Market Conditions July 2007
Submitted By: watterson - July 17, 2007
It’s time to take a look at the second quarter numbers, compared to last years.
The numbers continue to reflect the GOOD news of our past great market conditions. The numbers are showing excellent appreciation compared to the numbers for last year, with excellent increases in asking price. Days on the market are still low (they have edged up slightly). Especially those homes considered affordable.
The numbers to watch are the ones that can signal a market slow down. Some of these are: (1) Higher priced homes staying longer on the market. (2) Increasing inventory of single family homes, (3) decrease in the percent of listings that are currently being sold and (4) slight reduction in number of homes sold. We will continue to follow the market closely in the months to come.
The increase in inventory has a direct coalition of investors that entered our market at start of the up swing about two years ago. Currently they are starting to put their properties on the market. The increase of new construction in the state has also contributed to the increase of available homes for sale.
Another market factor that we are watching closely is the shrinking money pool. Secondary market lenders are continuing to close there doors and tighten underwriting guidelines. These two big factors have a huge impact on the supply of money available for mortgage lending and those who can qualify. Alliance Bancorp closed Friday 13, 2007; this is the latest of what is becoming a long list of secondary market lenders closing for business.
These lenders closing for business and all the restructuring of underwriting guidelines are also contributing factors to the market slow down here in Utah.
It is important to understand that the National Real Estate news is commonly, totally opposite of the Utah market. Our market often runs in contrast to national markets, especially California.
For specific market area details please visit www.MarkWatterson.com or call me 801.815.0411
Mark Watterson is a Principle Broker with Principle Realty Group, Inc and a licensed Senior Mortgage Loan Specialist with Envision Lending Group.