The latest sales figures for median-priced single-family homes and condominiums in Salt Lake County shows a 20 percent increase compared to the same time last year. It’s a seller’s market, according to Dave Frederickson - President of the Salt Lake Board of Realtors. He says the number of homes on the market is limited right now. In particular, homes in the median price range of $250,000 and below are selling quickly.
“If it’s reasonably priced for the house, it’s not at all uncommon to get multiple offers and a lot of those multiple offers are actually higher than the list, says Frederickson, because a lot of these buyers are frustrated from missing out or being beat on the last two multiple offer situations they were in.”
Then if a buyer’s offer is accepted, it may be a challenge to get a current appraisal for the loan. Frederickson says property appraisals are out of date and too low because they’re based on what realtors call “comparables” or “comps” from months ago when homes had less value. He says the good news is things should balance out within the next six months as the inventory of homes increases to meet the demand.
Kim Casaday is the President of the Home Finance Division of Zions Bank. She sees two things happening to make the market more balanced. More existing homes will be going on the market and builders will be busier.
“We’re seeing a lot of activity in our construction loan business, Casaday says, and we’re seeing an increase in our balances of over 38 percent over last year, which means people are building.”
Home prices in the Salt Lake area have risen every month since last April according to the Salt Lake Board of Realtors and both Frederickson and Casaday see no change in that trend.