Cache Valley/Logan Utah Real Estate Market 3rd Quarter 2018

The Cache Valley Utah real estate market remains strong.  The number of homes sold 3rd quarter 2018 was up 3% over 2017 at 470 homes – even with the prices 13.5% higher than last year at this time and interest rates rising.  The past 3 months our home inventory has hovered between 315-325, and currently the average sold price per foot is $114 (remember this is an average – as I’ve mentioned before, pricing varies wildly depending on type of home, age and condition). The average home sale price in Cache Valley is now $262,000.

To put these prices in perspective, the average price per foot in the state of Utah is over $150, and the average home price in Utah has exceeded $350,000 (33% higher than Cache Valley)!  Compared to much of our state, our real estate market is very reasonable.  The state, and our local valley continues to attract new residents with great scores on job growth, outdoor recreation opportunities and excellent quality of life (seasonal air quality excluded).

Despite the strong Utah economy, a market adjustment is anticipated.  As the mortgage interest rates increase, buyers who need to obtain mortgages (most buyers are in this category) find their budgets decrease.  Likely we will see this decreased purchasing power affecting the acceleration of prices and modifying the current sellers’ market to a more balanced market again.  Locally we’re seeing a dual market developing, with homes appropriately priced under $250,000 moving like wildfire, but the higher priced homes – over $350,000 sitting on the market a longer time as they compete with the many new construction options and the increased inventory.  Historically, a yearly real estate market appreciation is around 4 – 4.5% – not the 12-13% appreciation we have seen the past 3 years.  In Utah in general, experts predict a continued appreciation, but at a more normal 6-7% increase next year.

 

 

 

UP, UP and AWAY! Cache Valley/Logan Real Estate Market (2018 2nd quarter stats)

The Cache Valley/Logan Utah Real Estate market continues on it’s remarkable upward trajectory!  The average (not median) sold home price went from $244,400 a year ago (June 2017) to $271,600 June 2018, and the average price per foot went from $104.5 to $117.6 –  another 12.5% increase in a year!  Two years ago, in June of 2016 – the average price per foot was a mere $94, so prices have increased 25% in 2 years!

Despite the increase in home prices and the increase in mortgage interest rates (the average 30 year fixed mortgage rate is now 4.6%) there were 6% more homes sold 2nd quarter of 2018 than 2nd quarter of 2017.  People continue to move to Utah, and to Cache Valley specifically.

On a positive note for buyers, home inventory has gone up almost 60% over what it was 3 months ago.  Currently there are 325 homes on the market, giving buyers more choices, and alleviating some of the frantic multiple offer situations we had previously.  There are also more homes available in the affordable ranges, with 27% of the available homes priced under $250,000. Though there are more homes available, the average days on market remains around 41 days – a clear indication of a continuing strong, thriving local Real Estate market.

If you have any Real Estate questions or want a market analysis performed on your home to determine value, please feel free to contact me.

Happy Summer!!

Terri Sizemore 435-770-9407

 

 

 

 

 

Logan/Cache Valley Real Estate update 1st Quarter 2018

Predictions that the Utah Real Estate Market – and our local Logan/Cache Valley market- would see prices increase at a lower, more historical rate in 2018 have proven incorrect.  The demand for Real Estate continues to match or exceed the supply; even with the added inventory of new homes and townhouses.

While the average median home sold price dropped from $229,000 last quarter to $221,000 the first quarter of 2018, the average sold price per foot increased from $104 per foot to an average $109 per foot – an increase of 5% in just 3 months!  Please keep in mind the price per foot a home fetches depends on the age, style and condition… it can range from $70 or less per foot for an 80 year-old bungalow with an unfinished basement and no updates on a tiny lot to $200 + per foot for a single level rambler with stellar finishes on acreage.  Appraisals are still very important, and your Realtor will pull sold comps to give you an accurate idea of how your home should be priced.

The decrease in median sold price is reflective of the demand for less expensive homes.  There is a proportionally high number of buyers seeking homes priced lower than $300,000.  Of the 241 homes that sold in Cache Valley the past 3 months, 204 (85%) of them were priced under $300,000 and only 9 were priced above $400,000.  This brought the median hold sold price down.  This statistic will change next quarter though, because 21 homes priced above $400,000 are under contract.

Currently there are 204 homes active on the market in Cache Valley.  There are also 204 homes under contract- poised to close in the next 45 days or so.  This illustrates the high demand for Cache Valley Real Estate!  People from other states continue to flood into our Valley – as a result of better job opportunities, lower price of living and better quality of life than afforded in many other places.  It may not be perfect, but it’s close enough to perfect for me – and apparently many others.

If you’ve been thinking about it, NOW is a perfect time to “move up” in home size/price. The demand for homes in the lower price ranges is extreme – with town houses being especially attractive to many young people, but there are more homes available to purchase in the above $300,000 price range (62% of the homes on the market are priced above $300,000).  The mortgage interest rates are still in the “affordable” range, though they have gone from just under 4% at the end of 2017 to 4.5% currently on a fixed 30 year conventional mortgage.  Rates are expected to continue rising over the year with projections of 5% by the end of 2018. On a $200,000 loan, a 1/2% interest increase raises the monthly payment by $60 per month – so timing is important on a purchase if financing is required.

Please call or e-mail if you want specific Real Estate information pertaining to the Logan/Cache Valley area, or if you want a price evaluation on your home.

Happy Spring!

Terri Sizemore/Youngblood Real Estate

435-770-9407 supersizemore58@gmail.com

 

 

Recap of The Logan, UT Real Estate Market 2017

I sound like a broken record, but once again I’m here to report that our Local residential Real Estate market is HOT (booming, flourishing, rip-snorting are other cliched adjectives that could be used).

The demand for homes in Cache Valley continues to exceed the supply, and the inventory of available homes has stayed low all year in response.  Currently there are a paltry 202 active homes/townhouses on the market, and 61 of those are under construction!

While the number of residential sales reflected on the MLS (1504) was 7% lower in 2017 than in 2016, the actual total number of sales was certainly higher because of the abundant new construction – most of which are not reflected on the MLS.  Home prices in the valley continued to rise. In 2017 the average price per foot rose over 10% to $104 per foot, and the median sold home price rose to $229,000 4th quarter 2017.

A year ago experts were predicting mortgage interest rate hikes, but that did not happen.  Currently the 30 year fixed mortgage interest rate is at or under 4% with a credit score of 740.  Experts are once again certain that interest rates are going up in 2018 (today the DOW broke the 25000 mark and economy projections are very bullish -giving credibility to the interest rate increase predictions).

The Utah Real Estate market in general, and Cache Valley/Logan specifically show no signs of declining.

Jim Wood, who’s studied Utah’s housing market for 40 years and is a senior fellow at the University of Utah’s Kem Gardner Policy Institute,  tells people “don’t wait for prices to go down. That’s not going to happen in the short term.” He predicts prices will go up another five to six percent depending on where interest rates go. My local research supports Mr Wood’s assessment.(see https://homescachevalley.com/2017/11/10/forecast-cache-valley-logan-real-estate-market-in-2018/). 

Selling and purchasing in this tight, rapidly moving market can be very tricky.  Although values are rising, we are experiencing some problems with homes appraising.  Sellers still have to have appropriate pricing – with substantiated value; and home condition remains very important if the goal is top dollar.  Buyers are frequently dealing with multiple offer situations, and it’s important not to get impatient or  desperate and make an imprudent decision. Buyers who need help with closing costs (buyer closing costs are all associated with procuring a mortgage loan) are at a disadvantage in this market, but a savvy Realtor can help negotiate an offer that will be accepted.

Please feel free to call or email me if you have Real Estate questions or need Real Estate help.  Terri Sizemore  435-770-9407  supersizemore58@gmail.com.

As the New Year Begins I’m reminded of this quote by Michael Altshuler “The bad news is time flies.  The good news is you’re the pilot”

May your 2018 be filled with time well spent!

 

 

 

 

 

2nd quarter 2017 Cache Valley/Logan Market Statistics

“Hotter than the Fourth of July” has real meaning for us this year!  After running numbers on the 2nd quarter stats for Cache Valley, I am here to report the  Real Estate market has been “HOT” as well… While there were 10% fewer sales in the 2nd quarter of 2017 than the 2nd quarter of 2016,  prices were 12% higher!  In June, the average price per foot for homes sold in Cache Valley was a remarkable $105.

Inventory remains tight.  Today (July 7) there are 271 active homes on the market, and the average days on market (time it takes for a listing to go under contract) is 57.  Interestingly, homes priced under $250,000 continue to sell VERY quickly and the inventory remains low, but homes priced over $500,000 have an average days on market of 270 days!  There are currently 45  homes on the market priced above $500,000 (16.6% of the inventory) , and only 9 homes (1% of the sales) in that price range sold in the past 6 months. Takeaway:  If you have a home for sale priced over $500,000, please be patient. 

In this market, traditionally 2nd quarter has the highest number of listings and 3rd quarter reflects the highest number of sales.  If those statistics hold true for this year, inventory in the coming months may be even lower than today’s 271.

Right now, making a move-up in home size makes a lot of sense.  Smaller homes are in especially high demand, and there is more inventory (percentage-wise) available in larger homes – priced above $350,000.  Mortgage prime interest rates are below 4% again, and compared to most of the USA, affordability is good.

If you need any Real Estate information or assistance, please call or e-mail.

Terri Sizemore 435-770-9407, supersizemore58@gmail.com

STAY COOL!

Status of the Logan/Cache Valley Real Estate Market

Yet another Year has flashed by, and our local Real Estate Market was a real “rip snorter”!                         img_0892

In 2016, home sales were up 10.7% over 2015 (1607 homes sold in Cache Valley), and sold prices were up 9.6%!!  The average sold price per foot in 2016 was $92 and the last 6 months it averaged $95 per foot.  Our previous market high (late 2007) was an average price per foot of $88.  Please keep in mind, these average prices include new homes, single level, 2 story etc… It’s important to have a Real Estate professional or appraiser evaluate your specific home/location to determine your home’s value.

Factors contributing to the increased home prices are: low inventory – there has been a 13.1% decrease in the average number of homes available on the market since 2015 (at this moment in time there are just 226 homes on the market in Cache Valley), and increased demand for homes as Utah continues to benefit from an influx of new home buyers.  15,000 people reportedly moved to the state last year, and Utah ranks 2nd in the US in Millennial (those born between 1982 and 2004) home buying.

Prime mortgage interest rates, while up .75-1% the past several months, are still very affordable. According to The Mortgage Report (an unbiased, very useful mortgage news publication) they are expected to hover between 4-4.32% in 2017.  Government backed loans (FHA, VA & USDA) actually provide even lower rates currently, but have accompanying mortgage insurance premiums).freddie-mac-rates-long-term

All signs point to the Real Estate market remaining strong. Housing appreciation in Utah overall is projected to slow in 2017 to a more sustainable 5-6% as builders continue to add to the home inventory – which is good news for buyers.

Best Wishes for a Happy and Prosperous 2017!