Buyer Demand Hasn’t Slowed

Spring Season ‘Unmet Expectations’ However, buyer demand 

hasn’t slowed, which is evident in quicker sales and strong price growth, Yun says. 

The troubling reality is that gains in home prices and housing inventory has fallen for 36 consecutive months, and listings typically gounder contract in just over three weeks.

As the housing markets continued to remain highly competitive and fast-moving, but without 'enough new and existing inventory for sale, activity has essentially stalled.'

'With the cost of buying a home getting more expensive, it's clear the summer months will be a true test for the housing market.

One encouraging sign has been the increase in new home construction to a 10-year high,' Yun said.

For the fifth consecutive month, pending home sales ped in May—a sign that the recently ended spring buying season didn’t live up to the hype typical for real estate’s traditionally busiest time of year.

Contract signings also eased last month, and a significant sales decline in the South offset gains in other regions of the country.

The index is down 2.2 percent on an annual basis. This year’s spring buying season will be remembered as one of “unmet expectations,” with pending home sales at the second lowest level in the past year.

He says inventory shortage is the main culprit, “In most of the country continue to their markets as highly competitive and fast-moving, but without enough new and existing inventory for sale, activity has essentially stalled.” .

In this video, Yun talks about all the other factors that affected home sales and the regions most impacted by them:

“Several would-be buyers this spring were kept out of the market because of supply and affordability constraints.

The healthy economy and job market should keep many of them actively looking to buy, and any rise in inventory would certainly help them find a home.”

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 #VisitSaltLakeCity

Mid-year snapshot of the Housing Market in 2018

Looking at the second half of the year, The balance of 2018 

looked like a mixed bag. “The triple problems of limited inventory, home price appreciation, and rising rates are likely to keep existing home sales from being as strong as they should be,” he said.

 “Prices are going to continue to rise as are interest rates.”

Carrington projected the 30-year fixed-rate loan rates to end 2018 at 5 percent and home prices to rise 5-6 percent by the end of the year. While the forecast projected existing home sales to end the year at around 5.5 million, it said that new home sales would end at around 650,000.

Looking at the foreclosure market, the remnants of the foreclosure crisis were concentrated in a few states and fewer foreclosures were going to REO. Looking at the rest of the year, the market could end the year with historically low levels of mortgage delinquencies.

“However we need to make sure that lenders don’t get out over their schemes again as it becomes more and more challenging to write loans in a relatively low refi market,” he cautioned. “It’s worth keeping an eye on the FHA portfolio also as their delinquency rates have gone up a bit even though they are at the low end of their historic rates.”

And even though market indicators did show signs of heating up, looking at all indicators as a whole, a bubble doesn’t seem to be a possibility. Affordability too was better than it looked, though it was weakened.
Here's a Snapshot of Mortgage Rate Performance as well, Mortgage rates saw a steady rise in May according to the latest monthly mortgage data published by the Federal Housing Finance Agency 

It also provides information on 15-year and 30-year fixed-rate loans as well as Adjustable Rate Mortgages (ARMs). Additionally, the survey provides quarterly information on conventional loans by major metropolitan area and by Federal Home Loan Bank district.

The data indicated that nationally, interest rates on conventional purchase-money mortgages increased from April to May, led by the national average contract mortgage rate for the purchase of previously occupied homes by combined lender index closing six basis points up to 4.57 percent for loans closed in May, from 4.51 percent in April.

For conventional loans with 30-year fixed-rate mortgages of $453,100 or less, the average interest rates rose seven basis points to 4.71 percent from 4.64 percent in April, while the effective interest rate on all mortgage loans was 4.66 percent in May up three basis points from 4.63 percent in April. According to the FHFA, the effective interest rate accounts for the addition if initial fees and charges over the life of the mortgage.

The effect of rising home prices was evident in the loan amounts taken in May. According to the FHFA, the average loan amount for all loans was $322,100, up $9,200 from $312,900 in April 2018

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. 

#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates

Outdoor projects can help boost a Home’s Value

BBQs, pools, fire pits and other features are often associated with 

double-digit price premiums. Outdoor projects can help boost a home’s value by up to 10 percent.

Outdoor showers, barbecue stations, entertainment pools, and firepits are the top projects that researchers found with the biggest potential increases to a home’s price.

Things to Do in Salt Lake

There are two main factors involved in planning the perfect trip: making sure everyone has fun and experiencing things you don't experience every day. Luckily, there's so much to see and do in Salt Lake, the hardest part about planning your trip will be narrowing down your options, which range from the weird and unusual to the beautiful and exhilarating.

For its research, analyzed listings at its site for summer-related outdoor features in single-family homes listed for $150,000 or more.

An outdoor shower offers the biggest return on investment, according to research. Researchers found that homes with outside bathing areas had a 97 percent price-per-square-foot premium. They speculate that such a feature may be appealing since it’s usually found in homes that are near a beach or an expensive property with other luxury amenities.

Researchers also found that homes with barbecue stations are 26 percent more expensive than those without. 

America loves barbecuing

Summer and barbecuing go hand-in-hand, so it’s no surprise that the most popular summer-fun listing feature is barbecue (and other variants). It occurs in nearly 9.6% of listings on average, topping out in Arizona where it appears in 15.8% of active listings. California follows at 9.5% with the remaining states in the top 10 each having a proportion between 3-6% of listings that mention barbecue.

Buyers in just about every state can expect to pay more for homes with this feature, with Utah homes mentioning BBQ costing 58% more per square foot than the typical home in the state. Even with the prevalence of BBQ-related listings in Arizona, these homes add 33% to the price of the homes per square foot.

Also, entertainment pools—with enough space around them for others to lounge—could give a home a 26 percent increase in its value. In New York state, homes with such entertainment pools were 224 percent pricier per square foot than those without.

Firepits and backyard fireplaces are also proving to be a hot way for homeowners to boost their home prices. Homes with firepits or backyard fireplaces had a 25 percent premium, according to researchers.“Outdoor features can give a home a special quality in the market,” 

“And anytime you have a unique feature, it can bolster the prospective value of a home.”

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 #VisitSaltLakeCity

Where are Homeowners Spending the Most

Renting or Buying, According to forecast, the first of the year has 

been fraught with weaker affordability, though higher mortgage rates and home prices, as well as low levels of new and existing homes for sale. “This, in turn, has kept the sales growth in check despite the fact that the healthy economy is generating solid levels of demand,” the study found.

The share of income needed for monthly mortgage payments on the median U.S. home increased to 17.1 percent from Q4 of 2017 and compares to 2009's 17.5 percent in the year's second quarter.

“Back then, the trend was different.”  “Mortgages were becoming more affordable as home prices and interest rates fell in tandem during the early years of the recession, well after the share of income needed to afford the typical home peaked at 25.4 percent in 2006 during the height of the bubble.”

 “The affordability edge has worn so thin in nine of the 35 largest housing markets that mortgage payments are now a bigger financial burden than they were historically.”

While rising mortgage rates are one of the key factors to affect total originations, the ongoing housing supply crunch is the other headwind that’s affecting not only homebuyers but the mortgage market also.

“If mortgage rates reach 5 percent next year, as many economists expect,”  “home shoppers in an additional seven markets would face greater mortgage burdens than buyers did historically.”

Following the most recent trends involving least affordable markets, the West Coast leads the pack in burdened households. In the Bay Area, the least affordable metro in Q1, homeowners, and renters in Q1 paid as much as 68 percent of their income towards household expenses; and in San Jose, mortgage holders paid 51 percent towards mortgage payments. That's high even for San Jose, where the historical average is around 35 percent.

The issue stems from the one-two punch of rising mortgage rates and continuing home value appreciation. But,  “mortgage rates and housing costs represent one side of the affordability coin; income is the other.”

Times are even harder for renters. The typical renter paid 28.8 percent of U.S. median income in the first quarter. That's up from 26 percent between 1985 and 2000, but down from a peak of about 30 percent in the second quarter of 2015.

Despite a low season in the first half of the year, the Freddie Mac forecast predicts an increase of 2.8 percent in home sales by the end of the year, whereas home price appreciation is likely to end the year at 6.6 percent.

Homeowners have come out winners in this tough, competitive market “Rising home values continue to build [homeowners’] household wealth, and those who decided to sell likely found a buyer very quickly.” 

“Meanwhile prospective buyers are active and looking in most markets but supply is low, competition is swift and higher mortgage rates and home prices are squeezing the budget of some prospective buyers.”

The forecast revealed that supply and demand imbalances are keeping home sales in check and causing prices to increase at a swift pace. In the meantime, mortgage rates expected to touch 4.9 percent by the end of 2018, the forecast projected.  

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 #MorgageRates

2018 Best States for Homeowners Utah ranks 2

What makes a state great for homeowners? Home price growth as well as affordability, and low foreclosures, property taxes, closing costs, and low burglary rates are among the characteristics that make homeownership an attractive investment. 

To find all of that, you may want to look in the Midwest, according to the analysis. But Western regions also hold quite a few spots on the list this year. Check out which states landed at the top of the list:

Good investments – Even states which ranked poorly tended to have some home value growth. The only state which did not show any growth in home values from 2016 to 2017 was Alaska, where home values decreased by 0.4

Midwest and West on top – All the states in our top 10 are either in the West or the Midwest. Midwest states tend to be more affordable while home values are on the rise in Western states.

But the benefits to home ownership are different based on which state you live. Some states have seen fast-growing home values while others offer affordable mortgages, thanks to low property tax rates. 

In order to find the best states for homeowners, we looked at nine metrics. Specifically we looked at average price per square foot, the one-year percent change in value per square foot, foreclosures per 10,000 homes, average effective property tax rate, median annual property taxes, average closing costs, average homeowners insurance and the burglary rate. 

Utah
The median home in Utah has a value of $205 per square foot. That is the sixth-most in the study. You can probably expect that number to continue rising as well. From 2016 to 2017 that figure grew by 9.4%, a top 5 rate. One cost that new homebuyers may overlook is closing costs. 

That isn’t too much of a concern in Utah. Average closing costs are under $1,900, the fifth-lowest in our study.

Utah Ranks 4th 2018’s Safest States in the U.S. America,

The main concern for Utah homebuyers may be the upfront affordability. The average home in Utah is worth 3.79 times the median annual income, a below-average figure. 

Mortgage Rates Down Again This Week

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 #MorgageRates

Source: SmartAsset (June 21, 2018)

Sellers - Buyers Upbeat

Hopefully will lead to an increase in inventory and more buyers,
Home prices are climbing across the country, and that has made homeowners more bullish when it comes to the prospects of selling.
Seventy-five percent of more than 2,700 households recently surveyed say it’s a good time to sell a house; 68 percent say it’s a good time to buy, according to the second quarter Housing Opportunities and Market Experience (HOME) survey. 

“Hopefully this strong seller optimism will lead to an increase in inventory later on in the year,” says Lawrence Yun, NAR’s chief economist. 

Fifty-five percent of consumers say they believe that home prices will continue to increase in their communities over the next six months, up from the previous quarter (53 percent), according to NAR’s report.
In the second quarter, however, optimism for buying stayed stagnant. Thirty-nine percent of consumers strongly agree now is a good time to buy, while 29 percent moderately agree.


A decreasing number of renters are upbeat about buying, ping from 55 percent in the first quarter to now 49 percent in the second quarter.

Optimism for buying is highest among older buyers 65 or over, as well as those living in the South and Midwest regions, the report found. 

“Inventory remains the driving force in real estate, affecting everything from rising prices to household formation,” Yun says. “Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers.”

Overall, consumers are more optimistic about the economy. Their optimism over the economy has also helped more consumers believe that they would have an easier time to obtain a mortgage. 

Also, Homeowners and appraisers continue to close the gap between perceptions over home values in their area. Index shows that appraised values were just 0.34 percent lower than what homeowners expected in May.

A year ago, the gap between the appraiser and owner’s home price opinions was five times larger.

Still, home value perceptions vary quite a bit from city to city. “Real estate is incredibly local, from style preferences to the direction of the market—and everything in between.” 

“Our hope is that this report can help homeowners realize that national headlines don’t always apply in their community. It’s important homeowners talk to real estate experts who have experience analyzing their community when they’re thinking of selling, or utilizing their home’s equity.”

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 #MorgageRates

New-Home Construction Surges

Highest Level in Decade, More new homes entered the 

pipeline in May. Total housing starts increased 5 percent in May to a seasonally adjusted annual rate pace of 1.35 million units, the Commerce Department reported Tuesday. 

That marks the highest housing starts since July 2007.

“The more unaffordable West region will continue to experience an intense housing shortage, as both housing permits and housing starts fell in that region.

Sales are down 0.4 percent even though the economy is doing well.  Affordability is a big part of the problem as first-time buyers get priced out.

Broken out, single-family starts rose 3.9 percent to 939,000 units in May—the second-highest reading since the Great Recession. The multifamily sector increased 7.5 percent to 414,000 units. 

Single-family and multifamily production are now 9.8 percent and 13.6 percent higher, respectively, than a year ago.

“New-home construction activity soared to its highest level in over a decade, which is fantastic news as more housing inventory will be available as the year proceeds,” says Lawrence Yun, chief economist of the National Association of REALTORS®. 

“Moreover, construction and real estate industry jobs are being created and boosting the economy. [As a result,] GDP growth of 4 percent to 5 percent is possible in the second quarter.”

The Midwest saw the biggest jump in housing production last month, with combined single-family and multifamily housing starts rising 62.2 percent. Meanwhile, starts fell 0.9 percent in the South, by 4.1 percent in the West, and by 15 percent in the Northeast.

“The Midwest region experienced the biggest gain and hence the region will remain more affordable,” Yun notes. For the country as a whole, an additional 20 percent to 25 percent gain in home construction is needed to make the market more balanced.”

Housing starts will likely hit a snag in the coming weeks. Permits—a gauge of future activity—fell 4.6 percent in May to 1.3 million units. The biggest in permits was in the multifamily sector, which saw permits tumble 8.7 percent to 457,000. Single-family permits ped 2.2 percent to 844,000.

“Ongoing job creation, positive demographics, and tight existing home inventory should spur more single-family production in the months ahead,” says Robert Dietz, the National Association of Home Builders’ chief economist.

“However, the softening of single-family permits is consistent with our reports showing that builders are concerned over mounting construction costs, including the highly elevated prices of softwood lumber.”

Are you Ready? 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. 

#RealEstateForSale #Homeownership #UtahRealEstate #Newconstruction