Here is a brief synopsis(or “Just the facts Ma’am”) regarding the status of our local Real Estate Market.
First quarter residential real estate statistics show a continuation of home price increases in Cache Valley – but at a reduced rate. The average home sale price first quarter rose to $475,000 – up 34% from first quarter 2021, but up just 2% from last quarter. The average price per foot indicates a similar 33% increase over the last year fist quarter – an average price per foot of $214 in March, 2022 – up from $162 per foot in March 2021, but up just 2% since December 2021. A leveling off of home price increases may be on the horizon.
The number of home sales first quarter 2022 was 23% higher than first quarter sales last year, but the number of homes “under contract” is 30% less than last year at this time. Home inventory is significantly (52%) higher than it was at this time last year. Today we have 87 residential listings as compared to 57 a year ago.
The Milken Institute recently ranked Logan as #1 in best performing small cities in the US. This ranking was based on job growth, wage growth, high tech growth and diversity among other things. The only negative aspect of the report was a poor ranking in housing affordability. Cache Valley ranked 178th in the report’s housing affordability index. Mortgage interest rates are now 4.9%, an increase of 1.5% from a year ago – contributing to the erosion of housing affordability.
Perhaps continued wage growth combined with a leveling off of home price increases will provide some needed relief to the housing affordability problem.