Yalecrest area home sales were strong and steady for the middle quarters of 2019. Home values met projected 5-10% increases. Second quarter average prices were up 4%, and 3rd quarter prices up a surprising 10% compared to 2018. The most significant jump in price occurred in homes valued over $750,000. Homes under $750,000 were more likely to have price increases between 2-5%, a statistic comparable to other neighborhoods along the Wasatch Front. Days on market in the 3rd quarter also dropped and cost per square foot rose. This 3rd quarter market boost reflects September’s drop in interest rates.
Expect Yalecrest home prices to stay steady in the 4th quarter and into 2020. Seasonal slowdowns are likely, with homes sitting on the market longer through the winter months. This slower-paced average days on market will most likely continue through the spring.
SALT LAKE VALLEY
With home prices being at an all time high, we are also seeing a record number of contract cancelations in Yalecrest and throughout the Salt Lake Valley. It was not unusual in the 2nd and 3rd quarters for a home to go through one or two contract cancelations before closing. Buyers aren’t willing to pay top price for a home that is not in top shape or when a home inspection comes back with red flags such as roof or other system failures.
Million-dollar home sales along the Wasatch Front are also on the rise. In the first eight months of 2019 there were 268 sales of million-dollar homes, a 23% increase compared to the same time period last year. The Wall Street Journal has predicted, “millions of people…will flee high-tax blue states to low-tax red state…The winners are likely to be states like Arizona, Nevada, Tennessee, Texas and Utah.” However, to keep this all in perspective, homes over $1,000,000 only accounted for 1% of real estate transactions along the Wasatch Front last year.
The fear of a looming recession has left many homeowners with a bad case of 2008 jitters. We highly recommend this article to put your mind at ease. This excerpt dissuades us from the notion that a recession necessarily equates to a housing crash.
|“Looking back at the last five economic recessions, we see that housing prices actually appreciated through three recessions, and in the 1991 recession housing was only slightly off – down 1.9%. The clear outlier was the Great Recession – the traumatic event that is clouding many would be homebuyers decision making process….
History tells us that housing will likely continue to do well this go around. With mortgage credit availability in check, low inventory of available housing and lower projected interest rates ahead, the market should continue to appreciate at a normalized pace.”
Niche Homes is a full-service boutique real estate agency specializing in the Yalecrest neighborhood and surrounding Salt Lake enclaves. Contact us if you are interested in buying or selling a home.