Monday, January 7, 2008

Logan Market 2007 Real Estate Recap

2007 is History... It started as the hottest year of home sales ever for Logan, but ended with less flare than expected.

Home sales were down, home prices are up, and surprisingly, interest rates are also down.

The national housing economy has taken some interesting twists. Defaults and Foreclosures are up, Subprime is a thing of the past, and the economy looks like it may soon be in recession as result of the housing extremes. The national housing market has had a rippling effect on our local market. As sellers were unable to sell out of state, they were unable to buy in Cache Valley.

Here are the unofficial home sales statistics for Cache County in 2007 and their change from 2006 numbers.

Number of Houses Sold: 1,136 Down 6%
Average Sold Price: $197,668 UP 8%
Median Sales Price:$171,500
Average Days on Market:61 Down 10 days.

Number of Condos Sold: 128 Down 14%
Average Sold Price: $111,207 UP 9.5%

Number of Houses Presently on the Market:
Average asking price: $273,907
Median List Price: $240,000
Average Days on Market: 98 Days

Like much of the state, the houses on the market now have a much higher average asking price than the sold price of the previous year. Too many builders and real estate investors have built high end spec homes. These homes have been on the market for a long time, and will continue to be on the market as the demand of high end homes does not match the supply.

The Logan area is not at as much risk for a bubble burst as other Utah markets as the price did not appreciate as much, and the percentage of houses on the market in relation to home sales statistics is much more inline. Presently there are 476 single family houses on the market in Cache County. At 2007's sales pace, the current inventory of houses would be exhausted in five months if there were no additional homes listed.

Here are a few statistics from some of the other Utah Metro areas:

Provo/Orem Home Sales

Single Family Home Sales: Down 25.5% Over '06
Condominium Sales Down: Down 6.3%
Average Sold Price: Up 9.6%

At the 2007 pace of homes sold, if no additional properties were listed it would take nine months to liquidate all Utah County houses for sale. The average price of houses on the market is $415,664 vs a '07 sold average of $289,000, that's a whopping $125,000 price difference.

Salt Lake Valley

The numbers of actual homes sold was down 22%, but average sales price was up 9%. In '06 there were 15,180 homes and 3,272 condos sold. The average sold price was $269,692 for single family homes and $163,213 for condos.

As of Jan 7nd, there are 5,860 Single Family Homes listed on the MLS in Salt Lake County. The average price of these homes is $443,961, and a median sales price of $329,900. It would take 6 months to exhaust the present inventory if no additional properties were listed at '07's sales pace.

Ogden/ Weber Homes Sold

# of Weber County Homes Sold
2006 - 4,329
2007 - 3,669
Change -660 15% decline

Average price of homes Sold:
2006 - $166,663
2007 - $184,752
Change +18,089 Appreciation of 9.8%

If no additional homes were listed it would take approximately 6 months to exhaust the existing supply at the 2007 home sales pace.

Of the homes listed on the market right now the average price is $290,012! This is more than $100,000 more than the average sales price of '07.

Davis County Homes Sold

Single Family Houses Sold: 3,794 (Down 18.5%)
Average Sold Price: $254,577 (Up 10.5%)

2006 Home Sales Stats:
Single Family Houses Sold: 4,655
Average Sold Price: $227,960

Right now there are 1,922 homes for sale in Davis County. More than half the number of houses sold last year.

1 comment:

Brian said...

Alan, liked your blog entry on Logan Real Estate. I'm from Logan and would love to get back there at some point in time.

I do mortgages in Utah now and have my own blog I've started. If you need someone else to bookmark your posts here and there, let me know. I'm happy to help a fellow blogger.