Pretty much the same in the avenues area as the county.  Absorption rates over 8 month mean decreasing prices!   That not good news going into the winter and no help in site form the government on incentives to get more home owners in the market!  Looks like the market will continue to be drive n by Short Sales and Foreclosed bank owned property!

Prepared By:

Tom Winand

Spotted Home LLC

801-403-9774

This report was generated automatically by the Wasatch Front Regional MLS on 11/10/2010 at 01:18 PM

In pricing your home to sell it should have no relationship to what you own what you need to buy another home with 20% down. It never ceases to amaze me when a seller says I need this much that why I priced it at x. Buyers don’t care about what you need! Buyers care about getting the best home that fits there need at the best price they can get it. The # 1 thing in pricing is you have to be a buyer not a seller! So you have to look at the market as a buyer. Actually you have to evaluate the market in regards to buyers and market placement. So you compare your home to all the similar home that have sold, like to like, as an appraiser would. You use the same style same size + or – 10% and you take the closest and most recent sale. Not the highest sales subtract and seller paid concessions and you have a rough appraisal value. That actually means very little in pricing your home! It will tell you if you have an appraisal problem because no lender will lend more than the appraisal and no buyer will pay more for a home then its worth in this market.

Now you have a starting point. You then that that price range + and – 20% and look at all home in that price in any area a buyer would look at it looking at your home. So that may be 2 or 3 areas. Like Sugar house the Avenues and the President Streets and ABC Streets, even the Canyon Rim areas. Now you have your competition and you have to look at the # of homes. You need to know the # that go under contract and the # that sell in 60 days divided by 2. That will tell you the kind of market you are in or the absorption rate. The facts are if the absorption rate or the time in month it takes to sell the entire inventory is over 4 months you have a buyer’s market and over 6 months you have a decreasing market. The higher the absorption rate the more drastically decreasing a market you have. If you in the 6 or higher range you need to be aggressive actually 5% below your current market value or you will lose money chasing a market. Lower then 6 you can be less aggressive like at market a little higher than the market says. What does the market say? It says you have to be one to the best 10 homes in your market because buyers will look at 10 to 15 homes. You have the look that part online, if you’re not on the MLs you have to be on the 10 or so major sites they get 15% of the buyers seeing your home. If you’re on the MLS they will all see your home? You must have a great virtual tour or e-curb appeal. You have to have great appeal and great price per sqft and you have to Wow in Price and Wow in virtual curb appeal or your pricing strategy means nothing. How do you get all this data it available from the MLS and you will need a Realtor to pull it for you? It will take about an hour and I do them on a personal webinar and we do it together. Happy pricing and if you’re not getting offers in 30 days other than, crazy people wanting you to owner finance them, you’re probably priced too high! How much? You don’t want to be chasing a decreasing market; the answer is in the data. If you don’t what to know the absorption rate you can still price off the competition. How to do that is use the search on SpottedHome.com it’s a great map search. Hint register and save your closest competition in your favorites and only your competition and you will get price updates on them and other new listing like them automatically to your emailed. Your daily update will be automatic and you’re up to date so you’ll know what going on and how you compete. If you want to be on the MLS so you can guarantee your exposure to all the buyers look at my pay for service listing MLS site. http://forsalebyownerhelper.com Happy Pricing!

]]> http://www.realtyasis.com/604/pricing-your-home-in-salt-lake/feed/ 0 http://www.realtyasis.com/504/have-we-hit-bottom-yet/ http://www.realtyasis.com/504/have-we-hit-bottom-yet/#comments Mon, 21 Dec 2009 22:40:45 +0000 Tom Winand http://www.realtyasis.com/504/how-your-home-value-has-changed/

Utah Foundation housing report

This is the really great report on the State and past history on home Pricing appreciations d the declining market in Utah or more importantly for this Blog Salt Lake Home for sale Pricing.   Scott the writer of the report contacted [...]]]>

Utah Foundation housing report

This is the really great report on the State and past history on home Pricing appreciations d the declining market in Utah or more importantly for this Blog Salt Lake Home for sale Pricing.   Scott the writer of the report contacted me from my posts on home value and ask if I could help him with the data of sold home over the last 10 or so years.  We got together and extrapolated the data and really got good samples for his evaluation of the data from the MLS.  I was very surprised by the breakdown of the data especially in the well established neighborhoods of the Avenues and Sugarhouse. Take a look at the report and see for yourself by clicking the chart above.

The good news about the Salt Lake Homes for Sale is that they are priced much lower than they have been for some time.  Actually prices are back to 2004 levels in some area based on the price per square foot basis.  You’ll be able to buy much more home for the same amount of money then you could in late 2007 at the peak of market.  How much more?  We’ll as in all real estate that dependent on the golden rule, location!  Some of   the hardest hit Salt Lake county homes selling markets are the cities of Harriman, Bluffdale and Drapers South Mountain, and Suncrest.  Those cities have seen homes in the over $400,000 price point decrease up to 50%.  On the more establishes and desirable areas like East Bench, Avenues, Mill Creek, Holladay and Federal Height/Fort Douglass area you have seen over $400,000 homes decrease maybe 25%.  Lets take a look at the real statistics on the market.

If this is the case why does the statistics being spun by the Salt Lake Board of Real Estate to the news media tell us differently?  Why are they saying the median price is only down from $236,000 to $225,000?  First it’s their job and it’s in their best interest to spin a rosy picture of the Salt Lake Homes for Sale market.  What they like to talk about is the median “Middle Home” home price.  Sure it has only gone from $236,000 to $225,000 only a 5% decrease?  Who’s right?  We’ll it’s not just about the price of the home; it’s about the apples to apples home your buying!  What size, quality home are you buying for that $225,000 or $400,000 in the case? People buy what they can afford in price the median home is $235,000 because that is what the median family can qualify for so they buy the max home they can qualify for.  That is they buy a $225,000 home.  Now what they are getting in some areas are home that sold for $450,000 in late 2007.  How do you evaluate the MLS data to get a Real Picture of the Salt Lake Homes for Sale or being sold?  Well the most logical way to compare homes from any area, the price per square foot of the home or “PSQFT”.  Our Data allow us to compare the median or middle selling home PSQFT from the peak of the market to what the PSQFT was last month.  That tells you what the median home is selling for in PSQFT or how much “home” you get for the dollars spent today compared to the peak of the market.

The data I’m using is from the WFRMLS the MLS in Salt Lake County read as follows.   In Harriman the highest price per median PSQFT was September 2007 at $116 PSQFT.  If you spent  $450,000 got you a 3,879 SQFT home, in June May 2009 that same median or middle home price per square foot was $77.45 or 33.2% less PSQFT.   If you take that 3,879 home bought for $450,000 in September of 2007 is now selling for $77.45 PSQFT or $300,428. Or today you spend $450,000 you get a $5,810 SQFT home.  That is a different class of home.   Ouch if you bought a $450,000 home in September of 2007 you lost $149,572.   Remember this is the median not the lowest Salt Lake Homes sold prices; those are dipping into the 50% lower range.

Now let’s look at the area data with less explanation.  Bluffdale Dec 2007 $145 PSQFT May 2009 $78 PSQFT a 45% loss. Homes in Salt Lake County Draper South Mountain Area went from $139 a PSQFT in Sep of 2007 to May 2009 $94 PSQFT a 32% decline.  Suncrest Oct 2007 $150 PSQFT May 2009 $92 PSQFT, a 38% decline.  Salt Lake Homes for Sale sold price hit their heights level in Aug of 2007 at $126 PSQFT and the low “so far” May 2009 of $101 PSQFT.  That is a 21% decline for the Salt Lake county homes selling price.  Taylorsville hit it’s high price per sqft in July of 2007 at $113 as of June of 2009 it was 88 PSQFT.   That is a decrease of 22% form the high.  as of the year January was PSQFT $101 and June 88 or decrease of 12.8% a little high.  Money magazine has slated Utah for a  12% for the year.  WE may see home prices pick up as the First Time home buyers tax credit expires at the end of November.  So were in the county are home faring better?  The more established neighborhood richer in desirable living like the Avenues Oct 2007 $189 PSQFT to May 2009 $175 PSQFT or a 7% drop. Salt Lake Fort Douglas area Oct 2007 $186 PSQFT May 2009 $139 PSQFT only a 25% drop.  Down town Salt Lake July 2007 $170 PSQFT May 2009 $143 PSQFT 15% decline.  The Sugar House area between 1800 S. and 2800 S. above 800 E.  To 2000 E. went from $167 PSQFT June 2007 to May 2009 $141 PSQFT, Only a 15% decline in price per sqft.   Armed with this you can now see the reality of the salt Lake Homes For sale market!  I hope you’re a buyer!  If not and you have a home to sell there are distinct advantages you can implement in this market.  Come back for a future post how to sell in a declining market.   Or just call me I can help you get a great deal on selling your home.  If you a buyer call me we can really help you with Rebates or paying points to buy your rate down below 5%.  If you’re thinking about relocating it’s a great time to do that.  Granted you can see that selling will not net  you any ware near what your home was worth in later 2007, but you will also get more home for the money.  It’s a great time to upgrade because lower priced home below $230,000 are selling well.  If you can shop the bargains, Bank Owned or yes shorts sale (not for the faint of heart or people that have to move any time soon) you can get 40% or more off a home.  We are the experts at looking for the deals out there.  This is your introduction to “Realty As Is” this is the truth on today’s Salt Lake Homes for Sale.