The local Cache Valley Real Estate market continues to flourish, with prices increasing over 30% since last year, but there are some signs of moderating….
First the numbers: In September 2021 the average price per foot for homes sold was $189.52. That is a 33% increase over the average price per foot of $142 a year ago. The average home sale price 3rd quarter 2021 was $411,000 – a 29% increase over last year’s third quarter average of $318,000. There have been 52 existing home sales over $700,000 in the past year -driving up average price data.
Currently there are 114 homes on the market. While 114 is well below the average home inventory for this time of year, the number of homes for sale is the highest it has been in a year – and certainly an improvement over the 30-40 homes on the market we experienced in the spring. The increase in home inventory has slowed the frentic pace we had earlier in the year. Multiple offers have tapered down, and there are even some price reductions occuring.
All economic indications point to continued growth in Utah, and continued growth in Cache county specifically. There are numerous new businesses coming to our area along with a continued influx of employees relocating here and working remotely for companies located elsewhere. A decrease in housing prices is not anticipated, but the rate of appreciation is expected to slow to more normal rates. Average home appreciation nationwide was 4-5% for many, many years. The rate of appreciation experienced here the past 2 years is unprecedented. The average home appreciation nationwide in 2021 is a record high 19%, but that is considerably lower than the 25-33% we have experienced here in Cache Valley the past two years.
It was hoped that new homes coming on the market would help alleviate housing shortages here, and throughout the country, but Builders continue to struggle with supply chain shortages. Delays, shortages and price increases in materials are stalling home production throughout the US.
Thankfully, mortgage interest rates remain very low – around 3%, enabling home buyers to purchase homes that would otherwise be cost prohibitive.
It is still an excellent time to sell, and purchasing is becoming less daunting as the home inventory increases.
Enjoy this fall in our Beautiful Valley!