Top Misconceptions About Homebuying

While 2017 may have been the best year for housing in a decade, The survey respondents, which 

consisted of 1,000 U.S. adults and 500 millennials, indicated that lack of down payment, credit concerns and student loan debt prevented many from achieving homeownership.

Additional findings:

• The average millennial thinks the minimum required down payment is 21 percent.
• Seventy percent of adults feel they don't have enough money saved for a down payment.
• Seventy–four percent of adults and 84 percent of millennials perceive the homebuying process as complicated

The survey found that general confusion about down payment requirements was compounded by a lack of awareness about assistance programs. Approximately 73 percent of all consumers and 62 percent of millennials said they were not aware or are unsure about down payment assistance programs in their communities for middle–income homebuyers.

If you're in the market to buy a home, it's important to understand your down payment options and separate the facts from the myths. Did you know the average down payment among first–time homebuyers in 2016 was 6 percent and 14 percent for repeat buyers? You can even put down as little as 3 percent through mortgage options like the Freddie Mac Home Possible Advantage® 

And, while you'll have to pay private mortgage insurance for a conventional loan with a down payment of less than 20 percent, you'll still be able to take advantage of the 30–year fixed rate mortgage that can offer you security and peace of mind throughout the life of your loan. There are also hundreds of millions of dollars available for down payment assistance.

A great place to start is right where you live. Many state, county, and city governments provide financial assistance for people in their communities who are well qualified and ready for homeownership. Here are some downpayment assistance programs available in Utah: Utah First Time homebuyers ,Grant of $5,000.00. Forgiven after 5-years. HOUSING SERVICES OF UTAH VALLEY .

                             

Homebuying doesn't have to be complicated.

Source: Freddie Mac

How much is your Home Worth?

Home sellers often get well-meaning advice from friends and family on how to market their home. But trust the real estate experts—some of those tips can lead you seriously astray. 

Please feel free to explore our website at Precision Realty & Assoc. LLC and if you have any questions or would like to see  homes in person or to discuss your home's value, PLEASE give us a CALL today.

Looking for a Newly Constructed Home?

You Have Good Timing: 

After several years of a frenzied housing market characterized by many more home buyers than sellers, builders may finally be taking note.

The number of newly constructed homes for sale and sold shot up 6.2% from September to October, according to the seasonally adjusted numbers in a joint report by the U.S. Census Bureau and U.S. Department of Housing and Urban Development. They jumped 18.7% annually.

(realtor.com® looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to account for seasonal fluctuations.)

'It’s pretty good news. Sales are up pretty strong, 'Homeowners can potentially trade up to a new home and put their current home up for sale. That would increase the number of existing homes for sale.'

For example, new homes are about 26.6% more costly, at $312,800, than existing homes, at a median $247,000, according to the most recent National Association of Realtors® report.

Monthly median new home prices dipped a little, by about 3.7%, hitting $312,800 in October. But that's up 3.3% from the same month a year ago.

The number of more affordable residences under $200,000 stayed steady, at just about 13% of all of the new construction, according to the report. The bulk of the new abodes, 53%, were between $200,000 and $399,999. About 17% were between $400,000 and $499,999 and 17% were also a cool $500,000 and up.

The biggest increase in the number of new homes on the market were in the Northeast, where they jumped 30.2% month-over-month and 64.7% year-over-year. That was followed by the Midwest, which saw a 17.9% monthly rise and a 16.2% annual increase.

Next up was the West, which experienced a 6.4% monthly bump and 20.1% surge from October 2016, and the South, where the number of new homes went up 1.3% month-over-month and 14% year-over-year. The South was likely hampered by Hurricanes Harvey and Irma, which temporarily halted construction.

Source: Realtor.com

4 Cs of Qualifying for a Mortgage

Thinking about buying a home but not sure whether you qualify for a mortgage? Consider the following facts.

What Do Lenders Look For?

Freddie Mac buys mortgages that meet our requirements from lenders — we don't make the loans. The lenders decide the standards they ultimately apply in making loans.
When deciding whether to make a loan, lenders evaluate the four Cs:

• Capacity to pay back the loan. Lenders look at your income, employment history, savings, and monthly debt payments, such as credit card charges and other financial obligations, to make sure that you have the means to take on a mortgage comfortably.
• Capital. Lenders consider your readily available money and savings plus investments, properties, and other assets that you could sell fairly quickly for cash. Having these reserves proves that you can manage your money and have funds, in addition to your income, to pay the mortgage.
• Collateral. Lenders take into account the value of the property and other possessions that you're pledging as security against the loan.
• Credit. Lenders check your credit score and history to assess your record of paying bills and other debts on time. (Even if you don't plan to buy a home now, it's always a good idea to build and maintain strong credit. Landlords often check it to make sure that you can pay the rent. It's also important if you want to apply for a mortgage or other credit line in the future, such as a student loan, car loan, or credit card.)

By completing a Loan Pre-Qualification you'll be on your way to locking in your interest rate and giving assurance to prospective sellers that you mean business. Pre-qualification is easy and can be done via email or over the phone.


Source: Freddie

10 U.S. Housing Markets That Will Rule 2018

Hot Homebuying Markets To Consider
To determine our predictions for the best real estate markets of 2018, realtor.com's® economic data team 

took a look at the number of sales of existing homes and their prices, along with the amount of new home construction in the 100 largest markets.

We also analyzed the local economies of each area, along with population trends, unemployment rates, median household incomes, and other factors.

But truth be told, we've got all of this soothsaying beat by a mile: We're setting our sights on prognosticating which housing markets will soar to new heights in 2018.

Because you care! Americans breathlessly track the up-and-down trajectory of the nation's housing markets these days, the way previous generations obsessed over stock prices, NBA rankings, or Furby sales. Give the credit (or blame) to skittishness over the last decade's housing crash, or the roller-coaster ride of home pricing, or maybe even the ascension of HGTV flipping shows.

But real estate matters: The fortunes of cities rise and fall, sometimes quickly, other times in agonizing slo-mo. And the last thing you want to do with the biggest investment of your life is buy into a housing market that is heading in the wrong direction.

What are the hot markets where you can still afford to buy? Which are ones where home prices are almost certain to appreciate? The ones with burgeoning economies and lots of job growth? The ones where you actually want to live?

6. Salt Lake City, UT

Median home price: $360,828
Predicted sales growth: 4.6%
Predicted price growth: 4.5%
Salt Lake City is so hot that potential home buyers will likely need to duke it out with competitors.

Residential neighborhood in Salt Lake City

Buyers in the city, which entered the global spotlight in 2002 when it hosted the Olympic Games, are now offering 20% to 25% above the asking price, says Kenny Parcell, real estate broker .

“You’re seeing people who are tired of paying higher taxes, or they’re tired of dealing with traffic and congestion [elsewhere]. They can sell their house in Silicon Valley and get four times the house in Salt Lake or the surrounding suburbs,' Parcell says. 'We have a lot of corporations coming in, which means good-paying jobs, a good tax base, and good schools.'

'People are going to continue to seek out pockets of affordability that remain in the market,' says Danielle Hale, chief economist of realtor com. 'A lot of these places are more affordable than surrounding areas, yet still have strong economies. Even though prices are expected to grow, most of these markets will still remain relatively affordable in 2018.”

source: Realtor.com

Recap of 2017

The Best Year in a Decade 

Despite challenges, the housing markets remain on track for their best year in adecade by a variety of measures. Let's recap the major trends in the U.S. economy, housing and mortgage markets in 2017: 

Housing Markets on Track for the Best Year in a Decade

Modest economic growth, robust job gains, and low interest rates make for a favorable economic environment for housing and mortgage markets. But despite the favorable environment, housing markets have stalled a bit through summer and into fall. A lack of available for–sale inventory is helping to contribute to an acceleration in home prices.

The Mortgage Market Shifts

Mortgage originations: Bolstered by low interest rates, single–family mortgage origination volume has held up better than expected. Low mortgage rates helped refinance volumes exceed expectations. Nevertheless, as we documented in September of this year, mortgage rates don't have to increase much to dampen refinance activity. 

Through the first three quarters of 2017, refinance originations are down 35 percent from last year's pace. Purchase activity has partially offset the decline, but for the full year, we forecast volume to decline about 15 percent from 2016's level. For more on the mortgage market, see our September 2017 Outlook.

What's ahead in 2018 and 2019?

It's unlikely the economic environment will be as favorable for housing and mortgage markets than it currently is. Current low mortgage rates offer monthly mortgage payments that are more affordable than at almost any time in history.

Read our November Outlook for further examination of future markets.

Contract Signings Post Solid Gain

Existing-home sales and contract signings saw strong gains in October, 

but both remained  below year ago levels because of the persistent supply and affordability hurdles in much of the country.

34 days Listings are going under contract typically a week faster than last October.

 Supply levels remain weak, but strong job growth and hiher wages are giving households added assurance that now is a good time to buy a home.

NAR Chief Economist Lawrence Yun talks about the multi-year economic recovery, job creation, buyer interest, new home sales, and inventory levels.

source: NAR news