Tuesday, November 13, 2007

What's Hot and What's Not in Real Estate

We are well into November 2007 here in Utah. I wanted to take a few moments and give some updates to the Real Estate Market. It's been no big suprise that the market has seen some slowing and even reversing in some areas, but there are some hot parts of the market right now. I wanted to touch on some of those areas today and give some information on those parts that are not moving very well right now! A lot of the current information I'll be giving here will come from the Salt Lake MLS. Below is a table that I've inserted to help with our discussion today. It is packed with a lot of good information that will give us good direction in determining what parts of the market are moving and what parts are not. The months of Inventory is determined by looking at what has sold in the last 30 days and compare it to the homes that are currently for sale in those respected price ranges. It should come as now big surprise that the months are increasing. To give you a starting point, a healthy market should only have 4-5 months of inventory for sale at any given time. Eight to Nine months is not ideal, but conducive to selling. Anything above 12-13 months is going to be a tough market for Sellers (People who are trying to sell their property). It is important to note that the Information contained in the table comes from the Salt Lake, Utah MLS) For Sale by Ownerinformation is not contained in these numbers (For more on For Sale by Owner click the link and read the section of FSBO's).

Click Here for the link to the table. I was not able to paste it here.

Months of Inventory signifies how many months of Inventory are on the market to be sold.
For example: 8.82 means almost 9 months of inventory to be sold.These numbers are staggering. If you want to sell a home in this market your best chance to sell in in the price range up to $300,000. In Utah, if you are priced in that range you have the best opportunity for a sale. Look at the daily Sold rate Utah is selling 42 homes a day priced in that range. There is no other price range remotely close to it. The next best is 5 times worse. This means your chances for a sale become 5 times harder just for pricing in the $300,000 range! These amazing swings make a real estate professional very valuable! Click here to find out why you should use a professional to sell your home!

No comments: