By Janie Tuft – Moab Premier Properties
Moab’s real estate recovery is well underway with increased sales in this last year. Single family site built home sales in 2012 number 54, while in 2011 single family site built home sales numbered 26. The average home sales price in this area in 2012 was $251,792 and the average home sales price in 2011 was $240,861. So in one year’s time our sales have more than doubled and the average sales price has increased by 4%. There are many contributing factors for this improvement in our local real estate
The median sales price of a site built home in Moab during 2012 was $211,500. The median sales price of a site built home in Moab during 2011 was $241,750. Homes have become more affordable in our area in the last year by 13 %, which is substantial.
During our real estate market boom of 2007 the average interest rate on a 30 year fixed interest loan was approximately 6.4 %, and presently the average interest rate on a 30 year fixed interest loan is approximately 3.8%. On that median priced home in 2012 of $211,500 the monthly principal and interest payment at 3.8% interest is an approximate payment of $985, and the approximate monthly principal and interest payment on the same amount at 6.4% interest is $1323. That’s a difference of $338 per month and $4045 per year, which can make a real difference in a family’s budget.
With the advent of affordable home prices in Moab and great interest rates for mortgages; one can hope that prices have stabilized somewhat. It is a real unknown as to how quickly housing prices will begin to increase, but it is thought that prices bottomed out in the early part of 2012. During our
housing market boom of 2007 we saw a median sales price of site built homes at $241,000 and an average sales price of $272,906.
Previous to this present great recession, the last contraction in housing occurred in the early 1980s, which followed the inflationary housing boom of the 1970s. This doesn’t necessarily mean that we can look at that period for indicators of price recovery. The 1980s saw extremely high interest rates on mortgages. The interest rates back in the 1980s were above 12% for six years. Despite the high interest rates charged in the 1980s housing prices in Utah increased about 15% over that decade.
Most likely the most positive factor in Moab’s real estate recovery in the near future will be continued low interest rates, stable home prices, increased creditworthiness, and the proposed construction of the U.S.U. college campus in our community.
Moab does have a limited supply of housing, so if you have saved diligently for your down payment and have worked hard on improving your credit score; and with it presently being a buyer’s market here you should seriously consider purchasing your home or investing in an income generating property. I
recommend that you contact a realtor today and get your prequalification for a loan completed. I would love to help you with your purchase.