Windermere Real Estate April Newsletter - Coalville, UT

WINDERMERE NEWS

APRIL, 2014

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Home Owners Impact on NET WORTH

UPDATE

Note: It’s important that we give credit to a valuable resource who has provided us with our information. KeepingCurrentMatters.com (*KCM)

Over the last five years, home ownership has lost some of its allure as a financial investment. As homeowners suffered through the

SUMMIT & WASATCH COUNTY REAL ESTATE CURRENT STATISTICS for SINGLE FAMILY *North Summit

housing bust, more and more began to question whether owning a home was truly a good way to build wealth. A recent study by the Federal Reserve formally answered this question.

Current/Active : 28 March Sold : 5 Current Under Contract: 6 *All of Summit and Wasatch County

Two of the findings revealed in their report: •

A homeowner’s net worth is over thirty times greater than that of a renter.

•

The average homeowner has a net worth of $174,500

while the average net worth of a renter is $5,100.

Continued on following page

Current/Active: 617 March Sold : 59 Current Under Contract: 151 *Provided by the Park City Multiple Listing Service

For Potential Buyers

Bottom Line: The Fed study found that homeownership is still a great way for a family to build wealth in America.

EXPERTS PREDICT INTEREST RATES WILL INCREASE SIGNIFICANTLY THIS YEAR Most experts are calling for an increase in mortgage interest rates throughout the year. The Fed has begun

pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years. Below are the most recent projections of where rates will be at this time next year by the four major agencies.

However, we believe that the government is not afraid to shoot right past these levels. Doug Duncan, Chief Economist for Fannie Mae, last summer announced: “I don’t think the Fed ultimately would be troubled with a 6.5% mortgage rate.” And Frank Nothaft, Freddie Mac VP and Chief Economist, at nearly the same time explained: “As the economy continues to improve, we expect to see continued upward movement in longterm interest rates... At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.” Only time will tell. However, many feel that rates will be in the 5.25-5.5% range by this time next year.

For Potential Sellers:

4 THINGS YOU NEED FROM YOUR LISTING AGENT

Are you thinking of selling your house? Are you dreading having to deal with strangers walking through your

home? Are you worried about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant. You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one.

IF YOU PLAN TO HIRE AN AGENT TO SELL YOUR HOME, REQUIRE THAT THEY:

1

Understand the Timetable with Which Your Family is Under

2

Remove as Many of the Challenges as Possible

You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan. This can be very emotionally draining.

Demand from your agent an appreciation for the timetables you are setting. You must understand that your agent can not pick the exact date for your move, but you want them to exert any influence that they can.

It is imperative that your agent know how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market. Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them (commission, length, etc.), don’t expect them to turn into Superman when they are negotiating for you with your buyer.

3

Help with the Relocation

4

Get the House SOLD!

If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.

There is a reason you are putting yourself and your family through the process of moving. You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.

Do you have additional concerns or questions about listing property? Call a Windermere Real Estate Agent today.

PATTY HORIE REALTOR® 435.640.0400 Patty@WinUtah.com

For the past 25 years, the Windermere Foundation

12 South Main Street Coalville, UT 84017 (435) 336-0500

has donated a portion of the proceeds from every home purchased or sold through Windermere towards supporting low-income and homeless families in communities throughout the Western U.S. As Windermere has grown through the years, so too has the Windermere Foundation, which now encompass ten states and has raised over $26 million for non-profit organizations that provide shelter, clothing, children’s programs, emergency assistance, and other services to those in need. Call one of our agents today if you would like to know more about our community projects

Consider recycling this newsletter.

WHO SAYS MILLENNIALS ARE NOT BUYING HOUSES? We have often gone against the grain to promote the fact

that Millennials have a stronger belief in homeownership than previous generations. Some have strongly disagreed. Well, a new study from the National Association of Realtors (NAR) found Millennials now account for the greatest market share of recent home purchases.

NAR’s Home Buyer and Seller Generational Trends Study for 2014, revealed that Millennials comprised 31 percent of recent purchases, leading all other age groups. Here are the percentages for other generations: • 30% - Generation X • 30% - Boomer Generation • 9% - Silent Generation NAR chief economist Lawrence Yun explained: “Given that Millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand. Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people.”

Other findings from the report: • 87% of recent buyers age 33 and younger said they consider their home purchase a “good financial investment” • Millennials were most likely to have a simple desire to own a home of their own as their motive for purchasing • The median age of recent Millennial buyers was 29 • The median income was $73,600.

• 87% purchased an existing home, and they plan to stay in their homes for a median 10 years.

• Younger buyers relied more heavily than older groups on real estate agents to help them navigate the process.

Bottom Line: Millennials are in the market and recognize the importance of using a real estate professional to guide them to the closing table.

~by The KCM Crew on April 1, 2014