Values Increasing at a Steady Pace Month-Over-Month

Home Values in Sync

According to a study published Tuesday, the gap between opinions of values from appraisers and homeowners continue to narrow.

The study states that according to the study Home Price Perception Index (HPPI), actual appraisals were 0.99 percent lower than homeowners thought they would be.

According to study, homeowners estimate that their home’s values rose by an average of 0.99 percent over the actual appraisal value. Study goes on to state that this finding marks the fifth consecutive month that the value opinions narrowed. Additionally, the study found that the HPPI is currently the closest it has been to equilibrium since April 2015.

Overall, study found that the trend is for homes in Western cities to have an appraisal value that surpasses the homeowner’s estimate. Dallas is a particularly noteworthy example of this, as the study found that appraisals there were as much as 3.13 percent higher than expected.

Although this is the case for the West, study found that the opposite is true for homes in the East and Midwest, where home values are more likely to be appraised below the homeowner’s estimate.

“Based on the HPPI, it appears homeowners in the markets where prices are rising faster than the national average—like Denver, Seattle and San Francisco—are continuing to underestimate just how quickly home values are rising, so the average appraisal is higher than the homeowner estimate,” said Bill Banfield, Executive Vice President of Capital Markets.

Study goes on to state that despite appraisers and homeowners still continuing to differ, that appraisal values continue to rise. For October 2017, home values are up by an average of 0.71 percent while they are up 4.76 percent compared to October 2016.

This is where home value index, the measure of home value change based on appraisal data, comes in. The study said that the HVI showed values increasing at a steady pace month-over-month while increasing at greater amounts yearly. The 0.71 percent jump from September to October along with a 4.76 percent year-over-year jump illustrates this.

source: DSNews

10 Cities With the Largest Rent Increases

Rents have been slowing in many areas, but exceptions are still giving renters sticker shock. Rents in the nation’s largest cities, in particular, continue to grow.

Almost half of renters (46%) spend more than 30% of their income on rent, according to Census Bureau data. This means they are classified as housing cost-burdened based on guidelines from the Department of Housing and Urban Affairs.

Rent vs. Buy Calculator, especially in the biggest cities in the country. Below we compare rents and incomes to find the cities with the largest rent increases.SmartAsset, a personal finance website, analyzed data median household incomes and average rents and compared them in 2013 to 2016.

Four of the top 16 cities with the largest rent increases are in California, according to the analysis. But it’s New Orleans that saw the steepest run-up in rental costs from 2013 to 2016. Rental costs increased 10.5 percent in that time, more than any other U.S. city analyzed.

Source: “Top 10 Cities With the Largest Rent Increases—2017 Edition

Home Features, Not Brands, Attract Young Buyers

Home features—particularly those that are technology-based—have a stronger pull on millennial home shoppers than the promotion of brand names, according to a new survey by John Burns Real Estate Consulting, conducted with 20,000 new home shoppers. Millennials tended to show a preference for tech-focused amenities that could make their lives simpler.

Young adults born in the 1980s and 1990s are half as likely as their parents’ generation to rank brand as the most important factor when selecting products in the home. They do check reviews online before buying, so the survey showed online reputation is also important to them.

The young adults born in the 1990s are more likely to pay an extra $3,500 for a smart-tech refrigerator than older adults. Younger adults may have less income to spend, but they showed a higher preference for technology, according to the survey.

“We believe that understanding your buyer will help you make better decisions,” notes Steve Basten, senior consultant, and Todd Tomalak, vice president of research, for John Burns Real Estate Consulting. 



Source: “Millennials Pay More for Features and Less for Brands,” John Burns Real Estate Consulting (Nov. 13, 2017)

Housing Boom Is Officially Back

 Housing prices have returned to the “boom levels” of a decade ago, but this time around, the fast appreciation is being fueled by strong supply-and-demand dynamics rather than predatory lending practices, investor speculation, and too much construction, according to new realtor.com® data released Monday.

“As we compare today’s market dynamics to those of a decade ago, it’s important to remember rising prices didn’t cause the housing crash,” says realtor.com® Chief Economist Danielle Hale. “It was rising prices stoked by subprime and low-documentation mortgages, as well as people looking for short-term gains—versus today’s truer market vitality—that created the environment for the crash.”

 The national median price for a home in 2016 was $236,000—2 percent higher than in pre-recession 2006—according to realtor.com®. Out of the country’s 50 largest housing markets, 31 have returned to their levels during the last housing bubble. Realtor.com® researchers finger Austin, Texas, as the city that has posted the largest increases in home prices—63 percent—over the past 10 years. Denver and Dallas have also seen some of the biggest gains, at 54 percent and 52 percent, respectively. Salt Lake City Utah Change Home Prices 2016 vs. 2006: 33.6 percent and Year 2016: Median Home Prices 272,136 from 2006 Price of 203,766.

On the other hand, three markets remained more than 20 percent below their 2006 highs: Las Vegas (25 percent below); Tucson, Ariz. (22 percent); and Riverside, Calif. (22 percent). 

source: Realtor newsletter

Mortgage Rates Dip Slightly

Mortgage rates were down across the board this week, lowering borrowing costs for potential home buyers and refinancers.
“After holding steady last week, rates dipped slightly this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 10-year Treasury yield fell roughly 7 basis points, while the 30-year mortgage rate ped 4 basis points to 3.90 percent.” 
Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 9:

• 30-year fixed-rate mortgages: averaged 3.90 percent, with an average 0.4 point, ping from last week’s 3.94 percent. Last year at this time, 30-year rates averaged 3.57 percent.
• 15-year fixed-rate mortgages: averaged 3.24 percent, with an average 0.5 point, falling from last week’s 3.27 percent average. A year ago, 15-year rates averaged 2.88 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.22 percent, with an average 0.5 point, ping from last week’s 3.23 percent average. A year ago, 5-year ARMs averaged 2.88 percent.

Source: Freddie Mac

Utah has the Hottest Markets

Homes Sales on the Move

Homes are selling quickly: a median of 28 days, the fastest pace on

 record. Before this summer, that number had never dipped below 30. Utah has the hottest markets, with the typical home in the state selling in just 20 days. Wyoming, with its hard-hit energy sector, has the slowest, at 105 days on market. Here are states with the fastest and slowest home sales.



 A glimpse at the current state of the housing market.

 

 

Job growth is boosting the economy and housing demand, but sales are hemmed in by low inventories in many parts of the country. When houses go on the market, they’re selling fast. Tight demand is sending prices up, at a rate of about 6 percent a year, far outpacing wage growth. As that gap widens, more households will be priced out of the market.

12 Reasons to List During Fall & Winter Months

Why Acting NOW Could BENEFIT You… NOW!

1. Inventory of Competition is Lower. Law of Supply and Demand works! Your home stands out with serious buyers who have less to choose from now. Your odds of selling go UP during this time of year. The % of total inventory sold is great during these months.

2. Only SERIOUS Buyers are out in the fall/winter. Fewer people are in the house, yet are more likely to make an offer.

3. Taking Exterior Photos with Holiday Decorations. This can be a big asset before being left with full-on-winter, dead landscaping… and nothing to dress it up!

4. Homes Show Better While Decorated. Fireplaces, evergreens, and scented candles, all add to the beauty inside… when it’s not so pretty outside. This Contrast can cause YOUR home to show BEST NOW.

5. Little Know Fact: It’s perfectly OK to have specific “no showings-times” during the Holidays. In fact, it’s expected. Just because you’re planning a few days of no showings is no reason to not be for sale the REST of the time. “None this weekend” is perfectly OK.

6. Houses Feel More Like “Homes”. Coming in from the cold… some cozy-home-feelings causes emotion you can’t get other time of the year. People are generally just grateful and happier during this time of year. That can equal a Sale since a lot of Buyers buy on emotion.

7. Online Searches Go Way Up. People stay indoors and tend to do more home research online during times they were outdoors over the spring/summer. If you aren’t listed, they can’t find you online. If you don’t play, you can’t win!

8. End of Year Buyers May Even Pay More. End of year buyers may have mental or actual deadlines they want to meet. With less time to negotiate AND fewer homes competing that could = the BEST price for YOU. Often the % of asking price received is statically higher Nov-March.

9. More Day-time Showings mid-November through January. With holiday time-off, daytime showings increase during this time of year leaving your home free for you during evenings and weekends.

10. End of Year Buyers often has an “urgency factor” they must meet. Many employers hire to start January. There are also tax benefits and other urgency factors that may affect Buyers in Nov/Dec. If you don’t list now, you miss those buyers. They’ve already bought before you ever go on the market if you wait until the new year.

11. Late occupancies are common during this time. Many that need to buy by end of year don’t have to occupy right away, allowing a real win-win. They win buying now, and you may be able to negotiate your move for later while taking your profit out now. This happens over the holidays more than any other time of year.

12. Decreased Demand on Vendors means easier quicker closings. Lenders, appraisers, home inspectors, movers and other vendors are less busy during this time of year, resulting more time for YOUR transaction to be smoother & easier. A huge reason to do this NOW rather than with the “crowds”. 

Think of the Peace of Mind you’ll have to be “all done” while others are just starting! --- Not listing now could cause you to miss YOUR perfect buyer who needs to buy NOW.

What’s the real downside to listing NOW… when there are so MANY good reasons NOT to wait?

The Question really is – Why delay?