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Show THE OGDEN VALLEY NEWS Page 8 “== September 1, 2006 Ogden Valley Real Estate Market — Shifting in Favor of Buyers It is becoming clear to most Valley residents that the red-hot real estate market we experienced in 2005 has started to slow. What’s really going on? Here are some answers to commonly asked questions about Valley real estate. home prices in Ogden Valley conto climb? . However, the rate of increase has considerably in 2006. The average homes sold in the six months ending — xe — es combination prices square and foot $3A9,7OR of 6.3%. At this pace, appreciation #235000 eee — = ea - — $393,068 ties currently Edmake up_ athe $385,210 sweet spot” in the market is a for the year would | $310,000 Dec- Jan- Feb- Ma- Apr- May- Jun- Jul-06 be 9.4 percent. (Chart 1 average prices for —e— 6 mo avy -12 mo avg 6 and 12 month s Statistics based on information from the Wasatch Front Regional Multiple Listing Service, Inc. y widely due to one unusual sale.) The 12 month average has actually increased by 16 percent in 2006 (for an annualized pace of %). The reason for the difference is that comparison of the mix of homes that have sold in the past six months with the mix of properties currently listed. In the past 6 months, 76 percent of homes sold for less than $500,000. In contrast, only 47 percent of the homes currently listed fall in that price range. Condos accounted for 36 percent of sales, but only 24 percent of current listings. Q: Is it still a “seller’s market?” A: Probably not. The past few months have seen the momentum shift in favor o buyers. The most important indicator is the dramatic increase in inventory. Throughout almost all of 2005, there were fewer than 100 quickly than the 12 month average. During the rapid price increases in 2005, the 6 month appreciation rate was consistently higher than the 12 month pace. MECHANICAL (801) 745-9544 Cell: Fax: t indication that smaller proper: $410,000 in December 2005, | $285.000 7———= This |is an ;increase : | $360,000 per and smallermothe homes Average Sales Price 5 i $369,798 for the six months ending $3 of modest increases in sales strong increases in price suggests a shift to condos . 940-0217 745-3786 residential properties for sale in the Valley. A: The most important step is to price As of this writing, there are 167 active propyour property fairly. Last year, when prices erties. Many locals speculate that inventory were increasing rapidly, it made sense to set is likely to rise even further due to increasa price a little ahead of the market. This es—in some year, a e “norPrice Per Square Foot cases dramatmal” market, requires ic—in propert taxes resulting | $130 from the reval- $160 | cantly overpriced can ” | F154 help sell other properuation of property in the | $140 ties by making them Valle seem like better val120 However, comv2 ues—especially when pared with the | $19 inventory is strong. Dec- Jan- Feb- Mar- Apr- May- Jun- dul-06 Preparing your 2002 to 2004 05 06 06 06 «(06 06 06 slump resulting home for sale is also from the preimportant—especially —?—6 mo avg 12mo avg mature buildwhen competition is up prior to the strong. Make sure the Olympics, this Statistics based on information from the Wasatch home is clean and in market is still Front Regional Multiple Listing Service, Inc. good repair. Paint is relatively balanced. Will demand keep up with supply? A: The crystal ball is a little cloudy at present. However, there are a number of uncertainties on the horizon. Because much of our real estate boom is driven by investors ind second and retirement homebuyers, the general health of the economy will play an important role in purchase decisions. Unrest in the Middle East and the prospects for continuing increases in interest rates may cause prospective buyers to be more cautious, while investors may be discouraged by fears that high gas prices and terrorism fears may dampen tourism. However, real estate often outperforms other investments in times of uncertainty. While stock prices may decline precipitously (and in cases such as WorldCom or Enron, become valueless), real estate values are unlikely to depreciate significantly. Q: Layne Sheridan, Ph.D., ABR is an Ogden Valley resident and agent with Prudential Utah Real Estate s Huntsville branch. It’s not too late! Only 2 spots left in Ms. Pat's Private Kindergarten Did your child miss the kindergarten cut off by a day or two months? Would you like a classroom with only 12 students? LIMITED SPACE for Preschool and Daycare Available now! Kevin Johnson, Please call Becky @ Old Fire House 745-5600. WYerra Designs layne @laynesheridan.com www.laynesheridan.com Layne SOG Q: What about buyers? Are there any good values left? The most important tip for buyers is to define your needs. If you are looking for a home to live in for many years, make sure that the home fits your personal preferences and lifestyle. If you are an investor or plan to move in a shorter period of time, it is important to choose a home that would appeal to a variety of prospective buyers. In either case, make sure you have a good sense of what the home is worth, and do a thorough inspection and evaluation before you commit. Do you have other real estate questions? Email me at layne@laynesheridan.com or call 801-388-2196. So what should sellers do? 801-38 8-2 196 (mobite) Oe cheap and is one of the best tools available to make a home inviting. 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Chart 2 shows that the price per square foot continues its strong climb to $173 for the six months ending in July, an increase of 28.8 percent since the beginning of the year. The $2 3 CB cc 9/Ib. with coupon ae ana yas} Expires 9/15/06 Le ae eS eS ee |