Here are the numbers on our local real estate market: Currently (Jan 4, 2023) there are 248 residential homes on the market. While that is 281% more than the 65 available a year ago, it is nevertheless historically a very low home inventory number and 30% lower than just a couple of months ago.
Home prices once again decreased from the highs reached this past spring, with the average home sale dropping to $454,000. That is down nearly 10% from $498,000 reached the first quarter of 2022, but retracted back to the average sale price in November 2021. The average sale price per foot dropped to $194 in December 2022 – a decrease of 17.5% from the $227 per foot price reached in April 2022, but again back to prices paid in November of 2021.
In the fourth quarter 264 residential homes sold. That is 32% fewer than the 348 sold 4th quarter 2021 and most certainly a result of increased mortgage interest rates. The interest rates right now are around 6.5%, down from 7%+ seen a few months ago (this number is general – the type of loan, credit score etc.. affects the interest rate, and buyers should meet with a qualified lender to determine what their rate will be).
While our local real estate market is subdued from the frantic climate we experienced the past 2 years, it most definitely has not crashed. Education and thoughtfullness should be engaged in this market. Homes are selling more slowly and the right condition, pricing and timing are imperative for a sale, but sellers are still realizing good profits (if they have owned their homes for a couple of years), and buyers are able to negotiate on price and concession within reason. Interest buy-downs and adjustable rates are often employed as a means to make purchasing more afforable.
Shelter remains a necessity. Home ownership is still attainable and desirable (when the time is right), and Cache Valley continues to be a wonderful place to live! It is so beautiful with the lovely plentiful snow and crisp air. This abundant moisture suggests a lush summer ahead of us!
Cheers to the New Year!