What’s happening in our Salt Lake City real estate market as we make our way through August? We’ve seen so many exciting changes over the past few months.
For example, we’re now the third-most competitive market in the nation. Roughly 65% of all properties are getting multiple offers. Back when the market experienced a shift, our average purchase price was between $215,000 and $225,000, which was about the same as the nationwide average. Now we’re 45% higher than the national average price point. As soon as interest rates dropped below 3%, it created more opportunities by increasing overall affordability.
How does this affect you as a homeowner? Property values are skyrocketing due to pent-up demand. Demand is high and inventory is low, which means prices are soaring. Properties also now have more equity than we’ve ever seen. If you’re nervous because you think this is the same situation that preceded the Great Recession, remember that people didn’t have as much equity back then. They were taking it out of their homes and spending it on other things.
If you’re thinking about selling and are curious about your home’s value, visit my website, hit the “Home Value” tab, and fill in your information. It will calculate the home’s general value, but if you need a pinpoint analysis, just give me a call, and I’d be happy to oblige.
In any case, the bottom line is that the market is fantastic. If you’re still renting, now’s a great time to lock in a historically low interest rate and buy a home. When I first got into the business, rates were around 7%, and people were eager to pay off their homes and be debt free. Now that rates are hovering below 3%, I can’t say whether new homebuyers will be able to pay off their properties, but I can say that our market is strong.
Whether you’re buying or selling, let my team and I be the ones to guide you and maximize your transaction. I look forward to hearing from you!