Sales have hit an 8 year slump. Now the big question has been, how does the rest of the year look. People are asking...should I wait to buy.
Lets take a look.
THE GREEN LINE is amount of new listings on market.
THE BLUE LINE is our average price.
THE RED LINE is the number of homes sold per quarter. (Graph made by Wasatch Front Regional MLS)
ABOUT THE GRAPH:
As you can see Salt Lake has hit an all time low for sales. The reason why this has happened is largely due to the loan credit crisis. Loans have changed and many of our clients that bought a home a year or two ago are stuck. They cant buy another home with current loan guidelines. A second reason but not as important is out of state sellers having a difficult selling their home in order to move in state. The media hype could be another aspect but that is more of a cloud over people's minds rather than a direct influenence on the local economy.
The under 200k mark is still hot. There are multiple offers in this category.
The over 400k mark is slower in certain parts of the valley. Mainly the southern part of the valley where all the new housing was created.
OUR OUTLOOK:
Forbes recently rated Utah as number one place to find a job. They also rated Utah as the number one place to buy a home due to good value and future appreciation.
CURRENT STATUS OF NEW HOUSING:
Current new housing supply: Builders arent pulling permits right now. And many of the builders are no longer in business. There was a clean out in this industry. A large supply of new housing happened to be people building spec homes and hoping to flip for a profit. These speculators are hurting right now but wont be building in the future. What does all this mean? That there is approximately 9 months supply of extra inventory on the market before our demand for new housing picks up again. Due to this extra supply buyers can buy a home for a great price until supply decreases.
WHERE DO YOU MAKE YOUR MONEY TODAY?
Perfect time for anyone wanting to move up. Right now if someone wants to trade up their home they will get more money for their current home and they will buy a better bargain in the higher price range.
Comments(2)