Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Dec. 14, 2018

Bidding Wars Hit 8-Year Low

Buyers Are Still Face Competition, Home buyers may be less likely to face a bidding war than in previous months, but that doesn’t mean they won’t be facing competition from other home shoppers. 

A new report showed that 32 percent of real estate pros say they faced one or more competing bids in November, down from 45 percent a year earlier.

That marks an all-time low in bidding wars. In October 2018, inventory was at just 4.3 percent, down from 4.4 percent last month, according to the National Association. Timing is Everything, You may have found the home of your dreams, but be prepared to fight to make it your own.

A shortage of available homes in some markets has created fierce competition for those homes that are listed for sale. Fortunately, the speed at which those homes are selling is slowing, but not by much.

Much of the competition is driven by the limited supply of houses on the market. But despite low supply and a competitive market, if you find yourself in a bidding war, you can still come out victorious. 

Finding the right home is both an exciting and painstaking process, check out these tips to help you find a property that fits your housing goals:

During the spring selling season this year, three out of four offers faced competition. But as of November, only about one out of every five offers faced competition, the lowest rate among the largest markets tracked.

A lot of people are motivated price-wise from the selling standpoint too, because they too want to get to their next location.”

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today

 

#LeasePurchase #UtahRealEstate #Buying

Posted in Buying
Dec. 13, 2018

December is usually the Slowest for Home Sales

But that might not be the case this year, December is typically the slowest month in the housing market, but it can be a great month for home buyers who have been sidelined to finally make their move.

This month may be busier than previous December’s for that reason, too, economists say. Some buyers may be looking to take advantage of steadier mortgage rates—which are still averaging below 5 percent—and home prices that are easing somewhat.

I see more people buying right now because they’re afraid rates will be higher in 2019,” a real estate professional.

Mortgage rates are still nearly a percentage higher than they were a year ago, but they are still under 5 percent. Freddie Mac reported last week that the 30-year fixed-rate mortgage averaged 4.75 percent. Rates are largely predicted to move higher in 2019.

Housing affordability has become a mounting issue in the housing market, but home prices are showing signs of easing. Home prices usually are lower in the winter months, and housing reports are showing more properties are seeing price cuts. Nearly 29 percent of listings in major markets during the month ending Oct. 14 saw price reductions according to Precision Realty & Assoc. LLC.

But house hunters in search of a deal may also find lower inventories of homes for sale during this time of year.

Though the holiday season is not going to give you plenty of options to choose from, there are reasons why you should not put your home search on hold for the holidays,” says Carriene Porter, realtor.com®’s. “December is the best time of year if you want to avoid competitions.”

According to Carriene Porter@realtor.com®, views per property are 21 percent lower in December than the rest of the year.

Motivation can be high for buyers to make a move before the end of the year. “Either they have a lease expiring Jan. 1 or they have saved enough money for their down payment, so they are motivated to buy.  “A lot of people are motivated price-wise from the selling standpoint too, because they too want to get to their next location.”

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today

 

#LeasePurchase #UtahRealEstate #Buying

Posted in Buying
Dec. 12, 2018

Buy a House for Your Child

(Even If You Aren't Loaded) You do have Option, Want to learn how to buy a house for your grown child? Being able to help your grown kids become homeowners can really give them a leg up—particularly in this pricey housing market.

Between rising home prices and millennial student loan debt, many young adults don't have money to buy a house," says mortgage lender. "That's where parents can help out."

Indeed, 41% of college-educated Americans with student loans report having postponed buying a home because of their debt, according to a recent survey by Student Loan Hero, a service that helps people pay off their student debt more efficiently.

According to a recent home buyer survey from ValueInsured, 17% of millennial home buyers say they plan to rely on a loan or a gift from a family member to fund the majority of their down payment. That relative is usually a parent.

But make no mistake, buying a house for your adult child isn't as straightforward as, buying them a puppy when they were 8. Purchasing a house for your kid requires careful planning.

Here's what you need to know, and your options on how to get this done.

Option 1: Gift the down payment money

When you contribute funds to your child's down payment for a mortgage, the money can be classified as either a loan or a gift. This decision has major tax implications.

If you provide the cash as a loan, your kid (or you) will have to pay taxes on it. Gift money, however, can be transferred tax-free up to a certain limit. For 2018, any gift of $15,000 or higher will incur taxes, up from $14,000 in 2017. For couples, however, that means each person can gift $15,000 to their child tax-free, for a total of $30,000.

Note: If you gift the down payment, your child’s mortgage lender will require proof showing that the money is indeed a gift. This must come in the form of a gift letter, where you swear on paper that you don’t plan on asking for the money back.

However, that letter might be insufficient for your child’s mortgage lender. In many cases, you’ll have to provide a paper trail verifying where the money is coming from, mortgage adviser and author of "The Loan Guide: How to Get the Best Possible Mortgage."

Most lenders will require two months of statements from your bank account, including all pages from each statement.

Option 2: Buy the house and rent it out to your kid

If you can afford it, you have the option of buying a home solely in your name and renting it out to your child; in fact, this may be your only option if your kid can’t qualify for a mortgage. Fortunately, property taxes, mortgage interest, repairs, maintenance, and structural improvements are generally deductible on a second home.

The caveat? Your kid must pay you rent in order for you to qualify for these tax deductions, a certified public accountant and former tax manager. If you let your child live in the house for free, you’ll receive none of those write-offs.

Option 3: Buy and co-own the house

The third approach is to purchase a home and co-own it with your child. In this case you'd be purchasing the home and dividing the equity in whatever percentage you choose, and when the house is sold, you’d get your share of the money back. This is a good arrangement if you eventually plan to sell your portion of the house to your kid."

However, not all mortgage lenders offer home loans for shared ownership, so you may have to shop around if you choose this financing option. Another drawback: If your kid can't pay the mortgage, you're on the hook for it.

Decide what your role will be

Before you help your kid buy a home, determine what your level of involvement will be. Do you want to be part of the search process by attending showings or open houses? Are you going to let your child ultimately pick the property, or do you want to have final approval? Do you want to be involved with writing the offer or handling negotiations? These are all good questions to ask yourself.

Make sure junior can afford the homeownership expenses

Helping your child buy a house is a big decision—and you probably don’t want to put yourself in the position where you’re also paying the monthly homeownership costs. After all, being a homeowner doesn’t just mean paying off your mortgage—it also means paying for maintenance, repairs, renovations, redecorating, and utilities.

The take-home lesson: Make sure your child has a steady source of income before buying her a house!

Caution: Don't sabotage your retirement

Even if your golden years are decades away, buying a home for your child could negatively affect your retirement plans if you have to dip into your retirement accounts.

For instance: If you withdraw money from an IRA or 401(k) before age 59½, you’ll get slapped with a 10% excise tax on the amount you withdraw, on top of the regular income tax you pay on withdrawals from traditional defined contribution plans. Making early withdrawals also prevents the money from accruing interest in these accounts, so you’d be setting yourself back significantly in the future.

The bottom line: You need to consider all the factors that go into buying a house for your child before opening up your wallet.

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

 

#LeasePurchase #UtahRealEstate #Buying

Posted in Buying
Dec. 11, 2018

Is it Smarter to Buy a New Home Before Selling

You should never buy a new house before selling your old home ... at least, that’s the conventional wisdom. Because if you buy before you sell, you run the risk of owning two homes at once—and carrying two mortgages!

What if your first home doesn't sell anytime soon? The financial ramifications are too scary to even consider, right?

Not necessarily. For some home buyers, it actually does make more sense to buy your new home before you sell your old one. Here are six times to seriously consider this option, along with tips for handling the challenges you might face along the way.

1. You’re buying in a seller's market

A seller's market refers to times when there are more buyers looking for houses than there are houses available for sale. And this puts buyers at a disadvantage.

2. You want to remodel your new home (or your old one)

If you’re living in a fixer-upper or you have your eye on one, buying before you sell may actually make a whole lot of sense. The reason: This strategy gives you a place to live while renovating the other residence. That way, you and your family don’t have to live in a construction zone!

3. You have kids

Let's just say it's not easy to sell a house that's overrun with children, and all the toys and messes that crop up in their wake. It can even hurt the odds that your home will sell at all.

Getting your home sales-ready, and keeping it that way, may be simpler if you’re already living in your new home (plus, you don’t have to uproot your little ones more than once).

4. You’re downsizing

Downsizing is an especially challenging task. You’re faced with sorting through the contents of your current home, which tends to be a time-consuming and emotional ordeal. Buying a new home before selling gives you time to sort through your belongings and simplify the process.

5. You’ve found a great deal, or your dream home

Some houses are just too good to pass up. If you’ve found an amazing bargain or the home of your dreams, you may want to snap it up! If not, you might regret how playing it safe meant you missed out on this once-in-a-lifetime deal.

Even if you have good reason to buy before you sell, that doesn't mean it'll be easy. For one, would you even qualify in lenders' eyes to carry two mortgages at once? And would you want to? Here's how to navigate these challenges.Ask yourself Can i carry two mortgages?

If you’re thinking about putting your house on the market, To make the most of your new listing, Do a Walk-Through With a real estate professional like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. Give us a CALL 801-809-9866 today..

 

 

#Selling #UtahRealEstate #Homeownership

Posted in Market Updates, Selling
Dec. 10, 2018

So Long, New York and L.A.!

Here Are the Cities Luring (and Losing) the Most Americans. Whatever happened to American wanderlust? Manifest destiny? Hitting the road?  

The fact is, Americans are less likely to pack up their belongings and relocate now than at any point in recorded history: Only about 11% moved to new homes last year, the lowest rate recorded since the government started keeping track 70 years ago.

This includes a drop in the number of folks moving to new homes in the same state, as well as those moving across state lines. Why are more people staying put? Part of it is due to the torrent of millennials, with their mountains of debt and shifting job prospects.

"It is a tough time for people in their 20s. ... It takes young people five to six years longer now to get out of the house compared with previous generations,” says John Cromartie, a geographer at the U.S. Department of Agriculture.

Then there's the general aging of the population, with many baby boomers already ensconced in their forever homes.

Make no mistake: The pool of movers may be shrinking, but the country is still going through a period of profound migration—with some places losing and others gaining. And this smaller group of movers is having an enormous impact, since newcomers remain the lifeblood of big housing markets, keeping builders busy and home prices rising.

The realtor.com® data team analyzed migration trends to find the metropolitan areas* gaining the most new residents, and those seeing the biggest population declines. During the recession, Americans flocked to the biggest cities where finding a job was easier. But in the rebounding years, these meccas, such as New York and Los Angeles, have seen housing costs soar and people relocate to more affordable destinations.

"Right now the numbers are showing [people moving] to the West and South, and away from the Northeast and Midwest," says demographer Ken Gronbach of KGC Direct. "Cities where taxes are low and housing [costs are] reasonable will see a huge influx of people over the next five to 10 years."

Just because a place ranks high for losing residents doesn't mean plenty of people aren't moving there—it's just that more people are moving out of that market than are coming in. We came up with our ranking by analyzing recently released U.S. Census Bureau population data from 2012 to 2016.

We calculated the net migration for every metropolitan area** by  measuring the difference between the numbers of residents moving in and those moving out. So let's start with the cities attracting newcomers like floodlights attract luna moths!

Many transplants are coming from the Northeast, including New York and New Jersey, says local real estate agent Rose Kemp. She's also seen quite a few Puerto Ricans moving in after Hurricane Maria devastated the U.S. territory.

This influx of newcomers means builders are busy. Orlando has a number of three- and four-bedroom homes going up in new subdivisions in the region. In Lake Nona, a new community, buyers can find three-bedroom homes priced around $400,000 with access to pools and state-of-the-art fitness centers.

The rest of the top 10 metros where the most folks are moving to include Dallas; Las Vegas; Columbia, SC; Tampa, FL; and Charlotte, NC. OK? Now let's take a tour of the places people are leaving in droves.

Plus, the city is packed with 20- and 30-somethings working for nonprofits, newsrooms, and political campaigns, who don't stay forever. While working here they rent bedrooms in colorful row homes in the Dupont Circle neighborhood with a gaggle of roomies—or they rent apartments in large buildings in nearby burbs such as Arlington, VA. But after a few years learning the ropes and paying their dues, many of these young folks take off for other cities.

“On Capitol Hill people are working 50 to 60 hours a week in an intense and exciting environment," says Cromartie, the USDA geographer who studies population trends. "But that life is very much for younger people who then move on and up [and out]."

The decline in population isn't happening all over the region. In fact, the city of DC on its own saw a positive jump in the number of folks moving in. It was the surrounding suburbs that saw declines. However, that's likely to change when Amazon opens its second headquarters in Crystal City, VA, just outside of the capital.

The rest of the top 10 metros where the most folks are moving away include San Diego; Anchorage, AK; Philadelphia; Miami; and Boston.

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

 

#LeasePurchase #UtahRealEstate #Buying

 

Posted in Buyers market, Buying
Dec. 8, 2018

Equity Gain in Third Quarter: $12K

Average Homeowners are still finding plenty of equity in their homes, but the gains are slowing. Homeowners with a mortgage saw their equity rise by 9.4 percent over the past year, according latest Home Equity Report. The average homeowner gained $12,400 in home equity between the third quarter of 2017 and the third quarter of 2018.

That is lower than the more than $16,000 year-over-year gain in equity reported in the second quarter.

“On average homeowners saw their equity increase again this quarter, but not nearly as much as in previous quarters,”  “The lower year-over-year gain reflects the slowing in appreciation.

Still, nearly every state posted an increase in equity among homeowners in the third quarter. Western states saw the most significant increases in the third quarter, according to the report. For example, California homeowners recorded an average gain of about $36,500 in home equity in the third quarter; Nevada homeowners saw a $32,600 uptick and Utah homeowners saw a 18,000 equity home gain. 

Mortgage Rates Are Easing: Home buyers may be finding a window of opportunity to lock in lower rates. Mortgage rates fell this week, after several weeks of moderating, Freddie Mac reports.

Mortgage rates declined this week amid a steep sell-off in U.S. stocks,” says Sam Khater, Freddie Mac’s chief economist. “This week’s rate reaction to the volatile stock market is a welcome relief to prospective home buyers who have recently experienced rising rates and rising home prices.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 6:

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

 

#LeasePurchase #UtahRealEstate #Mortgagerates

Dec. 7, 2018

Buyers Aren’t Giving Up

But Their House Hunts Are Lasting Longer, Buyers are spending significant time trying to find the perfect home. Fifty-four percent of active buyers say they’ve been trying to find the right home for three months or longer, according to the National Association of Home Builders’ Housing Trends Report poll.

But most of the prospective buyers surveyed say they refuse to give up and will keep looking until they find the right home. The NAHB survey found that buyers who are unable to find a home over the next few months plan to do the following:

Buyers say the biggest delays that are stretching out their home search is they can’t find a home at an affordable price (49%), followed by not being able to find a home with the desired features they want (40%) or in their ideal neighborhood (38%).

  • 61% will continue looking until the “right” home opens up in a preferred location
  • 37% will expand their search area
  • 23% will accept a smaller/older home than originally intended
  • 18% will give up trying to find a home until next year or later
  • 16% will buy a more expensive home than they originally intended.

One option that is not in the cards for most of them: giving up.  Only 18% will stop trying to find a home.

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  .  

#LeasePurchase #UtahRealEstate #Homeownership

Source: “Active Home Buyers Are Spending Significant Amounts of Time Looking for the Right Home,” National Association of Home Builders’ Eye on Housing blog (Dec. 4, 2018)

 

Posted in Buying
Dec. 6, 2018

Making a Wish List

Checking it Twice, The homebuying process can be a lot to handle—just like the holiday season. In both, you likely have a mile-long to-do list and are trying to stick to a budget.

As you begin to make your holiday wish list, you might also consider creating a homebuying wish list.

Putting pen to paper will help you visualize "wants" compared to "needs" and which of those "wants" are reasonable to look for.

It will also help you prioritize. For example, you may want to walk to work in the city, but also want a large yard and no traffic. See the paradox? This is normal!

When making your homebuyer wish list, ask yourself specific daily lifestyle questions that will help you rank items in order of importance. For example:

Can you work from home? What type of workspace will be required for that?

Is a garage a necessity? How many spaces do you need?

Do you have the time/money to care for a yard or do you prefer a low maintenance home?

Once you're finished with your list, you'll be able to decide what elements of a potential home are must-haves as opposed to which are nice-to-haves.

Bottom line: You are going to have to make some tradeoffs, but knowing what you want and what you can afford will help you and your agent narrow in on the perfect house.

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. 

Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.   

 

#LeasePurchase #UtahRealEstate #Mortgage 

Posted in Buying
Dec. 5, 2018

In 2019 Mortgage Payments to Jump 8.4%

uyers will likely see a significant jump in their monthly payments next year. Mortgage payments are forecasted to rise 8.4 percent in 2019 due to the increase in mortgage rates, according to S&P Global Ratings’ latest housing market update.

Rates to jump up 8.4 percent, 37.4% of Purchase Borrowers Received Mortgage Rates Under 5% Last Week,

Over the last year, the mortgage payment growth rate has exceeded the numbers seen for home price appreciation. That trend is expected to continue into next year.

Housing affordability remains a chief concern, While the rate of home price gains is slowing, the rising mortgage rates are still likely to bite into affordability.

Home buyers who shop around for mortgage rates could unlock some potential savings. A new analysis shows that home buyers could see a median lifetime savings of $27,454 in interest on a $300,000 loan by comparison shopping for the best mortgage rates.

About 37 percent of borrowers who applied for a 30-year fixed-rate mortgage in November received offers under 5 percent. A year ago, 98 percent of purchase offers had rates under 5 percent, The average interest rate at the end of November was 4.875 percent.

Many economists are predicting mortgage rates above 5 percent in 2019. The National Association of REALTORS® predicts that the 30-year fixed interest mortgage rate to average around 5.3 percent next year.

“The potential buyer who’s thinking if now is the right time to buy needs to do the math and determine what the impact of potential rising rates would be on their payment,” says Paul Bishop, NAR’s vice president of research.

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

 

#LeasePurchase #UtahRealEstate #Mortgage 

Source: “Mortgage Payments Set to Jump in 2019,” HousingWire (Dec. 3, 2018); “34.7% of Purchase Borrowers Received Mortgage Rates Under 5% Last 

Posted in Financing
Dec. 4, 2018

Financing for Manufactured Homes Coming


Freddie Mac has announced that it will start Conventional financing manufactured housing,
 which it hopes will help make homes more affordable to buyers. The mortgage financing giant says it will conduct a two-year pilot called CHOICEHome to grant conventional financing for manufactured homes with certain features, such as permanent and pitched roofs. 

Many of the manufactured homes also have energy-saving features, such as Energy Star Qualified Low-E windows, programmable thermostats, and minimum insulation values.


Factory-built homes that meet Freddie Mac’s specifications will be eligible for a CHOICEHome certification and CHOICEHome financing. Freddie Mac’s HomeOne and Home Possible loan programs will also be available for manufactured housing. Freddie Mac also says appraisers will now be able to use site-built housing as a comparable valuation. 

Today’s manufactured homes can deliver outstanding quality at prices that are up to 50 percent less per square foot than conventional site-built homes,” Freddie Mac notes. “These savings can enable more Americans to own their own home, even in the face of an ever-widening housing affordability gap.”


Currently, more than 22 million families live in factory-built housing. That number is expected to grow, says Mike Dawson, vice president of single-family affordable lending strategy and policy at Freddie Mac. 

“There’s an opportunity for factory-built homes to address the housing supply shortage and quality housing overall,” Dawson says. “This new generation of manufactured housing might just be the best option for first-time home buyers, millennials, and empty-nesters looking to downsize.”

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 
Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

 

#LeasePurchase #UtahRealEstate #Homeownership

Source: 
Posted in Financing