Homes are Selling at Record Speed

Rising prices not with standing, homes in May sold like 

hotcakes, This May, all 54 metros tallied months’ supply of inventory at or less than six months—a figure indicative of a seller’s market.

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Homes sat on the market an average of five more days (51) in May 2017, 12 more (58) in May 2016, and 18 more (64) in May 2015. The metros boasting the lowest DOM were San Francisco and Seattle, Washington, at 19; Denver, Colorado, at 21; and Salt Lake City, Utah, at 25.



Crimped inventory and crushing demand from homebuyers slashed days on market (DOM) to 46, the second-lowest monthly amount in the report’s 10-year history, the report say

May sales outdid April’s by 14.5 percent; they fell 2.8 percent from May 2017. The median sales price: $251,673, up 7.8 percent from May 2017 and 2.1 percent from April of this year.

“Even with low inventory and the Federal Reserve raising interest rates, homes are going from ‘for sale’ to sold 28 percent faster than three years ago,” 
What’s more, the number of for-sale homes in May marched ahead 4 percent from April but slipped 9.5 percent from May 2017. Based on this May’s home sales rate, months’ supply of inventory stayed flat from April at 2.5 months and contracted a tad compared to 2.6 months in May 2017.

Such a sizzling market, house shoppers should plan on competing with other would-be buyers when making an offer on a property. 

“Be prepared—that’s my message to potential homebuyers in this summer selling season,” he said. “Make sure you are pre-approved with a lender, try to make a clean offer with no contingencies, and, if possible, consider offering favorable concessions to the seller such as a flexible closing date.”

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

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Am I Eligible for a VA Loan?

Millennial Buyers Love VA Loans, Millennial veterans and military 

members are helping fuel the resurgence of the historic VA loan program. Last year’s 700,000-plus loans were more than double the agency’s total from five years ago.

Younger buyers in particular have flocked to these government-backed mortgages during a time of tight credit and flat lining wage growth. The VA says millennials accounted for about a third of all VA loans last year.

These low-interest loans offer qualified buyers a wealth of benefits. That’s especially true for millennial borrowers, who often have dented credit or minimal savings. This $0 down payment loan program was created to help level the playing field for those who serve our country, and it’s still doing so today.

“VA loans offer an extraordinary opportunity for veterans because of lower interest rates, lower monthly payments, no or low down payments, and no private mortgage insurance.” 

Here’s a closer look at three of the big benefits that make VA loans such a good match for millennial home buyers.

1. No down payment requirement

This renowned benefit of VA loans helps veterans purchase without having to spend years saving for a down payment. When determining affordability, qualified buyers in most of the country should know that they can purchase a home for up to $424,100 before having to factor in a down payment. That ceiling is even higher in costlier housing markets.

Am I Eligible for a VA Loan?

The average VA loan last year was for about $253,000. Getting a conventional loan for that amount often requires a down payment of at least $12,000. FHA loans require at least 3.5% down. That’s no small sum in either case, particularly for younger veterans and military families.

2. No mortgage insurance

VA buyers also don’t have to pay extra each month for mortgage insurance, a common feature of low-down-payment loans. Conventional buyers typically need to pay for private mortgage insurance unless they can put down 20%. FHA loans come with both upfront and annual mortgage insurance premiums.

For example, FHA buyers shell out an additional $140 per month for mortgage insurance on a typical $200,000 loan. That extra outlay can limit your purchasing power, as well as put a hole in your monthly budget.

Most VA buyers encounter a funding fee that goes straight to the Department of Veterans Affairs. Veterans and military members can finance this cost over the life of their loan. Borrowers who receive compensation for a service-connected disability don’t pay it at all.

3. Flexible credit guidelines

VA loans were created to boost access to homeownership for veteran and military families. They’re naturally more flexible and forgiving when it comes to credit underwriting.

Lenders typically have lower credit score s for VA loans than for conventional mortgages. The average FICO score on a VA purchase last year was 50 points lower than the average conventional score.

Compared with conventional borrowers, qualified VA buyers can also bounce back faster after a bankruptcy, foreclosure, or short sale.

Despite their flexibility, VA loans have had the lowest foreclosure rate on the market for most of the past nine years. That’s due in large part to the VA’s commitment to helping veterans keep their homes.

Loan program officials can advocate on behalf of veteran homeowners and encourage lenders and mortgage servicers to offer alternatives to foreclosure.

“VA is even there to assist veterans who encounter difficulty making payments.”  

“Last year, VA and servicers helped over 97,000 veterans avoid foreclosure. Using the VA program is a win for veterans, lenders, and taxpayers.”

More than seven decades after their introduction, VA loans are still making a big difference for veterans, military members, and their families.

“A home and its equity becomes the bedrock of their economic future.”  “Money that would have typically been used for the down payment is now money in their pocket—money that can be the beginning of their savings or can be used to fix up their home. 

It is a win-win for the veteran and the community where they spend that money.”

Are you Ready? We are here to help, with a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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Most Boring Parts of the Home-Buying

June is National Homeownership Month we're celebrating 

borrowers and lenders as we reimagine the mortgage experience to make homeownership possible.


That means working together with our industry partners to better understand the hopes and fears, the characteristics and challenges of current and future borrowers, with one goal in mind: to turn homebuyers' dreams into reality.

How to Deal: When all is said and done, buying a home is exciting—and a milestone to be celebrated. But if you expect each step of the process to be a thrill ride, we're here to tell you you're sorely mistaken.

In fact, between the rush of the hunt for the perfect place and the extreme satisfaction of crossing your threshold as a new homeowner, the rest of the home-buying process can be a bit of a slog.

There are many unglamorous parts of buying a home—some of which many consider downright boring. Do the words 'financial due diligence' make your eyelids feel heavy? Yeah, ours too.

But when you know what to expect and why, it’s a whole lot easier to deal. So pay attention to these three very mundane—but very important—parts of the home-buying process. We've outlined why they matter and how to get through them without losing your sanity.

1. Raising your credit score

Savvy home buyers know that a good credit score will allow them to lock in a good interest rate. But what if your credit score is in the gutter? Raising it can take some time—a year, if not more—but there are some strategies you can take to get it where it needs to be.
One of the easiest and most effective ways to bump up that credit score(besides paying all your bills on time, which you already do anyway, right?) is to avoid applying for any new credit—including personal loans, car loans or leases, and credit cards—for about one year before starting the home-buying process.

 

“Your credit gets pulled each time you apply for a loan of any type, which negatively impacts your credit score,” he says. And that can translate to a less favorable rate when it comes time to get a mortgage.

2. Securing a mortgage pre-approval

Once you’re satisfied with your credit, it’s time to shop for a mortgage lender who will ultimately help you buy a home. We won't lie: Shopping for a mortgage lender is not fun. It requires a number of steps and a lot of paperwork.

First, you’re going to want to inquire with different lenders to learn about their rates, programs, fees, and specials. You’ll also want to consider if you want to work with a mortgage broker, who will essentially shop home loans for you.

It’s important to take the time to discuss the ins and outs of the loan programs that are available, from conventional 30-year loans to adjustable-rate mortgages, to FHA loans.

Once you’ve settled on where you want your loan to come from, it’s time to get that all-important pre-approval, which is a commitment from your lender to provide you with a home loan up to a certain amount. That will set your home-buying budget, and also show sellers that you are serious about buying when it comes time to put an offer in.

But the pre-approval process takes patience.
“Lenders require a host of documents to get you fully pre-approved, and often it comes down to minutiae such as explanations of small transactions in or out of your account.” The plus side is that once you have your pre-approval, you can largely check tedious mortgage tasks off the list.

3. Reading the fine print

Spoiler alert: You are going to be bombarded with financial, legal, and technical documents during the home-buying process—and unfortunately, it’s your job to read through all of it. Even if that sounds about as exciting as trudging through 'War and Peace,' don't skimp on the time it takes to understand the contracts you're signing.
The best way to get through all the painful paperwork is to know what to expect. Here are the three most important documents that are going to come your way:

• Your offer: Once you and your real estate agent have put together an offer, you have to look over the contract and make sure its accurate. In the age of digital signature technology, buyers often click to add their initials or signature without fully reading contract documents. This is especially common for buyers who have made multiple offers, as they all start to blur together. Its important to read every document for each offer to ensure that the contracts were completed correctly, including the offer price, earnest money deposit, and any contingencies.

• Inspection report: Soffits. Fascia. Duct work. We get it, the inspection report can be a snooze. In fact, if the roof isn't falling off and the sellers are not planning to remove that orange shag carpet, then you may decide you can just ignore the whole thing. But that would be a mistake. Even if youve received a verbal update after the inspection, you should actually read the report you paid for to ensure the inspector didn't inadvertently forget to share any areas of concern.' 

• Closing documents: Get ready for a pile of closing documents about 2 inches thick. Its in your best interest to master all the intricacies of your mortgage and understand your closing fees, so make sure to look over your closing documents and have your lender explain any issues that you're concerned about so you know what you are signing.

Are you Ready, You've come to the right place, We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

#RealEstateForSale #Homeownership #UtahRealEstate #MorgageRates

Unlocking Homeownership

Co-Buyers Bring Big Down Payments, Co-buyers—multiple  

unmarried buyers listed on the sales deed—are bringing some of the highest down payments to settlement, according to ATTOM Data Solutions’ First Quarter 2018 U.S. Residential Property Loan Origination Report

“Given that median down payments rose more than four times as fast as median home prices over the past year, it’s not surprising that home buyers are increasingly getting help from co-buyers—often in exchange for a share of their home’s future equity,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. 

“Homeownership rates are still hovering around historic lows—even though lenders continue to offer more low down payment options,” says Michael Micheletti, director of corporate communications at Unison, a firm that provides down payment assistance to buyers in exchange for a share of any future increase in the home’s value. “Letting people borrow more doesn’t make buying a home more accessible or affordable.

It’s not surprising that challenging markets buyers are looking at ways to increase their purchasing power, and reduce the amount of debt they are taking on. The sharing, co-buying and co-owning of a home movement will only grow as more millennials and Gen Z enter the marketplace.” 

“With interest rates rising and home price appreciation accelerating, current homeowners are increasingly turning to home equity lines of credit rather than refinances to tap their home’s equity. “Homeownership rates are still hovering around historic lows

Given that median down payments rose more than four times as fast as median home prices over the past year, it’s not surprising that homebuyers are increasingly getting help from co-buyers — often in exchange for a share of their home’s future equity.”

Click on picture to see what areas are using this method 

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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Home Embodies the American dream

Why is homeownership so important for America's families? 

It's simple. It provides an opportunity to build wealth, promises independence, and instills a strong sense of pride. For many, buying a home embodies the American dream.

You've worked hard, saved your hard-earned dollars, and built — and sustained — good credit to buy your home, one of the biggest investments you'll ever make. It's a huge milestone and you should be proud.

This pride, coupled with a sense of freedom, gives you the power to make your home uniquely yours,from the outside in. Your home is your space — your private sanctuary — that should reflect your personality, barring any rules that may be set by your neighborhood's  homeowners association.

As a homeowner, you're able to create a space where you and your family feel most comfortable. Consider this:

• Have you always wanted to paint your walls the brightest, boldest shade of purple? You own your walls, go for it!
• Do you want to make your home more energy efficient? You're the homeowner, do it!
• Your 'bucket list' includes an English garden in your backyard. It's your home, build it and watch it grow!

Being the master of your own domain comes with many benefits and rewards.However, it's also important to note that owning a home comes with responsibilities that include routine maintenance and repairs that will cost you both time and money.

This maintenance and upkeep is very important as it protects the value of your investment and further contributes to your family's financial security.

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

Fed Nudges Up Interest-Rate
Federal Reserve officials raised interest rates for the second time this year and upgraded their forecast to four total increases in 2018

“We are still in the middle innings of rising interest rates … mortgage rates will consequently continue to nudge higher,” Yun says.

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Rents Are Still Growing Much Faster Than Wages

Rental costs rose by 3.6% for the twelve months ending in May,

 down a tick from April’s 3.7%, the Labor Department said Tuesday. As with all economic data that speaks for big nationwide trends, there’s a lot of variation under that headline. Yearly rent growth was 4.9% in Las Vegas – and flat in Chicago, according to real estate data firm Yardi.

So far in 2018, annual increases have averaged 3.7%, while in 2017, they averaged 3.8%.

The deceleration in rental costs stems most notably from developers building lots of new housing over the past few years.

Financier Sam Zell, speaking at a conference in New York in early June, pointed to “oversupply,” and suggested that real estate investors might soon find the multifamily market “less attractive” than in recent years.

But there are some skeptics. In April, Goldman Sachs economists estimated that what some analysts are calling a “supply glut” would be easily absorbed over the coming months owing to strong demand.

What’s more, it bears repeating that 3.6% rent growth — or 3.5% or 3.4%, for that matter — isn’t exactly cheery news for American consumers. That’s because wages aren’t keeping up. They rose 2.7% in the 12 months ending May, the Labor Department said earlier this month.

In fact, once inflation is factored in, wages haven’t budged over the past year. And as the Federal Reserve gets set to raise short-term interest rates yet again and global trade skirmishes threaten to boost prices of lots of consumer goods, it’s worth keeping in mind just how strapped American households are.

Are you Ready to Stop Renting? You've come to the right place, We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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The Hottest Remodel of 2018

You'll Never Guess, The hottest remodeling jobs of the year aren't all about installing new kitchen cabinets or countertops, putting an eye-catching backsplash above the stove, or adding a sleek yet functional kitchen island. Instead, 2018 is all about the john.

Nearly a quarter of homeowners plan to remodel their bathrooms over the next year, according to HomeAdvisor's 2018 True Cost report. That's compared with just 15% who plan to upgrade their kitchens. (The company, a home services marketplace, surveyed more than 1,000 homeowners from March 21 to March 30. All of the participants completed home maintenance and improvement projects in the past 12 months.)

'There’s a trend of creating a spa feel in the bathroom,' says HomeAdvisor's chief economist, Brad Hunter, noting that a lot of people are deciding they don't want a tub, with some preferring a walk-in shower.

'People are putting in speakers so they can have music playing in the living room also playing in the bathroom,' he says. 'You can even have a TV built into your mirrors.”

The average bathroom remodel cost an average of $9,724. Project costs ranged from $2,500 on the low end, for refinishing existing countertops, installing new flooring and fixtures, or slapping on a new coat of paint.

Overall, homeowners spent an average $6,649 on improvements to their abodes in the past 12 months, according to the report. About two-thirds of those surveyed expect to spend the same or more over the next year.

Millennials completed the most projects over the past 12 months. That may be because they're more likely to have purchased cheaper fixer-uppers versus pricier, move-in ready abodes.

'The millennials are really starting to show up on the radar,' says Hunter. But the projects they're undertaking are a little different from those of the older generations.
'Oftentimes, they're buying a house that has some cosmetic neglect and they have to do some basic shoring up of the house,' he adds. 'They may replace a broken faucet.'

Meanwhile, baby boomers spent the most, at $7,524, followed by members of Generation X, at $6,582. As boomers get older, they're increasingly thinking about growing old in their existing homes. That means getting their abodes ready with walk-in showers, lower cabinets, and potentially even outdoor ramps in place of entryway stairs, so in the coming years they're able to stay in them rather than moving into a pricey assisted-living facility or nursing home.

'They’re getting everything working in tiptop condition so that when they’re no longer in tiptop shape, they won’t have to worry about it,' Hunter says. 'While they’re doing necessary work, they’re thinking they might as well add a grab bar or putting in a reinforcement to allow them to screw in a grab bar later.'

Homeowners are also investing in inexpensive projects such as painting the interior and exterior of their homes and putting in or upgrading their flooring. This can add to a home's value, particularly if the owners plan to put it on the market soon.

'Painting gives you a lot of bang for your buck. ... It adds to the curb appeal and the salability of a house when it looks fresh,' says Hunter. 'There's [also] a very strong return on investment when it comes to hardwood, whether it's putting in new hardwood or resurfacing hardwood. ... People categorically look at a hardwood floor and say, 'Wow, that looks beautiful.''

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

#RealEstateForSale #Homeownership #UtahRealEstate #Remodel