If you remember from my past writings, the real estate market in Washington County experienced a slow down in March and April in response to coronavirus fears. Those fears seem to have been short lived, and the real estate market has skyrocketed to a new high.
Pending home sales were up 34% in June, compared to last year. This June we put 615 homes under contract, compared to 458 in June 2019. The median sales price is up 5.6% to $349,500, and the absorption rate indicates that if no more homes were listed for sale today, and the rate of sales remained the same, we would sell every house on the market in only 2.6 months!
MortgageNewsDaily.com, a mortgage industry website, shows today’s average rate on a 30-year fixed rate loan at 2.94%! It’s almost free money and homebuyers are flocking to the market to acquire their piece of the American Dream at never before seen mortgage rates.
Demand greatly exceeds supply. If a home is priced competitively, sellers can expect to receive multiple offers, and buyers need to be prepared to offer above asking price. Last week, I represented a buyer who made an offer $20,000 over the asking price, only to be out-bid by another buyer who came in $31,000 over asking! Be prepared for home prices to keep climbing into the foreseeable future.
The inventory shortage is not limited to inexpensive homes. The luxury market, homes priced over $1M, is as strong as it has ever been. 18 homes over $1M went pending last month, leaving 90 listed for sale, a 5-month supply, the lowest figure I’ve seen in my 11 year career.
One might think that the solution to the inventory problem is to build more homes. I represent many small to medium sized homebuilders, and they are building as fast as they can. However, their challenge is finding available building lots. The inventory shortage that plagues the housing market is also present in the market for building lots.
Buy now, refinance now, and lock in one of the lowest rates in history! If you happen to be in the position to sell now, congratulations, you are poised to achieve a record price for your property.
If you are thinking of making a move, buying or selling, call me. Buying or selling a home is an adventure. I’m Joe Allen, and I’m ‘Southern Utah’s Home Adventure Guide.’ Let me be your guide. (435) 773-3870 or Joe@RealtyAbsolute.com