How does the first quarter of 2017 compare to the first quarter of 2016 along the Wasatch Front?
First, our average sold home price is at $308,000, which is up 11% from the $277,000 mark set last year. The average days on market decreased 10% from 59 days to 53 days. We’re seeing the number of available homes to sell also decrease, as our inventory—which was already low in 2016—has decreased another 4.25%. As a result, the average price for listings is up 8.5%.
What’s interesting is that the number of properties in the “pending” status—meaning the offer has been accepted between the buyer and seller and is waiting for closing—exceeds the number of properties actively for sale. The failure rate of pending properties is also higher than in years past, which means we’re having more appraisal issues and buyers getting cold feet or finding a property they like better and canceling the contract. Either way, as a buyer in this market, it’s a good idea to consider placing a backup offer on a property you want because there’s a 24% chance you’ll win it.
Under the $350,000 price point, there is less than a two-month supply of inventory, which means it’s a great time to be a seller and the waters are a little bit testier for buyers. If you’re a buyer, make sure you have a winning strategy before entering this market.
Based on my experience coaching other top agents across the country, the market in Utah is similar to the markets all across the nation. Inventory is tight, prices have risen, interest rates are still very low, and I suspect we’ll see this type of market throughout the summer and fall and perhaps the rest of 2017.
If you have any questions about our market or you’re thinking of buying or selling a home, don’t hesitate to give me a call or shoot me an email. I’d be glad to help.