Published October 3, 2022
Values, Interest Rates, and Inventory—Oh My!
Today I’m here with a quick update on the market in our area. It has changed lately, and everybody's trying to decide if it’s good or bad.
Let's start with value because most people worry about value first. Based on price per square foot, homes are selling for the same today as they did 12 months ago, which is about $155 in Bonneville County. Values peaked around March and April, so now many people feel like they're losing value on their houses because they’re worth less today than they were in March, but they’re worth the same as they were a year ago.
"Things don’t feel normal because they’ve been abnormal for so long."
One thing that has changed from last year is interest rates. A year ago they were at 3%, but today they're at about 6.5%. Yesterday rates climbed to 6.875%, but this morning they dropped to 6.5%, so we saw a slight decline overnight. Historically speaking, these higher interest rates are normal. However, we got used to a frenzied market, so it can be hard to discern that things happening today are more normal.
Homes stay on the market for an average of 60 days. That is not a long time. We have three months of inventory on hand, which is not excessive. A balanced market is supposed to be between four and six months, so we're almost balanced. Still, it doesn't feel normal because we'd been so abnormal for a long time.
Overall, if you need to do something in real estate, go ahead and do it. Over the long haul, real estate always wins. If you have any questions, call or email me anytime.
