February Home Sales Slow

The numbers are in, and home sales in Cache County actually slowed down during February. According to MLS statistics, 56 residential properties sold last month. This is down 16.42% from January, and 3.45% from February of 2012.

There are a couple of reasons that might explain why home sales are down this year compared with last year. The limited inventory discourages buyers from actually purchasing. In addition, a year ago we had a very warm January. This year was the third coldest January on record. Weather does influence home buyers attitudes towards house hunting and considering to move.

While sales slowed, the amount of inventory didn’t rise much. Right now there are 531 active residential houses for sale, up just nine from a month ago. These inventory numbers are still quite low. There haven’t been this few homes for sale at the beginning of March since 2007.

With the number of active homes for sale as low as it is, the demand for the best properties is rising. This if we don’t see a substantial increase of for sale inventory over the next few months, expect real estate prices to rise.

During February the average home sales price was $179,750, and the median sales price was $153,450. Real estate prices are still very affordable in Cache Valley.

One Response to “February Home Sales Slow”

  1. Thomas J. Hill says:

    The weather, combined with a justifiable caution about investing in a still-wobbly real estate market, are the causes of slow sales right now. People are also unwilling to put their properties on the market, and face the prospect of long periods of open houses, staging, showings and so forth. What is being done to educate potential home sellers about the improvements in the market? Attacking the problem from the supply end of the problem might have a positive effect in increasing inventory and boosting sales in the long run.

Leave a Reply