2010 Cache County Utah Year End Statistics
Posted by Lisa Udy on Friday, January 14th, 2011 at 11:12am.
The year of 2010 is finally over and we can finally get a look at the year end real estate statistics to see how healthy the Cache Couny real estate market is. Lets start off by looking at the total amount of home sales compared to previous years dating back to 2007.
Average Days On Market & Total Home Sales - Cache County 2010
In 2007 at the peak of the market there were a total of 1,280 sales and ever since we have been in a sales decline. Since the peak, the Cache County real estate market has declined a whopping 31%, and from 2009 to 2010 the market has declined 11%.
Average days on market for a home sale went from 67 days to 136 days. This is a major indicator of too much overpriced inventory. What makes days on market go up? A couple factors. First, there is too much inventory for the amount of home buyers. Second, because of the amount of inventory, home buyers are more picky, and because of that, only homes priced below market value are selling.
There are a lot of homeowners who are priced out of the market due to the 31% decline. What I mean is, anyone who bought a home from 2005 on will most likely have to sell their home lower than what they paid for it. If your a homeowner in this situation, if you don't absolutely have to sell, it would be best for you to take your home off the market. If you do have to sell and you can't lower your price to current market levels, a short sale might be your only option.
Average Price Per Square Foot & Total New Listings - Cache County 2010
Okay, enough of the bad news. A little good news is the amount of new listings hitting the market. From 2009 to 2010 the difference (2046 as compared to 2098) is very minor which is good for inventory levels. If we can continue to get rid of the excess inventory on the market in 2011, the market will improve but we have a ways to go.
Price per square foot is a hard metric to to determine pricing of home sales. The reason being is price per square foot can mean so many different things. For example, a brand new home built in 2010 will have a higher price per square foot due to the cost of new materials and most new homes have more upgrades such as granite, hardwood floors, and high end finishings. Price per square foot has declined a little, but this metric is pretty much useless when determining a real estate markets over all health.
Average Sales Price & Total Dollar Volume - Cache County 2010
Average sales price has declined quite a bit from the peak, but this doesn't necessarily mean home prices have declined the same amount. Average sales price has declined so much due to the types of homes people are now buying. There are a lot more first time home buyers in today's market as well as people downgrading to lower priced homes. With people buying cheaper homes, the average sales will obviously decline.
Total sales volume is way down from 2007, 2008, and even 2009. We went from over $240 million to $150 million. This is bad on two levels. First, as a real estate agents, this means we have to work harder for our dinners! Second, it means higher end homes are not selling like they used to. If you own a home above $250,000 and you need to sale, you're going to have be priced extremely well. I will show you what I mean in my next graph:
This graph shows the difference in the lower end and higher end markets. Once you get above the $250,000 market everything changes. Days on market goes way up, home sales go way down, and price per square foot declines. Home sales above $250,000 have become a black eye in our market. It's more difficult to qualify for those higher end homes, where as 4 years ago, banks where handing out jumbo loans like candy.
One thing to keep in mind when looking at this graph is the amount of first time home buyers who bought due to the tax credit. This factor is skewing the numbers a little, but not by much. Plain and simple, people are tightening up their pocket books and the only way to sell a home in the higher end price ranges is to be priced extremely well.
Here are a few more graphs to compare the different markets and different price ranges within the Cache County real estate market for 2010.
2010 Average Days On Market By Price Range
2010 Average Price Per Square Foot By Price Range
2010 Average Sales Price By Price Range
2010 Total Sales By Price Range
Thanks for sticking around to learn about the Cache Valley real estate market. Please feel free to search homes, check out our local communities, and sign up for listing alerts to receive listings in your email.
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