January 2013 Market Update
January 2013 Real Estate Newsletter Update
Naisbitt-Bagley Team, ERA Realty Center
Don’t ask me how it got to be 2013, but here we are and I believe it will be a great year for real estate!
It is freezing outside! This is one of the coldest winters I have seen in Cedar City. Please make sure everything is winterized and prepared for low temperatures.
The latest Utah Association of Realtors (UAR) “Local Market Updates by County November 2012” has arrived. See attachment for statistics for all counties in Utah. Iron County closed sales YTD 2012 are up 12% as compared to 2011. The median sales price is up YTD 8.4% to $110,600 according to this report.
Real Estate Market Information: The inventory of homes for sale is down, interest rates are low, closed sales are up, and the median price is up. That is great news for buyers and sellers!
Are there still foreclosures, short sales, and notices of default? That is still the question I hear a lot. The answer is “Yes”. Is this still a bargain driven real estate market? Yes, for the most part, it is.
Homes are selling in all price ranges as long as they are priced for the market.
Homes under $150,000 are in a strong market. If these homes are priced correctly, they often attract multiple offers. Sometimes they sell above list price and appraisal.
Land, acreage, and commercial properties are slow sales. It’s difficult to get loans for land. Many sellers are reluctant to part with their land at the low prices buyers want to pay compared to the past.
We are seeing lot sales at bargain prices. Appraisals are typically not high enough to get mortgage loans for new homes being built on lots. Even though construction costs have gone down, resale homes typically sell for less than building a home.
According to ERA Network News December 2012, “As this country emerges from the most significant real estate downturn in a generation, ERA brokers have noticed some post-recession behavioral shifts among homebuyers that reflect an entirely new real estate landscape.” I believe this is true. However, buyers want to own a home, and that has not changed. Investors are in the market and buyers are on the move. I will summarize the homebuyer behaviors these brokers identified as follows:
- “In the Know”: Buyers have invested a lot of time and they understand their options and preferences. They view a home as a “foundation” for life rather than an “Investment Vehicle” like many thought in the boom market several years ago.
- “All in the Family”: Buyers view a home as a place for multiple generations living under one roof.
- “Moving Up”: Buyers are looking for move-in ready homes rather than “DIY” projects.
- “Sizing Down”: Buyers want the simpler life and are saying, “Do not supersize me!” They would rather have a smaller home with less upkeep so they can enjoy their hobbies, travel, and relationships.
For all real estate consultations, pricing, staging, concerns, or any real estate questions, please call the Naisbitt-Bagley Team at 435-865-1019 or toll free at 800-934-3742. You can text: firstname.lastname@example.org. You can check out homes for sale as well as free reports and valuable information at http://www.homesincedarcity.com. The Naisbitt-Bagley Team will market aggressively and work hard to get you great results!