Yet another Year has flashed by, and our local Real Estate Market was a real “rip snorter”!
In 2016, home sales were up 10.7% over 2015 (1607 homes sold in Cache Valley), and sold prices were up 9.6%!! The average sold price per foot in 2016 was $92 and the last 6 months it averaged $95 per foot. Our previous market high (late 2007) was an average price per foot of $88. Please keep in mind, these average prices include new homes, single level, 2 story etc… It’s important to have a Real Estate professional or appraiser evaluate your specific home/location to determine your home’s value.
Factors contributing to the increased home prices are: low inventory – there has been a 13.1% decrease in the average number of homes available on the market since 2015 (at this moment in time there are just 226 homes on the market in Cache Valley), and increased demand for homes as Utah continues to benefit from an influx of new home buyers. 15,000 people reportedly moved to the state last year, and Utah ranks 2nd in the US in Millennial (those born between 1982 and 2004) home buying.
Prime mortgage interest rates, while up .75-1% the past several months, are still very affordable. According to The Mortgage Report (an unbiased, very useful mortgage news publication) they are expected to hover between 4-4.32% in 2017. Government backed loans (FHA, VA & USDA) actually provide even lower rates currently, but have accompanying mortgage insurance premiums).
All signs point to the Real Estate market remaining strong. Housing appreciation in Utah overall is projected to slow in 2017 to a more sustainable 5-6% as builders continue to add to the home inventory – which is good news for buyers.
Best Wishes for a Happy and Prosperous 2017!