Growth in 2019: Expect Higher Rates and Slower Price Growth

Fixed mortgages will rise in 2019, according to a poll conducted 

by CoreLogic during its annual conference. Attendees at this event weighed in on a slew of significant issues facing the housing industry and seven in eight expected fixed mortgage rates to post higher a year from now.

How much higher? Nearly two-thirds said rates would ramp up between 0.2 and 0.5 percentage points, CoreLogic reports. That being said, almost one-fourth believed rates would blossom by more than 0.5 percentage points. To wit, 30-year, fixed-rate products were about 0.6 percentage points pricier this year than last year. They reached a seven-year high this May.

What will fixed-rate mortgages rates be at EPIQ2019?

With an occasional dip, mortgage rates have trended higher during the year leading up to EPIQ2018, CoreLogic’s annual client conference, with fixed-rates reaching a seven-year high in May 2018. 

Thirty-year, fixed-rate mortgageswere about 0.6 percentage points more expensive during EPIQ2018 than one year earlier.  The attendees were asked what they expect the level of mortgage rates would be in one year, at the time of EPIQ2019. 

How much will it change by EPIQ2019?

Nationally, home-price appreciation has accelerated over the last year.  Comparing the 12-month change in the national index, growth measured by the CoreLogic Home Price Index (HPI) had accelerated by nearly 1 percentage point between May 2017 and May 2018. 

Low for-sale inventory and increasing numbers of first-time buyers had contributed to the acceleration.  The attendees were polled on what they expected the one-year price change would be with the release of the May 2019 HPI, the latest that would be available as of EPIQ2019.

  

Practically three-fourths of respondents expect price growth to lose speed in the national index during the next year, the poll reveals. Two in five poll takers forecast the falloff to be moderate, with the national HPI up 5 to 7 percentage points during the next year. Those numbers are in keeping with the CoreLogic HPI Forecast, the company notes. 

Flipping that coin, however, almost one-third foresee the slowdown being more severe, with the national index growing less than 5 percentage points.

“The expectations were affected by a variety of assumptions each respondent had for how the economy and the housing market may evolve, reflected in the distribution of forecasts among the attendees,” the survey said.

“Nonetheless, a large majority of attendees expect higher mortgage rates and slower home-price growth during the next year.”  

Getting ready to Sell or Buy doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Sell or Buy your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate

Is your Home ‘Equity Rich?

How Does Your State Fare? One in four properties nationwide are 

“equity rich,' according to a new report released by real estate data firm ATTOM Data Solutions. To be considered as such, homeowners with financing must currently hold a mortgage that is 50 percent or less of the property’s estimated market value.

As home prices keep setting records, the number of homeowners with equity in their homes is growing. More than 13.6 million properties were considered “equity rich” in the second quarter, according to the report.

On the other hand, the ATTOM report also showed that more than 5.5 million homes—or 10 percent of all homes with a mortgage in the U.S.—are still considered “seriously underwater,” where the combined estimated balance on the loan is at least 25 percent higher than the property’s estimated market value.

“The share of seriously underwater properties has ped well below 10 percent in bellwether housing markets such as California, Washington, Texas, Colorado, and New York, but the underwater rate remains stubbornly high in markets where price appreciation has not been as strong during the housing recovery of the last six years,” says Daren Blomquist, senior vice president with ATTOM Data Solutions.

“Nationwide, the number of equity rich homeowners is more than twice the number of seriously underwater homeowners, but the gap between home equity haves and have-nots persists because home price appreciation is certainly not uniform across local markets or even within local markets.”

If you’re thinking about putting your house on the market, you’re probably wondering what you should do before you list it.

Getting a home ready to sell doesn’t have to be a huge undertaking, but it’s one where details really matter. When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home. 

 #RealEstateForSale #Homeownership #UtahRealEstate

Yard-Staging Projects That Will Help Sell: Have You Hit Them All?

First impressions matter—and when you're selling your house, 

there's nothing quite like the vision of a manicured yard to really wow potential buyers. Like staging the inside of your home, staging your yard takes time, effort, and a little bit of money. 

Listed: Custom Traverse Mountain home is a unique find. MLS#: 1545756

Showings: (801) 809-9866 
Year Built: 2004
 Rambler/Ranch
Garage: 2 car Attached,Extra Height,Extra Width
Room Layout: SqFt Bed Full Bath 3qtr Bath Half Bath Fire Place Laundry Floor Bsmt (100% Fin.) Totals: 3,430  

Remarks: Premium Mountain, Lake and Valley Views! Close to Parks, Tennis Courts, Community Swimming Pool, Shopping, Jogging Trails and new Soccer Field. Large open floor plan includes: Hand Stained Brazilian Wood Floors, 2 Jetted Tubs, 2 Water Heaters, New Low E Double Pane Windows throughout, Granite Counter Tops in Upstairs Kitchen, Main Floor Laundry plumbed for gas or electric dryer. Stackable W/D in basement that is included, 9' Ceilings in bright open basement, and 2nd kitchen in basement that is plumbed for a stove, microwave & dishwasher. Very Large Cold Storage Room in the basement that has built-in shelves. Master bath has jetted tub and very large separate shower. Master Walk-In Closet has doorway to main floor laundry, window in upstairs family room is framed for a full door should you want to put a deck to the backyard. Several features, too many to mention. This home has been used as Airbnb and is very accommodating. PLEASE, no showings before noon. Bring your fussiest buyers!

But your hard work is sure to impress, and the payoff can be a fast offer. Here are some of the best projects you can do to stage your yard and get ready for an open house.

Clean up the lawn and landscaping MLS#: 1545756

Imagine rolling up to an open house and seeing an overgrown lawn that's littered with weeds—not exactly appealing, huh? If you have a lawn, it's one of the first things potential buyers are going to look at, so it's critical to cut it and keep it neat every time you're about to show your home.

In addition to your lawn, we recommends weeding and watering your flower gardens, pruning the shrubs, trimming the hedges, and sweeping away dead leaves.

You should also clean up the front stoop by removing cracked planters and pots with dead blooms.

If your porch, driveway, or the pathway leading to your house is coated with dirt and stains, you can get rid of it with a few hours of power washing. Most power washers can be rented from your local hardware store for about $60 per day.

Clear the clutter MLS#: 1545756

Make sure the outside of your home looks as tidy as possible. Clear old newspapers from the front stoop, and pick up any litter you see around the yard.

'Don't forget to stash away any kids' toys you find on the lawn, and always park your cars in the garage,' You want to highlight your home—not your random belongings. 

Add some color MLS#: 1545756

Head to your local gardening center, and pick up some pretty annuals to plant in window boxes, in your garden, or along the edge of the driveway. If you don't have much space for planting, install a few hooks on the eave and hang some plants.

To hide the dirt around the fresh new blooms you planted, lay down some mulch.

'Dark brown bark chips give your yard an inexpensive boost, so spread it in flower beds and wherever else dirt and weeds are exposed,'   

Consider kids MLS#: 1545756

While you don't want an explosion of toys and other kiddie clutter in the yard, you can still stage your lawn to look attractive to buyers with children.

'Kids can be very persuasive when it comes to a sale, so make the yard enticing—it can get a potential buyer with children excited about living in your home,' 

If you already have a swing set, clean it up. Fill an empty space in your backyard with a ping pong table or corn hole boards. Organize a neat row of parked tricycles and bikes.   

Arrange an area for backyard entertaining MLS#: 1545756

Show off your deck or patio by setting up an inviting outdoor furniture area. Create a focal point near the grill or under a tree with a picnic table, chairs, and an all-weather umbrella. You could even set the table with a cloth runner and attractive lanterns.

And don't forget accessories.

'Decorative pillows on outdoor furniture add a pop of color and create a festive atmosphere.'

If you’re thinking about putting your house on the market, you’re probably wondering what you should do before you list it. Getting a home ready to sell doesn’t have to be a huge undertaking, but it’s one where details really matter. To make the most of your new listing, take care of these items first.

Do a Walk-Through With Your Realtor 

When you’re working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home. One of the first things your realtor will want to do is complete a walk-through of your house. This is a chance to point out anything that needs cleaning and any projects that you should complete before you list the property. Little touches, and a realtor will be able to tell you what to take care of first.

#RealEstateForSale #Homeownership #UtahRealEstate

Stability’ for Home Sales

Mortgage Rates Inch Backward, Borrowers saw a little relief from 

recent increases. Mortgage rates ped slightly this week, with the 30-year fixed-rate mortgage averaging 4.59 percent, Freddie Mac reports.

“This stability is much needed for home sales, which have crested because of the multiyear run up in prices, tight affordable inventory, and this year’s higher rates,” says Sam Khater, Freddie Mac’s chief economist.

“Going forward, the strong economy will support the housing market, but with affordability pressures mounting, further spikes in mortgage rates will lead to continued softening in home price growth.”

Home prices are still climbing and rates are up from 3.90 percent a year ago. “Some prospective buyers are definitely feeling an affordability crunch,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 9:

• 30-year fixed-rate mortgages: averaged 4.59 percent, with an average 0.5 point, ping from last week’s 4.60 percent average. Last year at this time, 30-year rates averaged 3.90 percent.
• 15-year fixed-rate mortgages: averaged 4.05 percent, with an average 0.5 point, falling from last week’s 4.08 percent average. A year ago, 15-year rates averaged 3.18 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 3.90 percent, with an average 0.3 point, falling from last week’s 3.93 percent average. A year ago, 5-year ARMs averaged 3.14 percent.

Selling or Buying a home is all about the details. Pay special attention to the steps and always consult your realtor if you have any questions or need some guidance. When you work with a real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Buy your Dream home. 

Source:National Association of REALTORS®

#RealEstateForSale #Homeownership #UtahRealEstate

Appraisers Requirements Changes for Fannie Mae

Appraisers will no longer be required to fill Form 1004MC, 

a market conditions addendum that was removed by Fannie Mae when it released its new Selling Guide updates this week.

The form has been a key requirement for appraisers since 2009, having been created in direct response to the housing crisis.

The form was designed to “provide a standardized mechanism for appraisers to analyze and report changes in market conditions,” according to Fannie Mae.

“This enables lenders to make prudent lending decisions in appreciating, stable, or declining markets.”The removal of the requirement was announced July 31, 2018, at an annual Appraisal Institute event, and the official announcement from Fannie Mae came recently.

Fannie Mae said the change takes place immediately.

The reason for abandoning Form 1004MC, according to the GSE, is that its “Collateral Underwriter (CU) now provides robust market trend information for lenders and Fannie Mae, enabling measurement  and management of market risks in a more rigorous way.”

The change in requirement will take place in both Collateral Underwriter and Desktop Underwriter, although the form will still be present in the Desktop Underwriter system until “a future release,” Fannie Mae said. “Until that time, lenders may disregard the DU message.”

The Selling Guide made a point to note though that “Appraisers remain responsible for analyzing market conditions and accurately reporting them in the Neighborhood section of our appraisal forms.”

Also, it is important to note that thus far Freddie Mac and the Federal Housing Administration have not made similar announcements regarding the market conditions form. For the moment, they still require it.

“Freddie Mac did imply that such a move would be likely.” The blog also noted that individual lenders may choose to continue requiring 1004MC.

 If you’re thinking about putting your house on the market, Working with real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to sell your home.

One of the first things your realtor will want to do is complete a walk-through of your house. This is a chance to point out anything that needs cleaning and any projects that you should complete before you list the property. Little touches, like adding trim to the walls or changing out bathroom fixtures, can make a real difference in maximizing your home’s price, and a realtor will be able to tell you what to take care of first.


Source: MReport.com
#RealEstateForSale #Homeownership #UtahRealEstate

Existing Single-Family Homes Broke another Record

How Many Records Can Home Prices Shatter? The median price 

nationwide for existing single-family homes broke another record in the second quarter of the year, reaching $296,000 and increasing 5.3 percent year over year, the National Association of REALTORS® reports.

Low inventory and high buyer demand continue to put upward pressure on home prices.

 “The ongoing supply crunch affecting much of the country worsened for most of the second quarter, as the growing number of interested buyers in many markets overwhelmed what was already a meager level of available listings,” says NAR Chief Economist Lawrence Yun.

“With not enough homes for sale, multiple bids caused prices to rise briskly and further out of the reach of some prospective buyers.”

Prices for single-family homes rose in 90 percent of the markets NAR analyzed (161 out of 178 metros) in the second quarter. Thirteen percent—or 24 metros—saw double-digit increases; San Francisco and San Jose, two of California’s largest cities, posted a median sales price above $1 million.

Meanwhile, existing-home sales fell 1.7 percent in the second quarter to a seasonally adjusted annual rate of 5.41 million. Sales are 2.4 percent lower than a year ago.

“As long as economic conditions maintain current levels, there’s still a chance for sales to break out this year. However, with mortgage rates trending higher, it will only happen if supply levels improve enough to cool the speedy price growth in a majority of the country.”

By the end of the second quarter, 1.95 million homes were on the market, which is just 0.5 percent higher than a year ago.

The median household income nationwide increased to $75,106 in the second quarter, but housing affordability remains problematic. To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need to earn an annual income of $64,239; a 10 percent down payment would require an income of $60,858; and $54,096 would be needed for a 20 percent down payment, according to NAR.

“The unaffordable conditions in many of the largest metro areas—especially in the West—continues to be a growing concern for many middle-class households aspiring to buy a home,” Yun says.

“Homebuilders, facing higher costs and labor shortages, are simply not producing enough affordable homes to satisfy demand. Local governments need to acknowledge this glaring issue and ease some of the zoning laws, permitting processes, and regulations that are slowing construction.”

 

Metropolitan Median Area Prices and Affordability

Selling or Buying your home is all about the details. Pay special attention to the simple steps above and always consult your realtor if you have any questions or need some guidance. When you work with a real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Buy your Dream home. 

Source:National Association of REALTORS®

#RealEstateForSale #Homeownership #UtahRealEstate

No Housing Recession Over Horizon

Media reports are increasingly focused on whether a  

major home sale slowdown, or maybe even a crash, is in the making, in part because many hot housing markets are seeing slackening buyer demand, and nationally 2018 is expected to end with fewer home sales than 2017.

But the possibility of a crash is unlikely, says Lawrence Yun, chief economist for the National Association of REALTORS®. 

In a piece he contributed to Forbes, Yun says hot markets are seeing a slowdown not because of weak buyer demand, which could be an indicator of a true slowdown, but insufficient supply. When homes come on the market, especially in areas like Seattle and Denver that have strong job growth and little unemployment, they are typically snapped up.

 In other positive signs, home price growth remains strong in markets across the country—about 5 percent on a nationwide basis so far this year—and there are no signs of the credit excesses that characterized the housing crisis 10 years ago. “Lending standards today are still stringent, as evidenced by the higher-than-normal credit scores of those who are able to obtain a mortgage,” Yun says.

“That is why mortgage default and foreclosure rates are at historic lows.”

In short, Yun says, today’s housing problem stems from insufficient inventory. The supply problem is driving up home prices and worsening affordability and keeping sales from matching demand. That is a serious problem and the answer is to encourage builders to increase supply, Yun says, but it is not a prelude to a crash.

Selling or Buying your home is all about the details. Pay special attention to the simple steps above and always consult your realtor if you have any questions or need some guidance. When you work with a real estate professional Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need to Buy your Dream home. 

Source: 'No Housing Recession Over Horizon,' Forbes.com (Aug. 2, 2018)

#RealEstateForSale #Homeownership #UtahRealEstate