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February SunCrest Market Update
2021 SunCrest Real Estate Year In Review
It’s time for our annual “Year in Review” where we look at the past year in SunCrestReal Estate. The year 2021can be summed up in two words: record breaking. Home price appreciation saw 26% year over year increase, over 200 real estate sales took place, and the new median price of a home in SunCrest climbed to $715,000 – all records for the SunCrest housing market.
Before diving into the data, however, we want to pause to say thanks. Last year certainly had its challenges, but we feel pretty darn lucky to be a part of the SunCrestcommunity and go through it together. Thanks for all your kind emails, comments on social media, friendly waves, generosity in our giving campaigns, and for all the inspiration around what it means to live the SunCrest Lifestyle.
2021 By The Numbers
Total SunCrest Properties Sold: 209
Properties: 112 Existing homes, 65 New homes, 16 vacant lots
Highest Sold Price: $1,850,000
Lowest Sold Price: $341,500
Median Sales Price: $715,000
Most Active Sales Period: 4th Quarter – 68 Closed transactions
Median Sales Time: 20 Days
Year-Over-Year Sales Price: 26% increase
The “Average” SunCrest Home Sold in 2021
We crunched the numbers. If you could put together an overall average of all SunCrest homes sold in 2021, here’s what that house would look like:
Built in 2010
4.29 bedrooms
3.36 bathrooms
2.56 car garage
.23 acres
Price – $763,985
$202 square foot
53% finished basement
20.2 days average time to sell
Our Take
Outside of a robust labor market and low interest rates, consumers have been fueled by flexible, pandemic-inspired work dynamics. Buyers and sellers can more easily decide where to live based on their jobs, schools, convenience, and local policy. More and more, people can now live somewhere they truly love. This great migration in real estate means the secret of SunCrest is out. Our lifestyle, flexibility and a diverse neighborhood is a hot commodity that few neighborhoods can provide. When it comes to buying and selling in SunCrest, that means it’s never been more important to know the market and get it right. Having a hyperlocal expert in your corner who has their finger on the pulse of this community can make a bigger difference now than ever before.
December SunCrest Market Update
Thank you, SunCrest!
About 10 years ago, we started the SunCrest Lifestyle Warm WinterClothes Drive after a client mentioned some of her neighbors were struggling to make ends meet and couldn’t afford warm clothes. We knew we wanted to help and so we put together the idea of a clothes drive, crossed our fingers, and sent it out to everyone here in SunCrest.
We had no idea what to expect but from that very first year, you stepped up to help. Over the years, you’ve continued to amaze us. Your donations have helped needy service industry families in Heber, homeless individuals at The Road Home’s Mens and Family Resource Center, and most recently, The Family Support Center’s LifeStart Village and Crisis Nursery.
In early December we dropped off this year’s donations —a mind-boggling 500 or so items—and we were once again awed at your generosity and support. We wanted to relay the gratitude of the Family Support Center to you, as well. They explained that donations like yours are what keeps them running. Your donations will be used for programs like their crisis nursery, which offers free drop-in daycare for parents, many coming from situations of domestic violence, and offers them a chance to run to an appointment, or just have a moment to themselves. Your warm winter items may also be used at The LifeStart Village, where families are getting back on their feet through transitional housing and self-sufficiency programs. No matter what, your donations will help keep someone warmer and safer.
SunCrest, thank you. Every pair of gloves, every hat, every coat—each donation over the years has made a difference. Whether you donated a single item, or saved up a full bag all year, we are monumentally grateful for your selfless donations and are in awe of your kindness again this year. We live in a special place and you are what makes this community so incredible. Thank you!
November SunCrest Market Update
How Accurate Are Instant Online Home Estimates?
You’ve seen them before. “Click here to see how much your home is worth!” Websites like Zillow offer instant appraisals but how accurate are they? As it turns out, not very. For several years, Zillow had been buying up properties all over the nation. However, they recently shut down that whole side of their businesses because, after relying on their own computer generated forecasting and automated valuation modeling of homes, they were overpaying for homes throughout the country at breakneck speed. In short, their own “Zestimate” technology failed them.
The Problem With Online Appraisals
Companies like Zillow don’t have access to all the information. Utah is a “non disclosure state” which means that information about homes that are sold is not released to the public. Because of this data and privacy restriction, online marketplaces must lean on unreliable user-submitted data and antiquated county records for additional information. Zillow reports their national median error (aka “How accurate are we?”) is nearly 7%, but Utah is one of the most inaccurate states when it comes to online evaluations of real estate because of the lack of data.
How To Accurately Determine A Home’s Worth
When Zillow shut down their homebuying program, it was a clear signal that technology and algorithms can’t replace local knowledge. Online evaluations can’t fully take into account great locations, home condition, upgrades, or new repairs. They don’t know the story behind upcoming renovations, highly sought after views, or best-on-block landscaping. Technology struggles to take into account niche markets like SunCrest that behave and are valued differently than homes just a mile away. For all of these considerations, there’s no substitute for experience and personal expertise. While technology is a key piece of assessing how much a home is worth, there’s no replacement for hyperlocal human expertise. When buying or selling your most important and valuable investment, don’t partner with a computer. Hiring a seasoned professional will help you get the right evaluation, save time and money, reduce stress, and help you navigate the complexities of the ever changing market.
October SunCrest Market Update
We’re excited to host our annual Warm Winter Clothes Drive. Over the years, you have donated hundreds of warm winter clothes items to those in need. We are humbled every time. Thank you!
This year, we’re teaming up with The Family Support Center’s Midvale Life Start Village, a non-profit that provides housing and self-sufficiency programs for homeless parents in Salt Lake County and once again, we’re asking for your help.
September SunCrest Market Update
Is The Housing Market Starting To Shift?
Over the last year, the housing market experienced a historic boom. Prices shot up, inventory was scarce, and homes sold in record time. Now, it appears we’re seeing the first signs of the market balancing out. Here are three key factors to keep an eye on:
Number of homes for sale
Earlier this year, demand surged like we’ve never before. SunCrest homes were seeing 20 and 30 offers and being snatched up off the market quick, some without ever being formally listed. The number of SunCrest homes listed for sale each month has gradually been creeping up since May, and supply is slowly outpacing demand. In August, 21 homes were listed for sale, the highest since February.
Time it takes to sell a home
The days-on-market metric gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, it took an average of 21 days to sell a home in SunCrest. This is also starting to rise, though it currently still stands at a brisk 7 days.
Home price appreciation
Home prices have gone up dramatically over the last year and a half. In Utah, we averaged 32% appreciation in just one year. Some homes in SunCrest sold for more than $100K over their initial asking price. In August, however, the average final sales price of a SunCrest home dipped below the original asking price figure; we hadn’t seen that for six months.
Our Take
It’s about perspective. Some predict a return to a more normal market, but keep in mind the big picture—there is no going back to a pre-pandemic world. The housing market is forever changed as more people choose to live in places like SunCrest. And even with these early indicators of more balance, it’s important to realize that compared to the last decade, the real estate market is still tremendously active. People love this neighborhood, so demand in SunCrest remains strong even as housing supply catches up and price appreciation settles into historic growth rates. In short, things may begin to calm down and it’s important to see the opportunity when buying or selling.
July SunCrest Market Update
The 2021 SunCrest Mid-Year Real Estate Report
Is it just us, or is 2021 flying by? With COVID restrictions loosened, we’re seeing more faces out in the community, on the trails, or at neighborhood events. As we look forward to the second half of the year we’d like to thank you for all your support as we provide these monthly updates. We’ve enjoyed reading your comments, messages, and social interactions. Let’s take a look at how the SunCrest real estate market is performing so far in 2021.
2021 (So Far) By The Numbers
(All data from January 1 – June 30, 2021)
Total SunCrest Properties Sold: 74
Highest Sold Price: $1,850,000
Lowest Sold Price: $341,500
Median Sales Price: $688,500
Median Sales Time: 6 days on the market.
Median Sold Price vs Listing Price: +3% over asking price
Our Take
SunCrest’s unique location above the valley brings year-round beauty, breathable air, and amenities like nowhere else. It’s proven to be a highly desirable and stable place to call home. It may surprise some to learn that the total number of homes that are sold each year has remained very consistent over the past few years. However, SunCrest (like much of Utah) is experiencing a record or near record low when it comes to homes available for sale. Homes that do get listed for sale are being snatched up under contract faster, and at higher prices than ever before. Now, more than ever, you need to know what you’re doing if you plan on selling or buying. If you’re thinking of either, give us a call and we can help you navigate the new market.
June SunCrest Market Update
What Does A Home’s Listing Price Really Mean?
When someone decides to sell their house, one of the biggest decisions they have to make is how much to sell it for. Sellers, often with the help of a real estate agent, estimate the market value by looking at comparable houses that have sold and making adjustments for the size, condition, and location. When it goes on the market, that’s the listing price.
Ceiling Price vs. Floor Price
In the past, that listing price was usually a ceiling. If a buyer liked the house, they might offer that much, but in the past, buyers would try to figure out how much less they could offer below the full price. Today, it’s different. In the last couple of years or so, we’ve seen the listing price become more of a floor. That is, it’s the starting point for offers, and many times home buyers are offering more than that first listing price. The record low supply of homes coupled with very strong buyer demand has led to bidding wars, elevated sales prices, and frustrated homebuyers who offer more and more in hopes of not losing out on another home they’ve tried to buy.
SunCrest Prices
Most SunCrest homes today are selling for more than the initial list price. So far in 2021, we’re seeing SunCrest buyers pay an average of 4.1% above a seller’s asking price. In some cases, they may even sell for a lot more.
Our Take
It’s still very important to set the listing price correctly. Too high and you lose out on potential buyers, too low and you miss out on potential profit. As a buyer, you need to know going in that if you really love a home it may sell for more than the asking price. However, it’s important to remember on both ends that it’s not just about the total sales price; things like a higher earnest money deposit, waived contingencies, and flexibility in your possession dates can help round out a winning offer. Working with an experienced agent and using the listing price as a starting point can help you figure out what kind of offer to make or accept. For the best advice, reach out. we’d love to help you make all the right moves when buying or selling in the new floor pricing market.
May SunCrest Market Update
Are We In A Bubble (And Is It Going To Burst)
We get asked this a lot—is this another housing bubble? The recession of the 2000’s is still in our minds, and home prices have recently skyrocketed, while wages haven’t kept pace. While it’s true that the current market won’t last forever, we don’t yet see any kind of burst imminent. Here are three signs to keep an eye on:
#1 Low Inventory
Currently, there are still far more buyers than there are homes for sale. New construction can’t keep up due to labor shortages, tighter financing, and disruptions in supply chain due to the pandemic. As for existing homes, the late 90’s and early 2000’s saw people moving every 4 years on average; today, people are staying put nearly 8 years. As long as inventory stays low, demand may continue to drive up prices.
#2 Tighter Lending Guidelines
Without a doubt, the way we get a mortgage has changed since the financial crisis of 2008. Down payment minimums and credit score requirements have all increased, and those “no-document” loans that let borrowers make up their own income without verifying are a thing of the past.
#3 More buyers
The wave of first-time buyers continues over the next two years, nearly 10 million millennials will turn 30, and Gen Z is close on their heels. As they continue to hit home buying age, we expect to see many continuing to seek home ownership. While there are some very early signals that frustrated buyers are now leaving the market, the demographic data doesn’t lie—a new generation of homebuyer needs to live somewhere.
Our Take
The housing market continues to be a hot topic at the water cooler, dinner table, or headlines in the media. We get it. While the current pace and velocity of pricing and transactions may change, we think the market is more likely to change shape, rather than burst. Affordability will become a hot topic, with some shift to higher density housing and “starter home” units, especially if wages lag behind. We also look at the toilet paper effect from the beginning of the pandemic. Frustrated buyers stopped trying to stock up, supplies caught up, and the market stabilized. For now, SunCrest and the Utah market continues to buzz thanks to its active lifestyle, variety of community amenities, and growing population. Reach out if you have questions. We’ve love to help.
April SunCrest Market Update
Three Reasons There’s A Shortage of Homes For Sell
Ask anyone who’s trying to buy a home right now, and they’ll probably describe the experience as “competitive, challenging, and exhausting.” The reason is simple: there are way more people looking for a home to buy than there are homes for sale. But the cause? That’s a little more complicated.
Housing Shortage Cause #1: New Construction Shortfall
When the housing and lending markets collapsed in 2007, many builders found it a lot harder to get financing for new construction projects, especially when the economy was still recovering and demand was low. As a result, the industry shrunk and a lot of skilled labor moved on to different trades or industries. Now that demand has surged, the construction industry can’t just “catch up” overnight. Pair that with huge supply chain problems in raw building materials like lumber and hardware due to COVID, and you just can’t build new houses fast enough.
Housing Shortage Cause #2: Buyer Demand
Fueled by the largest generation since the baby boomers, Millennials have been gradually hitting home buying age, and their home purchase trend is peaking right now. Many millennial buyers are part of the new generation of work-from-home employees, so they can choose to live wherever they’d like regardless of commute. More and more, that means they’re choosing SunCrest for the lifestyle our neighborhood affords. In addition interest rates remain near record lows, making it a very attractive time to buy.
Housing Shortage Cause #3: The Coronavirus Pandemic
All of the conditions above already existed before COVID, but the pandemic threw gas on the fire. Now, our homes are even more important. They’ve turned into home offices, home gyms, schools, daycares, and staycation spots. The economic recovery will likely keep interest rates low. And it’s also like the toilet paper craze—the more people can’t buy something, the more they try. Homes are snatched up fast, and some people who might otherwise sell their homes have decided not to, for fear of not being able to buy a new one.
Our Take
Are there really less houses for sale in SunCrest? Sorta. We looked at a 5-year history and the total number of homes sold has been pretty consistent year-over-year. However, the amount of time on the market for these homes has indeed clearly reduced. The total sales price and number of offers for each home sold has also increased. All of this means one thing: now is an exciting (but challenging) time to make a move in the real estate market, whether buying or selling. Partnering with a neighborhood expert to explore, discuss, and answer questions will help you figure out your unique situation and the best path forward.
