According to the National Association of Realtors, median home prices are on the rise in most U.S. metropolitan areas, with 91 out of 152 areas showing higher median sales prices compared to the first quarter of 2009.
Unfortunately, Salt Lake City ranked in the bottom 10 areas, with the largest home price decline. In Salt Lake, home prices fell 11.4 percent in the first quarter compared to the same quarter of 2009.
Salt Lake’s falling home prices are expected to continue throughout 2010, but should stabilize in 2011, according to a report commissioned earlier this year by the Salt Lake Board of Realtors and conducted by Jim Wood, Director of the University of Utah’s Business of Economic and Business Research. In that report, Wood said that Salt Lake home prices would fall another 3 percent to 5 percent in 2010.
The falling home prices have attracted more first-time buyers and have led to a 33% increase in home sales compared to the same period last year.
So, if you need to move, but are waiting for prices to rebound, you may want to consider selling now. Also keep in mind, if you’re “moving up,” you will make up whatever you lose on the sale of your current home upon purchasing a more expensive home (I’ll help you do the math!).
Buyers – it’s still a great time to buy. Interest rates have just dropped again, there’s great inventory, and these “bargain basement” prices will be going away soon.
Please contact me if you, or anybody you know, could use my professional assistance with a real estate transaction: Beverly@SLCGreenHomes.com
I just completed a very similar analysis in Nashville and found that the average home price fell by 1.4%, but that the sales volume has increased by more than 28%. That increase total price voume more than made up for the slight drop in price and it sounds like you have the exact same situation in Salt Lake.
Good post. Definitely a buyers market situation. Keep up the good work!