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The region’s real estate market cooled significantly last year, but new housing construction in urban areas has been slow and steady for the past few years, bucking a turbulent trend across the country.
Heart Mountain Realty broker Eric Paul said the rush during the real estate boom was exciting, but he preferred a more normal pace. The only problem for buyers is that mortgage rates have skyrocketed even as prices have stabilized. Stock hasn’t recovered either, and as of Oct. 11, he has 37 listings on Powell.
“We’re a little back to the right before pre-COVID housing numbers, but we’re still about half the historical typical listing numbers,” he said. It’s age.”
Inventory was dwindling before COVID hit.
“When COVID hit, we had about 30 to 40 listings down. People were bidding on houses and multiple offers,” Paul said. “So house prices went up exponentially.”
Last October, Powell’s median home price was $503,000. By July, it climbed to $579,000. It’s now down to $500,000. The median selling price is much lower at $336,000.
From a low of 16 in April to 38 in October, inventories increased as the median fell.
Regarding real estate in the area, Paul said it has reached a point where neither sellers nor buyers have a significant advantage. Homes generally no longer exceed the asking price, but with limited inventory, sellers don’t have to drop prices that much either.
“If you have the kind of property that’s still in demand, have a home at the right price, and are ready to sell quickly, it’s not a bad time to be a seller yet,” he said. If it wasn’t a beat-up, fixer upper, people wouldn’t like the fixer upper. Those days are long gone.”
Paul is ironic that even millennial homebuyers aren’t interested in the fixer-upper TV show-filled age.
“They realized it wasn’t as attractive as it looked on TV,” he said. “It’s a lot of work.”
And the demographic of people moving into the Powell area is young retirees, not people coming to change homes.
Developments at Powell aren’t likely to tip the scales in favor of buyers any time soon by flooding the market with more inventory. So far this year, which began in July, four building permits have been granted for single-family homes and two for two-family homes. He said it was about historical averages.
“Whatever it is that’s driving people to move, high prices, high interest rates are slowing it down considerably,” he said.
Still, more subdivisions were approved in the county last year, although supply chain issues have delayed construction.
With all the uncertainty brought on by inflation, as well as supply chain issues, Paul said buyers and sellers shouldn’t just sit on the fence when they need to buy or sell.
“Buyers sitting on the sidelines as rates move are actually losing ground because prices aren’t dropping enough to offset what rates are doing,” he said. . “We need to bring prices down about 30% to offset interest rates. And I don’t see that happening. We continue to sell properties.” We still have buyers, but they’re not as busy as they were a year ago.”
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