HOT is the word of the day, month, quarter…. Here in Cache Valley Utah it definitely applies to the weather and the Real Estate Market!
Local second quarter statistics show an astounding 30% increase in the AVERAGE $ per foot of homes sold, with homes selling for $175 per foot as compared to $134 per foot a year ago. Caveate: the average price per foot varies with age of home, size of home, acreage etc… $175 per ft is the average of ALL homes sold 2nd quarter 2021. In general, smaller homes sell for a higher $ per foot, as do single level homes. Two-story homes sell for more than ramblers with a basement, and of course acreage adds to the price per foot.
The average home sale price is up even more – with an increase of almost 40% to $402,000 – up from $288,000 2nd quarter of 2020. This number has been impacted by a significant increase in higher-end home sales. Along with an influx of of people moving here from more expensive states, we are seeing a large number of buyers making upgrade purchases. They are taking advantage of the easy sale of their smaller, more affordable homes or townhomes; and purchasing larger homes with their proceeds combined with low interest rate mortgages (below 3%). Interestingly, of the 71 homes on the market today, 32% of them are priced over $700,000. The available inventory in higher-end homes is also driving interest in buying up.
The total number of home sales 2nd quarter 2021 was down 18% from 2nd quarter 2000, but 2nd quarter sales during the pandemic were the highest on record in Cache Valley. Many people have a perception that there aren’t any homes on the market…. homes come on the market every day, but the number of buyers continues to exceed the number of homes for sale – demand creates the continued low inventory and the increase in home prices.
On another note: The House Bill 82, passed the end of March in an effort to help with affordable housing, will allow for ADU’s (Acessory Dwelling Units) such as basement mother-in-law apartments to legally be rented out as long term rentals. Municipalities are fleshing out specific guidelines such as parking restrictions, permits required, lot size qualifications etc… but full provisions of the bill are to be in effect on October 1,2021. We may not know the specific guidelines for each town until that time, but it appears the minumum requirments for the Acessary Dwellings will be:
- The dwelling must be a detached home. This means the legislation does not apply to condominiums and townhomes units which share walls.
- The dwelling’s owner of record must use the home as the owner’s primary residence.
- The proposed ADU must be within the existing footprint of the dwelling.
- The ADU may only be rented for thirty (30) or more consecutive days (no short-term or overnight rentals).
- The ADU must comply with the local land use ordinance, building code, health code, and fire code.
This information may impact a decision to add a 2nd kitchen to a basement or home addition. I will follow up with more information as it comes available.
Happy Summer Everyone!
Please call, email or text me if you need any Real Estate assistance
Terri Sizemore. 435-770-9407. firstname.lastname@example.org