West Jordan home prices continue to rise but at a much slower pace. June prices were only 9% higher than last year and were 5.8% higher than prices at the end of 2006. The slowing is certainly due to the increased inventory and the length of time it is taking to sell homes. The absorption rate has increased from 3.5 months in April to 5.2 months in June. The increase has moved West Jordan from a sellers market to a balanced market with the trend moving towards a buyers market.
Month | Average Sold Price | Change from Prior Year | # of Homes sold | Change from Prior Year | Absorption Rate in Months |
| April | $254,431 | +15.95% | 144 | -3.36% | 3.5 |
| May | $263,323 | +21.10% | 135 | -34.15% | 4.6 |
| June | $257,380 | +9.29% | 129 | -38.28% | 5.2 |
| 2ND Quarter | $258,074 | +14.87% | 412 | -26.82% | 5.2 |
Is the slight dip in June prices an anomaly of a shift in West Jordan pricing? In the trenches we are seeing more price reductions on existing listings and we are beginning to see sellers willing to negotiate more on price and terms of the sale. I think pricing will see some volatility over the next few months as buyers and sellers battle in the neutral zone of a balanced market.
An additional impact on the West Jordan market is the tightening within the mortgage industry. First-time buyers and sub-prime buyers are seeing more challenges in getting approved for loans as 2nd mortgages are tougher to get and minimum FICO score requirements are rising. We will see more FHA loans as these requirements continue to get tighter and FHA options become more attractive.
If you're interested in information on any particular zipcode or neighborhood just contact us at 801-582-5882 or at Ask The Broker.
Information for our stats were taken from WFRMLS as of 7/10/2007 and are subject to change at the discretion of the web-master. Zip-codes included for West Jordan include: 84084 and 84088.
;)
;)
