Salt Lake City Ut Real Estate - Challenges of a soft market

Our Salt Lake City  real estate market is down, but not out.  The inventory is up by about 45% over last year and the number of closed transactions is down by about 35%.   The current Salt Lake City real estate market has created some challenges we haven't seen for several years-here are the most common challenges we're facing every day: 

• Mortgages:  Mortgage lenders are especially cautious right now.  They have raised their standards and are checking their files twice before approving loans to close.  This can and has caused some stress with both buyers and sellers because files are taking much longer to move through the process.  Without any certainty about whether a file will be approved or when it will be done, it's very difficult to plan a move. 
• Appraisals:  In a depreciating market, mortgage lenders are much more concerned with appraised values and are requiring more second appraisals and/or desktop reviews of existing appraisals.  Most lenders aren't allowing appraisers to use comparable homes that have sold longer than 90 days ago-this has had a big impact on condos and unique neighborhoods because the inventory of similar homes is limited.  Sometimes it's challenging just to find 3 similar comparables that have sold in the past 90 days, and when you do, if one of them was sold under distress, it can have a big impact on the appraised value-even when you have a buyer ready, willing and able to pay the negotiated price. 
• Inventory:  There are over 8,500 homes for sale in the Salt Lake City market area - a 45% increase from last year.  With an increase in inventory and a decrease in qualified/active buyers, it's easy for even the best homes to get lost in the inventory.  Certain neighborhoods and price ranges are more active than others but it's very competitive across the board.  The increased inventory creates some nice opportunities for buyers, but a big challenge for sellers.  Many buyers who are qualified in this market are hunting for a deal.  

 We can't guarantee that we're immune to these challenges, but because we anticipate them and proactively address them, we are able to minimize their impact on our buyers and sellers.  We work with very qualified and professional mortgage brokers who know the current system and how to navigate the murky waters of the industry.   Before we write an offer for a buyer, or list a home for a seller, we take a long and hard look at the market to ensure the offered or asking price will appraise.  Our 110 point marketing plan is constantly tried and tested to ensure our listings stand out and get noticed, even in a saturated market. 

 Hundreds of agents per month are getting out of the business, yet our business is thriving-- we feel our services have never been more valuable to our clients than they are right now.  We're here and ready to help you and your friends through any challenges or opportunities this market may throw your way-give us a call anytime, we'll take great care of you!   To learn more about current market conditions, take a look at this helpful Salt Lake City Real Estate website.