Logan Real Estate Inventory Back UP

After the huge decline in Real Estate inventory at the beginning of the month, when home buyers rushed to get properties under contract at the end of April, Logan Utah Real Estate inventory is up again.

There are currently 812 homes for Sale in Cache County. This is 32 more homes on the market than two weeks ago. The number of home sales in may does look like it will be pretty strong. During May thus far, there has already been more than 65 residential homes sold.

Number of Homes for Sale in Logan Rising Quickly

I just ran a quick check of the number of homes for sale in Cache County, and was astonished to see that in just a week, the number of Logan Real Estate inventory had risen by nearly 5%. Exactly one week ago, Cache County had 687 residential real estate listings. Right now there are 720.

Last year we didn't hit inventory levels this high until the March when the Spring listing season typically hits. March and April are typically big months for listing homes for sale.

Some of the increase in inventory can be attributed to the $6,500 move up tax credit. People want to sell by April so they can get the government money when they buy their new homes. However, this sharp spike in the number of homes for sale in Logan is alarming. Home prices will continue to decline as long as there are more homes on the market than there are buyers. At last years pace of home sales, we have more than 9 months of Cache County real estate inventory right now.

Logan Real Estate - What is the market future?

Over the past year Real Estate in Cache Valley has reached all time high sales and double digit appreciation. The economy has been healthy, and unemployment is among the lowest in the state. Homes for sale in the lower price ranges have experienced sellers market this spring. If a home is clean, priced right, it sells in a matter of days. The question is, how long will this robust real estate growth continue?

Here are a couple factors to consider:

The average price of homes on the market is currently approximately $223,000! Last year the average price of a home sold was close to $177,000. 65% of Single family homes on the market are priced above $200,000.

There is more available homes for sale on the market now than there has been in months. There is more inventory, but not a lot more to make that much of a difference. Traditionally, July and August are the biggest home selling months in Cache Valley, so inventory amounts should remain pretty stable and we shouldn't expect much of a shift in the market conditions.

Interest rates are substantially up. Conventianal 30 year fixed mortgages are nearing 7%. Mortgage rates have increased for six straight weeks. These rates are still historically low. They will deter some potential buyers, but as a whole will not create a major impact.

My prediction is that homes will continue to appreciate at a healthy 5-10% for the next few months. We probably won't see anymore double digit appreciation, and we also won't see a market meltdown or depreciation. There is an ample supply of expensive homes, but less than desired affordable housing.

I also think that rental rates will increase substantially in the next little while... The average Cache Valley resident will not be able to buy, and when it comes to out of pocket monthly cash, renting will be cheaper. What do you think will happen in our market?

Real Estate Logan Utah
Alan Barker - Logan Realtor
Utah Homes for Sale