Happy New year!
Another year has flown by, and our local Cache Valley Real Estate market experienced another explosive year! 2021 fourth quarter home sale prices were 34% higher than the 4th quarter of 2020, with an average sold price per foot of $201 (up from $149 per foot last year at this time). The fourth quarter average home sale price was an astounding $465,000!
Overall home sales in 2021 decreased 31.5% from 2020, but then we had record sales during the 2020 pandemic. Low inventory – especially of homes under $300,000, made it difficult for many buyers to jump in the market despite the continued low mortgage interest rates. Home builders struggled with supply chain delays (especially earlier in the year) which also contributed to the home inventory shortages. There are numerous new home & town house developments currently being built throughout the valley, and more slated to break ground in 2022. This should ease some of the housing inventory deficit, although it really is difficult to see so much of our open-space and farm ground lost (personal opinion).
Currently there are 62 homes on the market. While a low number, it is an improvement over the 48 homes we had available this time last year. Of those 62, 14 are under construction or “to be built” in the future. Sixteen of the available homes for sale are priced above $700,000 (almost 26% of the current inventory). High demand for “affordable” homes coupled with a better selection in larger, high end homes has made “moving up” attractive to many people. I expect to see that trend continuing in 2022. I compiled data for home sales above $700k in Cache Valley over the past 5 years… Interestingly, in 2017 there were 4 sales, 10 in 2018, 10 in 2019, 32 in 2020 and 66 in 2021!
Sales are still very strong, but we are experiencing fewer “bidding wars” the past few months, and the average days on market (average number of days it takes a home to go under contract) increased to 25 days. This market moderation is in part seasonal.
Continued growth is forecast for the state of Utah, and for Cache Valley. I anticipate the real estate market will remain strong. Mortgage interest rates have ticked up slightly, but they are still very favorable. Let me know if I can help with your real estate needs.
Have a Happy, Healthy and Prosperous 2022!
Terri Sizemore Abode Real Estate 435.770.9407 firstname.lastname@example.org