It's a crazy time in the Salt Lake real estate market, so we wanted to give you some numbers that tell the real story of home prices and appreciation.
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Recently, we talked about a few economists' take on the Salt Lake market. Today we're back to give you some more crazy numbers that are a little bit different and more interesting and paint a more complete picture of what’s really happening in our market.
For starters, let me say that it perturbs me a little bit when people talk about the 'spring market' and yearlong statistics because we're a seasonal market. If you look at our market's appreciation on a graph, you won't see the median price grow consistently in a linear way. For example, appreciation in Salt Lake last year was 8.3%, but prices peaked in June. Starting in July, prices declined all the way through to December. This means that in the spring rush, we saw prices skyrocket over 13% and then retract throughout the rest of the year.
Last year at the peak pricing time in June, we hit a median price of $275,000, and as of the end of January 2017, the median price is back up to $275,000. So what might we see over the next five months?
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As many expert economists predict, we'll see 5% to 7% appreciation this year. However, based on what happened last year, it's extremely likely that we could see double-digit appreciation between now and the Fourth of July. That's crazy! That would mean the market is appreciating 2% per month.
If this appreciation continues, homes will get up to $10,000 pricier every 30 days.
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I don't want to push you to hurry and buy a home, but if this trend continues, a home that's $300,000 today could be valued at $306,000 by March 15. Every month, its price could go up $6,000 to $10,000.
Too many buyers sit on the sidelines 'waiting for the right house to come along.' In an appreciating market, that's a real estate fallacy. The same goes for buyers who are 'waiting for a killer deal.' If you're looking at houses in the $750,000 and under price range, you can't wait for a killer deal because the best house you'll get is the house you buy the soonest in this strong seller's market.
I know this can be frustrating, but we want you to be educated with the real numbers, not some sales pitch. If you have any other questions about our market or you're looking to buy or sell a home, give us a call or send us an email today. Don't wait any longer!
