Tuesday, October 26, 2010
If market conditions remained steady and constant, where would home sales and prices be? If they increased by exactly 2% each year, this is where annual home sales in Salt Lake City would be. If this were the case, we would have had about 4,750 single family home sales this year. This is two times the original home sales we'll see that are probably aroudn 2,400.
The real estate market in Salt Lake has been going up and down. Because of economic recovery and home buyer's tax credit, it is still considered feeble than the average rates. For buyers, this is a an opportunity to take advantage of the low prices. This is the best time to deal with properties for investors, but they have to be careful for competition is growing. For sellers, it is best to be patient because this is still the buyer’s market.
Compared with home price averages from 1998-2001, if Salt Lake home prices increased by exactly 3% every year, they would still be too high. The yellow and red lines show what “average” home values would be, while the blue and green lines represent the median values. Under this model, average home prices in 2007 were about 28% too high. This year they are still nearly 12% above the turn of the century adjusted for inflation levels.
The SLC Real Estate market has come down a long ways over the past three years, but with the way things are looking, it looks like SLC Homes will see further price declines over the next year.
Wednesday, October 20, 2010
If there are too many homes for sale, the rate of selling is relatively slower than expected, and homes might not sell at all. This trend results to home prices going down because there is more real estate inventory than potential buyers, which makes this period not a good time to market your home.
Hence, this is not a good time to try to sell your home because the market conditions are not in its competent state.
However, the real estate inventory might be at all time high, but lowering of home prices ensue delay of home sales. These market conditions might get worse next year and right now Northern Utah is experiencing this upshot. They observed a big decline in home sales. Compared with 2009, last quarter home sales in Cache County were down by 38%. So, the price you can get for your home now will be more than what you will be able to get next year with the current real estate trend.
But sooner or later, the prices will start rising again and the levels of inventory will level out when real estate inventory goes down. Hopefully, this will happen after 10 months if and only if something drastic sways the real estate market.
You’re probably better off selling now than you will be next year. But if you really need to sell, now is not a good time to sell if you want to get as much money as possible out of your home.