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.