April Utah Home Sales Slow, Prices Up

April Utah house sales dipped a little this year compared to last with a slight decrease in the number of home sales, but a significant increase in home prices.

The median home sales price in April was $206,000, a total of $6,000 higher than the 2013 median price. The median cost of 2014 homes per square foot in April was $96.85 compared to $93.67 per square foot in the same month in 2013.

Analyzing Utah home data from one time period – say, one month – is tricky. There are so many factors that can influence fluctuation in a market in such a short period of time. The data can be misleading; however, it helps to compare April to the same time frame throughout the years to get a clearer picture of market conditions.

Looking Back on a Wild Ride

Things had begun to turn ugly when for the U.S. housing market in 2005 when what we had come to know as “the housing bubble” burst. Home buyers, home sellers, mortgage lenders and the entire industry had enjoyed a wild ride on surreal success in the years just preceding the burst.

In 2006 the market continued to grind down. Home prices tumbled, but so did sales and the results were proving disastrous. A total of 1,259,118 foreclosures were filed in 2006 (that was 42 percent higher than in 2005, according to Realty Track, a real estate information company.

In January 2008 the National Association of Realtors (NAR) announced the largest drop in existing home sales in 25 years had occurred through 2007. The announcement came days after a significant downturn in the stock market. The global stock market was volatile as it attempted to correct itself. Fears of a U.S. recession loomed and eventually proved valid.

In 2009 3,957,643 foreclosures were filed on 2,824 properties (21 percent more than the year before). Foreclosures inched up in 2010 when foreclosures were filed on 2,871,891 properties, according to RealtyTrac’s year-end report.

By the end of 2010 more than 2.23 percent of all households were experiencing foreclosure at some level.
In 2011 foreclosures began to slow. It was still a sticky situation for 1.45 percent of all households who were in some stage of foreclosure, but it was less than the 2.23 percent we saw a year earlier. In 2012 the foreclosure notices slowed further. Home sales began to perk up.

Finally, 2013 showed us substantial appreciation in single-family home sales. A strengthening economy boosted consumer confidence, the jobless rate decreased, historically low interest rates had greased the wheels and the housing market began to find its new normal.

Utah’s April Home Sales

What does all of that history have to do with our statistical comparison today? As we look back on year-to-year sales, it’s interesting to note the sordid market trends nationwide compared to Utah’s history. There is no question Utah was deeply impacted by heavy hits to the housing and construction industries; however, our state is recovering nicely and record fluctuations in the housing market are not nearly as deep as those experienced in many other states. Spring seems to be the home sales season in Utah and this year the tradition continues.

Following is a history table reflecting April home sales in Utah for the past five years. We saw a notable increase in sales in 2013, but sales have slowed a little this year. That’s not too concerning in and of itself considering a $6,000 increase in the median sold price of homes. It’s much healthier for the market to grow slowly and steadily. I’m encouraged by the steady growth in prices and feel confident conditions will continue to improve.

April Utah Home Sales Year-to-Year

Mdn OL $ = Median Original Listing Price
Mdn Sold $ = Median Sold Price
Mdn S to OL = A comparison between the Median Sold Price and the Median Original Listing Price
Mdn SQ FT = Median Square Feet
Mdn $/SQ FT = Median Price Per Square Foot
Mdn CDOM = Median Current Days on Market

Interest rates are still low, consumer confidence is up and the national job market is beginning to take shape. This is a good time to buy a home. If you are ready to buy a Utah home for sale, contact me at 801-673-3333 and let’s see how we can take advantage of existing conditions. Let’s make sure we use them to put you in the best possible position.

Browse all Utah homes for sale listed in the Wasatch Front Regional Multiple Listing Service (WFR-MLS) at www.allutahhomes.com.

Thumbs Up for 2013 Third Quarter Home Sales Statistics

by Joel Carson
President/Principal Broker
Utah Real Estate
SLBR 2012 'Salesperson of the Year'

Utah home sales showed continued improvement during the third quarter of 2013 when compared to the same period of time in the three years prior. Sales increased by 10.05 percent and the median sold price jumped 12.99 percent, according to the Wasatch Front Regional Multiple Listing Service.  Inventory increased in the third quarter and homes sold 30.95 percent faster.

Utah Home Sales Steadily Increase
Compared to the 9,874 Utah homes sold in the third quarter this year, 2010 sales look bleak—only 5,935 homes sold in the third quarter that year. In 2011 sales increased 28.59 percent to 7,632. Sales in 2012 increased 17.56 percent over the previous year (8,972). This year’s sales demonstrate a steady long-term increase with a 10.05 hike over 2012.

Median Home Prices Continue to Climb in Beehive State
In the third quarter of 2010 the median home price was $195,000. That price dipped by 10.77 percent in 2011 when the median home price was $174,000. By 2012 Utahans had begun to see a slight increase in the median home price; it was up 6.9 percent over the previous year at $186,000. This year the third quarter median home price is 12.99 percent higher than it was in 2012 at $210,153. This is an encouraging sign of improvement in the housing market here overall.

Utah Homes for Sale are Selling Faster
In the third quarter of 2010 home sales were dragging. The current days on market (CDOM) was 77. Homes started to move a little faster in 2011 when the CDOM dropped 3.9 percent to 74. In 2012 Utah home sellers saw a 43.24 percent improvement when the CDOM dropped to 42. This year? The CDOM is at the lowest it’s been in years at 29. It could be home buyers are recognizing the likelihood that interest rates will go up as the jobless rate goes down. Some are worried about low inventory; although new listings are up 23.95 percent this year over last year’s third quarter. Others want to take advantage of low prices while they last.

Inventory Holding Steady
Home sellers must be feeling better about the housing market as more and more homes are being added to the statewide inventory; more homes were listed during the third quarter this year than were listed for the previous three years.

In 2010 a total of 1,5040 homes were listed in the third quarter with a median asking price of $194,900. Of those new listings, 39.46 percent sold.

In 2011 new listings dropped by 14.29 percent. A total of only 12,891 homes were listed with an even lower asking price (2.57 percent lower) of $189,900; 59.20 percent of those listings sold.

By 2012 the inventory situation was starting to look a little bleak. New listings dropped further in the third quarter (-1.42 percent). The median asking price was higher than the year before (5.32 percent) and a whopping 70.60 percent of the third quarter new listings sold. This year, listings were up 23.95 percent higher than those in the previous year; 15,752 homes were listed with a median asking price of $227,900; 62.68 percent of the new listings sold during the third quarter this year.

The bottom line? We’re seeing more homes sell for more money at higher prices than they have since 2010. These are all healthy indicators.

It remains to be seen what kind of impact the government shut down will have on fourth quarter sales. I’ll be here watching and will report information to you as it becomes available.
If you’re ready to buy a new home in Utah, call me today at 801-673-3333. Feel free to browse our fully searchable inventory at www.allutahhomes.com any time, 24/7.