Heraclitus said “Change is the only constant in life”. That was true in 470 BC, and is still true.
Here are the facts on our local Real Estate market: Today (Oct. 22, 2022) there are 329 homes on the market. That is 207% more than last year at this time – better for buyers, but still lower than pre- pandemic available home inventory. There were 360 homes sold 3rd quarter – down almost 18% from this time last year, and the average days on market rose to 45 days (this number doesn’t reflect the nearly 25% of listings that have withrawn from the market because sellers became disenchanted or decided to wait to sell). The average sales price in Cache Valley dropped to $464,000, a decrease of 7% from the previous quarter high of $496000. The price per foot dropped down to $208 per foot, a 9% decrease from the $227 per foot high reached in April 2022. Prices are now almost exactly what they were the end of 2021, erasing 2022 home price increases.
The mortgage interest rates are now around 7%, and expected to rise further in the near future. (Historically, a 7% mortgage interest rate is average, but combined with the higher home prices, many buyers are pushed out of the market). Understandably, nearly 25% of sales last quarter were cash sales. Now the good news: Cream puff homes (properties in great condition, great location and priced well) are still selling quickly, and we are once again able to negotiate price and concessions for qualified buyers. Cash buyers have excellent leverage right now.