Kanab Real Estate Roundup: July 2023 - Market Trends and Housing Stability
Welcome to the Kanab Real Estate Roundup for July 2023! In this insightful blog post, we will dive into the current state of the real estate market in Kanab, exploring key statistics, mortgage rates, and how the market compares to the "unicorn year" of 2021. Additionally, we'll discuss the three reasons why we believe Kanab's housing market is poised for stability and growth. So, let's get started!
Mortgage Rates and Market Stability
Mortgage rates have been a topic of uncertainty, but currently, they are hovering around 6.81%, which is slightly below the 7% mark. While there were expectations for rates to decrease, the Federal Reserve's decision to maintain them has kept them steady for the time being. This indicates a potential period of stability in the housing market, creating a favorable environment for buyers and sellers alike.
July 2023 Market Insights
As of the end of July 2023, there were 31 homes available on the market, with 11 homes under contract and 10 single-family homes sold. The average price per square foot stood at $234/sq. ft., with an average home price of $470,000. Moreover, sellers achieved an impressive 98% of the listing price on average. The average days on the market were remarkably low at 38 days, indicating strong demand and a quick turnover of properties.
Comparing to the "Unicorn Year" - 2021
The year 2021, known as the "unicorn year," was marked by an economic rebound during the pandemic, leading to low interest rates and heightened real estate activity. However, 2023 shows a steady shift away from the frenzy experienced in 2021. Despite this, there is no cause for concern regarding a housing market crash, as several factors contribute to the market's stability.
Three Reasons for Market Stability
a. Supply and Demand: Over the past decade, new construction in Kanab has not kept up with population growth, resulting in a continuous demand for housing. This fundamental supply and demand imbalance will support the market even as it cools down from the 2021 surge.
b. Homeowners with Low Mortgage Rates: Many homeowners took advantage of historically low interest rates during 2021, securing mortgage rates below 4%. As a result, they are less inclined to move, reducing the number of available properties in the market.
c. Investor Interest: Real estate has become an attractive investment option for Wall Street and other investors. The trend of purchasing and converting properties into rental units bolsters the overall housing market's resilience.
While Kanab faces challenges in housing affordability, the real estate market remains robust and stable. With mortgage rates holding steady and various factors driving demand, the housing market is well-positioned for growth in the months to come. If you're considering buying or selling in Kanab, reach out to Karen Heat Love Realty Utah for expert guidance. Let's stay optimistic and informed as we navigate the exciting landscape of Kanab's real estate market. Talk to you soon!