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Market News


 

LOCAL MARKET UPDATE:

 

Wasatch County

January

2010

2011

Change

New Listings

93

60

-35.5$

Pending Sales

23

57

+147.8%

Closed Sales

31

33

+6.5%

Median Sales Price

$339,500

$187,500

-44.8%

Averate Sales Price

$1,647,461

$560,162

-66.0%

Days on the Market

110

108

-1.9%

Inventory of Homes for Sale

656

534

-18.6%

 

 

 

 

 

 

 

Mortgage News
3 Financial Reasons to Buy Now
By The KCM Crew

Here are three great financial reasons why you should not wait before taking the plunge into homeownership.

1. The 30-Year Mortgage May Disappear

There has been much debate regarding government's role in providing support for homeownership. There are several experts who believe if Fannie Mae and Freddie Mac's roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate's, Is it curtains for the 30-year mortgage?

2. QRM Requirements Could Be Much More Stringent

Here are proposed changes to the requirements for a 'qualified residential mortgage':

  • Certain mortgage types would be eliminated
  • You would need to put a minimum of 20% down
  • You would need a minimum 690 FICO score
  • The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)

There would be loans available to purchasers who don't qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).

3. Rents are Expected to Increase

The supply of available rentals is decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal recently quoted a report by Reis, Inc in which it states, "Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace."

Bottom Line

You may be waiting on the sidelines to see if prices will continue to depreciate before you purchase a home. The mortgage expense is a major piece in the overall financial picture of homeownership. Make sure you consider it when timing your decision.

HOT OFF THE PRESS: If don’t already have this information about recouping renovation costs – here it is! According to MSN.com, the only home renovation that is 100 percent recouped when a home is sold is a steel entry door. All other renovations fall short. Here is the breakdown:

Kitchen will redeem $597 of every $1,000 spent

Home Office will redeem $458 of every $1,000 spent

Sun Room will redeem $486 of every $1,000 spent

Bathroom Addition will redeem $533 of every $1,000 spent

*These numbers, based on a national average of local comparisons gleaned from across the country, vary relative to each market's values and demands.

If your client is going to spend money on improvements, have them focus on the home's exterior. Windows, garage door replacements and siding replacements will bring small returns. But nothing, save that steel entry door, refills the home improvement coffers 100 percent -- or even as much as 85 percent. The bright side is these fixes can boost energy efficiency, offer potential tax savings and, when the time does come to sell, add ever-vital curb appeal to your home.

 

 

 


Denise Peck