WINDERMERE NEWS
AUG/SEPT 2014
Alpine Loop, Wasatch National Forest
How Much of a Down Payment Do You Actually Need? Note: It’s important that we give credit to a valuable resource who has provided us with our information. KeepingCurrentMatters.com (*KCM)
A recent survey by Zelman & Associates revealed that 38% of those
between the ages of 25-29 years old and 42% of those between the ages of 3034 years old believe that a minimum of 15% is required as a down payment to purchase a home. A recent questionnaire administered by Freddie Mac showed that over 50% of all respondents thought 20% was required as a down payment. In actuality, a purchaser may be able to put down far less. Freddie Mac, in a recent blog post addressing the issue, confirmed that there is misinformation regarding the amount necessary when determining the down payment for a home purchase: “Did you know 40 percent of today’s homebuyers using mortgage financing are making down payments that are less than 10 percent? And how about this: since 2010, the number of people putting down less than 10 percent for conventional loans has grown three fold. So, not only are low down payment options real, they represent a significant portion of today’s purchases.” Continued on following page
UPDATE SALT LAKE COUNTY REAL ESTATE JULY STATISTICS (7.1.14–7.31.14) 3,293 New Listings Median Listing Price $224,900 Median Sold Price $217,000 Median Days On Market: 40 *Provided by the Wasatch Front Multiple Listing Service
Continued from previous Page
How Much of a Down Payment Do You Actually Need?
In a separate Executive Perspectives, Christina Boyle, Freddie Mac’s VP and Head of Single-Family Sales & Relationship Management explained further: • A person “can get a conforming, conventional mortgage with a down payment of as little as 5 percent (sometimes with as little as 3 percent coming out of their own pockets)”. • Qualified borrowers can further reduce the down payment coming out of their own pockets to 3 percent by lining up gifts from family or grants or loans from non-profits or public agencies. Ms. Boyle goes on to explain: “Letting more consumers know how down payments are determined could bring more qualified borrowers off the sidelines. Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5 or 10 percent.” Call a Windermere Real Estate agent if you have questions about buying your first home.
The Importance of the Latino Community to Today’s Real Estate Market The Hispanic community was hit hardest by the housing crash. Now that the market is recovering, many of these families have the opportunity to either buy a home again, or those that lost home value during those years, are seeing equity return allowing them to sell and move to the home that they always wanted. These buyers are ready, but according to a recent survey done by NAHREP (the National Association of Hispanic Real Estate Professionals) there are barriers that do not allow these buyers to enter the market right now. As real estate professionals is our duty to remove some of these barriers, if possible, and help as many families as we can become homeowners if they are ready, willing and able. The Hispanic community is becoming a very important part of today’s real estate market, “The number of Hispanic households has grown to 14.7 million in 2013 and today a Hispanic youth turns 18 every minute of every day,” according to the 2013 State of Hispanic Homeownership Report. 4 out of 10 new households in the United States are expected to be Hispanic in 2014. This is a major opportunity for real estate professionals.
Buying a Home: The Cost of Waiting
OUTSIDE E V E NT S
Whether you are a first time buyer or a moveup buyer, you should look at the projections housing experts are making in two major areas: home prices and mortgage rates. PRICES: Over 100 economists, real estate experts and investment & market strategists
RECREATIONAL LICENSES
were recently surveyed. They were asked to
Camping, Fishing, Golfing, Boating, Canyoneering or planning
project where home prices were headed. The average value appreciation projected over the next twelve month period was approximately
a Road Tour? Visit http://stateparks.utah.gov/activities for all the details, maps and guides.
4%.
UTAH RESIDENT FISHING (AGE 14 +)
$26.00 (365 Days)
MORTGAGE INTEREST RATES: In their last
UTAH STATE PARKS PASS
$75.00 (365 Days)
Economic & Housing Market Outlook, Freddie
UTAH STATE PARKS PASS SENIORS
$35.00 (365 Days)
Mac predicted that 30 year fixed mortgage
*Information gathered through Utah DNR web site.
rates would be 4.8% by this time next year. As of last week, the Freddie Mac rate was 4.14%. WHAT DOES THIS MEAN TO YOU? If you are a first time buyer currently looking at a home priced at $250,000, this is what it could cost you on a monthly basis if you wait to buy next year:
FARMERS MARKET The Salt Lake City Farmers Market occurs every Saturday at Pioneer Park in Downtown Salt Lake City.
OUTDOOR CONCERT SERIES
DEER VALLEY Snow Park Outdoor Amphitheater: Free to the public every Wednesday (Rain or Shine).
SALT LAKE CITY TWILIGHT CONCERT SERIES This is the final month, with concerts every Thursday ending If you are a move-up buyer currently looking at a home priced at $500,000, this is what it could cost you on a monthly basis if you wait to buy next year:
August 28th. GALLIVAN CENTER LUNCH BUNCH CONCERTS Weekdays from noon to 1 p.m. at the Gallivan Center continue until September 18th, 2014. RED BUTTE GARDEN CONCERTS Last through September 14th. *Information gathered through resort and event websites.
BEN THORN Associate Broker 801.930.0103 Ben@WinUtah.com
Thank you for your referrals. As many
1240 East 2100 South Suite 600 Salt Lake City, UT 84106
of you know good business grows when someone offers a personal reference. I want you to know I treat every referral with the highest regard and can assure you that your referral is in good hands when they are in mine. If you know someone looking into the housing market, whether for a small change or a big move, I would be happy to help. I wish you all a great end to another successful summer!
Please Consider Recycling Our Newsletter.
The Importance of Using an Agent When Selling Your Home When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers, the most important result is to actually get the home sold.
In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s’ behavior during the home buying process. Today, 92% of all buyers use the internet in their home search according to the National Association of Realtors’ 2013 Profile of Home Buyers & Sellers. However, the report also revealed that 96% percent of buyers that used the internet when searching for a home purchased their home through either a real estate agent/ broker or from a builder or builder’s agent. Only 2%
purchased their home directly from a seller whom the buyer didn’t know. Buyers search for a home online but then depend on the agent to find the actual home they will buy (52%) or to help them handle the paperwork (24%) or understand the process (24%). It is true that the percentage of buyers that are using the internet to search for homes and information on the home buying process has increased dramatically over the last decade. But the plethora of information now available has also resulted in an increase in the percentage of buyers that reach out to real estate professionals to “connect the dots”. This is obvious as the percentage of overall buyers who used an agent to buy their home has steadily increased from 69% in 2001.