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According to ATTOM Data Solutions’ 2017 Rental Affordability Report, buying a home is more affordable than renting in 354 of the 540 U.S. counties they analyzed.

The report found that “making monthly house payments on a median-priced home — including mortgage, property taxes and insurance — is more affordable than the fair market rent on a three-bedroom property in 354 of the 540 counties analyzed in the report (66 percent).”

For the report, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development with reported income amounts from the Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).

Rents have been surging faster than home prices in about 37% of the markets measured. Daren Blomquist, Senior Vice President of ATTOM Data Solutions warns that rising interest rates could be the tipping point of affordability:

“While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates keep rising in 2017. In that scenario, renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year.”

Bottom Line

Rents will continue to rise and mortgage interest rates are still at historic lows. Before you sign or renew your next lease, meet with a local professional who can help you determine if you are able to buy a home of your own and lock in your monthly housing expense.

Have You Saved Enough for Closing Costs?

by KCM Blog

There are many potential homebuyers, and even sellers, who believe that they need at least a 20% down payment in order to buy a home or move on to their next home. Time after time, we have dispelled this myth by showing that many loan programs allow you to put down as little as 3% (or 0% with a VA loan).

If you have saved up your down payment and are ready to start your home search, one other piece of the puzzle is to make sure that you have saved enough for your closing costs.

Freddie Mac defines closing costs as:

“Closing costs, also called settlement fees, will need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.”

We’ve recently heard from many first-time homebuyers that they wished that someone had let them know that closing costs could be so high. If you think about it, with a low down payment program, your closing costs could equal the amount that you saved for your down payment.

Here is a list of just some of the fees/costs that may be included in your closing costs, depending on where the home you wish to purchase is located:

Government recording costs
Appraisal fees
Credit report fees
Lender origination fees
Title services (insurance, search fees)
Tax service fees
Survey fees
Attorney fees
Underwriting fees

Is there any way to avoid paying closing costs?

Work with your lender and real estate agent to see if there are any ways to decrease or defer your closing costs. There are no-closing mortgages available, but they end up costing you more in the end with a higher interest rate, or by wrapping the closing costs into the total cost of the mortgage (meaning you’ll end up paying interest on your closing costs).

Home buyers can also negotiate with the seller over who pays these fees. Sometimes the seller will agree to assume the buyer’s closing fees to get the deal finalized, which is known in the industry as ‘seller’s concession.’

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

2016, a banner year for many sectors of the local economy!

by Allison Simson

State of the Union, er, Market in Summit County!

 

2016, a banner year for many sectors of the local economy, signaled a continuing acceleration to near-normalcy from the recent recession here in Summit County. Growth in sales tax revenues, lodging occupancy, construction activity, and real estate all cheered on this revival. 

So, what’s the problem? Well, technically not a problem, but there’s not much inventory on the market! It’s amazing that prices have continued to rise despite the low inventory.  And, as always, it’s very localized which segments of the market have low inventory, and which are considered high.  Under $600K?  Things are pretty tight.  READ: You have to be ready to act (pounce in some cases!) by having your financing in order if you are getting a loan and clearly identifying how much you are willing to pay.

With single family home prices surging throughout the county and overall activity up a healthy 8%, the local real estate economy continues to improve.  The luxury market has led our recovery and, in 2016, confidence soared in homes above 1 million. 

Summit County’s sales volume growth in general has continued for six years in a row, nearly doubling in that time to a level approaching 75% of the peak 2007 annual activity.  While that's clearly not so fast as to create the kind of bubble that burst in 2009, Summit County is a robust market, nevertheless.

What’s on the horizon for the Summit County real estate market for 2017? Good question. Inventory will likely remain on the low side, yet the number of sales each week is about the same.  Inventory this low combined with consistent sales is an indicator that prices will continue to climb. 

During this changing time it can be difficult to navigate the market. What is a property worth if there haven’t been any sales to compare?  How do you evaluate a property when the last sale was months ago?  What do you even look at to figure out what the price should be? How does the location within Summit County affect values, which can change street to street and even within a complex?  

Luckily, we know the ins and outs of this market: what makes a property worth more or less than the others around it. We would love to help you navigate this market!

Ask us about some great strategies we are using with our clients to help insure that they get the property they want over the potential multiple offers.

For those of you who are lucky enough to have found your spot in the mountains, the 2016 Sales Report for your complex/subdivision is ready!  For your up-to-the-minute report, call 800-262-8442 or email [email protected] and it will be in your inbox right away!

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Photo of Summit Real Estate Real Estate
Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker