July home sales top level of 2008

Published On: August 6, 2009

Just released data for local home sales in July in the Upper Snake River Valley counties of Bingham, Bonneville, Jefferson, Madison and Fremont shows a sharp rise in sales. The biggest surprise is that sales last month exceeded those of July 2008 (220 this year versus 209 last year).  This is the first month in 2009 where sales were higher than in 2008.
 
What is going on?  Several factors are in play.
 
First, markets around the country are starting to perk up.  The hard hit places like California, Arizona and Nevada have seen sales jump the last few months as buyers snap up bargains -- often short sales and foreclosures.  The increase in activity has spread to regional markets like Salt Lake City, Boise, etc.  This may be the first sign that our area may be seeing an upswing in sales.
 
Second, many of the sales are by first-time buyers taking advantage of the up to $8,000 federal tax credit.  With that credit expiring November 30th, it is possible that many such buyers will try to buy before that date.
 
Third, the general economy seems to be stablizing a bit.
 
Now, what does this mean over the next few months?  Hopefully, sales will continue to rise.  But, prices will probably stay soft.  Typically sales rise for a period of time in a recovery but prices don't increase much (and may even drift down) until inventories are depleted.  Right now we have nearly 13 months of housing inventory in the Upper Valley.  It will take some time to work through those homes for sale.
 
Still, this is a bright sign for the local housing market.