MARKET UPDATE: Prices Bump, End of Slump?
Published On: March 14, 2024 Posted by: Jeremy Peterson
The real estate market appears to be finding its footing after a disorienting adjustment to the high interest rates prevailing for mortgages. While everyone has been waiting for interest rates to drop, those who know seem to indicate we aren’t going to see much change in the near future. We will have to learn to live in a market as it is rather than as we wish it to be. So, lets take a moment and see what is.
Sales volumes appears to be stabilizing after more than a solid year of collapsing numbers. This is bears out both in our sales volume and the change in sales volume chart. It appears, in fact that, we may be reaching a trough in this market cycle for overall sales volume for Weber County.
Home values popped from $211/sqft in February to $218/sqft in March. This jives with price action last year which saw $/SQFT surge into the Spring selling season. If last year is a guide, we may expect to see a similar pattern this year.
The recent price action also means that values are headed higher on a year-over-year basis. While the increase is muted compared to pre-COVID trends, a positive number is a reassuring sign for the market. Lenders are less apt to provide for refinances and purchases if values trend downward for an extended period.
The time it takes to sell a home appears to be returning to a normal looking pattern as well. We expect days on market to decline as we head into Spring.
And finally, the awkward news. With prices jumping and rates remaining elevated, affordability just can’t catch a break. It will take a tectonic shift in market supply and/or rates to make a difference in these figures. Unfortunately, tectonic drift is a slow process. So, we will live in the market we have, not the one we want.
If you are thinking of buying or selling a home, give me a call. 801-390-1480
