Today we'd like to show you a couple of graphs that help to illustrate what's happening in real estate at the moment.
Above you can see how inventory of available homes for sale in Utah has risen in 2022, compared with the notably lower figures for year-to-date in 2021.
It's important to say that inventory has been way too low for a long time, so this isn't necessarily a negative aspect, in that more supply will unquestionably be welcomed by many buyers, some of which will have been demotivated and discouraged by poor levels of supply in recent months and, indeed, years.
Nonetheless, it's also an indication that the market is becoming more competitive, with more sellers chasing buyers.
And to understand what buyers are facing right now, let's look at the graph below...
What we can see here is the effect on purchasing power as mortgage rates steadily rose between January and April of this year. The implications are clear, in that what was affordable for some buyers at the start of 2022 may be out of reach as we move into June.
Not everyone needs a mortgage, of course, and we have plenty of buyers arriving in Iron County having cashed out of other states. But it does again point to the key trends we are seeing in terms of more pressure on buyers and a less easy time for sellers.
This situation will almost certainly worsen before it improves, and yet we are still seeing very healthy sales levels in our local market, so the message is clear that if you're planning to list then it might not be the best idea to wait and to act now.
Please don't hesitate to contact us at 435-327-2090 for an informal discussion about current market conditions and how to best take advantage of them in your own situation.
