Ready to Sell? Homebuyer Traffic Is on the Rise.
Ready to Sell? Homebuyer Traffic Is on the Rise.
Buyer activity is continuing to rise. Let’s connect to discuss why selling your house now could get you the price and terms you’ve been waiting for.
Two New Surveys Indicate Urban to Suburban Lean
Two New Surveys Indicate Urban to Suburban Lean
There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas provide.
In a recent Realtor Magazine article, they discussed the issue and addressed comments made by Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):
“While migration trends were toward urban centers before the pandemic, real estate thought leaders have predicted a suburban resurgence as home buyers seek more space for social distancing. Now the data is supporting that theory. Coronavirus and work-from-home flexibility is sparking the trend reversal, Yun said. More first-time home buyers and minorities have also been looking to the suburbs for affordability, he added.”
NAR surveyed agents across the country asking them to best describe the locations where their clients are looking for homes (they could check multiple answers). Here are the results of the survey:
- 47% suburban/subdivision
- 39% rural area
- 25% small town
- 14% urban area/central city
- 13% resort community/recreational area
According to real estate agents, there’s a strong preference for less populated locations such as suburban and rural areas.
Real Estate Brokers and Owners Agree
Zelman & Associates surveys brokers and owners of real estate firms for their monthly Real Estate Brokers Report. The last report revealed that 68% see either a ‘moderate’ or ‘significant’ shift to more suburban locations. Here are the results of the survey:
Bottom Line
No one knows if this will be a short-term trend or an industry game-changer. For now, there appears to be a migration to more open environments.
Why You Need Expert Guidance in a Bidding War
The 2020 Homebuyer Wish List
The 2020 Homebuyer Wish List
Some Highlights
- The word “home” is taking on a whole new meaning this year, and buyers are starting to look for new features as they re-think their needs and what’s truly possible.
- From more outdoor space to virtual classrooms for their children, buyers have a growing list of what they’d like to see in their homes.
- Let’s connect today if your needs have changed and your wish list is expanding too.
It’s Not Just About the Price of the Home
It’s Not Just About the Price of the Home
When most of us begin searching for a home, we naturally start by looking at the price. It’s important, however, to closely consider what else impacts the purchase. It’s not just the price of the house that matters, but the overall cost in the long run. Today, that’s largely impacted by low mortgage rates. Low rates are actually making homes more affordable now than at any time since 2016, and here’s why.
Today’s low rates are off-setting rising home prices because it’s less expensive to borrow money. In essence, purchasing a home while mortgage rates are this low may save you significantly over the life of your home loan.
Taking a look at the graph below with data sourced from the National Association of Realtors (NAR), the higher the bars rise, the more affordable homes are. The orange bars represent the period of time when homes were most affordable, but that’s also reflective of when the housing bubble burst. At that time, distressed properties, like foreclosures and short sales, dominated the market. That’s a drastically different environment than what we have in the housing market now.
The green bar represents today’s market. It shows that homes truly are more affordable than they have been in years, and much more so than they were in the normal market that led up to the housing crash. Low mortgage rates are a big differentiator driving this affordability.
What are the experts saying about affordability?
Experts agree that this unique moment in time is making homes incredibly affordable for buyers.
Lawrence Yun, Chief Economist, NAR:
“Although housing prices have consistently moved higher, when the favorable mortgage rates are factored in, an overall home purchase was more affordable in 2020’s second quarter compared to one year ago.”
Bill Banfield, EVP of Capital Markets, Quicken Loans:
“No matter what you’re looking for, this is a great time to buy since the current low interest rates can stretch your spending power.”
“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”
“Homeowners are the clear winners. Low mortgage rates mean the cost of owning is at historically low levels and who gains all the benefits of strong house price appreciation? Homeowners.”
Bottom Line
When purchasing a home, it’s important to think about the overall cost, not just the price of the house. Homes on your wish list may be more affordable today than you think. Let’s connect to discuss how affordability plays a role in our local market, and your long-term homeownership goals.
Salt Lake Home Sales Climb to Record High in July 2020
Salt Lake Home Sales Climb to Record High in July
Salt Lake County home sales reached an all-time high in July at 2,093 homes sold, 15 percent higher than July 2019. It’s the first time monthly sales surpassed 2,000 closings since the MLS began keeping records. Home sales had tumbled in April and May as the COVID-19 pandemic forced business shutdowns and slowed consumer spending. However, sales began to increase in June as home buyers took advantage of record-low mortgage interest rates. Limited inventory remains the biggest challenge. Based on sales trends over the past six months, Salt Lake County’s housing inventory currently for sale would be sold in less than three months (2.87 months) if no new listings were added to the market.
Utah Real Estate Tip – there are no “easy” transactions.
Real Estate Legal Tip – there are no “easy” transactions.
Some people say that when the market is hot, “I can sell my home myself,” or “I don’t need an experienced agent because it costs money,” or “how hard can it be?”
Curtis Bullock From the Salt Lake Board of Realtors® Writes
I can tell you that after being an attorney in this industry for almost two decades, there are no “easy” transactions in real estate right now – even in this hot seller’s market. Selling or purchasing a home requires a unique skill set and knowledge base to ensure the transaction goes smoothly. If you have recently purchased or sold a home and felt like it was easy, it’s probably because your Realtor® was solving problems left and right behind the scenes without you knowing about it.
I’ve shared this before, but here is a list of potential trouble spots your Realtor® will help you avoid when purchasing or selling a home. I’ve seen most of these happen when a seller or buyer tries DIY’ing the purchase or sale of their home:
* Seller misunderstanding what “as-is” condition means.
* How to deal with multiple offers.
* Husband or wife didn’t sign the REPC. Causes dispute over validity of the contract.
* CC&R’s not given to buyer causing problems.
* Seller disclosure form not delivered to buyer by the deadline. Causing lawsuit.
* Buyer not reviewing the Commitment for Title Insurance.
* Seller not providing Buyer Agent with Commitment for Title insurance by the deadline.
* Double contract. Loan fraud.
* Not using the correct contract or disclosure form in the appropriate situation.
* Buyer’s receive the key prior to recording, funding doesn’t occur, dispute arises.
* Buyer moving from out of state on friday to Settle at title company, doesn’t fund until Tuesday (Monday is a holiday) and becomes upset.
* Confusion on how the Time Clause Addendum works. Causing a disagreement.
* Lease agreements not provided to buyer before seller disclosure deadline.
* Low appraisal. Buyer sends notice of cancellation but forgets to include the appraisal.
* Multiple offers. Seller puts the property under contract with two buyers at the same time. Dispute arises.
* Counter offer is not withdrawn before accepting another offer. Problem arises.
* 10 different addenda included with the REPC. Confusion as to what has been agreed upon.
* Subject to Sale contingency not satisfied causing a domino effect resulting in two cancelled contracts.
* Missing initials on one page of the REPC causing a dispute.
* Seller repairs not completed. What to do next?
* Not delivering a document by the deadline. Dispute arises.
* Mold in the home detected. Who is responsible? Can I cancel the contract?
* Termites or radon detected in the home. What do I do now?
* No legal access to the lot. Implied easement issue.
* $10,000 earnest money not delivered by the buyer on time. Major dispute arises.
* Money wired and lost due to wire fraud.
* Mechanics lien filed on home that was “recently remodeled.”
* Sloppy language in an addendum causing a dispute.
* Air conditioner doesn’t work.
* Conflict between what is on the MLS and what is in the REPC.
* Multiple offers disclosed without seller approval, prospective buyers back out.
* Seller decides not to sell a week before settlement. Seller default. Lawsuit arises.
* Buyer backing out after deadlines expires. Buyer default. Lawsuit arises.
* Dispute over who pays for the HOA transfer fee.
* Dispute over who pays for the HOA special assessment.
* After Settlement but prior to Funding & Recording, house is vandalized.
* Missing dates on the REPC.
* Can’t get the HOA docs.
* Language on the REPC crossed out causing ambiguity.
* Sections of the REPC left blank causing ambiguity.
* The wrong address listed on the REPC.
* Two addendum number 4 – causing ambiguity and dispute.
* Seller failing to disclose major structural problem with the home.
* Fair Housing issue created after buyer submits letter with offer.
* “TBD” filled in on the REPC in too many places causing uncertainty.
* Poorly filled out forms and contracts causing problems.
* Representing multiple buyers at the same time on the same property causing a conflict.
* Angry tenant when showing a property.
* Seller didn’t accurately fill out the seller disclosure form.
* Checking “Acceptance” on page 6 of the REPC, then checking “Counter” on Addendum #1 that was also included in the offer.
Hiring an experienced Realtor® will be the best money you spend this year.
Courtesy of
Curtis Bullock
Salt Lake Board of Realtors®
The Cost of Renting Vs. Buying a Home
The Cost of Renting Vs. Buying a Home
Some Highlights
- The percentage of income needed to afford a median-priced home today is declining, while that for renting is on the rise.
- This is making buying a home an increasingly attractive option for many people, especially with low mortgage rates driving purchasing power.
- Let’s connect if you’d like expert guidance on exploring your homebuying options while affordability is high.
Forbearance Numbers Are Lower Than Experts Forecasted
Forbearances have stayed well under the rate experts initially forecasted. Let’s connect if you have questions about your options.
Top Reasons People Are Moving This Year In 2020
The Top Reasons People Are Moving This Year
Today, Americans are moving for a variety of different reasons. The current health crisis has truly re-shaped our lifestyles and our needs. Spending extra time where we currently live is enabling many families to re-evaluate what homeownership means and what they find most important in a home.
According to Zillow:
“In 2020, homes went from the place people returned to after work, school, hitting the gym or vacationing, to the place where families do all of the above. For those who now spend the majority of their hours at home, there’s a growing wish list of what they’d change about their homes, if possible.”
With a new perspective on homeownership, here are some of the top reasons people are reconsidering where they live and making moves this year.
1. Working from Home
Remote work is becoming the new norm in 2020, and it’s continuing on longer than most initially expected. Many in the workforce today are discovering they don’t need to live close to the office anymore, and they can get more for their money if they move a little further outside the city limits. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) notes:
“With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”
If you’ve tried to convert your guest room or your dining room into a home office with minimal success, it may be time to find a larger home. The reality is, your current house may not be optimally designed for this kind of space, making remote work and continued productivity very challenging.
2. Virtual Schooling
With school about to restart this fall, many districts are beginning the new academic year online. Education Week is tracking the reopening plans of schools across the country, and as of August 21, 21 of the 25 largest school districts are choosing remote learning as their back-to-school instructional model, affecting over 4.5 million students.
With a need for a dedicated learning space, it may be time to find a larger home to provide your children with the same kind of quiet room to focus on their schoolwork, just like you likely need for your office work.
3. A Home Gym
Staying healthy and active is a top priority for many Americans. With various levels of concern around the safety of returning to health clubs across the country, dreams of space for a home gym are growing stronger. The Home Builders Association of Greater New Orleans explains:
“For many in quarantine, a significant decrease in activity is more than a vanity issue – it’s a mental health issue.”
Having room to maintain a healthy lifestyle at home – mentally and physically – may prompt you to consider a new place to live that includes space for at-home workouts.
4. Outdoor Space
Especially for those living in an apartment or a small townhouse, this is a new priority for many as well. Zillow also notes the benefits of being able to use yard space throughout the year:
“People want more space in their next home, and one way to get it is by turning part of the backyard into a functional room, ‘an outdoor space for play as well as entertaining or cooking.’”
You may, however, not have the extra square footage today to have these designated areas – indoor or out.
Moving May Be Your Best Option
If you’re clamoring for extra space to accommodate your family’s changing needs, making a move may be your best bet, especially while you can take advantage of today’s low mortgage rates. Low rates are making homes more affordable than they have been in years. According to Black Knight:
“Buying power for those shopping for a home is up 10% year over year, with home buyers able to afford nearly $32,000 more home than they could have 1 year ago while keeping their monthly payment the same.”
It’s a great time to get more home for your money, just when you need the extra space.
Bottom Line
People are moving for a variety of different reasons today, and many families’ needs have changed throughout the year. If you’ve been trying to decide if now is the time to buy a new home, let’s connect to discuss your needs.