WINDERMERE NEWS
FEB/ MARCH 2015
REAL ESTATE IS HEADING IN THE “RIGHT DIRECTION” Note: It’s important that we give credit to a valuable resource who has provided us with our information. KeepingCurrentMatters.com (*KCM)
The housing market has taken a great turn toward recovery over the last few years. The opinions of the American public toward real estate took longer to recover, until recently.
For the first time since 2006, Americans have an overall positive view of real estate, giving the industry a 12% positive ranking in a Gallup poll. Americans were asked to rate 24 different business sectors and industries on a five-point scale ranging from “very positive” to “very negative.” The poll was first conducted in 2001, and has been used as an indicator of “Americans’ overall attitudes toward each industry”.
UPDATE SALT LAKE COUNTY REAL ESTATE JANUARY 2015 STATISTICS (1.1.15–1.31.15) 1,896 New Listings Median Listing Price $224,900 Median Sold Price $215,000 Median Days On Market: 59 *Provided by the Wasatch Front Multiple Listing Service
DID IT MAKE SENSE TO WAIT? There are many people out there
who debated purchasing a home over the course of the last year, but ultimately did not. Whatever their reasons were for delaying, let’s look at whether the decision to wait to buy made sense. What happened in 2014? The 30 year fixed rate on January 2nd, 2014 was 4.53% as reported by Freddie Mac. Looking at the chart below, your monthly mortgage payment with principal and interest for a $250,000 home would have been $1,271.17. Even though interest rates have dropped below 4% and ended 2014 at 3.87%, home prices appreciated by 4.8 percent over the same time according to the Home Price Expectation Survey. So that same home appreciated by $12,000 and now costs $262,000. The most recent report by Freddie Mac reports the average 30-year fixed rate is currently 3.73%. Many may say, “See waiting a year made total sense, I’m saving $60 a month.” And they’d be right, over the course of the year they saved $729.36. But what they haven’t realized, is that as the price of the home they purchased went up by $12,000, even if they just put a down payment of 5%, they had to come up with an additional $600 at the start of the process. So really they’ve only saved $129.36 in a year. Is a savings of $11 a month really worth holding off on pursuing a home to call your own after you weigh all the benefits that come along with that?
• • • •
Building equity you can borrow against in the future Having a safe, comfortable environment that fits your family’s needs Having control over your space Tax benefits
The experts are predicting that homes will appreciate by another 4% and interest rates will increase by a full percentage point by the end of 2015. If you are in a position to be able to buy a home now before these predictions become reality, contact a local real estate professional and start the process.
DO THESE INFOGRAPHICS CORRECTLY PORTRAY YOUR RENTERS’ OR YOURSELF? Renters’ Views on Homeownership
financial aspects
86%
77%
80%
Renters’ Views on Homeownership Homeownership provides protection against rent increases
Homeownership provides stability and/or financial security
Homeownership is an investment opportunity that builds long-term wealth
financial aspects
It is something to be proud of
91%
It can be passed on to your children
Freddie Mac 90%
It allows more flexibility to design it the way you want
89%
It gives you more privacy
86%
It gives you more independence and control
81%
It provides a better home life for children
76%
It is a sign of success
76%
It makes you feel more like part of a community
74%
It allows you to live in a better, safer neighborhood
60%
#1 Reasons Renters Won’t Buy 62%
Freddie Mac
58%
44%
Impact on “Willingness to Pay” Age 18-24
Age 25-34
The impact on a renter’s “willingness to pay” when buying a house.
Age 35-44
Freddie Mac
40%
5% A 2% Change in Mortgage Rate
Change in Down Payment Federal Reserve Bank of New York
ARE YOU UP TO DATE? The SALT LAKE BOARD OF REALTORS® provides monthly statistics for Salt Lake County and Davis County. Notify me today if you would like me to include a version of these updates in your inbox.
Marvin Jensen Associate Broker ABR, CRS, GRI, SRES cell: 801-403-4030 mj@marvinjensen.com www.marvinjensen.com
Windermere Real Estate - Utah 1240 East 2100 South, Ste 600 Salt Lake City, Utah 84106
If you are thinking of listing your property
in the second quarter you should know that your competition is coming! Most listings come to market at that time and 2014 was a great example of this. There is still plenty of time to beat the competition while inventory remains low. Call me today with your questions about the current real estate market and when the best time to list your home might be.
do most listings on the market?
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Net Worth: A Homeowner’s is 36x Greater Than A Renter!
Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to of build each wealth. Quarter Year
Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. Some of the findings revealed in their report: • The average American family has a net worth of $81,200 • Of that net worth, 61.4% ($49,856) of it is in home equity • A homeowner’s net worth is over 36 times greater than that of a renter • The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400 There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.