At the beginning of this year, economists predicted that, along the Wasatch Front, we were going to see a very flat or even a declining market. Interest rates were predicted to go up a couple times this year, as well.
Well, those predictions have been called off. In fact, in February, when interest rates were expected to go up, they actually came down. Due to our economy, interest rates for a 30-year fixed mortgage are currently at 4.25%, which is quite a drop from the 4.75% to 5% range they were in.
Not only can owner-occupied buyers afford more, but investors can also buy now. Doing so makes better sense financially, even with the home prices going up as they are.
That spurred the market on—not only are we seeing far more competitive offers in the market, but we’re also seeing properties in the lower price points sell above list price! Overall, the market for homes under $500,000 has been seeing a lot of traffic.
Above the $500,000 price point, homes that are properly marketed, fairly priced, and that are in great condition are selling as well.
Right now, inventory along the Wasatch Front is again going down, reaching an all-time low in all price ranges. There are currently 1.5 months of supply, meaning that if no other homes came on the market today, it would take 1.5 months to sell all the homes currently available.
Given that an inventory of four to five months is a balanced market and an inventory of six months or more constitutes a buyer’s market, we can clearly see that this is a fantastic seller’s market.
In the spring of 2018, we noticed these trends occurring, as well. We were in a great seller’s market until June came along, when things flattened out. We can reasonably expect something similar to happen again in 2019, but who really knows what the future will bring?
If you’re thinking of selling a home, I encourage you to act before that time, just in case the market does flatten out. For specific questions related to your property, feel free to reach out to me. I’d love to help.