Commerce is all about supply and demand. Here in Cache Valley, the demand for homes continues to exceed the supply – especially the supply of affordable homes. Today there are 253 homes active on the market (listed on the MLS). That’s 27.5% less than the 349 on the market exactly 1 year ago…. and we thought the home inventory was low then!
Although the inventory is much lower than it has been in the past 17 years (yes, the last time active listings were this low was pre- 1999), home sales for the first quarter of 2017 (259 sales) were still higher than the first quarter sales of 2009 through 2015! (First quarter sales in 2016 were 12% higher at 290). There were more sales in April this year (119) than any other April since the big boom in 2007 – illustrating just how quickly homes are selling. The average days on market is just 64, and for the lower priced homes (under $150,000) it’s just 37 days.
The increased demand for homes has continued to drive home prices upward. In April the average price per foot increased to $97, and the average sold home price was $220,000 ( In April, 2010 the average sold price was $172,000). There have been appraisal problems arising with the rapid appreciation rates. Homes still need to appraise so the values must be substantiated – this will keep rising home prices in check.
Mortgage interest rates, while expected to increase, have really remained stable so far this year and are still hovering around a very affordable 4%. Now is the perfect time to sell a smaller home and move up. Of the 253 homes listed, 108 of them (43%) are priced above $300,000. Homes priced under $225,000 are going like hot cakes.
Newly built homes are adding to the home inventory, and I expect the number of homes active on the market to increase – stabilizing prices…While I don’t have firm statistics on the number of homes built in the Valley in the past year, it’s not hard to see builders are working at a frenzied pace to keep up with demand.
As I look back through old stats and reflect on the real estate market the past 8 years, … it’s a great thing to see seller’s once again realizing profits through home appreciation, and in Cache Valley home affordability is still excellent compared to most of the US. This is a desirable and beautiful place to live.
Please feel free to ask for help in determining the value in your home if you’re contemplating selling, or help in looking for a home if you think it’s time to purchase.
Enjoy the warmth to come!
Terri Sizemore 435-770-9407