Housing Market Settling into New Normal (YEAR IN REVIEW)

 

Housing Market Settling into New Normal (YEAR IN REVIEW)

Monthly home value growth slowed further in October, on the heels of monthly slowdowns in September and August, continuing to bring the astronomical pace of growth down from its record highs earlier in the summer. 

The Home Value rose 1.3% from September, to now $312,728, up 19.2% from October 2020 level. The annual growth represents an all-time high in data dating back more than 20 years, and the monthly pace is higher than at any point recorded prior to the pandemic — but is still down notably from the recent high of 2% set in July. The average October monthly appreciation in the U.S. from 2015 through 2019 was 0.4%. In other words, even as the market cools, it is cooling off from an exceptionally hot starting temperature.

Home values didn’t drop in any of the 50 largest U.S. metros, but monthly home value growth decelerated in 42 of them. The slowest monthly growth was seen in Milwaukee (0.1%), San Francisco (0.3%), Buffalo (0.3%), and St. Louis (0.4%), while the fastest was in Raleigh (2.7%), Nashville (2.4%), and Atlanta (2.3%). Still, even as the overall slowdown in the market continued, October also provided early indications that the slowdown in home value growth is itself slowing down: the decline in monthly growth was slightly smaller than the decline recorded in September from August.

Housing Market Settling into New Normal 
(October 2021 Market Update)

I am currently working on an update for the third quarter of 2021 real estate in Park City.  At first glance, I am seeing many neighborhoods of Park City increasing in the number of transactions and total volume sold.  There are areas that have dropped significantly as well because we are at record lows for inventory.  

The areas of Empire Pass, Silver Creek, and the golf course communities just don't have many options available on the market which naturally slows sales.  But we'll see the overall volume climb as prices have increased.  Park City currently has 72 single-family homes on the market that are built and we had 797 sales in the past year.  797 sales divided by 12 months give us 66 sales per month, which is 1.09 months of inventory.  The lack of homes and condos for sale in Park City is choking out the market which will lead to real estate stats that don't tell the full story.

As far as I see the market is still hot and if a property hits the market you need to be able to act fast. This means knowing where you want to be, having all your lending lined up, and if a specific property will work for you.

Give me a call to discuss the different neighborhoods in the Park City area so I can narrow down your search and help get your up to speed on the areas that will work best for you.

Need More Information? Call or Text Me Today (435) 602-8228

Here's a monthly local update based on homes in 84098

 

Paula Higman Real Estate - Coldwell Banker Park City

paula@paulahigman.com

(435) 602-8228

FOLLOW YOUR DREAM, HOME.

Playing Catch-up: Putting the Recent Home Building "Boom" in Context

 Playing Catch-up: Putting the Recent Home Building "Boom" in Context

The number of homes listed for sale in America ticked down in October, marking the end of 2021’s modest inventory rebound that began in May and leaving current levels down by more than a third from pre-pandemic norms. But how did we get here? Why are there so few homes available to buy, even as homebuilders seem to currently be firing on all cylinders to develop and sell more homes?

More than 1.5 million residential building permits were issued between February 2020 and February 2021 — a benchmark level of housing construction surpassed in every building boom since the 1970s. The problem is that after permit activity bottomed out in 2009 at the depths of the housing crisis, it took more than 11 years to get back to that threshold. The new home construction market today very much remains in catch-up mode, recovering from a decline that was both much steeper and took longer to come out of than in any previous construction cycle.

Total residential permit activity has continued to grow dramatically throughout the past 18 months —  hitting a new post-Great Recession peak of 1,687,300 permits issued in the 12 months from August 2020 through August 2021 — leading some to wonder if builders are actually creating a new glut of housing. But this year’s pace of homebuilding represents only the first full year of above-trend construction in 11-plus years, and in truth, builders are only just beginning to meet the housing deficit and feed housing demand that has only been growing since the end of the Great Recession.

Give me a call to discuss the different neighborhoods in the Park City area so we can narrow down your search and help get you up to speed on the areas that will work best for you to live in or have a second home.

Call or Text Today: (435) 602-8228

SMART HOME APLIANCES

5 Reasons to Use Smart Home Appliances

Take a look at some of the latest tools designed to streamline your home life:

Smart Security: As technology improves, home safety does too. Affordable security technology is making houses safer, whether you’re at home or away. This includes motion sensors, automatic lighting, doorbells with cameras and smart locks that connect to your phone.

Voice and Motion Activation: Touchless faucets aren't just for commercial buildings. Having them in your home can make things cleaner and easier. And you can have your smart assistant turn on the ceiling fan or play your favorite podcast with just a few words. 

Green Technology: One of the most notable benefits of smart home technology is its energy efficiency. LED lights help you save on power usage and smart blinds block the summer sun with little effort on your part. This technology is better for the planet and your wallet.

Practical Efficiency: Even refrigerators and laundry appliances have gotten smart upgrades. You can get alerts to your phone when your laundry is done. Or view the inside of your fridge while you’re at the store to know what ingredients you’re missing.

Centralized Control: Smart tech often allows for remote, centralized control of multiple appliances. You can power on your lights, music, alarm, thermostat, and much more through your smartphone or home assistant.

Smart technology is available for so many purposes. You can choose a smart home with advanced fixtures, or just have a few smart appliances around the house.

Paula Higman Real Estate - Coldwell Banker Park City

paula@paulahigman.com

(435) 602-8228

FOLLOW YOUR DREAM, HOME

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Create a Home Maintenance Checklist

 

Your vehicle requires routine maintenance to run smoothly, and the same goes for your house. Without service reminders, however, it can be easy to forget to tend to all the systems that keep your house fully functioning. Fortunately, you can create a simple annual maintenance checklist to properly care for your home and prevent potential issues from becoming major problems. Start by making a list of each task you'll need to complete over the coming year. Make sure your yearly home inspection includes all major systems (HVAC, electrical, and plumbing), the interior and exterior of your home, water and septic tanks, doors and windows, and the attic or basement if applicable. When that's done, organize the list according to how often each item needs to be checked or maintained and set reminders accordingly. Your home maintenance checklist might start to look similar to this: Monthly Test smoke and carbon monoxide detectors. Change air filters in the heating and air conditioning system. Clean range hood filters to avoid possible grease fires. Trim back any shrubbery or plant growth around the outdoor HVAC unit by at least 18 inches. Quarterly Check and wipe down sliding doors and window tracks. Replace batteries in smoke detectors. Test garage door and grease tracks as needed. Semiannually Clear gutters of spring and fall foliage. Power wash windows and siding. Schedule seasonal service of the HVAC system before summer and winter. Annually Inspect and insulate pipes to protect them from freezing. Trim trees and shrubs away from the home's exterior. Touch up exterior paint and check for wood rot or water damage. Check grouting in the kitchen and bathroom and repair if necessary. A home maintenance checklist will make it easier for you to manage the upkeep of your house. It can also help you catch minor issues before they become costly home repairs.

I hope you are having a great day!

Demo Day the Responsible Way

Thanks to HGTV, "Demo Day" is often thought of as the fun part of renovation and construction. Owners and celebrity reno stars wield sledgehammers and power tools while kicking down drywall, tearing out cabinets, and throwing building material from second-story windows. The carefree assault on a dated home makes demolition look easy and fun, but there is more skill and expertise involved than you might think.

If you're considering a DIY demo to save money before a renovation, make sure you know what you're getting into, and you are prepared for any problems that may arise.

 

 Safety First: Ensure you have enough safety equipment — steel-toed work boots, safety glasses, hard hats, masks, and work gloves for everyone in your crew. Full coverage, snug-fitting shirts, and pants provide protection from splinters, itchy fiberglass, and rusty nail scratches. Keep a first aid kit handy, and make sure your phone is fully charged in the event of an emergency.

Hidden Hazards: Is there asbestos in your carpet padding or lead in the wall paint? If your home was built before 1978, there’s a good chance some paint in the home will contain lead. Asbestos is trickier – it’s been banned in some common building materials, but is still used in others. When in doubt, test flooring, walls, ceilings, and pipe wrappings before beginning work. The risks from asbestos arise when it is damaged or disturbed and the asbestos fibers become airborne, so wearing a proper respirator and following the correct procedures is crucial.

Work Smart: Does everyone involved know how to use power equipment and heavy tools like crowbars and sledgehammers? Each helper should be cognizant of what is happening around them when the swinging and smashing start.

Secure The Site: Is the worksite safe? Shut off power when working on or close to electrical systems. Turn off the water main when plumbing is involved. Sites should be secured to keep kids, pets, thieves, and curious passers-by out. Make sure to display "No Trespassing" signs as well.

Plan For Success: Take a close look at the structure and materials to be demolished before you start anything physical. Which way do the joists run? Which walls are structural? Which walls have water lines, electrical wires, or gas lines behind them? Is there anything you want to protect and preserve? If you can't identify structural components, then you certainly shouldn't remove them. Consult a building professional (architect, engineer, contractor) before smashing into your walls, and check with your insurance broker to confirm you are covered for all liabilities before you begin.

Welcome to September Real Estate and Lifestyle Update

Welcome to September

YOUR REAL ESTATE AND LIFESTYLE UPDATE

THE TOP TEN STATES 
SENDING PEOPLE TO UTAH

Tips for Gardens Great and Small

 Like the fabled “Victory Gardens” of WWII before them, urban and backyard vegetable gardens became a vital source of food and purpose for many people last year when world events threw supply chains into disarray. A year has passed, but interest in do-it-yourself food production has remained, and more and more DIYer's are getting into growing their own crops.

Your ability to grow fruits, vegetables, and a variety of herbs at home depend primarily on just three things: climate zone, space available, and your level of commitment. With plenty of warm days ahead, it's not too late to get started on a garden of your own.

If you're limited to an indoor garden, consider hearty options like avocados, carrots, microgreens, lemons, and scallions. You'll need some large, south-facing windows to have a successful garden. If that's not an option, grow lights and hydroponic kits have become a popular option in recent years as they've become more and more affordable.

For outdoor gardening, the first step is to check local zoning ordinances and/or homeowner's association rules. Then determine your plant hardiness zone to help narrow-in on recommended plants for your area. Like anything else, having a solid plan in place is critical.

When it comes to plot-size, people tend to envision lush rows of crops and tilled soils, producing plant after plant of vegetable-producing crops. If you're lucky enough to have such ample space at home, you're limited only by the time and effort you want to expend.

If space is scarce, never fear. Urban gardeners have developed innovative ways to garden in small spaces.

• Go vertical: If space is limited, consider a garden wall. You can utilize vertical space by attaching planters to exterior walls that get lots of sun exposure. Don't have an appropriate wall? You can find prebuilt ‘grow towers' with a quick internet search, or build your own DIY version using a large plastic drum, some PVC pipe and a drill.
• Garden in other containers: Use containers of all sorts on your porch, balcony or patio to maximize your growing space including buckets, planter boxes, hanging baskets, pots, and barrels.
• Create a rooftop garden: Utilize the space that most of us never even think about, your rooftop! If you have a flat space on your roof and a safe way to access it, consider designating that area as your growing space. Just make sure to consult a professional to ensure that your roof can carry the load.

If gardening at home just isn't an option, check to see if there is a community garden in your area. Community gardens can be a way to share in the work, build community bonds and enable others to participate. With the right equipment and some sweat equity, any community can turn a vacant lot into a food-producing zone.

However you decide to grow your home-garden, once you've tasted your very first home-grown tomato or finished your first batch of pesto made from your home-grown basil, you'll know the hard work was worth it!

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Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman Real Estate today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

 

Insure that you have the best representation when buying and/or selling in The Colony. Contact Paula Higman Real Estate Park City at 435-602-8228 For a property tour and more information about Heber City and the surrounding areas.

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For Builders and Buyers, Lumber is a Bummer

 

Over the past several years we’ve seen real estate prices climb higher and higher due to a limited supply and an increased demand, but a new factor is pushing prices up even further: the skyrocketing price of building materials. So, what’s behind these increased prices, and, more importantly, when can we expect some relief?

We’re all painfully aware that the pandemic triggered widespread supply chain issues, and building materials have been no exception. Supplies of steel, aggregates, and cement have dried up, but the trend might be most noticeable when it comes to lumber.

Nearly every aspect of home construction necessitates lumber – framing, trim, doors, flooring, windows, railings, and cabinets. The pandemic shut down lumber mills across the country, and supply chains were slowed by a shortage of truck drivers. Low-interest rates and a lack of existing inventory increased demand for new construction, and all that new construction increased demand for lumber. It’s a perfect storm of demand outpacing supply. According to Markets Insider, lumber prices rose by over 400% between May of 2020 and May of 2021, with the price per thousand board feet going from $327 to $1,645 during that time span. That figure has been corrected since May, but, as of this writing, prices are still substantially higher than this time last year. The rise in lumber prices has added almost $36,000 to the price of an average new single-family home, and nearly $13,000 to that of a new multi-family home. Building material supply shortages, coupled with increased prices for land, means buyers will continue to see high prices for new builds for at least the foreseeable future. Last year, home price inflation reached 11.4%, but experts predict a slowdown to 8.1% through 2021. By 2023, price growth is expected to slow to 4%. To put it another way, the surge in home prices is expected to slow, but it’s going to take a few years as supply chains and workforces return to pre-pandemic levels of productivity.

Vacation with Peace of Mind Ready to finally take that extended vacation this summer? Since it’s probably been a minute (or 751,680 minutes) since you’ve last traveled, here are a few helpful reminders for ensuring your home stays mishap-free while you’re away. Set Your Thermostat If you have an AC, heat pump, or evaporative cooling unit, make sure to leave it on to prevent mold, mildew, and other conditions caused by heat and humidity. Adjust your thermostat to 4 degrees higher than you would if you were home, which will reduce energy use while ensuring that the unit runs periodically. If you can, invest in a smart thermostat, which will allow you to monitor and control conditions at home via a handy smartphone app wherever you are. Turn Water Off When you are going to be away for an extended period, it's a good idea to turn off your main water line. This can prevent plumbing leaks from occurring in your absence, which otherwise could result in significant water damage and costly repairs. After shutting off the main water valve, let your kitchen and bathroom faucets run dry, ensuring that no water is left in the pipes. If shutting the water off isn’t an option due to sprinklers or other considerations, consider investing in some water leak detection sensors. Modern water detectors connect to your smartphone and will notify you if a leak is detected, and since kits start at around $40, they can be a smart investment whether you’re traveling or not. Double Down on Smart Security As with water sensors and smart thermostats, other smart security devices are now more affordable than ever. To give the appearance that someone is home, use smart plugs to toggle lights, fans, or radio while you’re away. Also, consider a smart security system – modern systems feature contract-free, affordable monitoring, quick DIY installation, and remote monitoring notifications. Wrap Toilet Bowls with Plastic Wrap By wrapping your toilet bowls, you are preventing sewer fumes from entering your home. Leaving your toilets unwrapped can result in a less-than-pleasant "welcome home" smell when you walk in the door. Just be sure to mark the cling wrap with a big, bold "X" or other warning symbols as a reminder for when you return. Empty the Fridge, Take Out the Trash No one wants to come home to a moldy, stinky science experiment in their fridge, so make sure to dump anything perishable from the refrigerator and take the garbage out. Your future self will thank you.