In most of America Buying beats Renting

In most of America Buying beats Renting

Study shows half US metros have 2 year break even horizon: We already know that buying a home is cheaper than renting in most major metros, but now comes evidence that buying a home is a better financial decision than renting for home buyers who plan to stay in their home for at least two years in half of all U.S. markets.The first quarter break even horizon analysis shows that among the 35 largest metro areas analyzed, more than half have a break even point of less than two years. Rents keep rising, and mortgage interest rates remain very low. Many renters may ask themselves why renew a lease, when you can break even on the same home in less time in many areas, see more.

'Salt Lake County' HOME SALES DOWN, PRICES RISE

'Salt Lake County' HOME SALES DOWN, PRICES RISE

RE-RECESSION LEVEL: Sales of single-family homes in Salt Lake County fell 4 percent in the first quarter, the first time home sales showed a quarterly decline in five years (first quarter year-over-year). In the January through March period, 2,158 single-family homes were sold by Realtors®. Single-family home sales in Salt Lake County in 2013 were the best on record in seven years. More than 11,700 homes were sold during the year, a 6 percent increase over sales in 2012. New listings increased to 5,247 homes in the first quarter, up 16%. Home sales fell in a number of cities, see which.

Why Aren’t There More Homes For Sale?

Why Aren’t There More Homes For Sale?

Buyers Face More Competition Again as Bidding Wars Rise: Low inventories continue to plague housing markets across the country, buyers face limited options and more bidding wars.

But with home prices rising, more sellers are starting to put their homes on the market. Over Half of homeowners are Not Currently In a Financial Position to Sell. Bidding wars are back on the rise in several housing markets, according to a recent analysis of 19 markets by the real estate brokerage. Low inventories continue to plague markets, as buyers face more bidding wars.

Homeowners Have an Edge on Renters

Homeowners Have an Edge on Renters

Home buying has earned a bad rap in recent years: The subprime mortgage crisis and ensuing economic meltdown left many homeowners underwater, 

 unable to pay their mortgage and even facing foreclosure. Homeownership rates fell throughout the recession and got down to about 65 percent, compared with almost 70 percent before the recession, according to the Census Bureau. While record low interest rates helped entice home buyers, the bureau reports that the homeownership rate remains relatively low. If you're among those struggling to decide whether to buy versus rent, consider these reasons to take the plunge into homeownership:

Putting the Home in Home Delivery

Putting the Home in Home Delivery

Clean, modern designs, and affordable pricing make factory built houses an appealing option .

When customers want to buy land and build a new house, or if they're considering an addition to their existing house, your knowledge of the prefab market can help them broaden their visions for a property. If you work in a housing niche or simply appreciate the knowledge it takes to work in a niche, a new book might find a spot on your desk or waiting area table. See The Perks of Prefab

Healthier Market in Spring

Healthier Market in Spring

Following weak home sales from extreme winter weather,

March sales picked up 24.6 percent across the 52 metros measured. Realtor.com released its National Housing Trend Report, which cited year-over-year growth in inventory and days on the market as welcome signs for spring home buyers. The number of homes for sale rose 9.5 percent in March from a year earlier. Median list prices for homes rose as well, with the average price for a home jumping 5-point 3 percent to roughly $200,000. Current inventory stands at a 4.1 month supply. A 6 month supply indicates a balanced market. Read more.

Young Residents Flock to City: Suburbia at Risk?

Young Residents Flock to City: Suburbia at Risk?

Young professionals are heading to cities and some have vowed to stay, 

forsaking the suburban life completely.

Some suburbs have seen the number of their younger residents shrink dramatically over the past few years, and they’re trying to figure out ways to lure young professionals back. The greatest population losses were in the “least diverse communities with the most expensive housing, which happen also to be those that have almost no affordable multifamily housing,” See more

Mortgage Rates Continue to Drop

Mortgage Rates Continue to Drop

Average fixed mortgage rates declined for the second straight week, bringing them to a six-week low-and easing affordability conditions slightly as the homebuying season gets under way.

Per Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed rate mortgage (FRM) this week averaged a rate of 4.27 percent (0.7 point), down from 4.34 percent last week. A year ago, the 30-year FRM sat at 3.41 percent. At the same time, the 15-year FRM averaged 3.33 percent (0.6 point), down from an average 3.38 percent. All 5 national indices showed a decline for the second consecutive month. See more

Welcome signs for Spring Buyers

Welcome signs” for Spring Buyers

Realtor.com: Buying conditions improving as more homes come on the market. 

The number of homes for sale and the amount of time they'd typically been on the market both increased in March, "welcome signs” for spring buyers, realtor.com reported today. The number of homes listed for sale on realtor.com rose 5.3 percent from February to March and 9.5 percent from a year ago, to 1.84 million. In addition to enjoying a wider selection of homes, buyers also now appear to have more breathing room. The median age of inventory was up 22.9 percent from a year ago, to 102 days, down 10.5 percent from February. See more

Lot Shortages Make Building Costs Higher

Lot Shortages Make Building Costs Higher

Homebuilders who did not buy up land during the housing downturn are facing much higher costs today — and that may get passed on to home buyers.

'Builders waited so long to buy land that, when the recovery happened, it was very strong and they got caught short. The cost of land is nearly 22 percent of the final sales price of a new home, and 100 percent of that cost usually gets passed down to the buyer. 'The run-up in land prices has been huge. What someone paid for land last year may not even work today, read more.

Home Prices Press Down Affordability

Home Prices Press Down Affordability
Rising Home Prices:While housing affordability rose from January to February in some select markets, it's lower year-over-year as home prices continue to rise. The median single-family home price is $189,200, up 9 percent from year-ago levels. Mortgage rates have also been on the rise, up a full percentage point from year-ago levels read more.

Sell When You Need to, Don’t Chase the Market

Sell When You Need to, Don’t Chase the Market
SELLERS: How did you know you were sure you were ready to sell? 
When it comes to selling advice, the bottom line is: List when you need to. If you really need to sell your current home for a specific reason, don’t try and chase the market in either direction. Come to terms with the current market, and sell your home for its current fair-market value. And when you move on, be sure to buy a house you can afford, both now and in the future! Should you sell? 5 Crucial Considerations:

Fannie Mae Selling to Investors

Fannie Mae Selling to Investors

Backpedals on Homebuyers: Fannie Mae is selling more of its foreclosed properties to investors as prices rise, limiting homebuyers' access to cheap housing.

"The first-look program almost becomes moot because the homes are priced too high right out of the gate," said Buck. "By the time the property gets reduced to what it's worth, now you are past the first-look program and owner-occupants are competing with investors." While homebuyers retreat from this market, investors are buying a greater share of the housing from the government-owned mortgage giant to rent or flip, read more.

FHA Program Gives Distressed Homeowners 2nd Chance

FHA Program Gives Distressed Homeowners 2nd Chance

Typically, home owners who lost their homes to a short sale or foreclosure are required to wait about 36 months before being able to purchase a primary residence again with a Federal Housing Administration loan.

But the FHA’s Back to Work Program is allowing buyers to purchase a primary home much sooner — possibly as soon as 12 months following a short sale, foreclosure, or deed in lieu of foreclosure. The program runs through Sept. 30, 2016. To qualify for the program, potential buyers will need to document the financial problem that prompted their short sale or foreclosure, such as showing a 20 percent loss in income for at least six consecutive months prior to losing the home. Read More.

Foreclosure Up In March

Foreclosure Up In March
A rise in foreclosure starts and auctions caused an increase in U.S. foreclosure activity in March, up 4 percent from the previous month according to the U.S. Foreclosure Market.

The company reported approximately 117,000 foreclosure filings for the month of March, down 23 percent from the previous year. Foreclosure starts increased by 7 percent, and foreclosure auctions increased by 6 percent, both on a month-over-month basis. Quarterly, foreclosure activity remains down to the lowest it has been since the second quarter of 2007. 'Now that the foreclosure deluge has dried up, banks are turning their attention back to properties that have been sitting in foreclosure limbo for some time,' Read more. 

So should you buy now? Or wait?

So should you buy now? Or wait?

You’re tired of “throwing money away” on rent. You want to buy your own home. But you’re not sure if now is the right time. 

The answer has less to do with the overall economy, and more to do with your personal budget and life plans. In other words: The length of time in which you plan to stay in your home will make a huge impact on whether or not you’d be better off renting. You hesitate about “now” for two reasons: time and money. In term of time, you’re not sure if you’re committed enough to staying in one place. How long will you really live in this home? And on an economic level, you’re not sure if you can afford all of the expenses that come with having a mortgage. Before you do something impulsive, let’s assess whether you should buy a house right now –- or whether you should wait.

FHA may bring back 'spot' condo loans

FHA may bring back 'spot' condo loans

Good News for Buyers, Lenders and condominium unit owners who’ve been frustrated by FHA’s prohibition of “spot loans” in developments that haven’t obtained certification: 

The agency is now seriously exploring how to relax its ban and bring them back. Spot loans are important for sellers whose condo associations’ boards of directors have chosen not to apply to FHA for approval of the entire development. Spot loans also are crucial for existing unit owners who want to obtain a reverse mortgage to tap their equity. Read more

Landlords are Projected to Increase Rents!

Landlords are Projected to Increase Rents!

Landlords are Pushing Up Rents Again: As apartment demand continues to rise, landlords are projected to increase their rents for the fifth consecutive year. A rise in apartment construction isn’t likely to offer relief to tenants anytime soon either, USA Today reports. Between 2000 and 2012, apartment rents have risen 6 percent. 'That's what we call the affordability gap,' says John Kobs, Apartment List's chief executive. 'I don't see that improving in the near future. The vacancy rate for apartments has dropped from 8 percent to 4.1 percent from 2009 to 2013. Read more.

Freddie: No More Record-Low Mortgage Rates

Freddie: No More Record-Low Mortgage Rates

While mortgage rates have been rising the last few months, they are still historically low compared to the trend over the last four decades, Freddie Mac says in a blog post. But rates as low as they were in November 2012 -when the 30-year fixed-rate mortgage reached an all-time low of 3.31 percent - aren't likely to return any time soon, the mortgage giant says. Still, Freddie assures borrowers that the all-time record high of 18.63 percent reached in October 1981 isn't on the horizon either. (At 18.63 percent, monthly mortgage payments on a $200,000 loan would be $3,117, compared to $992 a month at today’s 4.32 percent average.) Mortgage Rates on the Rise:

Shrinking Investment Buyers

Shrinking Investment Buyers

As home prices rise, the number of investors in the housing market appears to be starting to cool.

The number of investment properties purchased last year dropped 2.1 percent compared to 2011, recent report. Investors are making up a smaller number of home buyers.  A move by investors out of the housing market could undermine prices as excess inventory begins piling up. But as the economy recovers, any slack in the market could be picked by traditional home buyers.  Where will the Housing Market go Next?

Foreclosure and Shadow Inventory Decline

Foreclosure and Shadow Inventory Decline 

In the month of February 43,000 foreclosures were completed, according to monthly National Foreclosure Report. Completed foreclosures decreased from January by 13.1 percent, as well as falling year over year by 15 percent. Foreclosure inventory also declined, posting a monthly decrease of 3.3 percent for a total of 752,000 homes in some stage of the foreclosure process. February's drop makes 28 consecutive months inventory has declined year-over-year basis. 30 year fixed-rate mortgage came up.

Provo-Orem, Utah One of the Happiest Communities

Provo-Orem, Utah One of the Happiest Communities

Happy Living Survey Reveals 15 Happiest Cities: 

Your home is the one place in the world where you should feel content, satisfied and happy. However, if you're feeling less than elated in your current situation, it might be time for a change of scenery. Which prompts the question: Where would you go? Are you in a happy place? In the "State of American Well-Being" report, the following cities came out on top for happiness.

Financial Benefits of Home Ownership

Financial Benefits of Home Ownership

The financial benefits of homeownership are evident year round, but particularly around tax time -they seem to jump off the page. 

Let's examine how homeownership makes "cents" -  from the tax benefits, to good old fashioned financial stability. Homeownership Builds Wealth Over Time: We were always taught growing up that owning a home is a financially savvy move. Our parents knew it, and their parents knew it. But this past decade of real estate turbulence has shaken everyone’s confidence in homeownership. That is why it's so important that we discuss this again now that we're in a ‘new market. You Build Equity Every Month

96% of Markets Better Off Than in 2010

96% of Markets Better Off Than in 2010

A new report by RealtyTrac shows that 96 percent of the counties that they track are better off than they were four years ago. 

But still, there’s a ways to go in the housing market, with only 8 percent of the 410 U.S. counties analyzed faring better than they did during the housing boom eight years ago. The housing recovery has taken root in hundreds of counties across the country, and almost all local housing markets are better off than they were four years ago when foreclosure activity peaked in 2010. The following heat map, produced by RealtyTrac, charts the drops and rises of the housing market across U.S. counties over the last eight years.