In the first quarter of 2010, sales of homes in Tooele County jumped 19.6 percent compared to the first quarter of 2009. However, the median price of houses sold dropped by 8.2 percent over the same period. It also took nine days longer on average to sell a home in the first three months of 2010 compared to 2009.
Local real estate agents acknowledge federal tax credits for home buyers — $8,000 for first-time buyers and $6,500 for repeat buyers as part of a program that expires on April 30 — have helped drive the rise in sales. But they also say a broader rebound may be taking place. While 2009 closed with a 2 percent decline in overall sales compared to 2008, the final quarter of 2009 was up 61 percent over the same quarter in 2008. The positive results in back to back quarters compared with the same periods a year ago may indicate an upward trend.
“Part of the growth in sales, particularly in March, is due to people wanting to make sure they get in on the tax credit before it ends in April,” said Dan Egelund, broker for RE/MAX Platinum in Tooele.
In March total sales of homes jumped to 62, from 32 in February. In January 38 units were sold.
“Also, I think there are people watching the market that have seen signs of things turning around and are getting off the fence and buying now because prices are probably at their lowest and may be going back up,” Egelund said.
Vicki Griffith, broker at Prudential Utah Real Estate’s Tooele Office, is excited about the upswing in sales.
“With the tax incentives expiring, April should be even better,” Griffith said. “However, with all the first-time buyers getting into homes at the lower end of the market, the sales price average is being pulled down.”
Egelund agrees that first-time buyers bring the average sales price down.
“They also created tremendous competition at the $170,000 to $190,000 level, and that has brought prices down,” Egelund said.
Egelund said short sales are also still contributing to the lower prices. He also thinks new regulations in the industry are adding to the time most homes spend on the market.
“It takes longer to get appraisals completed because there are new regulations on how appraisers are selected, short sales take time for the bank to respond, rural financing may take time as you wait for the USDA to get money, and it takes longer to get lending approved,” Egelund said. “Only, nine extra days is not bad.”
Tim Gillie: tgillie@tooeletranscript.com
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