How We Got To These High Home Prices

Here’s what’s happening in the real estate market across the country according to the National Association of Realtors.

Home prices will continue to rise but at a slower rate, at least slower than they have risen the past couple of years. Don’t expect a crash because more buyers than sellers are in the market. We still have a shortage of homes for sale. In contrast, back in 2008 the market was just the opposite, which resulted in a housing crash and bargain prices.

On the other hand, rates are expected to drop some, maybe a point or two in the next 18 months. Don’t expect a return to 3% rates any time soon. Real estate is profoundly local. So, now more than ever it’s smart to lean on the guidance of an experienced, local real estate agent.

Let me paint a local picture for you. Here’s what’s happening in Utah County:

Back in June 2019 the average price for a single-family 4-bedroom, 3-bath home about 2,700 square feet was $370,477. Sellers were getting 99% of their asking price and it took an average of 54 days to sell a house.

Jump to June 2020 when the average price was $388,444 and time on the market had dropped to 44 days.

Then by June 2021 the average price has risen to $521,353 and days on the market fell to 24 days on average.

By June 2022 that home was now selling for an average price of $609,984 in 17 days.

Last June prices corrected a bit with that same home selling for an average of $570,712 in 46 days.

Currently, that home is selling for an average price of $617,465 in 42 days. Yes, we are seeing multiple offers on the best homes. My suggestion is if you want to buy a house don’t wait for prices or rates to come down. While rates will likely drop it doesn’t look like prices will. So, buy now if you can and refinance later.

This is a brief summary to give you an idea of what is happening in the real estate market. To get more detailed information about specific areas, please reply or call me (801-360-9133) and I’ll research it for you. Just think of me as a resource, I don’t mind.

The national information came from the research website keepingcurrentmatters.com. Here’s a link: https://www.youtube.com/watch?v=ypXWB3p6Kak

I sourced the local information from the Wasatch Front Multiple Listing System.