreal-t.blogspot.com

Ready to Graduate From Renting to Owning a Home?

With graduation season in full swing, many may be pondering a change in their living quarters. Some may be moving out of Mom and Dad's house into dorms, or maybe out of dorms into their own apartments.

But what if you're ready to take an even bigger step—moving out of a rental into a home you can call your own?

Buying a house, after all, is a great way to put down roots and build wealth (since homes tend to appreciate so you can sell later for a profit). But purchasing property isn't a simple process, so you should make sure you're prepared.

So, how do you know if you’re ready to movefrom an apartment to a house? Ask yourself these questions below to get a sense of where you're at—or what you have to do to transition easily into home-buying mode once the time is right.

Can you afford to buy a home?

For starters, let's talk money. Buying a home is a hefty purchase, probably the largest you'll ever make. So, you'll need a down payment (typically recommended to be 20% of the home’s purchase price) and steady income (i.e., a job) to pay your mortgage.
There are other costs also associated with homeownership:

• Closing costs (typically 2% to 5% of the home's purchase price)
• Home insurance (cost varies by state)
• Maintenance
• Utilities
• Budget for unseen repairs and emergencies

While renting might seem more economical than owning at first glance, that’s not always the case; our rent vs. buy calculator can help you compare the costs. You might be surprised by the results!

Another good first step to figuring out whether you can afford a house is to enter your salary and town of residence into a home affordability calculator, which will show you how much you'd pay for a mortgage on a typical house in that area. 

Or talk with a loan officer about whether you would qualify for a mortgage, and how much you can spend comfortably. Such consultations are free, and will give you a concrete dollars-and-cents sense of where you stand.

Are you settled in your job?

Your job situation is not only important in terms of income to buy a home, but also whether you're happy where you work and plan to stay put. Because once you own a home, your career prospects do narrow somewhat, purely because a home anchors you to one area.

Do you know where you want to live?

Since moving once you own a home is not as easy as just packing your bags (which, let's face it, is a hassle in itself), you really need to make sure you’re picking a home in an area where you’ll be happy.

“It's not easy to just sell a house and move to a new one if intolerable neighborhood issues come up, since the transaction cost to sell.  “So you need to really scope out the neighborhood.”

When in doubt, try renting for a few months to make sure you like the area before you start shopping for a home to own for good.

How much home maintenance are you willing to tackle?

If you love the challenge of fixing a leaky faucet and figuring out which shrubs will flourish in your yard, homeownership may be right up your alley. But if the idea of mowing a lawn or messing with the HVAC makes you depressed, then you may want to stick with renting, which gives you a roof over your head without the work.

“Apartment renters don’t have many home-related responsibilities,”  “If something breaks, they call the landlord. Often, they don’t even need to worry about setting up utilities; they either come with the building, or the process is merely changing the name on an existing utility account.”

Living in a house you own is a different story. There’s no landlord to call if anything goes wrong; it’s all up to you. So you have to be either adept as a handyman, or willing to find and pay someone else to do such tasks. Or else consider buying a condo or co-op, where the lawns and public areas around your home are maintained by hired help.

Bottom line: Owning a home is a big commitment. So before you jump into it, you should have confidence that it works for your circumstances.

The decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.

#RealEstateForSale #Homeownership #UtahRealEstate

Buyers Crowdfund Their Way Into Homeownership?

To Afford a Home, More aspiring home buyers are increasingly turning to crowdfunding to drum up money for a down payment. 

Several new crowdfunding platforms have debuted, such as HomeFundMe and Feather the Nest, to help potential home buyers raise funds to purchase a home or make home repairs.

Online registries like HoneyFund include the option of gifting a down payment contribution. 

“The number one challenge that we hear from millennials in terms of their ability to buy a home is the down payment,” says Jonathan Lawless, vice president of customer solutions for Fannie Mae.

“Crowdsourcing is an interesting new way that a person can generate a down payment, one made possible by technology. … We think there is a great future for it.” 

A consumer who is prequalified for a mortgage could create a personal page on a crowdfunding site. They can share their journey toward homeownership and then share the pages with family and friends. 

'[Many] people find they can afford [mortgage] payments, but not the down payment to own a home,' Christopher George, CEO of CMG Financial, a mortgage banking firm that launched HomeFundMe, told realtor.com®.

HomeFundMe is the first such site to be backed by mortgage financing giants Fannie Mae and Freddie Mac. 

Mortgage lenders do have restrictions on down payments being gifted. They usually require a letter from the giver that states the money is a gift, not a loan. But an online fundraising platform can allow buyers to bypass that, realtor.com® reports. 

For example, with HomeFundMe, a gifter can give up to $7,500 to a campaign without any documentation required. Further, HomeFundMe doesn’t charge fees to use its platform.

The firm will also award buyers $2 for every $1 they raise, up to $1,000 or up to 1 percent of the purchase price, if the buyer undergoes counseling beforehand. In exchange, the buyer must agree to get a mortgage through HomeFundMe’s parent company, CMG Financial. They also have to agree to close on a home within a year of accepting their first monetary gift.  

But some financial experts warn caution when using crowdfunding sites to raise money for a home. 

'If somebody is not able to save for their own down payment, it might be because they are stretched financially,” says Lawless. “But it [also] might be that they are bad at saving. The ability to generate savings is a critical aspect of being a responsible homeowner.'

The decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

#RealEstateForSale #Homeownership #UtahRealEstate #Mortgage

Hottest Real Estate Markets in 2018

A study of 16,000 U.S. zip codes, overwhelmingly, the ZIP codes seeing the fastest movement of homes are in the West. Nationally, the report stated, houses are generally on the market for an average of 78 days.

But in the 20 markets where homes sold fastest in Q1, they sold after an average 21 days on the market; in the top three ZIP codes, in fact, barely past three weeks.

Salt Lake, in fact, finished 20th on the list. Homes there moved in an average 21 days during the quarter.

This is a 'Slightly Hot' market that is 'Heating Up' compared to last month and 'Heating UP' compared to last year. Median days on the market is 28 days, with inventory moving 7.0% 'Faster' than last year and 31 days 'Faster' than the US overall. Listing in the are received an average of 324 views per month on realtor.com which is 1.1 times'Higher' than the US Average. 

In fact, we speculated as to whether Salt Lake City, Utah is the ‘New Denver’ earlier this year and now we see Salt Lake City breaking into the top 20 ZIPs.” 

The only ZIP codes outside the West and Midwest to break the top 20 were Melrose, Massachusetts; Rochester, New York; and Montclair, New Jersey.  Homes in those markets moved, on average, between 19 and 26 days on the market, according to the report.

12 different states made up the top 20 ZIP codes in the country, California had the most, with seven areas overall. Three—San Ramon, San Diego, and San Jose—were in the top 10. Colorado, which placed the overall hottest zip code in Colorado Springs' 80922, had two markets in the top 10. The other was Littleton.

Fort Worth, Texas, tied with San Ramon for second place on the list. Homes there sold in an average 16 days during the quarter. Colorado Springs saw homes closing in an average 15 days.

But those were not the fastest moving markets of the quarter. Homes in San Ramon moved in 14 days and in Littleton, just 11. These latter ZIP codes were not ranked first and second because of prices and demand. Littleton's homes sold for a median price of $432,000 in Q1, almost $150,000 higher than those in Colorado Springs. But demand was higher, the report stated, in Colorado Springs.

“Colorado ZIPs continue their hot streak highlighting the meteoric rise of Denver and its neighboring metros over the past decade,” the report stated. That reflects “a pattern that other markets hope to replicate.  

The largest surprise, the report stated, was Overland Park, a suburb of Kansas City, which finished tenth overall. Homes moved an average 25 days after being put on the market in the first quarter.  

“The Kansas City metropolitan area itself has been hot this spring,” the report stated. “Overland Park is leading the pack in a new set of boiling hot neighborhoods in the Midwest.”

The median price for a home in the top 20 markets was $377,000, the report stated. That's about one-and-a-half times the national median during Q1.

 
The decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.

#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Visiting Open Houses

What we Learned, Still, though, my experiences have turned me into an open house aficionado of sorts. I know what makes buyers swoon (myself and others), as well as what repels buyers the moment they set foot inside.

 

So if you're a home seller who hopes to bowl over buyers rather than send them running, I'm here to help.

 

Let me tell you about a few things I've learned that could kill your chances of selling your home.  

Personal quirks on display

Steak sauce, mustard, and hot sauce. These condiments were not in the kitchen (as one would expect) but on a dresser in a bedroom. Right then and there, I knew I had to get out of the house. Who knows what was going on there, but it was just too weird for me to stick around and ponder the possibilities.

“First impressions matter,” Remember, you want the prospective buyer's attention to be on the home, not your personal life.”

Remove all personal items, including family photos, unusual collectibles, memorabilia, and misplaced condiments.

Hovering home sellers (or their kids)

I walked in to find cute kids under the covers half-a . Granted, these kids weren't there alone; their parents were lingering, too. But adult supervision or not, all these family members nearby made me want to flee, because I felt like I was intruding on their personal space.

“Home sellers often make the mistake of leaving their place too late and returning too soon,”  

A well-advertised open house will attract people early, and there will definitely be people arriving just as the agent is locking up. So plan on getting everyone up and out of bed an hour before the open house starts.

Dark, dusty rooms

A three-bedroom, two-bathroom condo I checked out in the suburban county was spacious, but very dark.
The windows were covered not only by lace curtains, but also by valances and vertical blinds. It felt less like a home and more like the inside of a crypt. I tried to open the curtains to get a sense of what the room would look like. But there were too many window coverings to remove, and I could manage to let in only one ray of sun. Then I gave up and got out.

“The aim is to get as much natural light as possible and then turn on every lamp.” 
We also recommends dusting blinds. If you don’t, the light will catch the dust and make the whole house appear dirty.

Cluttered closets and drawers

Open houses are all about strangers opening and closing things—closet doors, kitchen cabinets and drawers. I recall one apartment I instantly loved and was ready to make an offer on—until I opened the kitchen pantry. There were products in there with packaging I recognized from my childhood ... at my grandmother's house. It was only then that I realized the house actually needed a ton of work and had not been updated at all since the 1980s.

Bottom line: Every detail of your house resonates with buyers. 

'Clients will say, 'People don’t care what my closet looks like!'' 
But buyers do care, and all the details they glean help them form an opinion of your property 'Rather than remembering the beautiful skylight, they remember the medicine cabinet with a leaking bottle.

Lack of snacks

There’s something about a platter of baked goods that makes people like me go wild. Think cookies and small bottles of water. (You may want to skip baking the cookies yourself, which can make savvy buyers think you are trying to conceal funky odors.)

“Refreshments are a nice touch,”  After all, going to an open house takes effort—sometimes I went to several a day. When an open house offered a little snack to greet visitors, I would be in a better frame of mind when testing the water pressure in the shower. Having no snacks is not necessarily a deal killer; but in general, I've noticed that the better open houses tend to have something to nosh on, perhaps because they were managed by people who paid attention to details.

Cloth booties

At the last open house I went to a few weeks ago, the agent had visitors put on cloth booties to protect the floor. This is fairly standard procedure, but this house had steep, narrow stairs. Two potential buyers slipped on the staircase within 20 minutes. I pictured myself buying the house, only to fall to my death as I went downstairs for coffee. 

So as much as I liked the home, I didn't make an offer that day. My husband made me tour the home again, sans booties. And after discovering the stairs were safe if you didn't wear slippery booties, I fell in love and made an offer.

In this case, at least, I learned a lesson: First impressions can be deceptive. So if no one's swooning over your open house immediately, don't obsess about what you've done wrong. Sooner or later, the right buyer will come along.

The decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested on a wealth of information to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

Mortgage Rates Level Out

#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates