What is happening in our Utah Market? Today I am going to look at it with you.
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Today I want to give you a quick market update and tell you what you need to know about real estate in Utah.
When comparing this quarter to last quarter, we are down 4.6% in home sales. In fact, the Board of Realtors said that, if we looked at listings, they are down 1.6%.
While we are seeing less homes on the market, our home values have increased dramatically. Since last year, the median home price in Salt Lake County has increased 7.8% from $327,000 to $352,000.
Of course, different markets and areas are seeing different trends. However, this market has been fantastic with 10 years of growth.
Now, though, interest rates are increasing which affects affordability. Recently, we had a buyer looking for a $440,000 home, but interest rates increased and reduced his affordability to $410,000. If you are selling a home, this changes the number of people that can buy your home.
When we have less homes on the market, people become afraid of where they are going to go and buyers think that they can’t afford a home. Statistically, property values have increased by an average of 3.3%over the last 26 years.
What you need to know is this: Interest rates are still great, but they are going up. It is affecting the affordability and is starting to squeeze the value and the affordability of homes.
You are going to start seeing more and more townhome projects that come to your city planning meetings as well as smaller micro units. Also, according to economists at the University of Utah, we are seeing an increase in the number of multi-generational families that are living in the same habitation due to affordability concerns.
If you need anything such as a home value or a new home, now is a great time to look at different options. For sellers, it’s a good time to decide whether to sell or keep your home. Meanwhile, if you are looking at buying, you can look at the interest rates to see if it’s a good time to buy. I will say this: Never wait to buy real estate.
If you have any questions, please feel free to contact me. I look forward to speaking with you soon.