With January's home sales stats in, the Cache Valley Real Estate market isn't sagging thus far, in fact, it is ahead of 2007's pace and had the most single family houses sold ever.
The first month of '07 had just 70 single family homes sold. In '08 we had 77, despite the much harsher winter. With the incredibly low interest rates, things are looking good for the real estate economy in Cache Valley this year. Presently, 30 year fixed mortgages can be obtained for almost 5.5% interest.
January's sold homes had an average price of a little more than $194,000, these houses were on the market for an average of 60 days. Presently there are 476 single family homes for sale on the market. The average sold price is actually down over '07's January price of $197,084, but the average 2007 house sold in January was 300 square feet bigger. Home prices overall have not gone down. To view homes for sale, visit Cache Valley Homes for Sale.com
Monday, February 11, 2008
Friday, January 25, 2008
What's the difference between Preforeclosures and Foreclosed Homes?
Foreclosures are common place in our world today. With the mortgage crisis of 2007, and declining home prices where many people bought homes they couldn't afford based on speculation that the value would increase so much it would be a great investment.
There are also loads of get rich quick foreclosure schemes. These don't work. Foreclosure homes can be purchased, and at a discount, but you likely won't get them for pennies on the dollar or even half off. To know how to get deals on foreclosure properties you need to understand the different types of foreclosure properties: Preforeclosures, Foreclosure Auctions, and Foreclosed Homes.
Preforeclosures are homes in distress. Borrowers have missed payments and the loan is in default. It is these types of houses that, investors get the best deals on. However, the tricky thing is that these properties aren't usually for sale. Real Estate investors contact these owners directly to work out a deal to prevent the foreclosure.
This is where the foreclosure takes place. This is a public auction where anyone can bid. Sometimes these houses can be purchased for great deals, but somethimes the starting auction price is more than the property is worth. These are risky purchases as many investors purchase houses at foreclosure auctions without even seeing them.
Foreclosed houses are those properties that don't get picked up at the foreclosure auction. The bank buys them back and then sells them. Banks want to get rid of homes quickly, but these properties will be sold near market value. They are always listed by Realtors, and are rarely sold for less than 5-10% of market value. These properties are referred to as REO homes, HUD Homes, and bank owned properties.
There are also loads of get rich quick foreclosure schemes. These don't work. Foreclosure homes can be purchased, and at a discount, but you likely won't get them for pennies on the dollar or even half off. To know how to get deals on foreclosure properties you need to understand the different types of foreclosure properties: Preforeclosures, Foreclosure Auctions, and Foreclosed Homes.
Preforeclosures are homes in distress. Borrowers have missed payments and the loan is in default. It is these types of houses that, investors get the best deals on. However, the tricky thing is that these properties aren't usually for sale. Real Estate investors contact these owners directly to work out a deal to prevent the foreclosure.
This is where the foreclosure takes place. This is a public auction where anyone can bid. Sometimes these houses can be purchased for great deals, but somethimes the starting auction price is more than the property is worth. These are risky purchases as many investors purchase houses at foreclosure auctions without even seeing them.
Foreclosed houses are those properties that don't get picked up at the foreclosure auction. The bank buys them back and then sells them. Banks want to get rid of homes quickly, but these properties will be sold near market value. They are always listed by Realtors, and are rarely sold for less than 5-10% of market value. These properties are referred to as REO homes, HUD Homes, and bank owned properties.
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.
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.
Wednesday, January 2, 2008
Archive of Logan Market Conditions
For the first quarter of 2007, Logan Area Home Prices are up almost 11%. The average price of a single family home sold in Cache County during the first 3 months of 2007 was $198,702 ($81 sq foot). This is up nearly 11% from an average sales price of $177,193 ($73 sq foot) during the same period in 2006.
The number of single family homes sold in 2007 vs 2006 has also increased almost 9%. 226 homes sold in '07 vs 206 in 2006. There is also less inventory on the market right now. Last year there were almost 580 residential properties for sale in the Logan Area, right now there are only about 420.
Perhaps most disturbing for potential home buyers, is that the average price of homes on the market right now is at an all time high of $226,114. It is very hard to find anything in great condition for less than $150,000 and is almost impossible to find a liveable single family home for less than $100,000.
Interest rates are still at unexpected lows, and home prices will likely continue to increase at this pace throughout the summer. It's not too late to take advantage of rapid home appreciation, and get in a house while you can still afford it, but I wouldn't recommend waiting much longer.
Through the first 2 and a half months of 2007 home sales are actually up 32% within Logan City, and the 84321 zip code. However, the average sales price is actually less $167,776 vs. $170,952 for the same period in 2006. Home prices aren't declining, there just happens to be a lot more smaller homes sold this year.
2006 was an excellent year for Logan Real Estate. Single family home sales increased 14%, and the price of the average home increased 6.5% from $155,908 to $166,846. The market still remains fairly neutral and home prices are anticipated to continue to appreciate at a healthy 5-10% for 2007.
The Real Estate market in Logan is still kicking strong. Through October, home sales are up 16% in 2006 vs. the same time in 2005. In addition the average home sold is 7.2% more expensive. There is still a healthy supply of inventory to allow the market to continue gradual appreciation while remaining a neutral market. The average home is on the market for about two months. Presently there are 131 single family homes for sale in Logan.
Real Estate for Logan reached an all time high in July. The entire county had 144 homes sold including, 65 in Logans Zip Code 84321. Home appreciation reached nearly 9% for the second quarter of 2006, and I'm predicting that this trend will continue for a while. It's a great time to own Logan Utah Real Estate
June marked the second most homes ever sold (129) in the Logan Area. It also had a record average sold price of $178,707. The average home sold was on the market for 61 days, and sold for 98% of the listed price. Almost half of homes sold sold within the first month. The number of homes on market has also decreased to 541. There is still ample inventory, and we don't have a sellers market here, but despite increased interest rates home prices continue to creep up, and affordibilty goes down for Logan Real Estate. ---
April continued the trend of a healthy Logan Real Estate Market. 46 homes were sold at an average price of $142,473. To see logan homes for sale visit SearchLoganHomes.com
March was a strong month for real estate in Logan. 32 Homes were sold at an average sales price of $144,848 and was on the market for 72 days.
Housing costs in Utah were up an average of 13.35% in the fourth quarter of 2005. Housing appreciation in Utah actually exceeded the national average. Does this mean we are entering a sellers market? Not in Logan. Atleast not right now. The first two months of 2006 had less homes sold than the same months in 2004, and had more homes listed. Presently, there are 229 residential homes for sale in the Logan Area, more than ever before.
In February there were 59 residential homes sold for an average price of $173,731 in Cache County. Homes sold were on the market for an average of 77 days. 35% sold within the 1st month and 63% of homes sold within the first two months.
In January there were 55 homes sold for an average price of $166,993. The average home was on the market for 94 days, but 33% of homes sold within the first month, and 57% sold within 60 days on market. There were 334 new listings taken in the first two months of '06.
In comparison, the first two months of 2005, had 131 homes sold and 247 new listings taken.
The first month of 2006 is setting way for another great year for Logan Utah real estate. In the Logan Zip Code, 84321, January yielded the highest average monthly home selling price ever. The average Logan area home sold for $175,761 and was on the market for 87 days. There were 24 homes sold in January. In comparison, January of 2005 had 23 homes sold for an average price of $143,327, and was on the market for 85 days.
2005 was an outstanding year for real estate in Logan. It was a record breaking year for homes sold, and the average home appreciated by about 6%. Average home prices continue to increase at a moderate level. With steady growth, and price increases well below national averages the Logan market is very healthy. Utah is presently the 5th fastest growing state and 65% of homes are affordable for Utah's median income.
Although interest rates have increased in recent months, buyers still benefit from historically low rates. The trend has also shifted towards a greater number of FHA Loans. An ample supply of available homes for sale, and sellers motivation to sell in a a slower than summer winter market is also a benefit to buyers. The average Cache Valley home normally sells in about 2 months, in December the average home sold in 90 days. These winter conditions do slightly favor buyers.
The average sales price of Logan Homes in December was $152.700. Sellers typically got 99% of their asking price. There were 37 homes sold, and they were on the market for an average of 113 days. On average, a Logan house is normally on the market a little over two months.
As winter continues and temperature's continue to remain cold market conditions tend to slightly favor those buying a home. Homes are generally on the market for a longer period of time (Average of 78 days on market from Oct-March, vs. 69 DOM from April-Sept). This can be favorable for those buying a home, as those selling a home become more motivated as their home goes unsold longer than anticipated. This is especially true for vacant homes, where owners selling a home must continue to make payments and more costly utility bills during the winter.
If you are buying a home, there are presently 230 homes listed in zip code 84321, Logan, River Heights, and Nibley. The average home has 2,167 square feet, 3 bedrooms and 2 bathrooms and a median price of $139,900 an average price of $174,204 and has been on the market for 96 days.
To see Logan Real Estate and homes for sale with pictures and descriptions visit: www.SearchLoganHomes.com.
The number of single family homes sold in 2007 vs 2006 has also increased almost 9%. 226 homes sold in '07 vs 206 in 2006. There is also less inventory on the market right now. Last year there were almost 580 residential properties for sale in the Logan Area, right now there are only about 420.
Perhaps most disturbing for potential home buyers, is that the average price of homes on the market right now is at an all time high of $226,114. It is very hard to find anything in great condition for less than $150,000 and is almost impossible to find a liveable single family home for less than $100,000.
Interest rates are still at unexpected lows, and home prices will likely continue to increase at this pace throughout the summer. It's not too late to take advantage of rapid home appreciation, and get in a house while you can still afford it, but I wouldn't recommend waiting much longer.
Through the first 2 and a half months of 2007 home sales are actually up 32% within Logan City, and the 84321 zip code. However, the average sales price is actually less $167,776 vs. $170,952 for the same period in 2006. Home prices aren't declining, there just happens to be a lot more smaller homes sold this year.
2006 was an excellent year for Logan Real Estate. Single family home sales increased 14%, and the price of the average home increased 6.5% from $155,908 to $166,846. The market still remains fairly neutral and home prices are anticipated to continue to appreciate at a healthy 5-10% for 2007.
The Real Estate market in Logan is still kicking strong. Through October, home sales are up 16% in 2006 vs. the same time in 2005. In addition the average home sold is 7.2% more expensive. There is still a healthy supply of inventory to allow the market to continue gradual appreciation while remaining a neutral market. The average home is on the market for about two months. Presently there are 131 single family homes for sale in Logan.
Real Estate for Logan reached an all time high in July. The entire county had 144 homes sold including, 65 in Logans Zip Code 84321. Home appreciation reached nearly 9% for the second quarter of 2006, and I'm predicting that this trend will continue for a while. It's a great time to own Logan Utah Real Estate
June marked the second most homes ever sold (129) in the Logan Area. It also had a record average sold price of $178,707. The average home sold was on the market for 61 days, and sold for 98% of the listed price. Almost half of homes sold sold within the first month. The number of homes on market has also decreased to 541. There is still ample inventory, and we don't have a sellers market here, but despite increased interest rates home prices continue to creep up, and affordibilty goes down for Logan Real Estate. ---
April continued the trend of a healthy Logan Real Estate Market. 46 homes were sold at an average price of $142,473. To see logan homes for sale visit SearchLoganHomes.com
March was a strong month for real estate in Logan. 32 Homes were sold at an average sales price of $144,848 and was on the market for 72 days.
Housing costs in Utah were up an average of 13.35% in the fourth quarter of 2005. Housing appreciation in Utah actually exceeded the national average. Does this mean we are entering a sellers market? Not in Logan. Atleast not right now. The first two months of 2006 had less homes sold than the same months in 2004, and had more homes listed. Presently, there are 229 residential homes for sale in the Logan Area, more than ever before.
In February there were 59 residential homes sold for an average price of $173,731 in Cache County. Homes sold were on the market for an average of 77 days. 35% sold within the 1st month and 63% of homes sold within the first two months.
In January there were 55 homes sold for an average price of $166,993. The average home was on the market for 94 days, but 33% of homes sold within the first month, and 57% sold within 60 days on market. There were 334 new listings taken in the first two months of '06.
In comparison, the first two months of 2005, had 131 homes sold and 247 new listings taken.
The first month of 2006 is setting way for another great year for Logan Utah real estate. In the Logan Zip Code, 84321, January yielded the highest average monthly home selling price ever. The average Logan area home sold for $175,761 and was on the market for 87 days. There were 24 homes sold in January. In comparison, January of 2005 had 23 homes sold for an average price of $143,327, and was on the market for 85 days.
2005 was an outstanding year for real estate in Logan. It was a record breaking year for homes sold, and the average home appreciated by about 6%. Average home prices continue to increase at a moderate level. With steady growth, and price increases well below national averages the Logan market is very healthy. Utah is presently the 5th fastest growing state and 65% of homes are affordable for Utah's median income.
Although interest rates have increased in recent months, buyers still benefit from historically low rates. The trend has also shifted towards a greater number of FHA Loans. An ample supply of available homes for sale, and sellers motivation to sell in a a slower than summer winter market is also a benefit to buyers. The average Cache Valley home normally sells in about 2 months, in December the average home sold in 90 days. These winter conditions do slightly favor buyers.
The average sales price of Logan Homes in December was $152.700. Sellers typically got 99% of their asking price. There were 37 homes sold, and they were on the market for an average of 113 days. On average, a Logan house is normally on the market a little over two months.
As winter continues and temperature's continue to remain cold market conditions tend to slightly favor those buying a home. Homes are generally on the market for a longer period of time (Average of 78 days on market from Oct-March, vs. 69 DOM from April-Sept). This can be favorable for those buying a home, as those selling a home become more motivated as their home goes unsold longer than anticipated. This is especially true for vacant homes, where owners selling a home must continue to make payments and more costly utility bills during the winter.
If you are buying a home, there are presently 230 homes listed in zip code 84321, Logan, River Heights, and Nibley. The average home has 2,167 square feet, 3 bedrooms and 2 bathrooms and a median price of $139,900 an average price of $174,204 and has been on the market for 96 days.
To see Logan Real Estate and homes for sale with pictures and descriptions visit: www.SearchLoganHomes.com.
Saturday, December 8, 2007
Logan Interest Rates/Home Prices Down
Interest Rates on 30 year fixed rate mortgages are the lowest they've been in over two years. I've even seen some mortgage quotes for as low as 5.5%. This makes a huge difference on your monthly payment. A 1% interest difference on a $150,000 loan is $125 a month. Just a few months ago the average 30 year fixed mortgage rate was inching close to 7%.
In addition to increased affordability on home loans, there is also increased home selection. Although home prices haven't actually gone down in Cache Valley, there is more inventory and more selection than there was during the summer. You are more likely to get a desirable home in your price range than you were six months ago.
During the cold winter months there are fewer people who want to buy real estate (less competition for you). Homes are on the market for longer periods of time. Many owners of vacant homes are extra motivated to sell; it's no fun paying to heat a house nobody lives in, and it is even less fun to pay the mortgage on that house. Sellers will often settle for less just to avoid having to make extra payments for a few more months.
If getting a deal on real estate is a priority to you, now is the time to buy. If you're not ready to buy yet, it might be a great time to refinance your existing home loan. Get your self on the right track by getting a free mortgage quote today, then give me a call and we'll get started finding you a great Utah Home for Sale!
In addition to increased affordability on home loans, there is also increased home selection. Although home prices haven't actually gone down in Cache Valley, there is more inventory and more selection than there was during the summer. You are more likely to get a desirable home in your price range than you were six months ago.
During the cold winter months there are fewer people who want to buy real estate (less competition for you). Homes are on the market for longer periods of time. Many owners of vacant homes are extra motivated to sell; it's no fun paying to heat a house nobody lives in, and it is even less fun to pay the mortgage on that house. Sellers will often settle for less just to avoid having to make extra payments for a few more months.
If getting a deal on real estate is a priority to you, now is the time to buy. If you're not ready to buy yet, it might be a great time to refinance your existing home loan. Get your self on the right track by getting a free mortgage quote today, then give me a call and we'll get started finding you a great Utah Home for Sale!
Monday, November 12, 2007
November Update - Logan Home Sales Down 18%
Over the last three months (August thru October) Cache County home sales have declined 18% (392 single family homes sold in 2006 vs 320 in '07) compared to the same time period in 2006.
The amount of homes on the market has gradually increased from a low of 411 on July 4th, to a high of 522 on October 26th. This amount may have peaked as the number of homes on the market has hovered around 520 single family residences since that mark. Traditionally winter is a much slower selling season in the Logan Area, so even without much increased inventory this number will likely not start declining until March.
The homes presently on the market have been on the market for an average of 81 days. Traditionally, the average days on market for homes sold in Logan Utah are only on the market for 77 days.
There is also a large disparity between the prices of homes on the market, and the price of the average homes sold. Over the last six months the median price of Logan homes sold is $175,000. Of the active homes on the market, the median listing price is $229,900. These numbers tells us that there is a large surplus of high end homes in Cache County.
It is a great time to buy in the Logan area. There is ample inventory, interest rates are great, and the market looks to be picking up again. If you're looking to sell, make sure you price your house right. There are still plenty of buyers, but you are not their only option.
The amount of homes on the market has gradually increased from a low of 411 on July 4th, to a high of 522 on October 26th. This amount may have peaked as the number of homes on the market has hovered around 520 single family residences since that mark. Traditionally winter is a much slower selling season in the Logan Area, so even without much increased inventory this number will likely not start declining until March.
The homes presently on the market have been on the market for an average of 81 days. Traditionally, the average days on market for homes sold in Logan Utah are only on the market for 77 days.
There is also a large disparity between the prices of homes on the market, and the price of the average homes sold. Over the last six months the median price of Logan homes sold is $175,000. Of the active homes on the market, the median listing price is $229,900. These numbers tells us that there is a large surplus of high end homes in Cache County.
It is a great time to buy in the Logan area. There is ample inventory, interest rates are great, and the market looks to be picking up again. If you're looking to sell, make sure you price your house right. There are still plenty of buyers, but you are not their only option.
Monday, October 8, 2007
The Logan Utah Real Estate Market is Slowing... Why?
The Logan Utah Real Estate market is slowing. Not stopping, just slowing. September 2007 market the first time in 7 months that there were less than 100 single family homes sold in Cache County. In 2006 there were 126 homes sold in the month of September vs. 96 this year. A decrease of nearly 25%.
Inventory of availabe homes for sale is also on the rise. As of October 5th there were 503 single family homes on the market in Cache County. In June there were less than 400. At the same time, demand for Logan Utah Houses for Rent is extremely high.
In my opinion the slowing is coming from:
1. Nationwide media and market speculation. The national media constantly brings up the fact that foreclosures are at all time high and that home prices are declining in major markets. This is true, but not the case in Cache Valley. We must realize that real estate is a local thing. Prices are not dropping here, and the rate of foreclosures is far below the national average. Many buyers feel that they can wait a little longer for prices to drop and then can get a better deal. For Cache Valley I recommend buying when you find the right house. Prices will be fairly stable here for the next few months.
2. A trickle effect from struggling national markets. The "crisis" markets do have an effect on our market. Many people wanting to move here from California, Las Vegas, etc. would buy here, but they cannot sell their houses. This especially effects the high end and luxury home markets. I have clients from these markets who have had their homes on the market for over a year. They have dropped the price $50,000 and yet the house still won't sell.
3. The mortgage meltdown and sub-prime crisis. Interest rates are great right now if you have good credit and documented income. You can get a 30 year fixed mortgage for near 6%. But, the window of opportunity has closed for people with questionable credit and very little money to put down. It's a small percentage of home buyers, but it does nevertheless decrease the demand for housing.
Inventory of availabe homes for sale is also on the rise. As of October 5th there were 503 single family homes on the market in Cache County. In June there were less than 400. At the same time, demand for Logan Utah Houses for Rent is extremely high.
In my opinion the slowing is coming from:
1. Nationwide media and market speculation. The national media constantly brings up the fact that foreclosures are at all time high and that home prices are declining in major markets. This is true, but not the case in Cache Valley. We must realize that real estate is a local thing. Prices are not dropping here, and the rate of foreclosures is far below the national average. Many buyers feel that they can wait a little longer for prices to drop and then can get a better deal. For Cache Valley I recommend buying when you find the right house. Prices will be fairly stable here for the next few months.
2. A trickle effect from struggling national markets. The "crisis" markets do have an effect on our market. Many people wanting to move here from California, Las Vegas, etc. would buy here, but they cannot sell their houses. This especially effects the high end and luxury home markets. I have clients from these markets who have had their homes on the market for over a year. They have dropped the price $50,000 and yet the house still won't sell.
3. The mortgage meltdown and sub-prime crisis. Interest rates are great right now if you have good credit and documented income. You can get a 30 year fixed mortgage for near 6%. But, the window of opportunity has closed for people with questionable credit and very little money to put down. It's a small percentage of home buyers, but it does nevertheless decrease the demand for housing.
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