What are the current conditions in our real estate market?
We’re still in a very hot market. The inventory level along the Wasatch Front is less than a two-month supply of homes, which means if no new homes came on the market, it would take less than two months to sell everything.
This means prices are going up. Just the other weekend, I sold a listing that had 15 offers on it. This listing sold significantly above its appraised value, too.
Interest rates are still around 4%, which still allows buyers to buy a lot of homes in this market. Although prices are high, there are still a lot of great investments out there. I’m seeing properties selling with an 8% to 12% rate of return on their cash. I’m also seeing 6% to 7% cap rates. If you’re looking for investment properties, now is still an excellent time for you.
If you have any further questions about our current market or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d be glad to help you.