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Joe Metzler

Big TV Mortgage Companies – Deal or no deal?

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You and I are constantly bombarded with some big national mortgage companies advertising.  Because they are familiar to you from a TV or radio ad, does this automatically make them the best place to get a mortgage loan? The answer is no. 100% absolutely no…

Minnesota Mortgage ratesYou need to understand that all lenders underwrite to the same program (Fannie Mae, Freddie Mac, FHA, VA, etc.) , get their money from the same sources, and have to pay the same third party fees (appraisal, credit report, etc).

The real difference from any lender on any given day might be about .125% for the same program when comparing the same closing cost quote.

Mortgage Advertising Bait-n-Switch

Most of their so called “deals” simply employ creative low ball quoting that the average homeowner doesn’t understand. To make it worse, these types of companies typically employ low level, low education application clerks. Is that who you want handling your largest financial transaction? An application clerk?

Another item to understand… if all lenders get their money from the same bond market on the same day at the same time. If all lenders have essentially the same costs to close your loan. How does the company advertising on TV and radio all day, everyday, in all markets across the country pay for that huge expense? Well silly… They charge it to you!

We have a saying in our office. They more they advertise, the faster you should run away.

Your best bet has always been, and continues to be to go visit your local licensed Loan Officer at your LOCAL mortgage broker.

HARP 3.0 refinance coming soon?

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HARP refinance in MN and WIA new evolution of the HARP refinance program MAY soon be upon us.

HARP 3.0 looks like it’s going to gain headway and make it’s way to the streets since Mel Watt is the new kingpin of FHFA.

HARP loans in MN (Home Affordable Refinance Program) have been one of the few programs to really assist homeowners since the real estate market collapse.  The program allows homeowners who has a loan owned by Fannie Mae of Freddie Mac to refinance to today’s lower rates, even if they’ve lost value on the home, or are actually underwater on their loan.

Since the start of HARP back in 2009, those without  a Fannie Mae of Freddie Mac loan have been out of luck, but that MAY be changing soon.

Under the current HARP refinance rules:

You may be eligible for a current HARP 2.0 refinance if:

  1. The mortgage must now be owned or guaranteed by Freddie Mac or Fannie Mae.
  2. The mortgage must have closed with your lender on or before May 31, 2009.
  3. Check for ownership with:  Fannie Mae or  Freddie Mac
  4. The current loan-to-value (LTV) ratio must be greater than 80%.
  5. The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

Stay tuned… We’ll pass the word if and when HARP 3.0 becomes reality.

HUD lowers FHA Loan Limits for 2014

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New FHA Loan Limits

Looking to get an FHA Loan in 2014 and beyond? FHA Loans, FHA Lenders, FHA Loan Limits, Lookup tool, Minneapolis, St paul, MN, WIHUD ( Department of Housing and Urban Affairs) announced last week it will be lowering the maximum loan amount for FHA loans (Federal Housing Administration). The new limits will take effect Jan. 1.

Each county across the county has a maximum loan amount, which is tied to the areas average income.  The standard FHA loan limits for areas with relatively low housing costs will stay at its current level, $271,050. However, the limit for areas with the highest housing costs will be reduced by more than $100,000, from $729,000 to $625,500.

To learn what is available in your area

Use this FHA Loan Amount Lookup Tool.  Be sure to click the CY2014 for the new limit

The current limits have been in place for the past six years, and were originally set to lower in 2009, but were left alone because of the real estate crash.

Loan limits for FHA-insured reverse mortgages will remain the same at a maximum amount of $625,500, with actual loan limits based on the value of the property, current interest rates and the borrower’s age.

While not for just first time home buyers, they are wildly popular with first time buyers because they only require a down payment of 3.5%. That down payment can be their own money, a gift from a family member (like Mom and Dad), or from a down payment assistance program.

FHA loans also allow for a little weaker credit profile, and you can even use one to buy a house needing repair, and get the money to fit it up all in one loan. That is known as the FHA 203(k) rehab loan.

FHA loans are not perfect. They also come with some of the most expensive mortgage insurance of all mortgage loans.

MN down payment assistance programs

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Down Payment Assistance programs for first time home buyers in Minnesota.

Apply for Down Payment Assistance in Minneapolis, St Paul, MNWe have several programs in Minnesota with varying levels of down payment assistance. Up to $10,000 is available in assistance for those who qualify.  Most people get much less, usually between $3,000 to $5,000. All programs have different qualifications and quidelines. Please visit our special down payment assistance website to get more information from a licensed Minnesota Loan Officer and down payment assistance specialist.

First Time Home buyers can take advantage of down payment assistance and grants available in Minnesota.  First time home buyers typically qualify if they have not owned a property in the last 3 years. If you have owned a property in the last 3 years, you can still qualify for some down payment assistance programs.

Here are some down payment assistance examples:

  • Below market interest rate with up to 5% (or $5000) down payment assistance loan.
  • Below market interest rate with up to 3% (or $3000) down payment assistance. No payments. Pay back when you sell.
  • 100% financing in qualified rural areas of MN and WI
  • 100% financing for active or military veterans
  • Up to $10,000 in assistance – part of which may be forgiven after a few years.
  • Mortgage Credit Certificates – Used to reduce your tax liability up to $2,000 a year

While having your own money is always best when buying a home, if you have some, but need a little assistance, these first time home buyer programs are just the right tool to make your real estate dream come true.

 

New home construction WAY UP

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Any one with half an eye open knows these monthly housing reports bounce like a yo-yo.  This month up, last month down, so the long term average is where to focus. New home sales are up 21% over the past 12 months ending October 2013.  That is a good sign!

After a drop in Sept. 2013, sales of new single-family homes in October 2013 saw their biggest month-over-month increase since May of 1980, according to data released today by HUD and the Census Bureau.

New single-family home sales were at a seasonally adjusted annual rate of 444,000 in October, according to a report by the Census Bureau and HUD. That’s 25.4% above the revised September rate of 354,000 and 21.6% above October 2012’s rate of 365,000.

The October rate is also considerably higher than the 425,000 projected by economists. However, new home construction is still less than half what it was at its pre market crash – which arguably was artificially high, and not a valid comparison to today’s market

Prices on new homes also fell slightly, but this is attributed to smaller average home sizes compared to just a few years ago.

The seasonally adjusted estimate of new houses for sale in October was 183,000, according to the Census Bureau. At the current sales rate, that equates to a supply of 4.9 months. The median sales price of new houses in October was $245,800. The average sales price was $321,000.

Selling your home in the winter – Myth or Fact?

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tree_snowI hear it all the time.  Homes don’t sell in the winter.  Sounds legitimate, but the facts simply do not bear this statement out to be truthful.

Are there less homes on the market in the winter?  Yes.  Statistics show about a 30% drop in active home buyers versus the peek summer months.

Big deal…

Realize this… There are fewer homes on the market for sale, so when the more serious buyer comes out in the wintertime to buy a home,  YOUR HOME gets more showings because you have LESS COMPETITION!

Good homes priced right sell quickly all year round.

Interest rate forecast for 2014

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Everyday, I am asked “what are mortgage rates going to do?”

Minnesota mortgage ratesNo one has a crystal ball, but here are a few reasons we should expect mortgage interest rates to be higher in 2014.

1) New mortgage rules starting in 2014 are going to make getting mortgages harder, take longer, and cost you more money to obtain.  Lower debt to income rations, new forms, qualified mortgages, the CFPB, and more are all expected to take a significant toll.  Remember, Barney Frank, Chris Dodd, and all the others said their brilliant financial reforms would save you money…  All I’ve seen is high costs!

2) Economists at Freddie Mac have indicated they expect interest rates to be in the 5’s throughout 2014 because the economy is getting better (albeit slowly), and the Federal Reserve is expected to stop artificially propping up the mortgage market, with their buying of mortgage backed securities

3)  Affordability indexes are falling.

The good news is, there’s still time to take advantage of low refinance rates and new home purchase programs now if you’re a consumer.

What you should know before buying a home in MN or WI

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What should I know before buying a home in MN or WI?

Real estate - Home Buying tips in MN and WIHere are some tips that could save you a lot of time, money and trouble.

  • Plan ahead. Establish good credit and save as much as you can for the down payment and closing costs.
  • Get pre-approved online before you start looking. Not only do real estate agents prefer working with pre-qualified buyers; you will have more negotiating power and an edge over homebuyers who are not pre-approved.
  • Get a REALISTIC housing budget and stick to it. Talk to your Loan Officer about debt-to-income ratios
  • Know what you really want in a home. How long will you live there? Is your family growing? What are the schools like? How long is your commute to work? Consider every angle before diving in.
  • Make a reasonable offer. To determine a fair value on the home, ask your real estate agent for a comparative market analysis listing all the sales prices of other houses in the neighborhood.You don’t want to over pay, and you don’t want to waste everyone’s time with unrealistic low ball offers.
  • Choose your Lender carefully. Roughly 80% of Loan Officers are simply unlicensed application clerks.  Only work with a licensed Loan Officer.  TIP: An Loan Officer NMLS # is NOT a license. Ask them if they are licensed or simply registered.  Verify a Loan Officer at www.NMLSConsumerAccess.org.  At the bottown of the page, if one or more state licenses are listed. They have a licensed.  If it says Federal Mortgage Originator, they are NOT licensed.
  • Choose your real estate agent carefully:  A real estate license legally allows someone to practice real estate – it doesn’t mean they are good. Check experience, references, etc.  Also, under NO circumstances should you ever use the homes listing agent as your buying agent.
  • Consult with your lender before paying off debts. You may qualify even with your existing debt, especially if it frees up more cash for a down payment.
  • Save for down payment: While some first time home buyer assistance programs are available, you are much better off, and have many more options if you have your own money for down payment. Try to have at least 3.5% for an FHA loan, but 5% for a conventional loan is much better.
  • Keep your day job. If there is a career move in your future, make the move after your loan is approved. Lenders tend to favor a stable employment history.
  • Do not shift money around. A lender needs to verify all sources of funds. By leaving everything where it is, the process is a lot easier on everyone involved.
  • Do not add to your debt. If you increase your debt by financing a new car, boat, furniture or other large purchase, it could prevent you from qualifying.
  • Timing is everything. If you already own a home, you may need to sell your current home to qualify for a new one. If you are renting, simply time the move to the end of the lease.

 

Jobs Report Sends Mortgage Rates Jumping

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Borrowers faced slightly higher mortgage interest rates this week due to a stronger-than-expected jobs report.

The benchmark 30-year fixed-rate mortgage rose to 4.48 percent from 4.35 percent last week, according to the Bankrate.com national survey of large lenders. The mortgages in this week’s survey had an average total of 0.36 discount and origination points. One year ago, that rate stood at 3.52 percent. Four weeks ago, it was 4.42 percent.

READ THE FULL REPORT from BankRate.com

 

Minneapolis Refinance activity still low – but should it be?

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Since spring of 2013, the number of home owners refinancing to lower interest rates has dropped dramatically, but according to a survey release Tuesday, people who refinanced their home in the third quarter will see about $6 Billion dollars worth of savings over the next year alone that can be used for better things, like paying down credit card or student loan debt – or just to put into savings.

So why are more people not refinancing?

Minnesota mortgage ratesFirst, many people already have… and with 30-year fixed mortgage rates hovering +/- 4.50%, there is little incentive for people to do it because they already have good rates.

The rest appear to not be doing it because they either can’t because of poor credit or other approval hurdles, or they simply think they can’t – but have never tired.

The think they can’t refinance but have never tried group is clearly missing out.

Many who think they can’t, think that because their homes have lost value.  But with programs like HARP (Home Affordable Refinance program), FHA Streamline Refinance Program, and the VA Streamline Program (also knows as an IRRRL Loan), the vast majority of people can.  Never assume you can’t. Pick up the phone or surf over to your local mortgage brokers web site.  It only takes a few minutes to determine if you can refinance, and if you do, what are the savings.

Advantages of refinancing

The obvious big advantage is lowering your monthly mortgage payment.  But there are other significant advantages like paying off other debt, or shortening the term of you loan to pay it off earlier. According to recent reports, an amazing 37% of homeowners shortened the remaining term of their loan.

At the moment, 15-year fixed-rate loans averaged around  a full percentage point below 30-year loans.  That is a big incentive all by itself.  But many people are wanting to go into retirement house payment free, and realize that the low rates on shorter term loans helps them achieve that goal.

 

Mortgage rates move slightly higher – Week ending 11/7/2013

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upFreddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher for the first time in three weeks amid more positive economic data out of the manufacturing and non-manufacturing sectors.

News Facts

  • 30-year fixed-rate mortgage rates averaged 4.16 percent with an average 0.8 point for the week ending November 7, 2013, up from last week when it averaged 4.10 percent. A year ago at this time, the 30-year FRM averaged 3.40 percent.
  • 15-year fixed rate mortgages this week averaged 3.27 percent with an average 0.7 point, up from last week when it averaged 3.20 percent. A year ago at this time, the 15-year FRM averaged 2.69 percent.
  • 5-year adjustable-rate mortgage (ARM) averaged 2.96 percent this week with an average 0.5 point, unchanged from last week. A year ago, the 5-year ARM averaged 2.73 percent.

Quotes
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

“Fixed mortgage rates rebounded slightly this week on more positive economic data releases. Production in the manufacturing industry expanded for the fifth month in a row in October to the strongest pace since April 2011. Similarly, the non-manufacturing sector grew for the second consecutive month in October and beat the market consensus forecast of a decline. These increases were widespread across the nation, from Minneapolis, to Milwaukee to New York.”

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Freddie Mac’s survey is the average of loans bought from lenders  last week, including discount points. Applicants must pay all closing costs at these rates. No cost loan rates higher.

What your Loan Officer DOESN’T tell you can be costly

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First Time homebuyersI just got off the phone with a client… She was very happy with me, but extremely pissed at “her” Credit Union.  It’s not that her Credit Union is a bad place, it is just that she isn’t a mortgage professional, and the unlicensed application clerk she had been talking to for a mortgage loan was only selling what the Credit Union offers.

A good mortgage customer

This client banks at a Credit Union.  She wants to buy a home.  She believed the Credit Union would be a great place of get a mortgage loan because “they know her”, and “she is comfortable” with them.  She is a good credit client, has good income, a low debt ratio, and 10% of her own money for down payment.

The Loan Officer told her she didn’t qualify. He said she needed 20% down to get a loan. She left disappointed, but determined to save more money and come back again

Not All Lenders Offer All Mortgage Loans

What the Credit Union Loan Officer told her was true.  She needed 20% down.  What he didn’t tell her, was that was only THEIR guideline.  He failed to mention that she could have gone to a lot of other lenders, who would have been easily able to offer her a loan right away.

As a sales person, the Loan Officer was selling what he had to offer. Was he wrong in not telling her the competitors may have something different?  I’m not sure. But if you go to a VW dealer and ask to see their pickup trucks – which they don’t offer.  Is he going to tell you to go to the Ford dealer? Not likely. He is going to try and sell you a VW.

A second opinion

While most mortgage lenders offer the basic mortgage products, a second opinion, especially if you are dealing with a Bank or Credit Union may be wise. I know of many lenders who do not offer VA Loans, or FHA Loans.  I know many lenders who do not offer USDA Rural Housing Loans, or community down payment assistance programs like the Minnesota Housing Finance Agency loans.

Furthermore, even if a lender does offer a product, that doesn’t mean the Loan Officer is familiar with it, or will mention it.  This is again especially true from banks and credit unions because their Loan Officers do NOT have to be licensed.

Licensed Loan Officers versus Application Clerks

Mortgage lending rules put into place after the real estate crash have many people believing the industry is better than before, and they would be correct.  But there are still major gaps.  The most sickening to me personally is the educational and licensing gap between the various Loan Officers at Banks, Credit Unions, Mortgage Companies, and Mortgage Brokers.

Loan Officers at Banks, Credit Unions, and mortgage companies owned by a Bank or Credit Union DO NOT need to be licensed.  There are no State or Federal testing or educational requirements for depository lender loan officers. Most of these type of Loan Officers are little more than an application clerk.

Loan Officers at non-depository mortgage companies or at mortgage broker companies ARE REQUIRED to have a personal license.  They MUST take mortgage education, they must take State and Federal testing, they must have yearly continuing education, and the must be fully vetted for criminal histories.

Verify your Loan Officer

Verify a Loan Officer has a LicenseAll Loan Officers must have a tracking number. This number must be displayed on paperwork, business cards, web sites, etc.  It is NOT a LICENSE NUMBER.

To verify if a Loan Officer is licensed, or simply an application clerk, go to www.NMLSConsumerAccess.org.  You can then enter the Loan Officers Name or Tracking number to see their information.

Once you have the Loan Officers data in front of you, look towards the bottom.  It will say either State Licenses/Registrations, or just Registration Name.

If one or more states are listed, this Loan Officer has a license.  If you look me up, you’ll see I am licensed in MN and WI.  My tracking number is 274132.

If it says Federal Mortgage Originator, this person is NOT LICENSED.

The Bottom Line

Every Loan Officer can go get a license. There is nothing preventing them from getting one.  It is just that banks and credit unions are not required to have a license. The fact someone doesn’t have a license doesn’t automatically mean they are bad. But in my humble opinion, I am only going to allow a fully licensed and vetted by the Government Loan Officer handle my largest financial transaction.

Who are you using?

By the way, I was able to qualify my customer…  She now had 20%, but we are only using 5% down.

Expect low mortgage rates well into 2014 – Here is why

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According to the latest weekly Freddie Mac Rate Report,  the average rates for a 30-year fixed-rate mortgages hit the lowest levels seen since June last week after the Federal Reserve stated they will not taper their $85 billion per month mortgage bond purchase program anytime soon.

Until the Federal Reserve does start to taper, and then stop buying bonds,  expect to see low mortgage rates for some time to come. We’re going to be enjoying some very attractive interest rates well into 2014. The question is, is it going to be a 3.875% interest rate or a 4.25% interest rate? Either way, historically speaking, these are still great mortgage rates. People should be taking advantage with a new home purchase, or refinancing their existing mortgage loan.

Minneapolis Low Mortgage RatesThe general market still widely believes that the Federal Reserve won’t begin talk of tapering their massive bond purchases until at least June of 2014. Keep in mind that Congress just kicked the budget ceiling down the road until February,  where they are going to have to renegotiate again, so the Federal Reserve will also have to react to that budget battle too.  If  Congress comes up with a good long-term agreement, mortgage rates should move up, but we still anticipate under 5%.

Low mortgage rates well into 2014.

Really, there’s no way to know until February.  Until then, mortgage-backed securities are operating at a very thin range.  Low mortgage rates are here today. Better interest rates, over and above what we’re seeing right now, are remote. On the other hand, worse rates than what we’re seeing right now are remote too.

With current mortgage rates for FHA loans in the upper 3% range, and Fannie and Freddie loans in the low 4% range, there really isn’t any room to lower rates further to spur the housing markets.  What the county needs is jobs, and stable jobs.  When people feel good about their financial situation, they have no fear buying homes.

 

Tips when buying a fixer-upper

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In the market today, many homes are in need of a little tender loving care.  Buying one of these properties can be a great deal, while the next one could be a money pit. The following are some tips to make sure the fixer-upper you are looking at is a great opportunity.

Know your limits

I’ve bought and sold homes needing repair, and I’ve learned a lot over time.  A big item to consider is knowing your limits.  Not everyone is Bob Villa.  Know what sort of repairs jobs you can safely handle, and which ones will require a professional.

Inspect, inspect, inspect

Having a home looked at by an experienced second set of eyes is paramount before buying.  Many people skip this step, thinking they can save a few hundred dollars. I counter that it is some of the best money spent.  Would you rather spend $300 to find out it is a money pit, or buy the house and find out later?

Bones vs Cosmetics

Walking into a home that is in desperate need to paint and carpet is one thing. Attempting to handle a home with serious foundation or structural problems is something different.  Bad leaky roofs are expensive. So is completely replacing a kitchen, and replacing all the old windows.  Leave these type of homes for experienced home flippers.

Dated vs Dud

Homes with good basic bones that just looked dated are excellent homes for a fixer-uppers.  Look for something that is habitable today. Something where you’d like to renovate, yet you wouldn’t “need” to do anything to move right in. Then over time, you can update one room at a time until finished.  Smaller projects that are lighter on the budget spread over time is key.

Don’t over improve

A common big mistake is over improving a home for the area it is in. FHA 203k loan lender in MN WI Putting in a $50,000 new kitchen with granite counter tops and stainless steel appliances in an older neighborhood of  standard appliances and standard counter tops may look great, but you’ll never recover what you paid.  Just the opposite is also true.  Putting in a standard counter and appliances in a newer neighborhood where everyone else has stainless steel is also a problem

Be realistic with a repair budget

Working in conjunction with not over improving the property, make sure you set a realistic affordable budget – and expect to go over it.  If your budget is $25,000 – don’t factor anything higher than $20,000.  Believe me, surprises will crop up, and by the time you are done, you will have spent the full $25,000.  Also get a few bids for each job. The total final cost will usually be somewhere between the low big and the high bid.

FHA 203k Repair Loans

Finally, consider using the popular FHA 203k repair loan.  This mortgage loans allows you to buy it and fix it all with one standard loan.  There are two types of FHA 203k loans, known as full or streamlined.  I suggest buyers work within the streamlined version, which allows for repairs up to $35,000.

Click here for more information on FHA 203k loans in MN and WI.

 

Losing offers to cash buyers? Here is how to win with a loan

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You are fully pre-approved, and actively looking for homes with a Real Estate Agent.  You find the perfect home, but there are multiple offers, and one of them is cash.  Panic sets in, but don’t worry.

Sellers love cash buyers for two main reasons. The first one is super obvious – quick closings.  The second, but bigger scare, is any lender related issues.  Is the client “really” qualified?  Will the house appraise OK? Will the lender require something to be repaired?  How long will it take to close?

Real Estate, Minnesota, Minneapolis, for sale, mortgage rates, interest rates
Get Pre-Approved Today – Click HERE

Ways to beat cash offers: 

If possible, try these tips to make you are your offer as good, or better than a cash offer.

Bigger Down Payment

While it has no bearing in reality, both Real Estate Agents and sellers think you are a more qualified buyer if you put more money down.  So try a bigger down payment if you possibly can afford it.  Interesting, the #1 best performing mortgage loan with the least foreclosures in the market is a zero down payment VA Loan.

Forget the Official Inspection

Most buyers opt to have a home inspection done. Most official inspections find no major items that you likely didn’t see already yourself.  Most buyers end up nit-picking minor little items, then ask the seller to “fix” everything. This is very annoying to sellers.  Look the house over good by yourself, and then skip the official inspection.

Change your price point

Are you constantly being out bid?  Everyone else seem to be willing to pay more?  Consider looking at homes in a slightly lower price point. By looking at less expensive homes, you can be the one that puts in an offer over the asking price, and winds the deal.

Closing Costs

All loans have closing costs.  It is very common to ask the seller to pay your closing costs. The seller isn’t really paying anything, rather it is just a way for the buyer to pay the costs over time, versus paying up front at closing.

For example: If you offer $205,000 and ask the seller to pay $5000 on your behalf, the sellers net is $200,000.  If you offer $200,000 without asking for anything, the sellers net is still $200,000. Unfortunately, most sellers feel like you are ripping them off when you ask for seller concessions. They add up in the sellers mind, which works against you. Try not to ask for ANY concessions, not even a “Home Warranty” (99.9% of the time you’d never need anyway).

Try to talk to the seller

Buying and selling a home can be very emotional.  Talking to the seller about how you’d love to raise your three kids there, just like the seller raised their kids there has serious emotional pull.  It goes a long way when fighting against a typically lower cash offer from someone who just plans of flipping the home.

Winning a bid with a loan

Fighting cash buyers can be discouraging. But, just because they’re dealing in cash doesn’t mean they win. Many investors think they can low-ball with cash.  Show you are super serious with these ideas, and you’ll have a winning bid!

Average Home Prices Now Equal to April 2005

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There is some great news in real estate… The FHFA (Federal Housing Finance Agency) reported that home prices posted a 19th consecutive monthly gain in August.

welcome2_FTHB_1On a year-over-year basis, the August report was up 8.5 percent.  This means average nationwide home prices are now equal to what they were in April 2005.

We are getting there, but this report also shows that the average market level is still 9.4% below the price peek of April 2007, right before the housing market crashed.

Values increased in seven of the nine Census Divisions in August with the South Atlantic and East North Central divisions experiencing declines.  The South Atlantic region, which encompasses all coastal states from Florida to Delaware, was down 0.5 percent and the East North Central (Wisconsin, Michigan, Indiana, Ohio, and Illinois) division saw prices go down just 0.3 percent.

The largest value increases were in the Mountain (Utah, Montana, Colorado, Nevada, Arizona, New Mexico, Idaho) and West North Central (North Dakota, South Dakota, Minnesota, Iowa, Nebraska, Kansas, and Missouri) divisions which rose 1.3 percent and 1.2 percent respectively.

The August 2012 to August 2013 changes were largest in the Pacific Region (Oregon, Washington, California, Alaska, and Hawaii) where homes appreciated 18.2 percent and the Mountain division with a 13.8 gain.  The smallest annual increase was in the Middle Atlantic division is Pennsylvania, New Jersey, and New York, where prices were up 4.0 percent.

As values continue to rise, more and more sellers can safely sell their homes – which should help with inventory issues.  It also means that potential first time home buyers really need to jump into the market to buy a home TODAY, as those gains for sellers equals less buying power for buyers.