Should I stay or should I go?

Has the Inventory Crunch Begun to Subside? Contract signings rose in 

all four major regions across the U.S. last month, a sign that dwindling home sales—which have plagued the market at an unusual time of year this summer—will reverse course in the coming months, the National Association of REALTORS® reports.

Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 0.9 percent month over month in June to a reading of 106.9.

“After two straight months of declines in pending home sales,home shoppers in a majority of markets had a little more success finding a home to buy last month,” says NAR Chief Economist Lawrence Yun.

“The positive forces of faster economic growth and steady hiring are being met by the negative forces of higher home prices and mortgage rates. Even with slightly more homeowners putting their home on the market, inventory is still subpar and not meeting demand.

As a result, affordability constraints are pricing out some would-be buyers and keeping overall sales activity below last year’s pace.”

If you’re thinking about putting your house on the market, you’re probably wondering what you should do before you list it. Getting a home ready to sell doesn’t have to be a huge undertaking, but it’s one where details really matter. To make the most of your new listing, take care of these items first.

Do a Walk-Through With Your Realtor 
When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home. One of the first things your realtor will want to do is complete a walk-through of your house. This is a chance to point out anything that needs cleaning and any projects that you should complete before you list the property. Little touches, like adding trim to the walls or changing out bathroom fixtures, can make a real difference in maximizing your home’s price, and a realtor will be able to tell you what to take care of first.

Despite last month’s rise, contract signings are still down 2.5 percent compared to a year ago, NAR reports. Nevertheless, Yun says the worst of the supply crunch may now have passed.

In June, existing inventory was up slightly on an annual basis, marking the first increase in three years. Several large metros saw year-over-year surges in inventory levels last month.

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Rents rose 2.3% in the Second Quarter

The Financial Gap Narrows, Homeownership makes good financial sense—

at least in a lot of cases. The U.S. apartment market suffered its worst spring since 2010, near the depths of the housing crisis, as a flood of new supply and weakening demand resulted in rising vacancy rates and little or no rent increases in many major cities.

Rents rose 2.3% in the second quarter compared with a year earlier, the weakest annual increase since the third quarter of 2010, according to data from RealPage Inc. scheduled to be released on Wednesday. Rental growth was flat in major cities with otherwise strong economies—such as Austin, Portland, Seattle, Dallas and Washington, D.C.—due to large amounts of new supply.

While average rents continued to grow, individual landlords cut rents in some markets. In addition, landlords are offering tenants incentives. Landlords have enjoyed a record 32 straight quarters of annual rent growth on average, as the U.S. economy strengthened and millennials delayed homeownership.

But the reports of slowing, which began in a few markets in late 2016, have intensified to the point that the balance is shifting towards renters and away from landlords. Chief economist , predicted average rents nationwide could flatten if current trends continue. “It’s kind of telling as we look at some of these individual markets that are losing momentum because they’re important ones.” 

The cause of the slowdown is primarily new supply. Developers responded to escalating rents by building the most new apartments in 30 years, sending a flood of new high-end units to downtown areas across the country. Developers are expected to add 300,000 new units over the next year across the U.S.

At the same time as there are signs renter demand is starting to wane because millennials are marrying, having children and buying homes or moving into single-family rentals. The U.S. added 1.3 million owner households in the first quarter over the same period last year and lost 286,000 renter households, according to U.S. Census data released in April.

Landlords rely on the warm spring months to fill apartment buildings because renter demand trails off in the colder months of the years. “The second quarter is when you get most of your rent growth for the year,” The softening is taking place even in high growth cities. For example, the Dallas metropolitan area has the strongest job growth in the country.

But rents were essentially flat in the second quarter, down from 3.1% annual rent growth in the second quarter last year and a recent high of more than 6% rent growth in late 2015. Landlords there are offering tenants as much as two months of free rent.

“Just too much inventory,”  one of the country’s largest apartment owners. “In order to get those apartments absorbed, even with good strong job growth, it’s taking the sizzle out of the market.” Data released Tuesday from another apartment data provider, Reis Inc.also showed a largely weak rental market across the country in the second quarter.

The national vacancy rate ticked up to 4.8% from 4.3% in the second quarter of 2017.The number of additional units that were rented fell to just over 37,000 from nearly 53,000 a year earlier, suggesting demand was weaker. Little concern has arisen that the softening could have broader economic repercussions for the U.S. financial system. Compared with the last real-estate crash, owners say there are unlikely to be many foreclosures because they are carrying much less debt.

When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Buy your Dream home. One of the first things your realtor will want to do is find out what areas may interested you, how many bedrooms, baths and what price range your lender has pre-qualified you. This is a chance to point out anything that you should complete before you start your Home search.


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Get Your House Ready to Sell with These Helpful Tips

 
If you’re thinking about putting your house on the market, you’re probably wondering what you should do before you list it. Getting a home ready to sell doesn’t have to be a huge undertaking, but it’s one where details really matter. To make the most of your new listing, take care of these items first.

Do a Walk-Through With Your Realtor 

When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home. One of the first things your realtor will want to do is complete a walk-through of your house. This is a chance to point out anything that needs cleaning and any projects that you should complete before you list the property. Little touches, like adding trim to the walls or changing out bathroom fixtures, can make a real difference in maximizing your home’s price, and a realtor will be able to tell you what to take care of first.

Make Cleaning Your First Priority  

One task at the top of the home prep list is a nice, deep cleaning. When a house is on the market, it needs to sparkle. Your best bet is to hire a professional cleaning company to complete that initial deep clean and then manage the upkeep on your own. The average price for a one time cleaning in Riverton, UT, is between $127 and $211. That can be less than you would spend on the necessary cleaning supplies and it’s well worth the time and effort you will save. It will be one less item on your list so you can move on to other projects.

Organize Any Storage Areas

Closets and storage are a big deal and it can be a deal breaker for buyers if it isn’t adequate. Create a blank canvas by clearing out your closets before you start showing your home. Remove clutter and pack it away somewhere potential buyers will not see it. This is a good time to look into a small storage unit to minimize the number of personal items you have in your home. Wipe down or dust the shelves in your storage areas, and be sure to sweep up any debris.

Change Up the Color of The Walls  

Like your storage areas, your walls should be a blank canvas for potential buyers. Bright, bold colors are beautiful, but they may not be the best way to attract a lot of buyers. Neutral paint colors are classic and never go out of style. Choosing these lighter, less obvious shades is a safe bet when you are selling your home. They’ll also make your rooms appear a bit bigger, which is always a good thing. Pick up some rollers and brushes to do the work yourself or hire a contractor to get the job just right. It can be tricky to keep paint off ceilings and trim, so a pro may be the way to go.

Maximize Curb Appeal   

Home shoppers in the area also love to see a neat, tidy yard. Curb appeal is a big part of prepping a home to sell, so take some simple steps to cheer yours up. Pull any weeds out on the lawn, and keep the yard trim and green while your house is on the market. Sweep leaves and dirt off your walkways and porch, then touch up any worn exterior paint on shutters and trim. Want an easy way to add some appeal to your house? Try placing some neat and trimmed potted plants near your entryway to give it a warm touch. If you go with flowers, use shades that will complement the outside of your home without being too distracting.

Selling a home in Riverton is all about the details. Pay special attention to the simple steps above and always consult your realtor if you have any questions or need some guidance. Good luck getting your home ready and getting an offer soon!  

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. 

Article provided by Natalie Jones from HomeownerBliss.info.
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Low Credit Score Costs Home Buyers

Here's How Much, With skyrocketing home prices and rising 

mortgage rates, many home buyers are frantically looking for ways to cut down on costs wherever they can. But in one area, it makes sense to ramp up spending, experts say—paying off old bills, debts, and credit cards.

That's because a very good credit score can save home buyers tens of thousands of dollars over the life of their mortgage, according to a recent report from online financial services marketplace. That's not chump change.

Estimates borrowers with very good credit scores of 740 to 799 can save $29,106 over those with a fair credit score of 580 to 669. The savings would be on the annual percentage rate of a 30-year fixed mortgage of $234,437, which is the average size of those loans, according to the report. Those savings are the price of a decent new car.

 

Aside from monthly costs, it's a lot harder to get a loan with poor credit.

 

“When you’re taking out a mortgage, you’re asking a lender to invest in you for a very long time,'  'If you have a higher credit score, it means statistically you’re more likely to pay your bill on time.'  But 'if you have a lower credit score, lenders are taking a bigger risk that you’re not going to pay your mortgage off or [you'll go into] foreclosure.'

Credit score sweet spot

The ideal credit score is from 760 to 780 and up. Anything much below that and lenders are more likely to charge a higher interest rate or pile on more fees to compensate for the risk that the borrower may miss payments.

We Recommends that would-be borrowers get their credit reports and resolve any outstanding issues before applying for a loan. They should also pay down or pay off old balances, not open or close any credit cards, and pay their bills on time.

That's not to say every lender will offer rates to those with sterling credit. But some will and others will knock off various charges, such as filing and overnight fees.

In addition, many buyers will save substantially less over the life of their loan. That's because after five or six years, many are likely to refinance their loan or move into a new home requiring a new mortgage.

Still, buyers should focus on boosting their credit score.
'You always save money with a higher credit score,'  But 'you can pay a fee for a lower credit score.'

Mortgage Rates Shift Slightly Higher

Now is the Time 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. 

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What Home Buyer Would Give Up for a Good School

The home’s garage, large backyard, and updated kitchen may not be 

as important to home shoppers as the school district, according to a new survey released by realtor.com® of more than 1,000 people who closed on a home in 2018. Seventy-eight percent of buyers surveyed say they’re willing to give up home features to get their school district of choice, and home shoppers are willing to give up their most desired home features to get that.

“A garage is great, but it’s not critical,” “Most buyers understand that they may not be able to find a home that covers every single item on their wish list.”  “But our survey shows that school districts are an area where many buyers aren’t willing to compromise. For many buyers, ‘location, location, location,’ means ‘schools, schools, schools.’”

The extent of compromises that buyers are willing to make to get their top-choice schools may be surprising too. 'You can rent storage and you can build storage, but you can’t change the school district, the composition of the town, or the [local] taxes.”

Many home buyers these days are willing to sacrifice square footage and other amenities to afford a house in a well-respected school system. 

A recent realtor.com® survey of people who closed on a home this year found that 73% said buying in a good school district was “important” in their search.
Of those, 39% said school districts were “very important.” 

Meanwhile, only 18% of those surveyed said school districts were “unimportant” or “very unimportant.” Nine percent were neutral on the question. Harris Research conducted the survey of more than 1,000 respondents this month.

Of the home buyers who considered schools important, 78% reported that they had to make compromises when they purchased a house. The features most commonly given up were garages (19%), large backyards (18%), updated kitchens (17%), bedrooms (17%), and outdoor living areas (16%).

Younger home buyers are more concerned with strong school districts than with nonessential amenities. With home prices at record highs, they plan to stay in their homes for longer periods, so they have time to renovate their kitchens or build additions, she said.

“Location can’t be changed, but a property can remodeled, updated, or adjusted,'  More home buyers are using online tools, social media sites, and their friends’ recommendations to find homes in good school districts. Not surprisingly, home buyers with children focused more on school districts. The survey found 91% of buyers with children said good school districts were “important” or “very important.”

Younger home buyers were more likely to say school districts were important in their search. Eighty-six percent of 18- to 34-year-old respondents and 84% of those aged 35 to 54 said schools were “important.” For those 55 and older, that ped to 37%, with more than half saying schools were “unimportant” or “very unimportant.”

We noticed more customers moving into smaller homes with fewer amenities in order to live in a more respected school district. 
“You can live like a king for $300,000 or $400,000 in a modern house on an acre on a cul-de-sac,”  But customers are willing to pay $500,000 for a smaller, older house in a public school district with a better reputation, rather than enrolling their children in private schools.

Now is the Time 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. 

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Will ‘Baby Boomer Sell-Off

Housing values may fall as baby boomers die off or sell off, two studies 

say, Will baby boomers turn into party poopers when they unload their homes in large numbers starting in the next decade?

Could they create an indigestible oversupply in the market that lowers home prices and frustrates sales?
Downsizing baby boomers who are leaving homeownership behind may send shock waves throughout the real estate market, two new studies warn.

“Homeownership demand from younger generations is insufficient to fill the void left by multitudes of departing older owners,” according to Fannie Mae’s Economic Strategic Research group.

A separate study  says the significant number of older owners in relatively large homes in the Washington, D.C., market may lead to a “baby boomer sell-off” that could be mirrored in others parts of the country.

Baby boomers—those born between 1946 and 1964—own two in five homes in the country. The generations following them occupy only about 14 million homes.
Eventually, health or other issues will force baby boomers to move. Between 2016 and 2026, as many as 11.9 million older owners will end their homeownership status, according to estimates by Fannie Mae. From 2026 to 2036, another 13.1 million to 14.6 million will move as well.

Downsizing baby boomers face a key decision: Is it better to rent or to buy? Chapman believes that large numbers of higher income renters and owners may be interested in trading up in the years ahead, thereby limiting the potentially negative impacts on prices and sales from the coming oversupply.

Researchers in the Fannie study warn that this generational unloading of homes could be “negative for the home sales market.” Upcoming generations may not have the desire or be unable financially to buy the homes baby boomer are leaving behind.

But it’s impossible to forecast price impacts 10 years ahead,  “We do not mean to be alarmists,”  while noting that hopes the issue will prompt more consideration for public and private policies that may cushion the potential fallout. Points to financing programs, for example, that could help urge more millennials to buy their first homes.

Lawrence Yun, chief economist with the National Association of REALTORS®, is not predicting such doom and gloom as a result of a baby boomer sell-off. There should be “no measurable declines” from baby boomers, he says.

What does all this mean for you? At the very least, be aware of the issue. And think about devising a strategy for dealing with whatever scenario seems most realistic, whether you’re an owner or future buyer.

Now is the Time 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. 

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Happy 24th of July

Ready to Sell or Buy now is the Time, 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.

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Inventory Decreased, but Continued to Sell at a Rapid Pace

Are you ReadySell, This June, the nation’s inventory of active home listings

continued decline, albeit at a slower pace, according to new data. Inventory decreased by 4 percent year over year and continued to sell at a rapid pace, moving 10 percent more quickly than in June 2017. Listing prices continued to reach new highs, as prices increased by 9 percent year over year.

The median age of properties on in June reached 54 days, 6 days less than last June and 1 days less than May. Homes are expected to continue to sell rapidly, despite continued increases in listing prices.

The median listing price, reached $299,000, its highest point since inventory data series commenced in early 2012. Listing prices increased 9 percent over last June and do not yet show signs of slowing down, as they have increased on average 9 percent year over year for the last 12 months.

State by state trend click on image to see your City

This June, inventory grew by 4 percent over May, showing a typical seasonal increase. However, inventory decreased 5 percent over last June. This annual rate of decrease is slower than the 8 percent average decrease in the previous 12 months.

Approximately 547,000 new listings hit the market in June, 2 percent lower than the previous month but 2 percent higher than June of last year, providing some relief to tight inventory conditions.

June Data Shows Deceleration in the Rate of Inventory Decline but Continued Increases in Prices and Decreases in Time Spent on the Market

Curious how much your home is worth? click here

Ready to Sell now is the Time, 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. 

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Home Shoppers Get ‘Extra Time

What Successful Buyer Look Like? Sure, there are housing shortages and rising home prices and interest rates, but some consumers just aren't fazed. Thirty-four percent of home buyers weren't being stopped by price and rate hikes.

According to the newly released survey The Home of Home Search, based on responses from more than 1,000 consumers who closed on a home purchase in 2018, 42 percent of respondents only had to make one or two offers in their home purchase process.Fifty-one percent of buyers said they didn’t pay above asking price, and 28 percent said they paid less than what was listed.

Part of the reason for the sunny outlook is that the buyers who make it to the closing table are ready to roll with this challenging market. “Successful home buyers in 2018 have been exceptionally well-qualified.”  We are seeing the impact of the inventory crisis in the data, and it’s holding back home sales.

While would-be buyers struggle with limited inventory, rising prices and mortgage rates, those who closed were undeterred by today’s buyer frenzy. This is likely attributed to their experience, cash, and perhaps the market they’ve chosen to buy in.”

Mortgage rates slightly this week, offering some temporary relief to borrowers.

The average buyer who reported having the easiest time purchasing in the first half of 2018 was older than 55 years old, was in the market for six months or less, made four or fewer offers on properties, and purchased a three-bedroom, two-bath home. Among buyers above 55 years old, 54 percent of indicated no impact from rising costs, compared to 31 percent of buyers between the ages of 35 and 54 years old, and 23 percent of buyers between 18 to 34 years old. 

Some buyers said that they were able to stay ahead of the competition in their markets by offering home sellers more cash. Nearly a quarter of buyers surveyed said they paid cash for their homes. More than 30 percent of buyers put more than 20 percent down on a purchase. Larger down payments are most common among older buyers (51 percent of buyers 55 or older put down more than 20 percent, versus 22 percent of 18-34 year olds or 32 percent of those between the ages of 35 and 54).

But even these successful buyers weren’t immune to market conditions. This spring, home prices surged to new records, and 22 percent of buyers said the increased costs prompted them to look for a less expensive home. Nineteen percent said they had to increase their monthly mortgage budget. This spring, home prices surged to new records, and 22 percent of buyers said the increased costs prompted them to look for a less expensive home. Nineteen percent said they had to increase their monthly mortgage budget.

Now is the Time 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. 

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8 Things to Check Before Buying your House

Check. Good school district? Check. Home buyers with kids (or who 

hope to have kids soon) Room for a nursery? know to look for properties with certain kid-friendly characteristics ... but do you know all the things you should check?

Buying a home that you thought would be perfect for your family, but once moved in, realized it was missing certain things that could have made life there a whole lot easier.

So just to be safe, check out this list of features that parents should factor into their house hunt, but often miss. Make sure they're on your radar, so you don't buy a place you regret!

1. Bedroom placement

When house hunting, all that mattered in the nursery was that it had enough room for a rocker, changing table, and crib. Yet what I didn't ponder seriously was the fact that our master suite was on the main floor, and the nursery one flight up. That meant running up and down those stairs nonstop, prompting me to grumble (often), 'In our next home, all bedrooms will be upstairs!'

 

While parents know to find a house with ample bedrooms for their kids, what they sometimes fail to factor in is where those bedrooms are. Many parents prefer a layout where their kids' bedrooms are fairly close to their own, since it keeps their kids within earshot at night. However, bedrooms on separate floors can work for parents who prefer a bit more privacy.

2. Sidewalks

Many parents are wary of buying homes on busy streets, lest their little tykes end up chasing baseballs into oncoming traffic. For this reason, the best option is a cul-de-sac.

 

But here's what's often overlooked: sidewalks. They offer an extra layer of safety, since they provide a buffer between cars and kids at play, and are crucial during the stroller/trike/wagon phase. But that’s not all. “Sidewalks invite you to go for a family walk. They're the perfect place to set up a lemonade stand, and they make an ideal canvas to show off your mad art skills with sidewalk chalk.” 

3. An open floor plan

While bonus rooms and basements are nice for corralling rambunctious kids, they’re not so great for toddlers who have to be constantly supervised. This is why the “great room” concept, with the kitchen, dining, and family room all opening onto one another, still rules for families, says Rose.

“When your kids are young, they need to be in clear sight while you are working or preparing dinner. 'So make certain the home has enough space on the main floor for kids to play, where you can still go about your chores.'

4. Easy sightlines to the backyard

All parents know the importance of having a yard, but unless you plan to go outside every time they do, you'll also want to check how viewable that yard is from indoors. Are the kitchen windows situated so you can cook and clean while the kids play Wiffle Ball out back? 

Or if you work from home, does your desk have a clear view of your kids' sandbox or swing set? Trust us, a backyard won't give you much peace of mind if you can't keep an eye on your kids.

5. A flat lot

You’d be amazed at how many baseballs you’ll lose with even the gentlest of slopes. But add an extreme hill, and that can put a serious crimp in any bike riding or skateboarding your kids want to do. According to dad, “A 9- and 13-year-old children don't ride their bikes much, because the hills on our street and surrounding area are just too steep.'

6. Hot spots

How a home is heated can present certain problems, too. A 1942 house had a type of heater that consists of a large metal grate on the floor, where the heat wafts out. One winter day, her son stood on top of the grate and ended up with second-degree burns on the bottoms of his feet. “The next week, we took out a loan and had central heating installed.

Radiators can also get piping hot—and if you have a gas fireplace? Yes, they are cozy, but also dangerous. Within three minutes, the glass doors can become hot enough to cause third-degree burns, and it takes about 45 minutes for the glass to cool down sufficiently, says the Consumer Safety Product Commission. (When my kids were little, I put duct tape over the “on” switch so a sitter wouldn’t inadvertently turn it on.)

7. Amenities within walking distance

While most people love the option of being within walking distance of stores and restaurants, this desire is particularly heightened for families with young children, who quickly realize how burdensome it gets to pack up the car with strollers and bags. So check the surrounding area to see what's walkable—a coffee shop? Playground? Day care? It'll make a huge difference.

8. The neighbors

Find and explore the best Salt Lake City, UT neighborhoods with Livability Scores and neighborhood map boundaries.

Now is the Time 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

Why you should buy a house in 2018

With housing costs demanding such a large portion of income, it can 

be hard to determine if it’s better to buy a home, or just remain a renter.

“If you’re a person out there who has the desire to be a homeownerto begin with, and you feel financially prepared to do so, then I think homeownership at any point in time is something to seriously consider,” said Paul Bishop, vice president of research.

With borrowing rates still low and home prices predicted to increase in the coming years, 2018 could be the perfect time for those who are financially ready.

Here are three reasons why you should buy a home this year.

Prices are rising fast
The years after the 2007-2008 home values plummet. Since then, prices have grown each year, with the latest S&P CoreLogic Case-Shiller Index showing that the average home cost grew by 6.4% between April 2017 and April 2018.

This trend doesn’t seem to be slowing down either: A Reuters poll of 45 analysts released in June 2018 forecast that the index’s 20-city composite — which estimates home values for 20 of the country’s largest metropolitan areas — is set to increase by another 5.7% before the end of 2018. Bishop predicts that this growth will continue in the coming years, although year-over-year increases might slow down to 3%-5%.

As a result, those in a position to buy may want to act before prices get even higher. Additionally, purchasing a home now could be a wise investment, as the property may appreciate in value, especially if you plan on staying for a while.

“Homeownership is long-term prospect,” Bishop said. “So as long as prices continue to increase at even a modest pace over the next four, five, eight, 10 years, then that equity does build up — in some cases to quite a substantial part of someone’s net worth.”

Mortgage rates are low — for now
Buyers can still take advantage of favorable mortgage rates, a luxury that may soon be disappearing.

Although rates have been rising steadily in recent months, they’re still relatively low. The current 30-year fixed rate is well below 5%. By comparison, the average rate was nearly 19% in 1981, and it topped over 8% as recently as the year 2000.

“The housing market has been on pretty solid footing now for a number of years, and a lot of that is due to pretty affordable mortgage rates,” said Stijn Van Nieuwerburgh, a real estate professor at Columbia Business School.

And, according to the June Reuters poll, analysts predict that by the end of 2019 the average 30-year mortgage rate will climb back up to 5%, which would be the first time that’s happened in 10 years. This means that buyers in 2018 could lock themselves into a lower mortgage rate that might not be available in the near future.

Supply isn’t going up anytime soon
It’s also not getting any easier to find a house. Existing homes for sale, as of the end of May 2018, totaled 1.85 million single-family homes, condos, townhomes and co-ops, which is 6.1% lower than a year ago and a year-over-year for the 36th consecutive month, according to the National Association of Realtors.

While noted that construction has been rising in recent years — nearly 1.3 million houses were completed in May 2018, a 10.4% increase from the previous year — it’s not enough. Estimated that new developments only account for about 2% of the market, with the rest coming from resales of already-built homes.

 “For the time being, we’re not building enough to alleviate those shortages.”

 

Reasons not to buy
Still, there are also circumstances in which it might be better to wait on purchasing a home. Here are three reasons why it might be worth holding off:

• Renting is still a good alternative: Rental costs have grown in recent years, but not by much. According to a July 2018 national report from Apartment List, the median apartment rent has grown by just 1.4% over the past year, which is more than a full percentage point below overall inflation during that time. In short: Renting an apartment might be a good alternative for those looking to wait out the current housing shortage.

• Some locations are just too expensive: In many areas, housing prices are already too high. Among the National Association of Realtors’ listing of median sales prices for homes during the first quarter 2018, for sale costs in some cities have grown by more than 10% over the past year.

• Everyone’s situation is different: In the end, life circumstances mean everything, and no one should buy unless they’re ready. Bishop notes that any prospective buyer should “really do their homework” before making any decision, thinking about their financial security, their location and their job situation.

“Ultimately, you need to ask yourself: Are you likely to be in a particular location long enough that homeownership makes sense?” 
Ready to Sell or Buy now is the Time, 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. 

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Rental Rates Showing NO Signs of Slowdown

Much like the housing market, the rental sector is showing no signs of 

a slowdown. “Rent prices increased significantly across the country in April, with the southwest region showing the highest growth rates,” says Molly Boesel, principal economist at CoreLogic.

“National employment growth has remained steady in 2018, which could be a driver of continued rent increases. ”According to the most recent CoreLogic numbers, which show that U.S.single-family rents were up 2.9 percent year-over-year in April, among some other noteworthy data points.

Between 2010 and 2018, single-family rents have consistently increased, according to the CoreLogic Single-Family Rental Index (SFRI), which evaluates rent changes among single-family rental homes, including condominiums, utilizing a “repeat-rent analysis” to measure the same rental properties over time.

That said, year-over-year price hikes have moderated since February 2016—when they crested at 4.2 percent—holding steady over the past year with a monthly average of 2.7 percent, the SFRI reports. This April’s 2.9 percent year-over-year increase is a 1.3-percent in the growth rate since the 4.2 percent peak, it notes.
Low-end rental homes—properties with rents 75 percent or less of a region’s median rent—buoyed the index’s overall growth in April, SFRI says. 

Rents on lesser-priced rentals ramped up 4.2 percent year-over-year. On the other hand, rents for higher-priced dwellings—properties with rents exceeding 125 percent of the regional median rent—skipped ahead 2.7 percent year over year, the report shows.

• While low-end rents are still increasing faster than high-end rents, high-end segment rent growth accelerated and low-end segment decelerated in April 2018 compared with April 2017.
• Metros in the southwest region showed the highest rent increases over the past year.

Growth also differed considerably across metropolitan areas. Las Vegas posted the highest year-over-year growth in April, at 5.9 percent, trailed by Phoenix (5.5 percent) and Orlando (5.3 percent). Both cities realized robust year-over-year job growth that month, inking gains of 2.8 percent and 3.2 percent, respectively. This compares with U.S. employment growth of 1.6 percent, SFRI notes. Honolulu was the sole metro among the 20 assessed to display a dip in the rent index, falling 0.3 percent year over year in April.

Rents are still accelerating in such metros as Houston and Miami, which were hammered by hurricanes last year and left with crimped rental inventories, the report says. Houston rents rocketed 4.1 percent year over year this April; Miami rents bounced up by 2.1 percent. Before the 2017 storms hit, rents had been ping in the two metros.

Are Ready to Buy now is the Time, 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. 

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Selling Your Home Solo

You’ll Actually Make Less Than You Think, Some homeowners opt to sell their residence without a real estate agent to get around paying a commission and make more of the profit. Forty-three percent of people (down from 48 percent last year) who sell without a real estate agent think that if they sell themselves, they’ll end up doing a little extra work in exchange for not paying a commission or closing fee.

According to the research,however, what they actually get is a lot of time spent hustling to make the sale and a final selling price that is less than what the market can bear.

Do you have a lot of extra time to market your home and do all the work to meet and greet properly?

Are you versed in local trends on the housing market and know the latest regulations for closing a sale? Do you have a list of potential buyers ready to view your home? Eighty-nine percent of all homes sold in 2017 were sold with the assistance of an experienced real estate professional, according to the 2017 Profile of Home Buyers and Sellers.

Most leave it to the professionals,yet there is still a small group of people who prefer to do it themselves. Eight percent of home sellers chose to list themselves, known as For-Sale-By-Owners (FSBO) home sales. 

That number has steadily declined since 2004where only 82 percent of all home sales were agent-assisted and 14 percent of homes were listed FSBO. FSBO sales are currently at an all-time low since data collection began in 1981.

Picture This: are you a single female seller, early sixties, selling a single-family home or mobile in a suburban or rural area? If so, you might want to consider working with a real estate agent.

Let’s break it down further. Thirty-eight percent of all FSBOs—that’s only three percent of the total home sales in 2017—were homes sold to people where the buyer knew the seller selling to a friend, neighbor, or family member. However, 62 percent of FSBO home sales—five percent of total homes sold—were sold by the owner to someone they didn’t know.

Sellers cited creating yard signs, listing their homes online on multiple websites, spreading the news through word of mouth, putting out classified ads, displaying on social media, hosting an open house, and registering with the Multiple Listing Service (MLS) . That’s a lot of work just on marketing and finding potential buyers.

The time it takes to sell a home on the market was a median of two weeks for FSBO sellers and three weeks for agent-assisted homes, but again many of the sales are arms-length transactions. Forty percent of all homes were sold in less than two weeks last year. Most FSBO homes sales were located rural areas (22 percent), urban area or central cities (19 percent), or small towns (16 percent). Sixty-six percent of FSBO sales were detached single-family homes, compared to 81 percent of all homes sold.Thirteen percent were mobile or manufactured homes, compared to three percent of all homes sold. FSBO sellers typically had lower incomes than those who worked with an agent.

The median income of all FSBO sellers was $86,500 and for those who sold only through an agent was $102,900. Those who sell themselves have the perception that they have less money to pay for assistance when selling their home and opt to go it alone.

As it turns out, FSBO make less money on their home sales than buyers who work with a real estate agent. According to the report, the median selling price for all FSBO homes was $190,000 last year. When the buyer knew the seller in FSBO sales, the number plunges to the median selling price of $160,300. For homes sold with the assistance of an agent, the median selling price was $250,000 ̶ that’s $60,000-90,000 more for the typical home sale. According to NAR’s 2017 Member Profile, seventy-five percent of all real estate agents get paid by a percentage commission split between two agents representing the buyer and seller.

Talk to an agent and find out what they suggest for the commission and then do the math yourself. The closing price for the agent-assisted seller is likely going to be way above an FSBO. In reality, homes sold by the owner make less money overall. Based on these closing numbers, why not save yourself time and make more money by working with a real estate agent that is excited to sell your home?

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. 

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Utah Ranks 2 With the Most Retirement Potential

You’ve retired. You received your gold watch, claimed Social Security and  

begun to plan that oft-delayed trip of a lifetime. You’re ready to take in nature’s splendor by the water.

Where, though, should you enjoy your repose: Hilton Head, South Carolina? Jekyll Island, Georgia? Maui?

Try Falls Park in Sioux Falls, South Dakota.

The Mount Rushmore State is the best state to retire, according to a new Bankrate study, followed by Utah, Idaho, New Hampshire and Florida. 

New York, meanwhile, makes life hardest on those who recently escaped the daily grind. Even well-trod retirement destinations Arizona and New Mexico finished in the bottom half of our ranking.

When it comes to what makes for a happy retirement, conventional wisdom often bumps up against reality.

The best of the rest

• Utah: Second-place Utah tracked with South Dakota in most categories, albeit slightly behind. For instance, the Beehive State finished six spots behind South Dakota for cost of living, one for overall crime rate, eight for well-being, six for taxes and five for cultural vitality. It won out for health value by two and weather by six.

• Idaho: Third-place Idaho is both more affordable and significantly safer than the top two states, while also posting a superior health score and a top-10 well-being ranking. The Gem State, unfortunately, has a much higher tax burden and ranked poorly for cultural options.

• New Hampshire: Fourth-place New Hampshire, the safest place to live, also provides excellent health care to its residents, low taxes and things to do. Granite State residents, however, are burdened by a high cost of living — 43 out of 50 — and cold weather.

• Florida: The last bit isn’t a problem for fifth-place Florida, where residents enjoy an average annual temperature of 70 degrees, making trips to beaches in Clearwater and Miami paradisiacal. The Sunshine State, another low tax haven, ranks just outside the top 10 in well-being. Every other metric, though, finished middle-of-the-pack, with health care value placing 36th, a major concern for retirees who will spend an average of $280,000 on health care costs — not counting long-term care — in their golden years.

Methodology

To construct our ranking, Bankrate looked at seven relevant features in the life of a retiree and used government and expert sources to compare states against one another. We then weighted those rankings based on the importance given to them by respondents to a 2017 Bankrate survey, which found that 47 percent of Americans would consider moving when they retire.

The study examined seven categories (weightings in parentheses): cost of living (20%), taxes (20%), health care quality (15%), weather (15%), crime (10%), cultural vitality (10%) and well-being (10%). Sources: Agency for Healthcare Research and Quality, The Council for Community and Economic Research, Federal Bureau of Investigation, Gallup-Sharecare, National Oceanic and Atmospheric Administration, Tax Foundation, University of Hawaii at Manoa, Western States Arts Federation.

When it comes time 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. 

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source: “These Are the Best and Worst States for Retirement,” Bankrate.com (July 12, 2018)

Rates Continue to Slide This Week

Mortgage Rates Slide This Week, Borrowers for years have been able to take outmortgages with small down payments.

They can get mortgages with down payments as low as 3.5% through the Federal Housing Administration, and Fannie and Freddie Mac back loans with down payments as low as 3%. 

No Savings? No Problem, Not sure how to afford a down payment to buy a home until this offbeat idea: crowdfund the money from friends and family.
A 28-year-old construction technician, set up an online profile with a program called HomeFundMe to solicit donations. 

Mortgage rates were mostly in a holding pattern this week, but still eked out the first increase since early June.

Overall, mortgage rates this summer have been ping the past few weeks after sharp rises this spring. “A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending July 12:
“This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective home buyers the financial wherewithal to resume their home search.”

When it comes time 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.

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Home Values Closest to Alignment since 2015

The gap continues to narrow between homeowners’ and appraisers’ perceptions over home values. The latest Home Price Perception Index shows that the average home appraisal in June was only 0.25 percent lower than what owners had estimated—this puts the two different value perceptions at their closest since February 2015.

Homeowners provide their home value estimate at the beginning of the refinance process; that is then matched against the actual value appraisers assigned to the property later during the mortgage process.

The two perceptions over value have been inching closer together over the last few months. A year ago, homeowners were saying their homes were worth 1.70 percent more than appraisers’ valuations.

More metro areas,however, are seeing appraisals higher than what homeowners even expect. Nearly three quarters of the metro areas analyzed saw the bulk of appraisals return higher than what the owner expected.

“Getting an accurate market value is an important, albeit often misunderstood, part of the mortgage process,” says Bill Banfield, Executive Vice President of Capital Markets.

“The valuation has historically involved an appraiser coming to personally inspect the home and give their personal opinion of its value.

Now, more technology is becoming available to modernize the appraisal process. However, even with a more data-based approach, there can be some disconnect between the appraised value and homeowners perception of value.”


Local Market Trends June 2018
When it comes time 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. 

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Buyers With Down Payments

No Savings? No Problem, Not sure how to afford a down payment to 

buy a home until this offbeat idea: crowdfund the money from friends and family.

A 28-year-old construction technician, set up an online profile with a program called HomeFundMe to solicit donations. Her parents and a few others responded, and in March they closed on a $320,000 home in Cheyenne, Wyo.

HomeFundMe, a service launched by lender CMG Financial last year, is among a growing suite of services that help borrowers cobble together the funds to buy homes. These companies—startups and established players in the housing market alike—say they’re offering options for borrowers who have good credit and income but are struggling to save.

Rising consumer debt and high prices have made it tough for first-time buyers to save for a home. Nearly 40% of renters ages 25 to 34 said they were saving nothing each month for a down payment, according to a survey last year by rental-listing company Apartment List.

A few organizations, like Unison Agreement Corp. and Landed Inc., offer “shared equity” contracts through which buyers get money for their down payments in exchange for pledging part of the home’s future value to investors like pension funds or foundations. And some banks, have programs through which young adults can get a mortgage with nothing down if their parents pledge investment assets as collateral.

Yet some worry that helping borrowers get down payments could actually exacerbate the housing market’s main problem: 

Economists caution that actions such as loosening credit standards or supplying borrowers with more down payment money worsen the problem by creating more demand in a supply-constrained market, leading to a further overheating of home prices. 

Jonathan Lawless, vice president for product development and affordable housing at mortgage-finance giant Fannie Mae, said the agency is currently focusing not just on making credit available but also on increasing housing supply. For example, Fannie is looking at ways to make it easier to get loans to fix up dilapidated homes and make it simpler to finance the purchase of mobile homes.

Borrowers for years have been able to take out mortgages with small down payments.They can get mortgages with down payments as low as 3.5% through the Federal Housing Administration, and Fannie and Freddie Mac back loans with down payments as low as 3%. But these loans tend to have high monthly costs: They usually require mortgage insurance, and the bulk of the first payments can go to interest, not principal.

About 400 borrowers have used HomeFundMe to help buy homes since the program launched in October. On average, they raise about $2,500, though CMG also can kick in matching grants, and most borrowers have some of their own money saved as well.Friends and family can also make their gifts conditional, meaning borrowers won’t get the money unless they actually purchase the home.

She felt uncomfortable at first asking for help through HomeFundMe. But the budget was tight after paying for their wedding, and a credit union had already denied their mortgage application because they didn’t have enough in savings.

“Whenever I emailed people the link, I would explain, ‘This isn’t fake, this is real,’”  Now, some of her friends are interested in following suit. “It just worked out so well,” she said, “that people were like, ‘No way, I want that!’”

When it comes time 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. 

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Source: Realtor.com