November SunCrest Market Update

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November SunCrest Market Update

Renovate or Relocate?
We get asked all the time: should I fix up my house, or save that money for a new one? A recent survey* showed that 76% of Americans prefer to fix up their current house rather than move. That preference increases with age. The Silent Generation (ages 73-90) and Baby Boomers (ages 54-72) are 20% more likely to update their current home versus planting a “For Sale” in their yard and moving.
There are three main considerations we look at when figuring out if it makes sense to renovate or relocate: Home value appreciation, rising interest rates, and current home inventory.

Appreciation: Matthew Gardner, Chief Economist at our brokerage Windermere Real Estate reports a year over year price appreciation of 9.9% and 9.4% for Utah and Salt Lake County. Here in SunCrest, we’ve dialed existing home appreciation slightly higher at 10.2%**. If you bought your home a while back, it may be difficult to afford a comparable house now, if you were looking to relocate.

Rising Interest Rates: Since the beginning of the year, rates have risen roughly 1 percent. Relocating now might mean having to settle for a higher rate, and higher payment.

Inventory: Nationally, we’ve seen the current number of homes for sale decline for 43 straight months. The pace is slowing and many economists are suggesting a gradual shift towards a more equally balanced buyer/seller market. In SunCrest, we’re seeing a tale of two markets. For homes under $500K, there’s less than a 1 month supply of homes for sale, those that do come up for sale are only spending a few days on the market, and many are receiving multiple offers. For homes above $500K, however, we’re seeing greater inventory and competition on the market due to a steady supply of new construction.

Our Take:
You’ve heard the adage, “It’s a double edge sword,” amirite? If you stay in your home because you don’t see many options to relocate, it compounds the problem even more for other homebuyers. However, consider this: nearly half of all buyers who have purchased a home in the past twelve months report that finding a home was “easy” or “very easy.” Overall, sellers are mostly satisfied with the selling the process (insert obligatory hip hip hooray here!) and report that the biggest consideration is deciding when to enter the market are when and at what price. Knowing whether to stay or sell, renovate or relocate, and especially HOW and WHEN to pull the trigger is crucial. Whether you’re considering to buy or sell, interviewing a REALTOR with cost you nothing and allows you understand exactly what they’re going to do to help accomplish your goals.
*Source: Zillow Group Consumer Housing Trends Report 2018 https://www.zillow.com/report/2018
**Source: utahrealestate.com

Our SunCrest Market Update is a hyper-local analysis of the most up-to-date information regarding the SunCrest real estate market.  The previous month’s SunCrest housing information and future editions are released monthly.

Posted on November 20, 2018 at 10:56 am
Scott Steadman | Category: SunCrest Market Updates | Tagged , ,

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