News for February 2019!
The National Association of Realtors tracks how many lock boxes are opened on any given day of the year. (You know, those big honking plastic boxes that hang from the doorknobs of homes that are for sale!?) As of right now, there are MORE lock boxes being opened, meaning more showings and more foot traffic. That ALSO means that in the next 60-90 days, there will be MORE homes sold.
If you’re selling a home, this means that there are more serious buyers out there! However, in Utah County and Salt Lake County right now, half of the available homes for sale are new construction. The other half are existing homes, making the competition for existing homes slightly more intense. This is especially true if you are under the average market price of $330,000. If your home is priced under this, there will be more demand for your home and you will likely get multiple offers.
If your home is priced significantly over that $330,000 right now (think $500,000 and above), the opposite is true. Homes are selling more slowly at this price point and often not for 100% of their original list price. In fact, from November reports, homes over this price point were selling, on average, at 92% of their original list price.
If you have a home to sell that is under $330,000 and are looking to upgrade, this is the best possible scenario for you! You’ll be likely to sell your home quickly, for top dollar, and then be able to turn around, using the equity from your sale to purchase a new home in the $500,000+ price point for less than normal. With a large down payment and no PMI (mortgage insurance), you may even be able to upgrade to a newer home while keeping your monthly payments close to what they are on your starter home! Plus, with fewer buyers currently active in this price point, you’ll have your pick of homes!
I would recommend this course of action to those looking to stay for 5-7 years in their next house. If you plan to stay in that house just a few years, upgrading right now probably isn’t the right move for you. Why is that, you might ask?
In a regular, healthy market, homes will appreciate in value 3-4%. In 2018, homes appreciated a whopping 12%! Most analysts predict a slower year of appreciation in 2019, closer to that 3-4% average. All this to say… if you’re looking to buy a more expensive home ($500,000+) but only stay there for a few years, you will likely not be able to gain much in the equity of your home.
So, if you’ve been thinking about selling your home and you’re hitting this price point, now is a great time to put your home on the market! As always- Becca Summers will be there to help you every step of the way!