Market Update for the Wasatch Front
The current Absorption Rate on the Wasatch Front is 9.68 months.
What that means, is that if we compare the number of homes currently for sale with the number of homes that have sold in the last 12 months in Utah, Salt Lake, Davis and Weber counties, we have 9.66 months worth of inventory. We are assuming that the number of sales in the next 12 months will be similar to the previous 12 months.
So let me put that into perspective, the National Association of Realtors reports that 6-12 months worth of inventory is a “normal” market, less than 6 months is a “seller’s” market and 12+ months is a “buyer’s” market. Lets be honest though, we are still in a buyer’s market here in Utah. There are currently almost 16,000 homes listed for sale on the Wasatch Front and last month just over 1,400 houses were sold. If you’re a seller, it means you aren’t “in” the market unless you are priced in the lowest 10% of similar homes. If you’re a buyer, it means you have LOTS of homes to choose from.
On a side note, in the $250,000 and below range, it really is more of a normal market. The median sales price has dipped under $200,000 in recent months and the majority of sales are in that market. The best ones go fast and you have to be quick to get them. The great thing for buyers is, the median sales price has come down in the last few years but the homes are still the same. So the $220k median sales home in 2007 is the same home that you can get for $190k today.
For those of you who want to see more numbers, look at the Sales per month on the Wasatch Front. Houses are still selling, people are still moving, couples are getting married and realizing that its cheaper to own your home than to rent someone elses.
