What’s Going on in the Salt Lake Market?

It’s time for another market update for Salt Lake County, and the stats are looking good.

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I’ve got the latest numbers from the Salt Lake market update. We’re approaching the fourth quarter, so this hopefully this update will help you understand what’s going on in the area as we make the transition.

Let’s start with rates. The interest rates continue to be pretty low, though the Fed is threatening to raise them in December, so we’ll see what happens when that decision is made. Currently, conventional interest rates hover slightly above 4%, and FHA and VA rates are just below 4%. All in all, interest rates are still very good, keeping buyers active in the marketplace.

Though it softened up at the beginning of the fall, the market is still very strong and we’re seeing multiple offers again.

Interest rates are still very good, keeping buyers active in the marketplace.

Values have plateaued. This can be seen as a good thing since they haven’t continued to rise and make housing unaffordable to most people.

Here are a few statistics for you:

• In 2017, the average days on market is 34 days. Interestingly, this is the same average as last year.
• Almost 11,000 homes have sold in Salt Lake County this year so far. The entirety of 2016 saw 11,330 homes sold, so it looks like we’re on track to surpass that in 2017.
• Year to date, the average sales price is $372,853 for a single-family home. For the third quarter of 2016, the average was $341,943. This shows that there’s been quite a year-over-year increase in single-family home values.
• There are about 3.5 months of inventory on the market right now, meaning if no one else were to put their homes up for sale, we’d sell all of the currently available homes in 3.5 months. A healthy market has between three and six months of inventory, so we’re in a great time to sell, but not so much that the market is skewed against buyers.

As I said, we’re in a good, healthy market. Despite media scare tactics, there’s nothing indicating that a bubble or a crash is imminent.

If you have questions or want to discuss this further, please feel free to reach out to me. I’d love to hear from you.

What Can You Expect From Our Market for the Rest of 2017?

Last year was a fantastic year for our market, and 2017 should stay strong. However, there are also a few challenges for buyers and sellers to overcome.

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How did our Wasatch Front market do in 2016? What should the rest of 2017 look like?

Last year, there were 13,600 single-family home sales, which was a 1.3% increase from the year before. There were 4,300 condo/townhome/twin home sales, which was a 12% increase. The median sales price for single-family homes increased 8.1% to $295,000, while the median sales price for condos, townhomes, and twin homes increased 7% to $203,000. The median days on market was only 13 days—less than two weeks!

In 2016, we had the highest number of sales in the last 10 years. This has led a lot of people to wonder if we’re on the verge of another bubble. You can rest easy, though. There are no indications another recession is imminent because all the factors that caused the last one aren’t there now.

For the first time in 40 years, demand has exceeded supply.

However, for the first time in 40 years in our market, demand for housing has exceeded the supply. This has presented a list of challenges, such as affordability for housing, a shortage of well-qualified trades for builders, zoning and municipality changes and fees, land cost, rising rents, sustainable housing, and basic supply and demand.

You’ll likely hear about these things on the local news now and again, and us Realtors are working hard to solve them and work with politicians to protect your personal property rights.

All in all, 2017 will be a really strong year for home sales and home values. Interest rates should rise a little bit, but that shouldn’t affect the overall market.

Whether you’re a buyer or a seller, if you’re on the fence about entering the market, I’d love to sit down and review the details of your situation with you. I look forward to hearing from you!

What’s Happening in the Salt Lake City Market?

I recently attended a broker town hall meeting and learned some interesting statistics about the Utah economy. To sum it up, we have a very good report card.

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Today I’d like to give you a quick snapshot of the Salt Lake City market and go over some of the numbers with you so that you have a better understanding of where we are and where we’re going.

Earlier this week, I attended a broker town hall meeting at the Salt Lake Board of Realtors and learned a few interesting things about our current market.

Overall, Utah is doing spectacularly, especially when we look at the statistics for job growth and unemployment. Utah’s unemployment rate is 3.7% as of the end of September, while the national average is 5%. When it comes to job growth, income growth, and a number of other factors, Utah’s report card is showing straight A’s as well; we’re among the top three states for everything across the board economically.

Another interesting thing I learned at the meeting was the fact that Utah ranks among the top 10 states in the nation for exporting. This is a major industry for us as a state. I also learned that the five major areas that we export to are the UK, Hong Kong, Canada, Mexico, and China. Our dollar is super strong right now all around.

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Interest rates are likely to rise in December.

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I also wanted to address concerns that everyone seems to have about the election. Remember that, although there is an election every four years, the real estate market does not crash every four years. Please keep this in mind when you’re making decisions about buying or selling a home.

At this town hall meeting, one thing that they kept hammering on was the fact that interest rates are still so low right now. The Fed wants desperately to raise those rates again and it’s likely that they will do so in December, so if you’re thinking about refinancing or purchasing a house in the future, now is definitely the time to consider doing so.

If you have any other questions about what our market looks like economically or about Salt Lake City real estate in general, don’t hesitate to give me a call or send me an email. I’d be happy to help you!

What Can You Expect from Salt Lake City Real Estate in 2016?

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This year has started off with a bang when it comes to the stock market. There has been a lot of turmoil in our global economy and our global markets, China in particular, and it has made investors a bit uneasy. We feel a good solution to global economic instability for investors is to invest in local real estate in order to diversify their portfolios.

A shaky world economy is beneficial to local real estate markets, as it's likely interest rates on mortgages won't see much of an increase this year. While the Fed has raised rates slightly, they're only short-term rates. Currently, you can lock in an interest rate around 4%, which is fantastic.

There is more good news. In 2015, home values increased significantly, and we're expecting more of the same this year. Some people fear that we're in a bubble because things are going so well, but the fact of the matter is that our current conditions are historically normal. Lenders are more careful about who they give loans out to now, so it's not likely that we'll see another sudden downfall.

If you have any questions about what to expect in 2016, or if you need real estate assistance of any kind, please don't hesitate to reach out to us. We would love to hear from you!

The Market in the Salt Lake Area Today

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In Salt Lake County, the average four-bedroom home was on the market for 38 days in September 2014. This year, it was on the market for only 22 days in September, a significant decline in a just a year!

Last year, the average price a house sold for was $232,000. This year, September’s average price increased to $250,000.

Interest rates are currently below 4 percent. While rates are expected to increase next year, this motivates buyers to start the buying process now. Our busiest times happen to be before rates go up.

Today, over 50 percent of buyers in the market are first-time home buyers. We deal with millennials now, which are different buyers than the last generation.

If you know someone who's been thinking about selling or are curious about millennials, give me a call! I’ve done the research. I look forward to hearing from you soon.