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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.
Barrett Family SunCrest Story
Say hello to George and Shae. Their #suncreststory started with a complete SunCrest home renovation. Now, you can catch them spending their free time working on their race car, exploring our trails and off leash dog park, and stretching out in a “neighborhood from the 80’s” where kids are safe to run around and play.
August SunCrest Market Update
5 Apps Every Homeowner Should Have
Whether you recently bought your SunCrest home or you’re a seasoned SunCrest homeowner, these are 5 of the best mobile apps to help make owning a home easier.
Yelp (See also: Thumbtack, HomeAdvisor)
Yelp helps homeowners find whatever they need at the touch of a button. Whether it’s a recommendation for remodeling your kitchen or fixing a broken appliance, Yelp searches by your location, needs and wants, and supplies user submitted reviews to help find a contractor that’s suitable for you and what you want done to your home. You can even describe your project and get multiple estimates at once.
PlantSnap (See also: Picture This)
Plantsnap is like having a botanist, arborist, and horticulturist right in your pocket. It helps homeowners track their plants – indoor or outdoor. This is a great app to learn about what plants are in your yard and even has tips on how to care for them.
Project Color (See also: ColorSnap)
The Home Depot Project Color app can help you visualize what a certain color would look like in your entire space, without you having to leave to get samples. You can even take a picture of the room you want to paint, and see firsthand what that color would look like. It’s an easy way to (virtually) try it before you buy it.
Alexa (See also: GoogleHome)
Alexa. Turn on the lights. Set the temperature to 70 degrees. Alexa is a must have for any “smart home” owner. Plugs, thermostats, light bulbs, cameras, and televisions—consider Alexa the hub of your smart home products and smart home personal assistant.
Our Take
Owning a home can feel like a lot of work, but these app suggestions can help take stress off your plate, learn about your home, or integrate new technology that wasn’t around when your home was built. And apps are just the beginning; we’re seeing loads of new features like smart glass, solar panels, home automation, and heated… everything. If you’re considering a remodel, addition, upgrade, or a new home altogether, reach out! We’d love to provide a personal touch on what tech makes the most sense.
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.
