Buyers Need to Know about Smoke Alarms

Smoke alarms are an important defense against injury or death in house fires.

Statistics from the National Fire Protection Association show that nearly two-thirds of home fire fatalities occur in homes with non-working or missing smoke detectors. Most building codes now require smoke detectors in all residential structures, which has resulted in a steep in fire- and smoke-related deaths. Homeowners should check with their local public safety office or fire department for specific information on these requirements.

• As in real estate, location is key! Smoke alarms should be in installed every bedroom, outside every ing area, and on each level of the home.

• Alarms should be placed high on a wall or on the ceiling. It’s best to follow the manufacturer’s instructions for placement. High, peaked ceilings have dead air space at the top; in these instances smoke alarms should be placed no closer than 3 feet from the highest point.

• For areas close to the kitchen, use a detector with a “hush button” that can be used to silence nuisance alarms triggered by cooking smoke or steam. Alternatively, consider installing a photoelectric alarm near the kitchen, which will not be triggered by cooking. No matter which type is used, never remove the unit’s battery to stop or prevent nuisance alarms.

• There are two primary types of smoke alarm technology: ionization and photoelectric. According to the National Fire Protection Association, ionization alarms are more responsive to flames, while photoelectric alarms are more sensitive to smoldering fires. For the most comprehensive protection, both types or a combination unit should be installed.

• Test each alarm monthly. It’s helpful to put a reminder in the calendar to do this on the first or last day of the month, for example. The units have a test button that will sound the alarm for a moment or two when pressed. Any alarm that fails to sound should have the battery replaced. If the test button fails with a new battery, replace the entire detector immediately. Monthly testing is also an ideal time to dust off the unit so that it continues to work properly.

• Replace the batteries at least once a year. A common rule of thumb is to do this when changing to or from Daylight Saving Time in fall or spring. Remember, a non-working alarm is no better than no alarm at all. Some alarms now come with 10-year lithium batteries that eliminate the need for new batteries, but the unit itself must be replaced after its stated lifespan.

• If the alarms are hard-wired to the home’s electrical system, make sure they are interconnected for maximum effectiveness – meaning that if one alarm is triggered, all of the others will sound as well. Any hard-wired alarms, interconnected or not, should be installed by a licensed electrician for safety and proper operation.

• The newest type of interconnected alarms are wireless. This technology allows detectors to communicate with one another and, like their hard-wired cousins, will sound all of the units at the same time even if just one is triggered initially.

source: The Pillar To Post Inspection Report

FSBOs hit record low

For the third year in a row, for-sale-by-owner (FSBO) transactions accounted for only 8 percent of recent home sales, the lowest share that the National Association of Realtors (NAR) has recorded in its annual Profile of Home Buyers and Sellers since the report was first released in 1981.

FSBO sales hovered between 12 percent and 14 percent from 2001 to 2008. In addition, the share of recent homesellers who sold with an agent remained at a record high of 89 percent in the last year.
NAR Managing Director of Survey Research Jessica Lautz says FSBO sales have flattened due to current market conditions where sellers need a competitive edge that only an agent can provide.

“What we do see is that sellers are working with agents to help market their homes to potential buyers, sell it in a specific time frame and price the home competitively,” she said. “Pricing the home competitively is really important for sellers today, especially because everything is rapidly changing with prices.”

“So knowing how to price that home so they can sell quickly is important, and that’s difficult for FSBOs to do,” she added.

Fifteen percent of FSBO sellers said getting the right price was their biggest obstacle, followed by selling it within a certain timeframe (13 percent) and understanding and performing paperwork (12 percent).

According to NAR, the median FSBO sales price rose slightly from $185,000 to $190,000 last year, compared to the median price of a home sold using an agent, which stands at $250,000.
FSBO homes sold more quickly on the market than agent-assisted homes. Fifty-eight percent of FSBO homes sold in less than two weeks — often because these homes are sold to someone the seller knows. The median age for FSBO sellers is 55 years. Seventy-four percent of FSBO sales were by married couples that have a median household income of $103,100.


source: NAR Managing Director of Survey Research Jessica Lautz

Mortgage Rates Mostly Flat This Week

Mortgage rates mostly held steady this week after posting a sizable jump last week. 
“Following a strong surge last week, rates held relatively flat this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate remained unchanged at 3.94 percent, while the 10-year Treasury yield dipped roughly 4 basis points. The markets’ reaction to the 

upcoming announcement of the next Fed chair may impact the movement of rates in next week’s survey.” 
Freddie mac reports the following national averages 
with mortgage rates for the week ending Nov. 2:

• 30-year fixed-rate mortgages; averaged 3.94 percent, with an average 0.5 point, the same average as last week. Last year at this time, 30-year rates averaged 3.54 percent.
• 15-year fixed-rate mortgages: averaged 3.27 percent this week, with an average 0.5 point, rising from last week’s 3.25 percent average. A year ago, 15-year rates averaged 2.84 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.23 percent, with an average 0.5 point, rising from last week’s 3.21 percent average. A year ago, 5-year ARMs averaged 2.87 percent. 

Source: Freddie Mac

Today's Market…Salt Lake City Area

View market statistics for Salt Lake City.

Home Ownership matters…to people, to communities, and to America. Why? • For every two homes sold, one job is created in the U.S. • Each purchase generates as much as $60,000 in economic activity over time. 

Buying is cheaper than renting in 74 percent of the nation’s largest cities. Low home prices and “rock-bottom” interest rates as well as tax advantages of homeownership are the reasons why it’s now cheaper to BUY a 2-bdrm home than to rent one.

Learn more: Salt Lake Market

Rental Vacancies Poised to Drop

As lease expirations decline on single-family rental securitizations, vacancies have started to level off. And according to Morningstar Credit Ratings recent Single-Family Research, those vacancies are likely to drop in the near future.

According to Morningstar’s research, which looks at property-level information across rental securitizations, lease expirations slipped from 9 percent in July—its 2017 high—to 6.2 percent by September. Average vacancies stayed largely steady for the month, ticking up just 0.1 percent since August.

But that slight increase likely won’t continue, Morningstar reports.

“The average vacancy rate increased slightly to 5.9 percent in September, but the decline in expiring leases could indicate a corresponding decline in the average vacancy rate soon,” the report stated.

Delinquencies on rental securitizations rose incrementally for the month, increasing 0.8 percent. Nine securitization deals showed delinquency rates of 1 percent or higher—up from just four deals the month before.

Rents also rose across single-family rental pools as well, jumping about 3.5 percent in September. Rents rose most on recently renewed properties.

“For August, the latest month for which data is available, the rent change for vacant-to-occupied properties was 1.5 percent, while the rent change for renewal properties was at 4.4 percent,” Morningstar reported.

Still, despite upticks, rents are largely on pace with estimates set out by RentRange, an online tool offering rent comparisons and rental estimates. The biggest exception was the Sarasota-Bradenton-Venice metro area, where renewal rents were actually lower than most RentRange estimates.

source: DSnews

HOME PRICE INDICES

The following is NAR Chief Economist Lawrence Yun’s reaction to today’s reports on the U.S. homeownership rate in the third quarter and August home prices (S&P/Case-Shiller).

“The American Dream of home ownership remains elusive, as the third quarter figure shows little change in the overall  rate. The reason is simple. There is just not enough supply of homes to fully satisfy the desire to own. The lack of inventory has pushed up home prices by 48% from the low point in 2011, while wage growth over the same period has been only 15%.

The latest Case-Shiller constant quality price index further affirms strong price gains (7% in August), which is the third consecutive month of accelerating gains from already fast appreciating conditions.”

Posted in Comments & Statements, by Adam DeSanctis on October 31, 2017

Rates, Incomes Inch Housing Affordability Upward

Housing is more affordable now—but not because of home prices. According to the Real House Price Index (RHPI) released by First American today, it’s low mortgage rates that are driving affordability upward for buyers.

The RHPI, which takes into account income, interest rates, and home prices across the nation, shows real house prices up 9.6 percent over the year, though they dropped 0.4 percent between July and August. Prices are also down 38.4 percent below their peak, seen in July 2006, and 17.2 percent under January 2000 levels.
Unadjusted, home prices increased 6.1 percent between August 2016 and August 2017, largely due to supply issues, First American reported.

“According to the National Association of Realtors, the number of existing homes listed for sale declined to a 4.2-month supply in September, which marked the 28th consecutive month of year-over-year declines in inventory levels,” according to First Am. “The lack of supply is driving unadjusted house prices higher.”
Still, despite rising nominal prices, housing is getting more affordable thanks to lower rates and better incomes.

“Lower mortgage rates in August compared with July, combined with a modest 0.1 percent month-over-month increase in wages, helped offset rising nominal house prices, producing a slight 0.4 percent increase in affordability in August,” First Am reported.

Overall, consumer house-buying power—or “how much one can buy based on changes in income and interest rates,”—rose 0.8 percent from July to August. Those interested in buying a home shouldn’t be too optimistic, though, according to First Am’s Chief Economist Mark Fleming.

“Though consumer house-buying power improved in August, affordability is likely to fade as mortgage rates are expected to rise in the months to come, but lower affordability is only significant to potential first-time buyers,” Fleming said. “Existing homeowners with fixed-rate mortgages benefited from the rising prices with increased equity.

If you're renting and thinking of buying, then now is the time."

Over the past year, affordability has declined more than 9 percent, Fleming said. Delaware had the greatest increase in real house prices over the last year, with a jump of 16.2 percent. Nevada, Alaska, Massachusetts, and Washington also made the top five.

The smallest increase in real house prices was seen in Alabama, where they rose just 2.8 percent. North Dakota, Hawaii, New Jersey and Washington D.C. also posted lower year-over-year increases.

See the full RHPI at FirstAm.