Is the Marketing slowing down? 2019 2nd Quarter Housing Market Update

Hi it’s David Pestana rise Utah realty broker and owner. I’m here to give you a Utah real estate market update. I want to help you know what’s happened this year in real estate. And if it’s the end of the world or if we’re still going to survive and move on if you want to share your thoughts on the market go ahead and write them in the comments below so we can understand what you think the real estate market is. What’s your experience if you like what I’m saying please subscribe so we can give you more content. Ok to start off I want to tell you about appreciation. I have a graph here that I want to share with you it’s really quite impressive and that Utah has appreciated eight point nine four percent. That makes us the third highest appreciating state in the United States which is very good for our economy. I do also want to point out though that other states have significantly slowed California being one of those. Last year they beat us in appreciation. So we generally lag California in terms of where we’ve been and where we’re going. Right now our economy is still booming. And so speaking of why our economy’s so booming. I just want to point out one thing which is the unemployment rate in Utah. The unemployment rate is three point zero percent. I checked on that today. That is incredibly low. And from what I understand it it’s hard to get much lower than that because there is something called voluntary unemployment. So we’re doing well and employment is really what drives real estate because if people have money feel good about the outlook of their finances they’re buying. And so we’re seeing that right now at the beginning of the year things were a little dicey you’ll have to be honest it seemed like the market was really slowing down and some of the facts show that it indeed was slowing down. We had a government shutdown. We had high interest rates that were over 5 percent on the ground here that we were seeing and people were talking about this trade war all that much of that has seemed to have resolved itself. You know the government’s open and what happened is the Federal Reserve reversed their course on interest rates and have lowered them since their peak almost a full percent. So we we were topping around four point seventy five percent back in December and at some points I saw even 5 percent that people were getting on their loans. And now we’re down to three point seventy three percent incredibly low. If you watch the news lately they’re also saying that the Federal Reserve is looking to lower interest rates yet again. So that’s only good news for housing because it makes money cheaper. So meaning it makes your mortgage cheaper you can afford houses and the more people can afford it will actually make up that difference in price appreciation this year. Let’s talk about inventory. Inventory is the number of homes available to purchase. Ok typically what’s on the MLS or even not on the MLS. Who’s trying to sell their home. So far this year we’ve seen a spike in inventory compared to in previous years. We currently have are for the I should say for the second quarter of this year we had nineteen thousand two hundred sixty one homes listed. That’s up three point seven percent from the previous year. So that’s that’s the biggest increase in that we’ve seen over the last six years. And it’s also the most homes listed that we’ve seen ever in the state. It’s really a large number for us. So now I want to talk about home sold because obviously you lost your house. You hope it sells right now. We’ve also seen an increase in the number of home sales. It’s increased from last year a second quarter last year to this year three point two percent. So our listings increased three point seven percent but our sales only increased three point two percent. Little bit of discrepancy. Our sales are in terms of the total number of homes sold. We are at an all time high. We sold thirteen thousand four hundred and ninety six homes in the second quarter of this year. So that’s that’s a pretty phenomenal number. We also have more listings. What the difference is may seem small but actually it’s increased the number of times homes that on the market. Now this just July last year homes were on the market. Eleven days so far this year we’re seeing 19 days as the average time on market before they get an offer that may not seem like much and only an increase of eight days. But that’s like a over a 50 percent increase in in days sitting there. So we are watching that when you look at total days on market. There’s something called inventory. So we have this inventory and how fast it gets absorbed up or purchased is called the absorption rate right now if no new homes came on the market and we wanted to sell all the homes on the market theoretically it would take three point nine months to do that. Now that is up because we saw numbers as low as two months under two months and previous years. So we’re getting to this point where days on market’s gone up and if it continues to go up there is a tipping point at which our homes won’t appreciate as much. OK so speaking of appreciation the forecast is for things to slow down. We are definitely seeing the market slowdown. But please don’t misconstrue that as stopping especially in the state of Utah with our job demand we see a lot of growth here and that growth is fueling the construction boom and the demand for housing which is why we’re still seeing great appreciation in our market. As long as interest rates stay low in the job market stays good we should still see a strong housing market which is which is good for everybody because it will make a lot of equity and give them the chance to move up. The one downside is for first time homebuyers it does make it a lot more expensive to buy. So if you’re looking to hold off the recommendation is not to wait. Take advantage especially while interest rates are low really low and they may get lower but it’s hard to say exactly how much but you’re definitely going to get the most out of the house right now. OK. Thanks for watching I appreciate you watching this and I hope that you can subscribe to our channel so I can keep giving you good content if you have any questions they want me to answer please comment below and share this with your friends family and everybody else. And if you need any real estate needs give us a call. Thank you.