Predictions that the Utah Real Estate Market – and our local Logan/Cache Valley market- would see prices increase at a lower, more historical rate in 2018 have proven incorrect. The demand for Real Estate continues to match or exceed the supply; even with the added inventory of new homes and townhouses.
While the average median home sold price dropped from $229,000 last quarter to $221,000 the first quarter of 2018, the average sold price per foot increased from $104 per foot to an average $109 per foot – an increase of 5% in just 3 months! Please keep in mind the price per foot a home fetches depends on the age, style and condition… it can range from $70 or less per foot for an 80 year-old bungalow with an unfinished basement and no updates on a tiny lot to $200 + per foot for a single level rambler with stellar finishes on acreage. Appraisals are still very important, and your Realtor will pull sold comps to give you an accurate idea of how your home should be priced.
The decrease in median sold price is reflective of the demand for less expensive homes. There is a proportionally high number of buyers seeking homes priced lower than $300,000. Of the 241 homes that sold in Cache Valley the past 3 months, 204 (85%) of them were priced under $300,000 and only 9 were priced above $400,000. This brought the median hold sold price down. This statistic will change next quarter though, because 21 homes priced above $400,000 are under contract.
Currently there are 204 homes active on the market in Cache Valley. There are also 204 homes under contract- poised to close in the next 45 days or so. This illustrates the high demand for Cache Valley Real Estate! People from other states continue to flood into our Valley – as a result of better job opportunities, lower price of living and better quality of life than afforded in many other places. It may not be perfect, but it’s close enough to perfect for me – and apparently many others.
If you’ve been thinking about it, NOW is a perfect time to “move up” in home size/price. The demand for homes in the lower price ranges is extreme – with town houses being especially attractive to many young people, but there are more homes available to purchase in the above $300,000 price range (62% of the homes on the market are priced above $300,000). The mortgage interest rates are still in the “affordable” range, though they have gone from just under 4% at the end of 2017 to 4.5% currently on a fixed 30 year conventional mortgage. Rates are expected to continue rising over the year with projections of 5% by the end of 2018. On a $200,000 loan, a 1/2% interest increase raises the monthly payment by $60 per month – so timing is important on a purchase if financing is required.
Please call or e-mail if you want specific Real Estate information pertaining to the Logan/Cache Valley area, or if you want a price evaluation on your home.
Terri Sizemore/Youngblood Real Estate