Existing-Home Sales Slip 0.7

Existing-home sales slowed for the fourth consecutive month in July,

 reaching their most sluggish pace in more than two years, the National Association of REALTORS® reports. 

The West was the only major U.S. region to see an increase in sales last month.

Total existing-home sales, which include completed transactions for single-family homes, townhomes, condos, and co-ops, fell 0.7 percent month over month to a seasonally adjusted annual rate of 5.34 million in July. Sales are now 1.5 percent lower than a year ago.

Rising home prices may be prompting would-be home buyers to pull away, says NAR Chief Economist Lawrence Yun. “Led by a notable decrease in closings in the Northeast, existing-home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million [units],” Yun says. “Too many would-be buyers are either being priced out or are deciding to postpone their search until more homes in their price range come onto the market.”

Yun notes that a steady climb in home prices over the past year—along with an uptick in mortgage rates this spring—is cooling sales.

First-time buyers comprised 32 percent of sales in July, down from 33 percent a year ago.

Here’s a closer look at some key indicators from NAR’s July housing report:

• Home prices: The median existing-home price for all housing types was $296,600, a 4.5 percent increase from a year ago.
• Inventories: Total housing inventory fell 0.5 percent to 1.92 million existing homes available for sale, unchanged from a year ago. At the current sales pace, unsold inventory is at a 4.3-month supply.
• Days on the market: Fifty-five percent of homes sold were on the market for less than a month. Properties typically stayed on the market for 27 days, down from 30 days a year ago. “Listings continue to go under contract in under a month, which highlights the feedback from REALTORS® that buyers are swiftly snatching up moderately-priced properties,” Yun says. “Existing supply is still not at a healthy level, and new-home construction is not keeping up to meet demand.”
• All-cash sales: All-cash transactions compromised 20 percent of sales, up from 19 percent a year ago. Individual investors tend to account for the biggest bulk of cash sales. They purchased 13 percent of homes, unchanged from a year ago.
• Distressed sales: Foreclosures and short sales accounted for 3 percent of sales, down from 5 percent a year ago. Broken out, 2 percent of sales were foreclosures, and 1 percent were short sales.

Selling or Buying doesn’t have to be a huge undertaking, but it’s one where details really matter. 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 or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate

9 Design Tricks for a Home Office

Working from home seems like the dream when you're stuck at the

office. Sweatpants! Pour-over coffee! Lunch at that cute cafe in the neighborhood! TV—whenever you want! And, work ... well, that will happen sometime, right?

The reality is much less exciting. Sure, there's freedom. But there are also distractions galore, all of which hamper your focus.

Creating a peaceful and productive home office is the key to work-from-home success. These nine design tips will help you cultivate a space that's not just beautiful, but also supportive of your career aspirations.

Here are six questions to ask a real estate agent to flush out what he's truly thinking, that could help you figure out if this place is really right for you.

1. ‘Would you buy this house?’

This question may be the ultimate litmus test of whether you should purchase a home. If your agent would have reservations about buying the house for himself, that’s a waving red flag. So if you get the sense your agent isn't as enthusiastic about the home as you are, ask why. His answer might give you pause, too.

2. ‘What is the sales history of this house, and how would it affect my offer?’

Before making an offer on a house, ask your agent for the property’s sales history.

Was it previously an expired listing? Was it leased? Was it ever a bank-owned property or other type of distressed home? These factors could suggest a home has been a struggle to sell—which could mean you could snap up this home at a bargain-basement price.

3. ‘What contingencies do you think are worth getting—and skipping?'

“When buyers and sellers get cold feet about the purchase or sale of a home, they sometimes think they can just back out.”  But when a seller accepts a buyer's offer, both parties sign a legal and binding contract—an official document that requires the buyer and seller to execute the transaction.

So how binding that contract is depends on the details. Some contracts have contingencies built in that enable the buyer or seller to walk away from the deal without penalty. And contingencies are often included for a home inspection and an appraisal.

But note that having too many contingencies tends to turn off sellers, so make sure to strike the right balance by asking your real estate agent for guidance. For instance, you might be OK waiving a home inspection contingency if the home is newly constructed, whereas it's more essential with an older home that might need extensive repairs.

4. ‘Are there any upcoming condo or homeowners association assessments?’

When you purchase a condominium or a home within a homeowners association, you’ll receive the HOA's financial documents, which outline important information such as reserve funds and CC&Rs (covenants, conditions, and restrictions).

These condo docs and disclosures can be hundreds of pages long—which could overwhelm home buyers, who could forget to check if there are any upcoming assessments. Assessments are periodic one-time payments made to the HOA above and beyond the monthly fee, usually to cover capital improvements or repairs.

Since they will affect your monthly housing expenses, you'll want to know whether they could go up anytime soon—and your agent is adept at navigating these documents to pinpoint the answer.

5. ‘What's happening in this neighborhood, and how will that affect home prices?'

Good real estate agents hear everything about what's happening in the communities where they do business. And although federal fair housing laws prohibit real estate agents from commenting on a neighborhood’s demographics, your agent can still give you advice on whether you’re making a solid investment based on local housing market trends and economic factors that affect home values.

So go ahead and ask: Are the neighborhood’s home prices rising or falling? Are there new amenities (e.g., parks, shopping, public transportation, Whole Foods) being built in the area?

These are all important things to consider before buying a house, and a real estate agent can help you cut through the noise and really tell you what's up.

6. ‘Can you recommend a home inspector/handyman/real estate attorney in the area?'

Local expertise matters not only with the real estate agent you hire, but also the other professionals you could meet while negotiating this real estate deal. So if you need recommendations for a home inspector, handyman, or anyone else on your home-buying journey, make sure to ask your agent for recommendations to boost the odds of smooth sailing.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. 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 or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate

5 Mortgage Moves You May Need to Do

Getting a mortgage is easy, right? You’ve seen the TV commercials and the

billboard ads touting promises like,

“Get approved for a mortgage today!” Well, sorry to break the news, but the reality is that obtaining a home loan isn’t just one mouse click or phone call away.

There are a number of hoops to jump through and hurdles to cross before a mortgage lender will issue you a loan. To switch metaphors, it's less of a sprint, more of a triathlon—and it’s easy to overlook an important stage or two as you move toward the finish line.

Curious what home buyers often miss, much to their chagrin? Here are five essential steps that many people don't realize are needed for a mortgage.

1. Get pre-approved

In any highly competitive housing market, it's akin to self-sabotage not to get pre-approved before making an offer on a house.

Pre-approval is a commitment from a lender to provide you with a home loan of up to a certain amount. This will set your home-buying budget, and also show sellers that you’re serious about buying when it comes time to put in an offer. In fact, many sellers will accept offers only from pre-approved buyers.

Mortgage pre-qualification should not be confused with pre-approval. Pre-qualification is based solely on verbal information you give a lender about your income and savings—meaning that it shows how much you could theoretically borrow. But make no mistake, it's no guarantee. Pre-approval, on the other hand, means the lender has already done its due diligence and is willing to loan you the money.

How to do it: To get pre-approved, you’ll have to provide a mortgage lender with a good amount of paperwork. For the typical home buyer, this includes the following:

• Pay stubs from the past 30 days showing your year-to-date income
• Two years of federal tax returns
• Two years of W-2 forms from your employer
• 60 days or a quarterly statement of all of your asset accounts, which include your checking and savings, as well as any investment accounts, such as CDs, IRAs, and other stocks or bonds
• Any other current real estate holdings
• Residential history for the past two years, including landlord contact information if you rented
• Proof of funds for the down payment, such as a bank account statement. (If the cash is a gift from your parents, you need to provide a letter that clearly states that the money is a gift and not a loan.)

2. Ace the home appraisal

Lenders require a home appraisal before they’ll issue a loan, because the home you’re buying is going to serve as collateral. Which is why it wants to make sure the property is worth the amount of money you’re paying for it.

If the home’s appraised value is the same as what you've agreed to pay, you’ve passed the appraisal. If the appraisal comes in at a figure higher than what you're paying, you’re golden—in fact, you’ve gained instant equity! But, if the appraisal comes in lower than what you've agreed to pay, you will need to renegotiate the Sell price.

How to do it: A lender won't loan more than a home's appraised value, which could leave you, the borrower, to cover the difference. But if you’re unwilling or able to do that, you have a few options:

1. Negotiate with the seller. For the appraisal to pass, the seller may agree to lower the sales price. Of course, this might require some negotiating by your real estate agent with the sellers agent.
2. Appeal the appraisal. Sometimes called a rebuttal of value, an appeal involves your loan officer and agent working together to find better comparable market data to justify a higher valuation. If you file an appeal, the appraiser will review the information and then make a judgment call on whether or not to adjust the info.
3. Order a second appraisal. If you believe the initial appraisal is significantly off base, for whatever reasonmaybe the appraiser overlooked a good comp or wasnt familiar with the local housing marketyou can order a second appraisal. Youll have to pony up for the expense, and appraisals can range between a few hundred dollars and $1,000, depending on the area.
4. Walk away. This is a total bummer, but it may not be worth overpaying for a home, says Dossman.

 3. Keep your credit score stable while under contract

Depending on the loan program, lender, and applicant’s specific credit history, the minimum credit score necessary to buy a home varies. The minimum requirement could be as low as 580 for a Federal Housing Administration (FHA) loan, or as high as 660 for a conventional loan. However, lenders vary in their requirements.

The caveat, though, is that your credit score must remain stable while you’re under contract on a house. Why? Because the lender’s final clearance and a loan commitment are subject to a last-minute credit check (and other verifications) shortly before closing.

How to do it: To avoid jeopardizing your final loan approval, follow these guidelines:

• Dont open new credit accounts. Applying for a new credit card can ding your score, says Beverly Harzog, a consumer credit expert and author of The Debt Escape Plan, because it results in a hard inquiry on your credit report. Buying a car, boat, or any other large purchase that has to be financed can also dock your score.
• Dont close old credit accounts. Closing an old account can hurt your debt-to-credit utilization ratioa term for how much debt youve accumulated on your credit card accounts, divided by the credit limit on the sum of your accounts. This ratio comprises 30% of your credit score. By closing a credit card account, you reduce your available creditmaking it more difficult to keep your debt-to-credit utilization ratio below 30% (the recommended percentage).
• Dont miss a credit payment. Even one late payment can cause as much as a 90- to 110-point on a FICO score of 780 or higher, according to Credit.com. 

4. Review the closing disclosure form

Lenders must provide borrowers with a closing disclosure, or CD, at least three business days before closing. Essentially, the CD is the official follow-up to a more preliminary document you received when you first applied for your loan, called the loan estimate, or LE (also known as a good-faith estimate).
The LE outlined the approximate fees you would be expected to pay if you move forward with a lender to close on a home. But your closing disclosure is the real deal—it outlines exactly what fees you’re going to pay at settlement. You have to scrutinize it carefully.

How to do it: Ask your real estate agent to sit down with you and compare the CD and LE. Here's a list of things to triple-check:

• The spelling of your name
• Loan term (15 years? 30 years? Something different?)
• Loan type (a fixed-rate or adjustable-rate mortgage)
• Interest rate
• Cash to close amount (down payment and closing costs)
• Closing costs (fees paid to third parties)
• Loan amount
• Estimated total monthly payment
• Estimated taxes, insurance, and other payments 

5. Pass the underwriting process

Before your lender issues final loan approval, your mortgage has to go through the underwriting process. Underwriters are like real estate detectives. It’s their job to make sure you have represented yourself and your finances truthfully, and that you haven’t made any false or misleading claims on your loan application.

Underwriters will pull your credit score from the three major credit bureaus—Experian, Equifax, and TransUnion—to make sure it hasn’t changed since you were pre-approved. They will also review the appraisal of your prospective home to make sure its value matches the size of the loan you are requesting, and check that you haven't taken on any new debts.

Many underwriters will also contact your employer to verify the job and salary that you listed on your loan application. This sounds like a basic step, but you’d be surprised how many people lie on their mortgage application.

How to do it: This one’s pretty simple. Assuming you’ve been diligent about keeping your credit score, job status, and debts stable, you’ll pass with flying colors. If the underwriter has a question, don’t panic—the best thing you can do is respond with prompt and complete information. Your agent is also there to help you troubleshoot any issues.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. 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 or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Could Home Value Growth be Cooling?

In June, a growing number of homes sold for less than they were originally

listed,especially at the higher end, according to new research.
Reported that about 14 percent of listings across the U.S. had a price cut in June. That's up from a low of 11.7 percent near the end of 2016. In San Diego, 20 percent of listings had a price cut in June, up from 12 percent a year ago.

The cuts are a sign that after years of juggernaut-level price growth, home value growth could be slowing. The report found that value growth in June slowed in almost half of the 35 largest U.S. metros, most notably in Sacramento and Seattle. Values still rose 8.3 percent over the past year, nationally,

But we expects that growth to slow to 6.6 percent by this time next year. Growth in San Jose, California, Indianapolis, Indiana, and Charlotte, North Carolina are expected to slow the most.

“Since the beginning of the year, the share of listings nationwide with a price cut increased 1.2 percentage points,” reported, calling the shift “the greatest January-to-June increase ever reported.” It was more than double the January-to-June increase in 2017.

The report added that while home value growth isn’t slowing down nationally, “it is slowing in some of the nation’s hottest housing markets.”

The report revealed that the overall increase in the share of homes with a price cut appears to be driven by trends in the upper reaches of the market. Dallas saw the largest disparities between shares of listings in the top tier versus the bottom tier in June—21.9 percent in the top tier, 8.7 percent in the bottom tier. Orlando and Houston saw differentials above 12 percent.

“Since the beginning of the year, the share of higher-priced listings with a price cut—those priced in the top one-third of all homes listed for sale—rose 0.9 percentage points, to 16.2 percent,” the report stated. “Over the same time, the share of lower-priced listings with a price cut (those priced in the bottom one-third of all homes) fell 0.1 percentage points, to 11.2 percent.”
There are fewer listings with a price cut in some of the nation’s more affordable housing markets. San Antonio, Phoenix, Philadelphia, and Houston reported a smaller percentage of listings with a price cut in June than a year ago, the report indicated.

“The housing market has tilted sharply in favor of sellers over the past two years,”the report concluded. “But there are very early signs that the winds may be starting to shift ever-so-slightly. It’s far too soon to call this a buyer’s market, but these data indicate the frenetic pace of the housing market over the past few years may be starting to return toward a more normal trend.”

So 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. 

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, and a realtor will be able to tell you what to take care of first.




#RealEstateForSale #Homeownership #UtahRealEstate 

Rates Ease for Second Consecutive Week

Borrowers had slightly more relief with mortgage rates again this week. The 30-year fixed-rate mortgage rate dipped again, averaging 4.53 percent, Freddie Mac reports.

“The stability in borrowing costs comes despite the highest core inflation rates since 2008 and turbulence in the currency markets,” says Sam Khater, Freddie Mac’s chief economist.

“Unfortunately, this pause in rates is not leading to increasing home sales.” Last week, mortgage applications for home purchases once again trailed levels from last year.

“It’s clear that in some markets the combination of ascending home prices, limited affordable inventory, and this year’s higher rates are curtailing home buyer demand,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 16:

• 30-year fixed-rate mortgages: averaged 4.53 percent, with an average 0.5 point, falling from last week’s 4.59 percent average. Last year at this time, 30-year rates averaged 3.89 percent.
• 15-year fixed-rate mortgages: averaged 4.01 percent, with an average 0.5 point, ping from last week’s 4.05 percent average. A year ago, 15-year rates averaged 3.16 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.87 percent, with an average 0.4 point, down from last week’s 3.90 percent average. A year ago, 5-year ARMs averaged 3.16 percent.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. 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 or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Homeowners and Appraisers Close to Agreement

Homeowners and appraisers are inching closer to home

values, according to Quicken Loans’ Home Price Perception Index(HPPI). Appraised values logged in just 0.28 percent lower than homeowner estimates in July—not a total agreement but still much closer than before, HPPI notes.

The shrinking gap portends positive days ahead for the overall market, says Quicken Loans EVP of Capital Markets Bill Banfield. 

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. 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, and a realtor will be able to tell you what to take care of first.

“The story the HPPI is currently telling is one of an ever-strengthening housing market,”said Banfield.

“With more appraisals meeting, or even reaching beyond, the level homeowners were expecting, it’s clear home values in the majority of areas have recovered to the point where the owners’ personal view is finally lining up with the appraisers’ expert view.”

Which U.S. region did the HPPI find to be most on par with appraisers’ valuations? That distinction goes to the West, where homeowners overvalued their domiciles by a mere 0.14 percent. Otherwise, the remaining regions are neck and neck. Down South, properties are overvalued by 0.3 percent. In the Northeast, that number creeps up a smidge to 0.33 percent. It’s 0.35 percent in the Midwest.

Locally, appraisals stood higher than homeowner estimates in nearly 80 percent of the areas surveyed, according to the HPPI. San Jose, California, lays claim to the “hottest housing market of the moment,” with appraisals clocking in 2.91 percent higher than homeowner estimates. Chicago homeowners, on the other hand, displayed the most disparity, overvaluing their residences by 1.58 percent, the HPPI found.

There was one city where no difference existed between appraisal values and homeowner estimates. And that “special shoutout,” the HPPI revealed, goes to Miami.

As for home values, those slipped 0.6 percent in July, but they’re still up 4.86 percent on the year, according to Quicken Loans’ Home Value Index (HVI).

“The HVI is telling a similar story of the housing market’s health,” he said. “Other than some small monthly shifts, home values continue to grow at an annual pace exceeding inflation. This can hurt affordability and hinder first-time buyers from entering the market.”

Home prices charted up in three of the four regions, with the Midwest posting a monthly decline of 1.01 percent. That said, Midwest values are still up 4.04 percent compared with 2017, the HVI notes.

As for the other three, values are up 0.35 percent monthly and 4.46 annually in the South. The Northeast comes next, up a monthly 0.72 percent and a yearly 2.78 percent.  Finally, the West was up 1.15% on the month and 6.68% annually..

#RealEstateForSale #Homeownership #UtahRealEstate

Did you Get a Credit Score Boost?

Consumers Getting a Credit Score Boost: An overhaul in how 

several major credit reporting agencies factor in negative credit information is prompting millions of consumers’ credit scores to rise.

Collection events were struck from 8 million consumers’ credit reports in the 12 months ending in June.

The New York Federal Reserve reported Tuesday that consumers who had at least one collections account removed from their credit reports are seeing an 11-point increase to their scores. 

Critics have long claimed such dings to scores are prone to errors or that they've unfairly kept many out of the borrowing market. Equifax, Experian PLC, and TransUnion have all agreed to revamp reports, which stems from a 2015 settlement with state attorneys general on the matter. 

In the settlement, the firms agreed to remove some non-loan related items that were sent to collection firms, such as gym memberships, library fines, and traffic tickets. They also agreed to strike medical-debt collections that have been paid by a patient’s insurance company.

The majority of consumers who benefited from the recent changes are those who had credit scores below 660 before the collection events were removed, according to the New York Fed.

This could be good news for potential home buyers, as better credit scores are a big factor lenders use in granting cheaper rates for mortgages. And relatively small shifts in scores can make a big difference on loan affordability. 

A recent study from LendingTree showed that consumers who can raise their credit scores from “fair” (580-669) to “very good” (740-799) could potentially save $29,106 in mortgage costs.

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. 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 or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate #Creditscore