I sound like a broken record, but once again I’m here to report that our Local residential Real Estate market is HOT (booming, flourishing, rip-snorting are other cliched adjectives that could be used).
The demand for homes in Cache Valley continues to exceed the supply, and the inventory of available homes has stayed low all year in response. Currently there are a paltry 202 active homes/townhouses on the market, and 61 of those are under construction!
While the number of residential sales reflected on the MLS (1504) was 7% lower in 2017 than in 2016, the actual total number of sales was certainly higher because of the abundant new construction – most of which are not reflected on the MLS. Home prices in the valley continued to rise. In 2017 the average price per foot rose over 10% to $104 per foot, and the median sold home price rose to $229,000 4th quarter 2017.
A year ago experts were predicting mortgage interest rate hikes, but that did not happen. Currently the 30 year fixed mortgage interest rate is at or under 4% with a credit score of 740. Experts are once again certain that interest rates are going up in 2018 (today the DOW broke the 25000 mark and economy projections are very bullish -giving credibility to the interest rate increase predictions).
The Utah Real Estate market in general, and Cache Valley/Logan specifically show no signs of declining.
Jim Wood, who’s studied Utah’s housing market for 40 years and is a senior fellow at the University of Utah’s Kem Gardner Policy Institute, tells people “don’t wait for prices to go down. That’s not going to happen in the short term.” He predicts prices will go up another five to six percent depending on where interest rates go. My local research supports Mr Wood’s assessment.(see https://homescachevalley.com/2017/11/10/forecast-cache-valley-logan-real-estate-market-in-2018/).
Selling and purchasing in this tight, rapidly moving market can be very tricky. Although values are rising, we are experiencing some problems with homes appraising. Sellers still have to have appropriate pricing – with substantiated value; and home condition remains very important if the goal is top dollar. Buyers are frequently dealing with multiple offer situations, and it’s important not to get impatient or desperate and make an imprudent decision. Buyers who need help with closing costs (buyer closing costs are all associated with procuring a mortgage loan) are at a disadvantage in this market, but a savvy Realtor can help negotiate an offer that will be accepted.
Please feel free to call or email me if you have Real Estate questions or need Real Estate help. Terri Sizemore 435-770-9407 firstname.lastname@example.org.
As the New Year Begins I’m reminded of this quote by Michael Altshuler “The bad news is time flies. The good news is you’re the pilot”
May your 2018 be filled with time well spent!