A Year-Over-Year Snapshot of Our 2nd Quarter Market
What’s the latest news from our Wasatch Front market? Here are the latest year-over-year numbers from our second quarter through June 21.
Over 11,000 homes have sold so far, which is nearly a 5% increase compared to the 10,500 that sold during 2017’s second quarter. We also saw a 9% increase in the average sale price. Interest rates rose from 3.91% to 4.62% for 30-year mortgages, and experts agree that we’ll probably see rates over 5% by the end of the year.
There’s no need to panic, though. Over the last 42 years, the average interest rate is 8.4%, so we’re still well below that mark. Even if we go back as late as 1990 and hit the reset button, the average interest rate is still 6.6%.
The average days on market dropped 10% to 41 days, and our level of inventory for all housing types is 3.3 months. Remember, all markets are driven by supply and demand. Generally, a market is considered “level” when it has between five and six months of inventory. Anything below that is considered a seller’s market; anything above is considered a buyer’s market.
For homes priced under $350,000 along the Wasatch Front, there’s only a 2.5-month supply of homes. Between $350,000 and $500,000, there’s just above a four-month supply. Above $500,000, there’s a 5.5-month supply.
As you can see, entry-level home availability is low, and I expect that we’ll continue to see tight inventory and lots of competition in that price range throughout the rest of the year.
If you’re selling your home, now’s a great time to act, but there are still strategies you must use to get the most for your home, so make sure you talk to an experienced agent. If you’re a buyer, you absolutely must work with an experienced buyer specialist to find and close on the home you want.
If you have any other questions about our Wasatch Front market or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d be happy to help you.