For the past year or more there has been an expectation of increased home inventory in our Real Estate market – precipitated by robust new-home construction and an uptick in listings, since prices have increased almost 28% since 2016. This would naturally result in a leveling off of prices. Inventory has not decreased despite the active new-home market and strong listing numbers because the demand remains stronger than the supply! The mortgage interest rates have also contributed to a continued strong market – rates have dropped to below 4% on a conventional 30 year fixed mortgage!
Here are the facts: While the State of Utah as a whole has seen an increased inventory of 12% over 2018, our local market (Cache Valley) actually has 20% LESS INVENTORY than we did last year at this time. Right now there are 266 homes listed for sale in Cache Valley as compared to 321 last year at this time. The number of single family homes selling in the first half of 2019 is almost identical to that of 2018 (info gathered from the Utah MLS). Most new home construction sales are not included in the MLS statistics. Prices have risen 5% in the past 6 months, from an average $113 per foot up to just over $120 per foot. The average home sale price has risen from $260,000 to almost $272,000.
Currently the average days on market (time it takes for a home to go under contract) is 55. As I’ve mentioned before, the DOM (days on market) varies greatly depending on the price of the home. Homes priced under $200K have an DOM of just 33 days, while homes priced $350,000-$400,000 have an average DOM of 96 days.
One last note: Our beautiful valley currently has 124,564 residents and has been growing by 1.8 – 2% the past 5 years. It is a beautiful place with plenty of outdoor recreational opportunities, good health care facilities, a reasonable cost of living and a strong job market. It is anticipated that the growth will continue. There is a real push in most municipalities for building higher density housing so that open space might be preserved, air quality improved and reasonably priced housing made available. Many of the new PUD’s (planned unit developments) – town house communities and over 55 communities – will play a very important part in providing attractive, reasonably priced housing for the future.
Happy Summer!