August was the best single month for home sales in the last six years. The last time we saw more residential homes sell, was at the height of the housing housing boom in August of 2007. 130 homes have been reported as sold on the MLS.
While the number of home sales are up, I don’t expect prices to rise as the supply of active real estate is also increasing. One month ago there were 713 listed homes for sale. Right now we are at 714. This isn’t a big difference, but the number of active listings during September is almost always less than the number of listings in August. In 2012 there were 677 homes for sale at the beginning of August and 650 in September.
The relationship between active inventory and home sales isn’t the only factor that leads me to believe that home prices won’t be rising. Both the median list price as well as the median price of homes under contract are down from last month.
While August was likely the best month for real estate in Cache Valley in 2013, home sales for the remainder of the year should still be above average. At August’s home sales pace, we currently have 5.49 months of inventory which indicates a balanced real estate market. I expect home prices to stay about the same over the winter, but we will just have to wait and see.
Mortgage interest rates have risen slightly over the last few months but are still well below normal interest rates. Good selection, and prices remaining slow still make it a good time to by Logan Utah real estate.