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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.
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.
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.
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.
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.
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.
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.
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!
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.
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.
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