On this fine Labor Day weekend – as we busy ourselves with canning tomatoes, roasting peppers and watching football – I wanted to share the EXCITING NEWS!
The Logan/Cache Valley Market has officially recovered – Home Values are back to the 2008 prices with an average sold price per foot of $85! (of course, this is averaging new and old, large & small home sales). Newer homes fetch a higher price per foot, as do single-level homes and more luxurious homes.
In the past 6 months (March 1, 2015 through August 31st, 2015) 850 single family homes sold in Cache Valley – that is 22% more than the same time period in 2014! No longer is it just homes under $200,000 that are selling..In fact 6.5% of the homes that sold the past 6 months were priced over $400,000! (A year ago it was less than 1%).
The market has changed from a buyers market to a balanced market – and is moving towards a sellers market. We’re experiencing multiple offers on homes and 33% of homes that sold went under contract in less than a month (total average days on market is 101 days – with more expensive homes experiencing a higher average days on market than less expensive homes). Almost without exception, homes that went under contract quickly were clean and well-maintained.
Another interesting fact: 13% of buyers in the fore-mentioned time frame were cash buyers! When Mortgage rates are at an all-time low (currently below 4%), and buyers are still purchasing homes with cash – this indicates a very strong confidence in Real Estate versus the stock market or other investment avenues.
Home inventory has remained at an all-time summer low…because the market is very balanced – with an equal number of homes being listed as homes being purchased. This tight inventory poses a challenge for buyers – they must be pre-qualified financially before they go to see homes as they should be able to react quickly when they find a home that fits their needs. The days of slowly pondering have passed. Buyer competition is fierce. (Buyers of course need to remember that any purchase can be contingent on them thoroughly checking out the house after an offer is accepted).
Sellers, if you have been thinking about up-sizing, now is the time! Clean smaller homes (under $200K) are selling like hot-cakes, and the inventory of larger homes is good. Building is also a great option… check out the Cache Valley Parade of Homes http://cvhba.com/ next week to see the latest trends.
Please call me (435-770-9407) if you want to know what the current value is on your home. I would be happy to perform a market analysis for you.
HAPPY LABOR DAY!