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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.
SunCrest Pool Party
We had a BLAST at the pool opening celebration. SunCrest turned up! It was great to see familiar faces and meet new neighbors. Huge kudos to @suncrestoa for kicking the pool season off with a splash. Over 250 hot dogs were served, over 200 Cold Stone ice creams handed out, great tunes from the DJ, and plenty of slides and splashes. See you at the pool all summer!
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.
Hamilton Family SunCrest Story
Meet “Team Hamilton.” Coming from Florida, mountain living was a must and SunCrest is better with them here. They are both infectious laughers, and folks that just make you feel good. When COVID kicked up, they kicked it into high gear supplying over 10, wait 11 thousand masks while teaching school and homeschooling. Check out the Hamiltons #suncreststory.
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.
Can I Sell Now And Buy Later?
Can I Sell Now and Buy Later?
We get asked this question about selling now and buying later, and wanted to share three potential solutions that allow you to sell your current home while you navigate buying at the same time.
1. Sell and Rent Back
This is just like it sounds. In this scenario, you sell your current home but negotiate a fixed rate and period of time in which you rent it back from the new owner.
2. Contingency Sale
Using this tactic, you and a buyer agree on the sale of your home, but that sale is contingent on you purchasing a new home so you have somewhere to go. This kind of agreement comes with a specific timeframe, but allows you to halt the sale of your home if you’re not finding a new place to live.
3. Home Equity Line of Credit or Bridge Loan
If you want to sell to take advantage of the market, but your finances aren’t exactly there, you can use the equity in your current home to finance the down payment on a new place. You can get a home equity line of credit using your current home as collateral. Once sold, your proceeds repay the HELOC. Similarly, a bridge loan can helps “bridge” the gap between now and when your home is sold, however this is a personal loan and is also repaid whenever your current home is sold.
March SunCrest Market Update
Can I Sell Now And Buy Later?
The current market has a lot of people wanting to sell their home for top dollar. That sounds great, but once you sell, where do you go? We get asked this question about selling now and buying later, and wanted to share three potential solutions that allow you to sell your current home while you navigate buying at the same time.
1. Sell and Rent Back
This is just like it sounds. In this scenario, you sell your current home but negotiate a fixed rate and period of time in which you rent it back from the new owner.
2. Contingency Sale
Using this tactic, you and a buyer agree on the sale of your home, but that sale is contingent on you purchasing a new home so you have somewhere to go. This kind of agreement comes with a specific timeframe, but allows you to halt the sale of your home if you’re not finding a new place to live.
3. Home Equity Line of Credit or Bridge Loan
If you want to sell to take advantage of the market, but your finances aren’t exactly there, you can use the equity in your current home to finance the down payment on a new place. You can get a home equity line of credit using your current home as collateral. Once sold, your proceeds repay the HELOC. Similarly, a bridge loan can helps “bridge” the gap between now and when your home is sold, however this is a personal loan and is also repaid whenever your current home is sold.
Our Take
This market is too hot to not at least consider selling. There are tools you can take advantage of that might mean you won’t have to immediately buy, or you might be able to move from a seller’s market to a buyer’s market. The first step is reaching out to figure out what your options are, and whether or not these tools make sense for what you want to accomplish. Partnering with a neighborhood expert to explore, discuss, and answer questions will help you figure out your unique situation and the best path forward.
Doug and Cheryl’s SunCrest Story
Say hello to Doug and Cheryl. You might recognize Doug from his hobby detailing cars (Cheryl calls it his “side hustle”) but did you know Cheryl is an expert in all things pets? As Alabama transplants and SunCrest residents for a few years, they love the “western hospitality” this community is known for. Check out the Pilkington’s #suncreststory.
February SunCrest Market Update
What’s the 2021 real estate market going to look like?
In some ways, a lot like last year. Mortgage rates continue to hover at historic lows, and most forecasts have them remaining favorable throughout the year. The lack of homes for sale in SunCrest in 2020 looks to continue into this year as well.
What does this mean?
If you’re looking to buy in 2021, you’re going to have to be patient in your home search. It could take some time to find a house you love, and once you do, you’ll want to be ready to pounce. Having financing pre-approved and making a competitive offer will help, but in a shortage like this you may enter a bidding war and there won’t be much room for negotiation.
If you’re selling, SunCrest homes are in even higher demand from a workforce that no longer needs to commute. Putting your house on the market today means you’re likely in the driver’s seat. Whether it’s the price, moving date, or other items like repairs, inspections, or closing costs, smart sellers are able to request more from a potential buyer at a time like this – especially if you have multiple interested buyers and the experience to know what to ask for.
Our Take
Whether you’re buying, selling, or doing both, we expect 2021 to remain a busy year for real estate in SunCrest. Partnering with a neighborhood expert may help you navigate the complexities of this year’s bustling but challenging market. Have a question? Reach out, we’d love to help.
