Utah Housing Market Turns in Solid Performance in 2016

Utah’s housing market had its challenges in 2016, including low inventory of homes for sale, rising prices that challenged would-be buyers, and political uncertainty with the presidential election.




But despite the headwinds, this turned out to be a good year overall for our local housing market.

Home sellers enjoyed solid gains in sale prices throughout the greater Wasatch Front. The median sale price for single-family homes, condos and townhouses in the region through October (the latest data available) reached $240,000, up 8 percent from the same period a year ago, according to local MLS data analyzed by Coldwell Banker.

Strong buyer demand, a healthy local economy, and a continuing decline in the inventory of homes on the market all combined to make 2016 a seller’s market in much of Utah. The market was also fueled, in part, by a growing technology sector and the accompanying jobs that has attracted, both locally and from higher-priced markets around the country.

The year saw a continuation of mortgage rates that remained near historic lows much of the year, helping make home purchases more affordable. But in recent weeks, key lending rates began to tick higher, which could present challenges to the market if that continues into the new year.

One of the biggest challenges for the housing market in 2016 was insufficient listings to meet buyer demand. The number of homes for sale in October was down a whopping 25 percent in our region from the year before. The Salt Lake Board of Realtors said the region’s housing markets had roughly four-month’s supply of available homes, well below the typical five- or six-month supply.

Despite limited inventory for buyers to choose from, home sales in the greater Salt Lake City region (Salt Lake, Davis, Utah, Tooele and Wasatch counties) were up 3 percent in 2016 compared to last year. As of October, sales year to date totaled 28,831, up from 28, 062 sales during the same period in 2015.

However, sales came under pressure in the higher-priced markets in the region with much of the gains coming in the more affordable communities. According to the Salt Lake Board of Realtors, sales in the July-September period, for example, fell the most in areas like South Jordan, West Jordan and Sandy.

At the same time, sales in Utah, Davis, Weber and Tooele counties either gained or remained relatively flat, as some Salt Lake City-area buyers went to adjacent counties to find more affordable homes.

As 2016 draws to a close and we look ahead to 2017, there are reasons to be encouraged about the outlook for the market. The greater Salt Lake City region’s growth in high-tech jobs and solid economy should continue to create demand for housing in our area.

If you’ve been thinking about selling your home, now may be a good time to make your move. Mortgage rates are still low by historical standards, although that could change in the coming year if rates continue to move higher. And for now, we’re still enjoying a seller’s market in many of our communities.

If you have questions about making a move, including what your home might be worth and what the market looks like in your neighborhood, I’d be happy to help. Please give me a call or e-mail me and we’ll get started today!

Your Top Fears Debunked

Home buyers may get a little anxious when facing the biggest transaction of their lives. Doubt starts entering and they may start second-guessing whether or not they are making a good move.

“I’m afraid I can’t afford a home.”

Some buyers believe they’ll have to empty out their savings account completely in order to buy a home. “There are many loan programs out there that can help first-time home buyers with down payment assistance or that don’t require a severed arm and leg in order to get a mortgage,” Encourage them to talk with a loan officer about options.

“What if I buy a money pit?”

In reality, most homes aren’t money pits, and there’s a lot buyers can do to protect themselves against buying one too. Before buying, they can use a home inspector to help soothe some of their fears about getting a lemon. The home inspector should be trained to spot signs of water damage or electrical or plumbing problems. They also will advise on any possible repair costs.

“It’s just safer to rent.”

“Rent money disappears without allowing you to build any equity over time. That’s truly scary,” says Scott Forman, divisional vice president of Cross Country Mortgage. For many renters who are willing to pay about $100 a month more, they could own a home, he says -- and receive tax deductions.

If you're ready to see some homes in person (that's when the real fun begins!), I can easily start setting up visits for you - just let me know what days/times work best for you, and I'll get started scheduling things right away. Or, if you're still in search mode, no problem. I'm happy to answer any questions you might have about particular homes or neighborhoods. I'm looking forward to visiting homes with you!

Source: “Terrified to Buy a Home? Your Top Fears Debunked,”  (Oct. 25, 2016)

Why Fall May be a Good Time to Sell Your Home

The Utah housing market has been strong this year with steady price increases in a number of communities and relatively low inventory to meet the buyer demand. Now that fall has arrived, some homeowners may believe that they have missed their window of opportunity to sell and that they should wait until next spring. Contrary to what some people believe, fall may actually be a very good time to list your home. If you have been thinking about selling your home, there are several reasons to consider doing so this fall:
 

1.More time to focus on home shopping. Buyers have returned from their summer vacation, children are back in school, and the holiday season isn’t upon us yet.

2.Continued demand from buyers. As anyone who’s followed the news this year knows, there have been more buyers than sellers for homes in much of Utah. That trend has kept sale prices climbing in most areas and brought lots of potential buyers to open houses.

3."Serious buyers" in the market now. During the fall months, there tend to be fewer people who are "just looking" than in the spring and summer and more serious buyers.

4.A lack of available inventory. The number of listings has been relatively low all year compared to historical averages, in many cases half of a normal market. In the fall, there typically are even fewer homes for sale than other times of year, meaning less competition and more potential buyer attention for your listing now.
 

While fall is not always considered the typical home-buying season, there are a lot of advantages to listing your home now – especially at a time when others might shy away from selling. But like any other time of year, it’s important to price your home properly, make it look its best, and have a strong marketing plan in place to reach potential buyers.

With a few simple steps and the help of a professional REALTOR®, you just may find that selling your home this fall may be the best move you’ll ever make.

Why Fall May be a Good Time to Sell Your Home

The Utah housing market has been strong this year with steady price increases in a number of communities and relatively low inventory to meet the buyer demand. Now that fall has arrived, some homeowners may believe that they have missed their window of opportunity to sell and that they should wait until next spring. Contrary to what some people believe, fall may actually be a very good time to list your home. If you have been thinking about selling your home, there are several reasons to consider doing so this fall:
 

1.More time to focus on home shopping. Buyers have returned from their summer vacation, children are back in school, and the holiday season isn’t upon us yet.

2.Continued demand from buyers. As anyone who’s followed the news this year knows, there have been more buyers than sellers for homes in much of Utah. That trend has kept sale prices climbing in most areas and brought lots of potential buyers to open houses.

3."Serious buyers" in the market now. During the fall months, there tend to be fewer people who are "just looking" than in the spring and summer and more serious buyers.

4.A lack of available inventory. The number of listings has been relatively low all year compared to historical averages, in many cases half of a normal market. In the fall, there typically are even fewer homes for sale than other times of year, meaning less competition and more potential buyer attention for your listing now.
 

While fall is not always considered the typical home-buying season, there are a lot of advantages to listing your home now – especially at a time when others might shy away from selling. But like any other time of year, it’s important to price your home properly, make it look its best, and have a strong marketing plan in place to reach potential buyers.

With a few simple steps and the help of a professional REALTOR®, you just may find that selling your home this fall may be the best move you’ll ever make.

Sales of U.S. existing-homes eased up

Sales of U.S. existing-homes eased up
 "However, there's no question that after peaking in June,
sales in a majority of the country have inched backwards because inventory isn't picking up to tame price growth and replace what's being quickly sold."

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Not Enough Homes for Sale

Home Sales Soften on Inventory, Pricing Woes 

Existing-home sales softened in August, the second consecutive month of declines despite mortgage

rates hovering near record lows. Not enough homes for sale and higher home prices are curtailing sales, the National Association of REALTORS® reported Thursday. “Healthy labor markets in most of the country should be creating a sustained demand for home purchases,” Yun says. “However, there’s no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn’t picking up to tame price growth and replace what’s being quickly sold.”  Here are a few key housing numbers from NAR’s latest housing report:

1. Home prices: The median existing-home price for all housing types was $240,200 in August, up 5.1 percent from a year ago.

2. Days on the market: Forty-six percent of homes sold in less than a month in August. Properties stayed on the market for a median of 36 days last month, down from 47 days a year ago. Short sales tended to stay on the market the longest at a median of 144 days; foreclosures sold in 42 days; and non-distressed homes averaged 35 days.

Source: National Association of REALTORS®

Good for Buyers:

Mortgage Rates Barely Budge

 

Mortgage rates continue to hover around all-time lows with the 30-year fixed-rate mortgage averaging 3.43 percent this week. "This marks the ninth consecutive week that mortgage rates have been below 3.5 percent,” says Sean Becketti, Freddie Mac’s chief economists. “Markets are erring on the side of caution ahead of the second estimate for second-quarter GDP and Fed Chair Janet Yellen's speech on Friday." 

 

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 25:

• 30-year fixed-rate mortgages: averaged 3.43 percent, with an average 0.6 point, holding the same average as last week. A year ago, 30-year rates averaged 3.84 percent.
• 15-year fixed-rate mortgages: averaged 2.74 percent, with an average 0.5 point, holding the same as the previous week as well. Last year at this time, 15-year rates averaged 3.06 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.75 percent, with an average 0.4 point, increasing from last week’s 2.74 percent average. Last year at this time, 5-year ARMs averaged 2.90 percent.

Source: Freddie Mac / Affordable Utah Housing.