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Oct 2016 Market Report - Washington County, UT Residential Real Estate

Hey,


I hope you had a happy Halloween. My family and I sure did. I got to take my 2-year-old boy trick-or-treating. He had a blast! At first, he was nervous, but after a few homes, he figured out that pushing the doorbell was fun, and that everyone who came to the door would give him candy. In typical toddler fashion, he then wanted to eat every piece of candy he was given, the moment he got it. As you might guess, he was on a sugar high all night, and we didn’t get much sleep.


Market Report

November is here, and so too are the market statistics for October for residential real estate in Washington County. You can download all of the data and my complete report by clicking here. Here are the highlights:


  • The median sales price is up 6.78% YTD from the same period last year.
  • In Oct., it only took an average of 29 days to sell a home; the lowest days on market number we’ve seen in over a decade!
  • 307 homes were sold last month, which is about what we expected to see.
  • 361 homes are pending sale. This is up 18% over last year.
  • There is currently a 3.6 month supply of homes on the market, down from 5.06 at the same time last year
  • Among homes priced below $200,000, there is almost no inventory.
  • The luxury category, homes priced over $1M, is still struggling. Only 12 homes have sold this year for more than $1M, yet there are 70 homes listed for sale.
  • The unemployment rate for Washington County is 3.5% (August 2016 US Bureau of Labor Statistics)


Summary

Homes under $1M are selling very quickly, and inventory is in extremely short supply. Mortgage interest rates remain near record lows, and unemployment is at its lowest level since the Great Recession, causing many new homebuyers to enter the marketplace. It is common for many buyers to compete for the same property, placing upward price pressure on the limited inventory. Last month, the median sales price of a home was $245,072, well below the peak value of approximately $315,000 seen in Dec. 2005. With low inventory, low interest rates, plenty of jobs, and relatively affordable homes, we will continue to see prices rise.


Caution

We need to be cautious of falling into the traps of the last recession. Irrational exuberance can run rampant, and it is easy to get emotionally attached to a property. Don’t get greedy, and prepare for the next recession.


If you want to avoid the pitfalls of this tricky real estate market, call me, and let me be your guide.