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October 2022 Market Update

*The transcription is auto-generated by a program and may not be accurate. In order to ensure you get all the information from the video properly, you must watch the video.

Hi. Chase Ames with the Ames Team Realty here to give you the real estate market update for the month of October. Now as usual, to get this month’s update, we actually have to look at the numbers from the month prior, so we’ll be looking at September’s numbers. Now to start this off, new listings, they’re slightly down from last month, so new listings to hit the market were about 627, and that was a little bit less than last month’s again, and also the same month last year of 2021, so down about 4 percent. Now, active listings, they have sort of kind of plateaued. So the last six, seven months, we’ve really been seeing a big incline in the number of active listings on the market, and barely changed last month, only 14 homes, so almost 1600 homes for sale right now.

And that’s everywhere. And in Washington County, there’s about 1300 homes, and that’s right about where we were pre-COVID, so our market as far as number of listings, really quite stabilized from where it used to be. Now, as far as sold listings go, it’s gone down slightly from last month, so there were 332 sales and that’s gone down about 60 sales from last month, and that has gone down about 35 percent from the same month the year prior. So the market is stabilizing, but still a very strong market. The absorption rate, meaning the amount of homes that are for sale right now, and the supply of homes by month, if no new homes were to come up for sale, increased about three and a half month’s supply.

Now, anything from zero to three months is considered a seller’s market. From three to six is considered a neutral market, where we are right now. And then anything above that 6 percent is considered a buyers’ market. Now, some of the big changes we’re seeing right now are not so much the change in demand, more so from supply, but the biggest thing is really coming from the interest rates, so it’s not that affordability is the issue… Excuse me, affordability is the issue, it’s not demand. The problem with affordability are the interest rates. So, given what the median household income is in Southern Utah and what the price points are based on the interest rates, it’s an affordability issue more than a demand issue. So I expect to see something there. And as of right now, first week of September, rates did a great jump, so they went down to about 6.35 percent as of current, that being par, and that’s great compared to last week’s and even last month’s in September where rates were low to mid-sevens. So it’s come down significantly. There is supposed to be an expected rate hike in November, but we’ll see if that actually happen, so everybody keep that in mind. But again, what’s shifting the market really is more so an affordability issue based on interest rates, than it is demand.

The average sales price has gone up from last month, which is interesting, but that’s really more so because of more million dollar and multi-million dollar home sales. The million dollar and multi-million dollar home sales are up. From the $1 million to $2 million dollar range, it’s up 62 percent from this month prior last year. There were zero sales over $2 million last year, at the same time. This month, there are four sales between $2 million and $3 million and then quite a few still even over $3 million. So, that’s doing the average. Now, what’s important to note is the median sales price is down. The median sales price was $485,000 last month, and that’s the first time for this year of 2022 that the median sales price for the month has actually dropped below $500,000. So, there is some change happening. Price points are coming down, but it is helping the affordability issue. I hope this was helpful for you guys. Again, the Ames Team is always here to answer any real estate questions that you might have, and we’ll talk to you soon.

*The transcription is auto-generated by a program and may not be accurate. In order to ensure you get all the information from the video properly, you must watch the video.