Logan/Cache Valley Real Estate Market May 2020

I delayed writing about the status of our local Logan/Cache Valley Real Estate Market at the end of the first Quarter 2020, because Covid 19 had only been impacting our lives for about 2 weeks.  Now, with 2 full months of Covid19 under our belts I think it’s safe to say Corona virus has not made any lasting impact on on the Cache Valley Real Estate Market.  Although it was a little quiet for a couple of weeks the end of March, our market is as active as ever… in fact, sales to date are 22% higher than they were last year at this time!  The only negative Real Estate condition we are experiencing is a higher rate of failed contracts.  Some buyers are losing work hours, getting laid off or furloughed during the escrow process – sometimes prohibiting their ability to procure their mortgage.  There is a new COVID 19 addendum the state has developed to help keep transactions together if parties have unavoidable delays, and back-up offers are desirable to offset the unfortunate situation of first position contract failure.

Currently there are 219 homes on the market.  That is 8.5% less than May 2019, and the inventory has consistantly been tighter (fewer homes on the market) in 2020 than it was in 2019.  There are plenty of homes being listed, but they are getting snatched up quickly.  The average days on market for April (in the thick of the pandemic) was just 49 days.  In April the average home sale price rose to $283,000 and the average price per foot went to $137 (remember this is a general figure for ALL homes – brand new, old, small, large etc…).  Pricing is very specific to home size, age, home type and area.  A market analysis or appraisal using sold comparables is the only way to accurately gauge home value.

For buyers with job stability it is an excellent time to buy a home.  The mortgage interest rates are at record lows!  Some patience is required as inventory is low and demand high. Recently the availability of townhomes to purchase has increased, as new townhome communities are being built and existing townhome listings are up -allowing more people to purchase affordable newer housing.

The stability of our local Real Estate Market – even during the pandemic- has made it very clear that Cache Valley will continue to grow.  We are seeing an increased influx of buyers moving out of higher densitity areas across the country to our Valley.  Working remotely has become a reality for more people than ever before, and the draw of this beautiful valley is understandable.  Who wouldn’t want to live here?!!

Please feel free to call or email me if you have Real Estate questions or would like a valuation on your home.

Wishing you Happiness!

Terri Sizemore

435-770-9407

supersizemore58@gmail.com

 

 

Recap of the Logan, UT 2019 Real Estate Market/ Expectations for 2020

Wow, we’re into a new decade! 2020 rolls right off the tongue…

2019 was another banner year for our local Real Estate market.  Cache Valley prices rose 8.7% over 2018, ending at an average $124 per footThe average sale price last quarter of 2019 was $279,000. There were 2% more sales in 2019 than 2018 – 1600 residential sales for the year  (2nd only to 2016 at 1607 sales), and that number doesn’t include many newly built homes not listed on the MLS.

Once again high demand and quick sales kept inventory numbers low.  Currently there are just 211 residential homes on the market (including townhouses and condos). That number hasn’t exceeded 325 all year. The overall average days on market (time it takes for a home to go under contract) for the year was 43 days or less.  The price range with the most sales was $200-250k, and the average days on market for that price point was a mere 28 days.

The dawn of a new decade caused me to reflect on how the Logan/Cache Valley market was 10 years ago… What a difference a decade makes!  In 2009 & 2010 home sellers had a pretty tough time, and buyers were skittish. Short sales & foreclosures were rampant, the average home inventory was over 600 homes, the average price per foot fluctuated between $70-$80 pretty erratically, the average home price was under $173k, and the average days on market was 100+.  Only 870 homes sold in 2010, and there were very few homes being built.  2012 marked the beginning of an upward trend in our market, and it really caught fire in 2015.  Home prices have risen 48% since 2015.

Now for projections on 2020….It would be folly to project what the next decade might bring, but for the coming year, the local housing market is expected to remain strong.  Mortgage interest rates are extraordinarily low (below 4% on a 30 year for most loans, and some as low as 3.6%), making affordability within reach for most home buyers even with the higher home prices.  Utah continues to be a very desirable place to live.  The Bureau of Labor Statistics has us tied for #1 in the country in job growth (up 3% since 2018), 5th lowest in unemployment at 2.5% and 2nd fastest in population growth (Cache Valley is one of the most desirable places in Utah) in fact, two of the biggest concerns for Utah are labor shortage and housing shortage.

HAPPY 2020!

Please let me know if you need any further real estate information or help with your Real Estate needs.

Terri Sizemore

435-770-9407

supersizemore58@gmail.com

 

 

 

Cache Valley/Logan Real Estate Market through September 2019

The Cache Valley Real Estate market continues to flourish!  Local statistics through the 3rd quarter of 2019 show home sales up almost 5% over 2018 with 496 sales through the 3rd quarter as compared to 475 last year! The inventory is even lower than last year – with an average 280 homes on the market compared to 315 at this time last year.

Home prices rose 7% , but that’s substantially less than the 13.5% yearly increase I reported in September 2018.  In September 2018 the average home sale price was $262,000.  Currently it is $279,000.  This appreciation is more in line with a normal growth rate.  In Cache Valley the average price per foot is $123 with new single level homes going for up to $200 per foot and older “fixers” around $80 per foot.

Interest rates, while expected to increase this year – actually dropped dramatically last month and are now hovering at a very reasonable 4.0-4.3% for a 30 year fixed mortgage.  Affordable interest rates have been a huge boon for home buyers and have created a flurry of mortgage refinances.

Cache Valley remains a very desirable place to live.  Growth management has been a top agenda for all of the municipalities in Cache Valley, and our local elections next month will help dictate the direction that growth is going to take.

Enjoy our beautiful Cache Valley Autumn!

 

Home buyers – the sequence is significant!

This happens frequently… I get a call on the phone, a nice someone says “my friend said you’re a good Realtor…  I saw a house I like in Logan – can you show it to me?”  I absolutely love a call like this – because there are few things more satisfying than helping someone find a great home.  BUT…there are a few steps that should be taken BEFORE we go out & look at homes.  Just as successful baking (following a recipe) often has sequential ramifications, home buying goes much more smoothly if things are performed in a certain order.  It should go something like this:

1) Find a Realtor – that you trust, is attentive,  knowledgeable and that you won’t mind spending time with. (Check references). Make sure the Realtor is someone who will have your best interests in mind, and then please be loyal to them in return.  Realtors receive no compensation until  a transaction (home sale or purchase) is successfully completed.

2) Get pre-approved for a loan with a lender who is competent, qualified & knowledgeable! Once again, check references… there are many loan programs, find out which one will be the best for your situation.  If you need to wait a while & save up some more money or get rid of some debt in order to obtain a loan with more favorable terms… do it!  A good lender will give you direction.  Either you or your lender need to let your Realtor know what loan program you will be using.  FHA loans have certain guidelines – not all houses will qualify for that type of loan.  USDA loans have geographic parameters – so if you are getting a USDA loan, you need to look at homes only in certain areas.. (In Cache Valley, homes in North Logan, Logan, River Heights, Providence, and parts of Nibley will NOT qualify for a USDA loan).  

If you have CASH to buy a home, you may ignore step two – and go straight to looking at homes!  You’ll also have additional negotiation power:-)

3)  Now that you know your budget, know your loan parameters, have your pre-approval letter and you have the ability to act when you find the home that “trips your trigger”   IT’S TIME TO LOOK AT HOMES!  When you find a home/homes that you want to see, please let your Realtor know  a day in advance if possible.  Showings need to be scheduled with the sellers who often need ample notice to get the home ready and find a place to go while you’re there.  It also makes sense to be able to schedule showings logistically – saving time, gas & air quality.

When these steps are performed out of order, sellers are inconvenienced needlessly  ( getting their homes in order for showings – often dragging children away from dinner, homework etc… – not to mention the emotional drag of getting their hopes up) and the buyers themselves waste time & emotional turmoil looking when they may not be in the position to buy.

If you discover you’re not quite financially ready to purchase, but you really have the hankering to look at homes,  spend time looking at properties online (your Realtor will send you properties to view if you’d like to have things filtered & only look at what fits your guidelines), and by all means attend open houses.

Happy Buying!

Cache Valley/Logan Utah Real Estate still “On Fire”!

For the past year or more there has been an expectation of increased home inventory in our Real Estate market – precipitated by robust new-home construction and an uptick in listings, since prices have increased almost 28% since 2016.  This would naturally result in a leveling off of prices.  Inventory has not decreased despite the active new-home market and strong listing numbers because the demand remains stronger than the supply!  The mortgage interest rates have also contributed to a continued strong market – rates have dropped to below 4% on a conventional 30 year fixed mortgage!

Here are the facts: While the State of Utah as a whole has seen an increased inventory of 12% over 2018, our local market (Cache Valley) actually has 20% LESS INVENTORY than we did last year at this time.  Right now there are 266 homes listed for sale in Cache Valley as compared to 321 last year at this time.  The number of single family homes selling in the first half of 2019 is almost identical to that of 2018 (info gathered from the Utah MLS). Most new home construction sales are not included in the MLS statistics.  Prices have risen 5% in the past 6 months, from an average $113 per foot up to just over $120 per foot.  The average home sale price has risen from $260,000 to almost $272,000.

Currently the average days on market (time it takes for a home to go under contract) is 55.  As I’ve mentioned before, the DOM (days on market) varies greatly depending on the price of the home.  Homes priced under $200K have an  DOM of just 33 days, while homes priced $350,000-$400,000 have an average DOM of 96 days.

One last note: Our beautiful valley currently has 124,564 residents and has been growing by 1.8 – 2% the past 5 years. It is a beautiful place with plenty of outdoor recreational opportunities, good health care facilities,  a reasonable cost of living and a strong job market. It is anticipated that the growth will continue.  There is a real push in most municipalities for building higher density housing so that open space might be preserved, air quality improved and reasonably priced housing made available.  Many of the new PUD’s (planned unit developments) – town house communities and over 55 communities – will play a very important part in providing attractive, reasonably priced housing for the future.

Happy Summer!

 

 

 

 

 

2018 Status of the Logan/Cache Valley Real Estate Market

 

It appears time has marched us through yet another year….

It seems like a short time ago we were breathing a sigh of relief at the understanding Y2K hadn’t caused a world collapse.  (For you youngsters – our emergence into the 21st century brought many people much anxiety.  There was much apocalyptic hysteria linked to fears of global failure and nuclear war. Many were certain that modern life would dissolve, become extinct with the collapse of computer systems unable to roll over to the year 2000).  I remember thinking I would really miss a washing machine and vacuum, but it would be okay rolling back to simpler times…and that was pre-smart phone era:-)

My very wandering mind has stumbled back to that curious time of global angst because I hear some of that same sort of doom and gloom threading through some conversations currently.  I’m here to say – Life is GOOD!  It’s never going to be perfect, let’s just appreciate the good!

Here in our Happy Cache Valley, the Real Estate market is thriving.  In November we hit a tiny bit of turbulence, but otherwise it’s been smooth sailing.  There were 2.7% more homes sold in 2018 than 2017.  The home prices increased just over 9% for the year, and in the 4th quarter 2018 the average home sale price went up to $271,000.  The average price per foot has increased to $114, up from $104 a year ago.  While that seems high, it is still in the “affordable” range relative to most of the country – where the average exceeds $150 per foot.  The current average mortgage interest rate is 4.68% for a 30 year fixed mortgage – down from almost 5% in November!        

In Logan/Cache Valley there are currently 216 homes for sale, a 5% increase over this time last year.  Home inventory is expected to increase in the upcoming months – good news for buyers.

Growth in the state and our area might slow some, but is not going to stop any time soon…Utah in general is Booming!  A report from Think Adviser in September 2018 ranked Utah 2nd after Washington State in economic health & economic activity.  US News & World Report ranks Utah as #4 in employment rankings, and Kiplinger ranks Utah #2 in job growth.

Logan/Cache Valley ranks in the top 10 best (and most affordable) places to live in Utah on various sites such as Area vibe, Livability, Niche, Crazy Tourist and HomeSnacks.  We who live here know it belongs in the tip top!

If you need any Real Estate assistance, please call me at 435-770-9407

Have a Wonderful 2019!

 

 

 

 

 

 

 

 

Cache Valley/Logan Utah Real Estate Market 3rd Quarter 2018

The Cache Valley Utah real estate market remains strong.  The number of homes sold 3rd quarter 2018 was up 3% over 2017 at 470 homes – even with the prices 13.5% higher than last year at this time and interest rates rising.  The past 3 months our home inventory has hovered between 315-325, and currently the average sold price per foot is $114 (remember this is an average – as I’ve mentioned before, pricing varies wildly depending on type of home, age and condition). The average home sale price in Cache Valley is now $262,000.

To put these prices in perspective, the average price per foot in the state of Utah is over $150, and the average home price in Utah has exceeded $350,000 (33% higher than Cache Valley)!  Compared to much of our state, our real estate market is very reasonable.  The state, and our local valley continues to attract new residents with great scores on job growth, outdoor recreation opportunities and excellent quality of life (seasonal air quality excluded).

Despite the strong Utah economy, a market adjustment is anticipated.  As the mortgage interest rates increase, buyers who need to obtain mortgages (most buyers are in this category) find their budgets decrease.  Likely we will see this decreased purchasing power affecting the acceleration of prices and modifying the current sellers’ market to a more balanced market again.  Locally we’re seeing a dual market developing, with homes appropriately priced under $250,000 moving like wildfire, but the higher priced homes – over $350,000 sitting on the market a longer time as they compete with the many new construction options and the increased inventory.  Historically, a yearly real estate market appreciation is around 4 – 4.5% – not the 12-13% appreciation we have seen the past 3 years.  In Utah in general, experts predict a continued appreciation, but at a more normal 6-7% increase next year.