Pending home sales dropped in December

Inventory Stall Home Sales
Pending home sales dropped in December, despite interest rates being at the lowest levels in more than a year, the National Association of REALTOR® reports. All regions across the country posted declines in December. In December, pending home sales nationally fell 3.7 percent month-over-month. Still, NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings, remained about 6 percent above year-over-year levels for the fourth consecutive month. Lawrence Yun, NAR’s chief economist, says that inventory problems mixed with slightly higher home prices attributed to December’s decline in contract signings, read more.

The Breakout Year for Sellers?

The Breakout Year for Sellers?
Home owners are living in their homes longer. Typically, #home owners stay in their

homes six or seven years before making a move. But in 2014, that number grew to a 10-year average, according to research by the National Association of REALTORS®. NAR researchers are predicting that “pent-up sellers” will likely be unleashed in 2015, after regaining equity and feeling more confident from the economic recovery. Many home owners have been staying put longer, which placed a large number of home owners in underwater status, owing more on their mortgage than their home is currently worth, researchers note. Many home owners may have been waiting to move until home values edged higher. But for many home owners, that has finally happened: Home values are up 25 percent over the past three years, on average, read more.

More Buyers in House-Hunting Mode

January Record-Setting Homebuyer Demand
Low mortgage rates mixed with a friendlier lending  environment are getting more

home buyers to step off the sidelines in search of a new home. Several recent housing reports show a surge in buyer demand this month. For example, real estate brokerage Redfin’s monthly housing report shows home-tour demand has reached an all-time high, up 62 percent from the same week last year. They also report that signed offers were up 58 percent. Selling or Buying give us a call today at 801 450.7165 . “A rebound in first-time home buyer interest is helping to strengthen demand this year,” read more.

Shrinking Inventory May Raise Prices Again:

In November and December, Home Prices Rose By 6 %

For the first time in 16 months, the total inventory of homes 
available for sale dropped last month, according to the National Association of REALTORS®. While the decline was slight – less than 1 percent month-over-month – the drop does represent “a reversal to the general growth of listings that had been occurring throughout 2014,” writes Lawrence Yun, NAR’s chief economist, at the Economists’ Outlook blog. “More inventories are needed, not less. Or else, home prices could re-accelerate,” read more.

Smaller Down Payments:

More Lenders Require Less Money Up-Front
Smaller Down Payments: Some home buyers are stepping off the sidelines as more lenders require less money up-front on a home purchase.Recently, more borrowers are able to pay 3 percent or even less of a home’s purchase price to get a mortgage – a big change from when at least 20 percent down payments were practically the norm post-recession.Additionally, some lenders are luring more home buyers back by waiving mortgage-related fees and even showing more acceptance of allowing down payments to be made by others, such as the borrower’s family members, The Wall Street Journal reports.Still, borrowers must have good credit scores and a steady income to often qualify for these smaller down payment loans, read more.

Freddie Mac Trigger Auctions

Auctions Trigger More Housing Flips
Freddie Mac to Auction $410 Million Worth of Delinquent Mortgage Loans: Government-sponsored enterprise Freddie Mac has announced that it will begin its second sale of “deeply delinquent” mortgage loans in three pools. The delinquent loans are scheduled to be auctioned off in three pools with unpaid principal balances. Offers are due for the delinquent loans on February 4. Investors purchasing properties through online auctions are showing more signs of flipping properties again, according to Fourth Quarter 2014 Real Estate Investor Activity Report, a nationwide survey of real estate investors who bid on properties at auctions, read more.

Best-Performing Cities

Best-Performing Cities In The Country
The Milken Institute, a nonprofit, nonpartisan think tank, recently released its list of the “best-performing” cities in the country. What exactly does a best-performing city have that others don’t? Simply put, these are the most dynamic and successful cities based on job creation, education and overall economic vitality. Most of the cities cracking the top 10 are hubs for either technology or oil—industries that show no signs of an imminent slowdown. Salt Lake City, UT Milken report says: “Growing population is younger and more educated than the U.S. average.” Provo, UT  “ #Home to many highly regarded information technology, advanced manufacturing, and life-sciences firms.” Experience Utah videos.

Get Your Own Place

Help You Get Your Own Place
Tired of renting with roommates? Here's how to go solo. Many people make new year’s resolutions to quit vices, get in better shape or take a dream vacation. However, if you’ve been stuck at home with the folks—or in an apartment with too many roommates—you may have a different priority in the new year. You’re finally ready to rent your own space! If you’re itching to make a move and find a rental of your very own, these resolutions will help get you there. Renting on your own takes money, perhaps more money than you’d initially expect. To move in, you’ll need to come up with a security deposit, first month’s rent, funds to cover movers (if you hire them) and a pet deposit (if you have a pet), but there are also other costs, Read more.

10 Steps Toward Homeownership

Dream House Within Reach 
10 Steps Toward Homeownership: If you're thinking of buying a home in 2015, get
ready.  If you think the new year is going to be the year to put your rental days in your rear-view mirror and move into a home of your own, it’s time to start preparing. Even if you won’t be ready to buy for six more months or even a year, here are 10 straightforward steps to take right now. Crossing these items off your list will make it easier for you to find and finance the home of your dreams, watch our video.

Big Part In Shaping Housing

Down Payment - Mortgage Insurance May Be Game Changer

Down payments and financial constraints play a big part in shaping housing demand, particularly among lower-income home buyers, according to a study by the Federal Reserve Bank of New York. But low mortgage rates don't influence buyers to make a move as much as mortgage qualification requirements do, the study finds. Mortgage Rates Decline for Third Consecutive Week Showing average fixed mortgage rates falling for the third consecutive week. Averaging 3.66 percent, the 30-year fixed-rate mortgage is at its lowest level since the week ending  Researchers asked home owners how much they were willing to pay for a home comparable to their current one, using several financing scenarios, such as different down-payment constraints, mortgage rates, and non-housing wealth, read more.

Underwater Homes Have Equity Again

About 273,000 homes returned to positive equity in the third quarter of 2014, bringing the total to 44.6 million of all properties with a mortgage, according to a newly released equity report. That number represents around 90 percent of all mortgaged properties nationwide. If home prices rose by 5 percent more—which is largely predicted to happen this year—an additional 1 million home owners now in negative equity would also move into positive territory. “This should hopefully translate into less friction in the housing market as we move forward. Better fundamentals supporting home ownership in the face of higher rents should attract more first-time home buyers to the market this year and next.”