August 2016 Market Report - Washington County Utah
September is here and the latest market data is available for residential real estate in Washington County. Click here to download my complete report. However, if you don’t want to study the numbers yourself, here’s a quick summary:
Inventory of available homes is at its lowest point since before the Great Recession. With a 3.56-month supply of homes, competition among buyers is often quite intense. The Median Sale Price for the month of August was $249,900, up 13.6% from August 2015. Year-to-date (YTD), the Median Sale Price is up 7.22% from the same period in 2015. On average, it took sellers 30 days to sell a home in August, selling 10 days faster than the previous year. According to BankRate.com, as of September 7, 2016, the national average interest rate for a 30-year fixed rate mortgage is 3.37%.
As long as mortgage interest rates remain low, we should see strong demand from buyers. Even with the 7.22% price appreciation seen in the last year, at a median value of $249,900 homes remain very affordable relative to the peak values seen in late 2005 and early 2006, which were as high as $315,000. Combine the relatively low prices with extremely low interest rates, and consumers have tremendous buying power.
As you know, I’m actively selling real estate on a daily basis. In the month of August alone, I assisted 16 families buy or sell properties across the entire State of Utah. Almost half of those transactions involved multiple-offers and the property sold above the asking price. As long as inventory remains low and demand remains high, multiple-offer transactions will be the norm. If you are buying, and you want to maximize your chances of getting your offer accepted, be prepared to write a good strong contract with short deadlines, a sizeable earnest money deposit, and make sure you include a pre-approval letter or a statement of proof of funds. If you are selling, you are in a fantastic position to dictate the terms of the transaction. Either way, call me and I will guide you through the process of buying or selling real estate anywhere in Utah.
Joe Allen - 'Southern Utah's Home Adventure Guide'
Principal Broker / Owner