Neil Walter, Managing Director of NAI Utah South and Thayne Houston, Principal Broker of ERA Brokers Consolidated, presented “What are Homes Worth in Today’s Market” to the St. George Chamber of Commerce yesterday, March 11th 2009. They discussed the appreciation and subsequent depreciation in home values over the past five years and how we will know when we have reached the “bottom”. The presentation utilized an article published by USA Today that outlined three metrics for determining when home values will be at historical levels. For each of the three metrics, they determined that home prices are back to historical levels when adjusting homes so that they are the same number of square feet. They also discussed affordability as a comparison of mortgage payment divided by monthly income. On this level, homes are as affordable as they have ever been and are less expensive than renting for many properties. The good news is that we are seeing pricing levels consistent with historical levels which mean that we are close to the bottom. The indices may continue to fall as a result of fewer high end homes selling or additional reductions in prices for more expensive homes, but many believe we are seeing a firming up of the market for the least expensive homes.
To download the PDF version of the powerpoint presented at the Chamber, please click here:
https://www.excelcres.com/Portals/74/2009%2002%2005%20Home%20Valuation%20DiscussionEmail.pdf
Fore more information please contact Neil Walter at:
nwalter@excelcres.com
or call Neil at 435-628-1609