What a year it’s been so far in 2008. If you read the papers or watch the news you’d think all of the homes in America stopped selling, and the next great housing depression has begun. Although I exaggerate, it is interesting to see how the national media, in particular, takes national averages and extrapolates that data to reflect the entire country.
The truth is, residential real estate is still a very localized phenomena. There are parts of the country which have been hammered in terms of price points (Las Vegas, California, Phoenix, large sections of Florida, etc) but others have been flourishing (many locations in the Midwest). Utah (and the Wasatch Front specifically) fall into the middle of the statistical heap. Although our sales activity is off between 20-30%, prices have held up reasonably well considering.
In spite of the unit sale slowdown mentioned earlier, average sale prices are holding up well with prices at the levels reported during the same period in 2007 for Davis County. Farmington specifically is reporting a slight overall increase in average price points of just under 4%. Much of this increase in the average is due to two large sales of over $900,000 during the reporting period.
Median sale prices have also held up well consider the slowdown in unit sales. When comparing Davis County to various other parts of the country (and even other areas of Utah), Davis County is holding up relatively well. The data indicates a clear slowdown, year to date, in the pace of sales activity, when compared year over year. However, the data also reflects a slower but still healthy market remains. The data confirms a continuation of the healthy buyer’s market which began to take shape in the first half of 2007.
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