Salt Lake City Metro Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.team1580.com/blog/Copyright Team1580.com2023-10-03T11:32:10-07:00tag:team1580.com,2012-09-20:30918Are Home Prices Really Going Down?: Debunking the HypeHave you been watching the news and felt concerned about the future of home prices? Some experts predicted a housing market crash in 2023, which led to sensational headlines in the media. This article aims to provide you with a clear picture of what is actually happening in the real estate market.
Dissecting the Hype Around Home Prices<br />At the end of 2022, housing experts raised alarms about a potential crash in home prices for 2023. Media outlets caught onto this prediction, creating headlines that foretold of doom and gloom for the housing market. This flurry of negative news left many wondering about the state of the market. If the news left you questioning or delaying your own plans to move, here is what you need to know.
Home Prices Never Crashed<br />Contrary to the alarming headlines, the actual <a href="https://www.zillow.com/research/data/" title="Zillow Housing Data" target="_blank" class="img_box_left">data</a> reveals a different story. Home prices showed remarkable resilience and performed significantly better than the media portrayed (refer to the chart below).
<img src="https://assets.site-static.com/userfiles/1566/image/ty/Blog_Post_Images/20231003-Percent-Change-In-Home-Values.png" width="960" height="720" />
This chart compiles information from three trusted <a href="https://www.freddiemac.com/research/indices/house-price-index" title="Freddie Mac House Price Index" target="_blank" class="img_box_left">sources</a>, illustrating how prices <a href="https://www.blackknightinc.com/data-reports/" title="Black Knight Data Report Library" target="_blank" class="img_box_left">rebounded</a> after experiencing only slight national declines. This stands in stark contrast to the catastrophic crash scenario depicted in many articles. Things are very different than what we experienced in 2008.
The Reality of Home Prices<br />The minor declines that did occur, as highlighted in red, were neither severe nor long-lasting. In the <a href="https://www.wsj.com/economy/housing/the-fall-in-home-prices-may-already-be-over-3496d6bb" title="WSJ The Fall In Home Prices May Already Be Over" target="_blank" class="img_box_left">words</a> of Nicole Friedman, a Wall Street Journal reporter,
“Home prices aren’t falling anymore. . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .”
Although the news coverage has made a big deal about house prices going down, the slight correction has already passed. The data currently shows prices are actually slowly going back up. They are not falling anymore.
What Lies Ahead for Home Prices?<br />Experts unanimously agree that home price growth will persist in the coming years, gradually returning to normal market levels. This means we'll continue to see home prices increase, albeit at a more moderate pace compared to recent years, which is ultimately a positive development.
Media Influence on Public Opinion<br />Some media outlets may interpret this slowdown in home price growth as an impending decline and circulate stories that fuel such fears. This influence is evident in the Consumer Confidence <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey/national-housing-survey-archive" title="Fannie Mae National Housing Survey Archive" target="_blank" class="img_box_left">Survey</a> by Fannie Mae (see chart below).
<img src="https://assets.site-static.com/userfiles/1566/image/ty/Blog_Post_Images/20231003---of-Americans-Who-Think-Home-Prices-Will-Go-Down-over-the-Next-12-Months.png" width="960" height="720" />
While the percentage of Americans anticipating price drops had been steadily declining earlier this year, recent data shows a slight uptick in such expectations (highlighted in red). This underscores the enduring influence of media on public opinion even when the data shows prices are slowly going up.
Debunking the Hype<br />Don't get scared by those gloomy headlines and become part of the statistics. The data from multiple sources shows that home prices aren't going down. So, don't let the news mess with your plans to buy or sell. When life changes, you still need to make a move, but don’t let fear keep you from knowing your options. Let's connect through text or grab a bite to eat to see what your real estate goals are. Talk to you soon!
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2023-10-03T11:00:00-07:002023-10-03T11:32:10-07:00Ty Higleytag:team1580.com,2012-09-20:29849ForeclosuresDon’t Expect a Wave of Foreclosures [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230816/Dont-Expect-A-Wave-Of-Foreclosures-KCM-Share.png" width="600" /><br /><br />
<a href="https://www.simplifyingthemarket.com/en/content/images/20230816/Dont-Expect-A-Wave-Of-Foreclosures-MEM.png?a=592998-8eeeda65da0b35ff694f4e6f77093e2c" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230816/Dont-Expect-A-Wave-Of-Foreclosures-MEM.png" /></a>
Some Highlights
With ongoing high <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">inflation</a> pushing up everyday costs, some people are worried that'll create a flood of foreclosures. Here's why that's <a href="https://www.freddiemac.com/investors/financials/pdf/0523mvs.pdf" rel="noopener noreferrer" target="_blank">unlikely</a>.
Fewer <a href="https://www.freddiemac.com/investors/financials/pdf/0623mvs.pdf" rel="noopener noreferrer" target="_blank">people</a> are seriously <a href="https://www.fanniemae.com/media/48496/display" rel="noopener noreferrer" target="_blank">behind</a> on mortgage <a href="https://www.corelogic.com/intelligence/loan-performance-insights-july-2023/" rel="noopener noreferrer" target="_blank">payments</a> right now. If foreclosures were going to rise a lot, more people would need to be late on their payments.
Since most are paying on time, a wave isn’t <a href="https://calculatedrisk.substack.com/p/fannie-and-freddie-single-family" rel="noopener noreferrer" target="_blank">coming</a>. If you're concerned about a flood of foreclosures, the <a href="https://www.mykcm.com/2023/07/24/foreclosure-numbers-today-arent-like-2008/" rel="noopener noreferrer" target="_blank">data</a> shows that's not likely.
2023-08-22T16:00:00-07:002023-08-22T10:14:24-07:00Lori Aikintag:team1580.com,2012-09-20:8374Thinking of Buying a Home in Winter?2020-12-04T12:03:00-07:002020-12-04T12:31:07-07:00Jeff Hoovertag:team1580.com,2012-09-20:7263How Is Remote Work Changing Homebuyer Needs?
How Is Remote Work Changing Homebuyer Needs?
<img src="https://files.mykcm.com/2020/08/05065529/20200810-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How Is Remote Work Changing Homebuyer Needs? | MyKCM" width="750" height="410" /><br /><br />
With more companies figuring out how to efficiently and effectively enable their employees to work remotely (and for longer than most of us initially expected), homeowners throughout the country are re-evaluating their needs. Do I still need to live close to my company’s office building? Do I need a larger home with more office space? Would making a move to the suburbs make more sense for my family? All of these questions are on the table for many Americans as we ride the wave of the current health crisis and consider evolving homeownership needs.
According to <a href="https://themreport.com/daily-dose/07-29-2020/how-remote-working-is-impacting-homebuyer-sentiment" title="George Ratiu" target="_blank" rel="noopener noreferrer">George Ratiu</a>, Senior Economist for realtor.com:
"The ability to work remotely is expanding home shoppers' geographic options and driving their motivation to buy, even if it means a longer commute, at least in the short term…Although it's too early to tell what long-term impact the COVID-era of remote work will have on housing, it's clear that the pandemic is shaping how people live and work under the same roof."
Working remotely is definitely <a href="https://www.realtor.com/research/home-buying-2020-remote-work-post-covid/" title="changing" target="_blank" rel="noopener noreferrer">changing</a> how Americans spend their time at home, and also how they use their available square footage. Homeowners aren’t just looking for a room for a home office, either. The desire to have a home gym, an updated kitchen, and <a href="https://www.simplifyingthemarket.com/2020/07/30/will-we-see-a-surge-of-homebuyers-moving-to-the-suburbs/?a=627144-bff53036427dd80feba1380b86d8b5d4" title="more space" target="_blank" rel="noopener noreferrer">more space</a> in general – indoor and outdoor – are all key factors motivating some buyers to change their home search parameters.
A recent realtor.com-HarrisX survey <a href="https://themreport.com/daily-dose/07-29-2020/how-remote-working-is-impacting-homebuyer-sentiment" title="indicates" target="_blank" rel="noopener noreferrer">indicates</a>:
“In a June poll of 2,000 potential home shoppers who indicated plans to make a purchase in the next year, 63% of those currently working from home stated their potential purchase was a result of their ability to work remotely, while nearly 40% [of] that number expected to purchase a home within four to six months and 13% said changes related to pandemic fueled their interest in buying a new home.
Clearly, Americans are thinking differently about homeownership today, and through a new lens. The National Association of Home Builders (NAHB) <a href="http://eyeonhousing.org/2020/07/new-home-sales-jump-in-june/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“New single-family home sales jumped in June, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs.”
Through these challenging times, you may have found your home becoming your office, your children’s classroom, your workout facility, and your family’s safe haven. This has quickly shifted what home truly means to many American families. More than ever, having a place to focus on professional productivity while many competing priorities (and distractions!) are knocking on your door is challenging homeowners to get creative, use space wisely, and ultimately find a place where all of these essential needs can realistically be met. In many cases, a new home is the best option.
In today’s real estate market, making a move while <a href="https://www.simplifyingthemarket.com/2020/07/17/mortgage-rates-fall-below-3-infographic/?a=627144-bff53036427dd80feba1380b86d8b5d4" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> are hovering at historic lows may enable you to purchase more home for your money, just when you and your family need it most.
Bottom Line
If your personal and professional needs have changed and you’re ready to accommodate all of your family’s competing priorities, let’s connect today. Making a move into a larger home may be exactly what you need to set your family up for optimal long-term success.
2020-08-06T15:22:00-07:002020-08-06T16:24:38-07:00Jeff Hoovertag:team1580.com,2012-09-20:3899Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/1566/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2019-09-09T07:45:00-07:002019-09-10T13:58:17-07:00Jeff Hoovertag:team1580.com,2012-09-20:3897Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/1566/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2019-09-09T07:45:00-07:002019-09-10T13:58:28-07:00Jeff Hoover