Market Analysis 4th Quarter of 2010 and Current In
First of all, a Happy New Years to everyone!! I hope each of you had a wondeful year and accomplished all the goals that you set last year.
With the end of the year comes the end of the 4th quarter for 2010. This presents a great opportunity to review real estate sales in 2010 in an effort to better understand what will happen in 2011.
I have included 8 different graphs at the bottom of this article with various criteria that will show amount of homes listed, amount of homes sold and average median price. If you would like, I would be more than happy to perform a customized search for any of you for the current home/area that you live in or for the future type of home/area that you are interested in purchasing.
Here are a few of my observations about these graphs:
1. If you look at the graphs, you will notice that basically every category for the 4th quarter of 2010 decreased from their 3rd quarter amounts. The amount of homes listed decreased in all but one graph, and the median sold price and homes sold dropped in every graph. This is to be somewhat expected as the real estate market typically slows down from November to February or so.
2. Wasatch and Utah Counties have weathered the storm quite well and appear to be stabilizing. Although a dip was expected in the fourth quarter, the dip wasn't as significant as expected.
3. Many of the homes in higher demand (newer homes, larger homes) are begining to stabilize. Many buyers who have sat back and waited for the best time to buy or starting to buy due to the low interest rates combined with the low home prices.
4. As I have stated before, I really believed that this past fall and this winter could be best time to purchase ('rock bottom'). If you are looking to upgrade, buy your first home, or buy an investment property, there may not be a bette time than this winter. So even though prices are still stabilizing, interest rates are slowly creeping up and most experts do not see them going back down to the lower 4's anytime in the near future.
5. Condos and townhomes took a big hit in the 4th quarter as there was no home buyer tax credit to boost sales for the first time in years. I personally experienced the price of these homes drop by about the $8,000 once the tax credit expired. I do expect these properties to bounce back somewhat in the Spring as a new crop of first time home buyers enter the market.
6. Older, outdated homes and any home in need of remodeling have taken the biggest hits. Even though there is some sweat equity to be earned, many buyers are taking the approach of why buy something that needs work when there are so many newer homes for about the same price. Today's buyers want the newer homes, which has begun to stabilize that market, but has really hurt the older home market.
Here’s rates based off 700 FICO:
FHA 3.5% down –
- 15 year fixed – 4%
- 30 year fixed – 4.75% (pays extra rebate, 4.625% cost a little bit)
Conventional 20% down –
- 15 year fixed – 4.25%
- 30 year fixed – 4.875%
Remember that rates had been as low as 4-4.25% for a 30 year fixed FHA. Even though anything under 5% is still remarkable, every 1/4% point is a big difference in what you can afford and the amount of interest that will be paid over the life of the loan. Rates are expected to slowly creep back up into the 5's and even 6 percent range. If you are thinking about buying in the next year, I would do it sooner rather than later.
1. Utah Home Sales
2. Salt Lake County Home Sales
3. Wastach County Home Sales
4. Utah County Home Sales
5. Utah County Single Family Homes, 2500+ square feet, built 2000 or newer
6. Utah County Condos and Townhomes, 2-3 bedrooms, built 1990 or newer
7. Spanish Fork to Provo, SFR, 2500-5000 sq.ft., 2 car+ garage, built 2000 or newer
8. All of Provo
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