The Real Estate Market in beautiful Cache Valley is ON FIRE!
In November 2015, the average price per sq. ft. rose to $90, and the past 6 months the price per foot has averaged $87 exceeding 2008 prices.
The average sale price in November rose to $220,418, the highest it has ever been! In the past 6 months, 21 ( that’s TWENTY-ONE) homes sold for over $500,000! In larger markets that wouldn’t be a big deal, but here it’s unprecedented.
In the past 12 months 1437 homes sold in Cache Valley…. that’s over 25% more than the 1129 sold in the previous 12 months!!!
The home inventory remains very low (at this moment – 337 homes for sale in the entire valley), because there is a consistent equilibrium between homes listed and homes sold… The average days on market for all price ranges is 91 days- with homes priced between $150K – $200K having the shortest days on market (67 days), and those priced over $300,000 taking longer.
Buyers should know that homes are still a great value (mortgage payments comparing favorably to rental rates) even though the prices are rising. They should also realize that interest rates are finally starting to go up- pushing mortgage payments higher. Interest rates are still in the low 4% range (with a credit score over 700), but they are projected to rise as much as 2% in the next year.
If you have been contemplating a home sale…or purchase, sooner is better than later.
If you want a free market analysis performed on your home, Please give me a call @ 435-770-9407
(all statistical information was collected from the Wasatch Front Regional MLS on 12/7/2015)
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.
I’ve been neglectful in reporting on the Cache Valley Real Estate market…. That neglect is purely due to lack of time (or poor time management), not because of mediocre movement or a lack of positive news.
The local Cache Valley market is GOOD! The number of homes sold this year through May (496) is 19% higher than Jan-May of last year, and the average sale price has increased to $189,483 with an average price per foot exceeding $80. The price per foot averages are almost back to 2009 prices (great news for sellers!) with foreclosure and short sales decreasing nearly to pre market-crash frequency.
The number of residential homes for sale has not exceeded 540 at any time in 2015 (very low – especially for the summer months). This is not indicative of a housing shortage, but a very strong/balanced supply and demand. Well maintained, well priced homes are selling quickly – with an overall county average days on market at just 118 days, and in the past 2 months, 37% of homes listed went under contract in less than a month!! There are still plenty of homes for buyers to choose from, but buying decisions need to be made fairly quickly to avoid missing out on the right home.
Homes in all price ranges have been selling well, however homes priced over $500,000 – because of a higher-than-normal inventory and a smaller buyer pool-typically have a longer “days on market”.
If you’ve been contemplating up-sizing or downsizing, the timing may be right. Interest rates are still low (hovering in the low 4% ranges) making home buying very affordable. Lending guidelines are tight, but not unreasonable.
If you want to know the value of your home, please feel free to call me for a comparative market analysis, and I am always ready-willing to help with any Real Estate needs! (I am now with Youngblood Real Estate, but still have the same phone & email… 435-770-9407 firstname.lastname@example.org)
The truth about on-line home valuations in Utah (i.e.… Zillow zestimates, Trulia estimates)
I frequently get calls from friends and clients – confused or upset because they saw a “zestimate” that valued their home at $25,000 below what we have it listed for or $10,000 below (or above) what they purchased it for…. Sometimes they’re excited because they think it will be justification to contest a property tax bill.
While offering an additional good marketing tool, sites such as Zillow and Trulia access information that is incomplete and therefore inaccurate. Utah is a non-disclosure state – meaning sales prices are not public information. Even in full disclosure states such as Colorado – where sales information is readily available, the MLS is the only really accurate valuation resource– providing important additional information such as square footage on each level of the home. (Main level square footage is more valuable than 2nd floor footage – which is more valuable than below-grade space).
Real Estate professionals are able to access information from the MLS – evaluating home sales of homes comparable to yours in size, style, age and condition – including the very important square footage per floor comparison; thereby arriving at a reasonably accurate home valuation. Appraisers perform an even more in- depth evaluation of “sold” comparisons –thus providing an even better assurance of home value.
In summary: Don’t stress (or celebrate) about a zestimate or any other on-line look up home evaluation. If you need to know what you home would sell for right now, call your knowledgeable Realtor – ask her or him to please look at your home, take some time to pull and evaluate comparable “solds” and voila – you’ll find out within reasonable accuracy what your home is worth.
Buying a home is a very important and expensive purchase – probably the most important purchase you will ever make. It’s very important to have someone help you who is educated in all the facets of real estate.
Unlike hiring an attorney to represent you, it’s one of the few instances in life where you can have professional representation and you don’t even pay for it. Realtor fees are typically paid by the home seller. Brokerage commissions are split by the Realtor listing the property, and the Realtor bringing the buyer. As a buyer, it is generally in your best interest to have a Realtor representing YOU versus using the listing agent who represents the seller.
Realtors have knowledge & CONNECTIONS
A competent Agent knows the market and will do research on the value of homes you’re interested in. If questions arise about properties, they do the necessary research with county records, cities, etc… they’ll find the answers to questions about animal rights, water rights, covenants etc…allowing you to make a well-informed purchasing decision.
They have connections with other professionals. They can direct you to qualified lenders, reputable inspectors, contractors etc…
They’re trained Professionals
Real estate professionals take classes continually to make sure they’re educated on all new laws, procedures, forms etc…
They have experience. .. The first time doing anything is always rocky and uncertain. experience helps take away the rockiness.
Realtors pay dues for full access to the MLS (multiple listing service)- they can access and research all of the properties for sale (not just those from a particular brokerage), share listings via the internet, and then physically show you homes that interest you.
Realtors are able (time allowing) to preview homes before you see them…saving you time if you’re clear on your parameters.
Paperwork…They know what forms and contracts are needed and will make sure they’re filled out correctly and legally.
They will manage the transactions and dates for you.
Maybe most importantly, a trustworthy Realtor will negotiate the best terms for YOU. After you find that perfect home, research will be performed to determine the true market value of the home, ensuring that you know what you’re buying, and you don’t overpay
A competent, honest Realtor is invaluable in making your home purchase a smooth, safe and happy transaction. If you’re thinking about purchasing a home I would appreciate your consideration when choosing a Realtor. Terri Sizemore 435-770-9407
Ralph Waldo Emerson said “Write it on your heart that every day is the best day of the year”.
As I reflect on the: many joys, some difficulties, embarrassing moments, successes, failures, new friends, fun days, and blessings experienced in 2014 I have to say THANK YOU GOD FOR YEAR PAST, AND HURRAH FOR NEW ONE COMING!
Helen Keller- so familiar with every kind of difficulty – profoundly expressed a New Years Resolve:
“Your success and happiness lies in you.
Resolve to keep happy,
and your joy and you
shall form an invincible host against difficulties.”
Investing in Real Estate can make terrific sense, but as in all investment strategies – there is some inherent risk…
Here is a brief summary of things to consider when purchasing a rental property:
Personal Finance considerations: Lenders typically require 25% down on an investment property mortgage (caveat -if part of the rental property is your primary home – as in a duplex where you live in one unit and rent the other unit out, loan programs such as FHA with as little as 3.5% down are available). Interest rates will also be higher than the rate available on a primary residential mortgage. Your credit, income, assets and debt ratios all factor in on the interest rate offered. As with all mortgages, closing costs will be associated (plan on 3% of the loan amount). It’s wise to have a large “nest egg” saved up to cover vacancy loss, improvements and repair costs. Money desperation can facilitate unwise decisions in accepting “risky” renters – leading to serious money woes.
Personality considerations: Ask yourself, “Do I want to be a Landlord?” Landlords have to screen for tenants. Will you be able to say “No” when you need to? Will you be able to be firm about collecting rent? How do you feel about doing/ or hiring out repair work? Using a property management company is a very good option (one I recommend) if you don’t want to be a landlord. Most management companies charge around 10% of the rental income (becoming another financial consideration).
Property considerations: Budget will dictate some things, but when evaluating properties consider the neighborhood and associated demographics. Properties near the university are in high demand (low vacancy), and often can glean higher rents (depending on the condition of the property), but also may have higher turn-over and more repair costs. A single family home near a school may provide more rental stability and lower turnover once rented but may be harder to rent initially. The age, size, condition, location and amenities (garage, laundry, yard etc…) of the property will influence potential rental income as well as the potential outlay for maintenance.
Investment considerations:Return on investment (ROI)a profitability measure that evaluates the performance of a business by dividing net profit by net worth, cash flow Income less expenses, risk,and tax implicationsare all important aspects of investment considerations.
Cash flow example:
1900 sq. ft, 3BR, 2 BA single family home in North Logan
Potential rent $1150/mo – less 10% management fee = $1035/mo
Gross monthly cash flow: $309 ($3708 per year)
9.27% ROI, excluding vacancy loss & repairs – (an unknown)
Additional tax advantages & appreciation of the asset(Real Estate has traditionally appreciated at a rate of 3 -4% per year, although we all know this is not a fail safe assumption) May make this purchase a very desirable investment decision.