What’s the Latest News From Our Salt Lake County Market?

Prices for single-family homes rose significantly this May compared to May 2016, and they’re not staying on the market long, either.

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How did our Salt Lake County market do this May compared to May 2016? A few key statistics tell the tale.

The median price of single-family homes rose 9.1% from $305,000 to $332,800. That’s a significant jump, and it can be frustrating if you’ve been looking for a home for awhile because it essentially means you’ve lost money waiting for the right house to come along. In fact, if you look at the last May that was part of the recession—May 2011—the median price for single-family homes was $200,000. That means in six years, the median price for single-family homes has risen 66.4%.

Another amazing thing about our current market is that 592 single-family homes have closed so far this month, and the average days on market for those homes was only seven days. 

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Shopping on Trulia and Zillow won’t get you a good house in our market.

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What do these numbers mean? If you’re a buyer, don’t even think about starting your home search until you’re pre-qualified and underwritten, you have your ducks in a row as far as lending goes, and you have a good agent going to bat for you. Lastly, remember to be aggressive, especially if you’re looking under the $600,000 price range.

If you have any questions about our market or are looking to buy or sell a home, don’t hesitate to give us a call or shoot us an email. We’d be glad to help.

A Rental Market So Hot You’ll Want to Throw a Chair Through a Window

In this market, you have to act quickly to get the property you want. As you’ll see, sometimes you just can’t act fast enough.

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I’m here today with a couple of investors in the heart of Sugar House. We’re looking at a property in this single-family neighborhood that is unique to the area. It’s actually a triplex, and a great property for any investor looking to build wealth through real estate.

As far as rent goes, this property is in the perfect area to capture a top rental rate. It’s just east of Westminster College, a perfect place to rent out to students.

Time is of the essence because our spring market in Utah has been absolutely insane. Pretty much every single property is seeing multiple offers and homes are selling as quickly as you can tell people about them.

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Time is of the essence.

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Which is exactly what happened with this property. Check out my explosive reaction to finding out this property went under contract as soon as I brought my investors in the video above.

In all seriousness, if you have any questions for me about the real estate market or if you’re looking to invest in it yourself, give me a call or send me an email. I would love to hear from you.

Will the Appreciation We’ve Seen in Salt Lake County Continue?

Home values and appreciation have been a hot topic for us lately. Today I want to show an example of just how much equity you can gain through appreciation at the current market rate.

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We’re always talking numbers, and I hope you’re not sick of me yet! Today I wanted to share a flier that was sent to me recently about appreciation in our market. It shows 6.1% appreciation over five years.

We fear that many people think this is fake money or think that these numbers didn’t really happen. The graph in the video above shows how a $340,000 home would appreciate if it increased by 6.1% over five years. In the fifth year, the home would be worth $470,592.

So I took this rate and applied it to the median home price from five years ago in February, which was $180,000. As of last summer, median prices hit $275,000, which is a five-year change of nearly 35%. If you apply this to the $340,000 house from the graph above, you can see that it was almost exactly right in its prediction.

In the last five years, homes have in fact appreciated 6.1% on average based on median price in Salt Lake County. That’s more than $120,000 in five years!

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I don’t think values will double over the next decade, but that’s the path we’re on.

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It’s the same over the long term, as well. The home neighboring the house I grew up in increased in value 4.5 times over in a 34-year time frame leading up to this year.

I don’t think houses will double in value over the next 10 to 12 years, but then again, that’s what has happened the last four straight decades in Salt Lake County, and it’s the same path the market has been on for the last five years.

We’re not pushy salesmen, but we want you to know that in a rapidly appreciating market, the best deal you will get will be on the house that you buy today. I’ve seen too many heartbroken young buyers who wait around to buy a home and realize that their biggest mistake was not buying a home when they were qualified and ready.

If you have any questions about the Salt Lake market, give me a call or send me an email. I’d love to hear from you.

What I Learned at Breakfast

Every year, a bunch of us Realtors get together at the Forecast Breakfast. There, Dr. James Wood, an economist who is also an expert on our market, shared his predictions for 2017.

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I recently had the pleasure of attending the Forecast Breakfast. Every year, a bunch of us Realtors get together, including Lawrence Yun from the National Association of Realtors.

Dr. James Wood, one of the foremost economists at the University of Utah, shared his predictions fro the 2017 Utah residential real estate market. He also went over a few important statistics from last year.

We always work hard to give you this kind of information, but sometimes it helps to hear from the experts. Here are some of the highlights from the breakfast:

Dr. Wood said that, for the first time in 40 years, the rise of households in Utah exceeds the number of new housing units. In other words, demand is really outpacing supply.

Dr. Wood also told us that apartment vacancy rates are at the lowest levels they have been in decades despite the historic boom in new construction apartments. Since 2012, we’ve added 20,000 apartment units in Salt Lake, but demand is still outpacing the supply.

With that in mind, Dr. Wood told us, “2016 was the best year for the Salt Lake County housing market in a decade when it comes to the number of sales. In Salt Lake County, just over 13,600 sales occurred.” In 2009, the typical Salt Lake area property sat on the market for an average of 80 days. In 2016, that number dropped to 13 days, which is absolute insanity!

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With market conditions like these, you need to be ready to make your move.

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When it comes to his predictions for 2017, here is a direct quote from Dr. Wood: “We can expect another 5% to 7% increase in pricing . . . These fundamentals combined with exceptionally strong demand, as well evidenced by record low days on market, will push the median sales price of single- family homes to the $310,000 to $315,000 range. It’s currently sitting at $295,000. Condominium sales should be even stronger.”

Dr. Wood continued by saying, “Overall, it’s going to be a tight market for buyers and renters. Prices are not going to come down, interest rates are not going to come down, and availability is not going to improve much. You just have to pull the trigger.”

A lot of the time when we present statistics proving that now is a good time to buy or sell, I do get comments from people who say, “Of course you’d say that; you’re a real estate salesperson!” However, everything I just told you is a direct quote from Dr. James Wood, a foremost economist on our local market.

He is really saying exactly what we would say. If you combine rapidly increasing prices with rising interest rates and super tight inventory, the best deal you will get on a house is on the house you buy the quickest. In Dr. Wood’s words, “You just have to pull the trigger.”

I know that everyone likes to shop around and wait for the right house, but you simply cannot do that in our current market. If you have any other questions about our market or would like to learn more about the buying or selling process, just give me a call or send me an email. I would be happy to help you.

Looking Back at Our Salt Lake County Predictions

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Back on April 1st, we made a video with some predictions for what might happen in the second quarter of 2016, because that period is when we see most of the appreciation in Salt Lake County. We predicted median price would increase between 6% and 8%.

We've had a really hot market with low inventory, but we didn't think appreciation would be as aggressive as the three previous years. The actual number was 6.2% appreciation in median prices, going from $286,000 to $304,000. If you bought a $300,000 house back on April 1st, median price now says that the exact same house is worth $318,600. 

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Waiting for the right house has cost consumers 6.2%

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Waiting for the right house to come along has cost consumers 6.2%, or in terms of money, it has cost you more than $18,000 on a $300,000 house. Over the last three years, we've felt like broken records, telling buyers to assess the current inventory, pick one, and buy without waiting too long!

Sellers that have waiting have seen appreciation, but at the same time, we're now finally seeing an influx of inventory because everyone has heard how hot the market is. Now, it will be more difficult for sellers to get their homes sold. If you've been on the market and haven't sold in the last 90 days, the bottom line is that you're overpriced.

The final thing I want to touch on about median price - it's sitting at $304,000 for single-family homes as of the end of June. We broke that $300,000 barrier in June, and that's never occurred before. That's the highest median price that Salt Lake County has ever achieved, and some of you think that a bubble will burst soon. Most experts and market economists would say that's wrong, and that the market is still strong. At least in Salt Lake County and Utah as a state, micro and macro factors of the economy are still strong.

If you have any questions about the market, or you're thinking about taking advantage of this market while you still can, please give me a call or send me an email. We'd love to work with you.

Second Quarter Home Value Predictions for Salt Lake County

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Every April 1st, we predict what kind of appreciation we might see in Salt Lake County over the second quarter of the year. We’re a seasonal market in Salt Lake, and we often find that median price jumps the most from April to July. During that 90 day time period, how much can the market change? 

Last year, the median price in Salt Lake County went up 12.97% during the second quarter. That’s a drastic jump. In 2014, the median price went up 4%, and in 2013, it went up 12%. Oftentimes, with low inventory and spring buyers rushing into the market, we see house prices skyrocket even when the general market isn’t experiencing appreciation.

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Waiting 90 days will cost you!

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How does that affect you monetarily? Last year, we explained what would happen to a $300,000 house from April 1st to July 1st to show people just how much waiting would cost them. Many buyers want to wait for the right house to come along, but the reality is, if you care about money, you can’t afford to wait.

In 2015, a $300,000 house with 20% down, a loan of $240,000, and an interest rate of 3.75% would have cost you $1,111 a month if you bought it April 1st. If you wait 90 days, on July 1st, that same house cost $40,000 more in purchase price. That means they needed to put $8,000 more down, the loan went up $31,000, and, during that same timeframe, interest rates went up 0.5%, adding $222 to that monthly payment. As you can see, waiting 90 days to purchase can affect you drastically.

It’s been a super hot market lately. We have extremely low inventory and the median price has already increased year over year. We don’t think we’ll see the 12% increase that we did last year. We predict that our market will see a 6% to 8% jump in median price over the next 90 days.

So, let’s look at that same $300,000 house with a 6% to 8% appreciation rate. Every month you wait would cost you $6,000 to $8,000 more, and if you wait for summer to buy, you will pay $24,000 more than you would right now. We’ll see what happens and give you the numbers on July 1st. We don’t have a crystal ball, but we are plugged into the market and this is an extremely educated prediction.

If you have any questions, give us a call or send us an email. We would be happy to help you!

What Low Inventory Means for Utah Sellers

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Currently, in Salt Lake City, we only have 2,500 homes available. This is low, since we normally experience around 5,000 homes on the market. There’s a severe lack of options buyers have to choose from today.

What does this mean for Utah consumers? Housing prices are increasing and there’s a buyer frenzy. With historically low interest rates, they panic when they see how little inventory there is to choose from. Plus, under these conditions, we experience more multiple offer situations.

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Housing prices will increase.

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If you’re thinking about selling your home, investing in real estate, upgrading or downgrading, list your home now! You’ll earn top dollar because of low inventory. I can’t stress it enough. If you wait on the sidelines, you’ll miss out on maximizing your profit and you’ll have significantly more competition in the springtime. Beat the rush!

Check out the state’s Economic Forecast this year. This gives predictions for our local economy in 2016, such as job growth and unemployment rates. It also translates to real estate. It’s not long, so feel free to browse through it at your leisure.

Give me a call or email today if you’re thinking about listing! Don’t wait. I look forward to hearing from you soon!

Wasatch Front Real Estate Market Update

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We had a great year in real estate last year in the Wasatch Front. Today we'll be examining appreciation rates, days on market, inventory, and many more topics. Overall we have a very healthy market, considering homes lost an average of 34% of their value when the crash happened in 2008. It took 10 quarters, but we've recently set a record for highest median home price ever.
 

So, what happened in 2015?

Median price rose from $238K to $250K, a 5% appreciation in price.
 

Inventory was low, and we had 20% less than we did in 2014.
 

The market performed extremely well in March and throughout the spring with large increases in sales, but it slowed down in the winter. 

We expect the market to level out in 2016, which is a good thing, because the market may have been moving a little too quickly.

It's important to remember that interest rates are rising this year, so please contact us if you've been thinking about buying or selling. We look forward to hearing from you!

Where Is the Wasatch Front Market Heading?

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What can you expect from the Wasatch Front market in 2016? There are a lot of uncertainties in our market right now, but there are a few trends that might hint at what's to come.

As many of you know, interest rates went up a bit right before the Christmas break. Let's not freak out just yet! We haven't yet seen how much they're going to affect our market. We know they are going to continue their rise in the next 24 months or so, but it will be a very gradual increase.

Expect home values to continue to increase in 2016 in certain locations across the Wasatch Front. If you would like more information about what areas we're expecting to see strong appreciation in, don't hesitate to reach out to us. Every area is very specific -- demand is very high in certain locations, which directly affects home prices.

The biggest thing to be aware of in Salt Lake City in 2016 is inventory. Right now, inventory is very low because most homeowners elect not to sell during the holidays. Expect a spike in inventory levels right before February 1. This is very indicative of the spring real estate market, which begins a whole lot earlier than the actual spring season.

We're anticipating a very hot market this spring. The uptick in interest rates is going to push a lot of the people who have been on the sidelines into the marketplace and demand will rise as a result. Buyers will have a lot of homes to choose from, and sellers will have a lot of buyers looking to capitalize on the market. This is great news all around for our marketplace.

If you have any questions about the shifting Wasatch Front market, 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!

Wasatch Front Real Estate Market Update

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In the last few years we've seen some massive appreciation in Salt Lake County. In fact, over the summer, our median price reached an all-time high, as well as a record in volume of sales.

In June and July of this year, we actually sold over $500 million in real estate volume! This is everyone combined in Salt Lake City. Even before the bustling times in 2006 and 2007 we couldn't accomplish this.

Even right now our market continues to appreciate, which is great news if you're a homeowner or if you're looking to sell and capitalize on some equity. The median price for a single family residence is $285K right now, which is excellent.

We're seeing prices increase slightly, and interest rates are also creeping back up right now. This is causing a lot of buyers to have sticker shock and they're slowing down their purchasing. This will cause the market to slow and inventory will fill in a bit.

As far as the luxury market goes, we're seeing massive amounts of inventory. For homes above the $1M range, we're seeing five years of inventory being accumulated. This means if you're looking to buy in that range, now is a great time to get a good deal on a luxury home.

If you have any more questions for us, please don't hesitate to reach out. We want to help you make more educated decisions about the real estate market!

Are Rising Interest Rates on the Horizon?

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Today we are going to talk a little bit about interest rates here in Utah. There has been a lot of hysteria lately about what’s going on with them, and a lot of people are concerned about what’s going to happen with them and how it will affect the market as a whole.

Inevitably, interest rates are going to go up, and the increase should start within the next 30 days. What effect will this have on the market? When interest rates go up, your purchasing power will likely go down as well. We are probably not going to see interest rates hold down prices at all in Salt Lake City, as is expected to happen nationwide. Our market is just too strong for this to happen.

This is something you really should take into consideration if you’re thinking about buying. There are plenty more details I can go over in person, but if you have any questions for me, feel free to shoot us a quick email or give us a call, and we can get you pointed in the right direction. We look forward to hearing from you soon!

How Has the Market Changed in the Last 90 Days

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Recently, we shot a video that explained what the market can do in a 90-day time period in Salt Lake County. In that video, we speculated about what the market might do between April 1 to July 1 of 2015. To do that, we used real numbers from 2013 and 2014 to see what we could expect.

In 2013, median price in that 90-day time period between April 1 and July 1 went up 12%; in 2014, median price increased by 4% in that time frame. Using those numbers, we speculated about what this year might look like and where interest rates might head. Well, now that the numbers for that 90-day period are in for 2015, we can take a look at how close the numbers are to what we thought they would be.

You might find it shocking, but from April 1, 2015, to July 1, 2015, median price for Salt Lake County went up 12.97%! At the same time, local interest rates went up by about .5%. If you were to buy a $300,000 home back in April, while putting 20% down with a loan of $240,000 and an interest rate of 3.75%, your monthly payment would have been $1,111. That same home now, only 100 days later, would almost cost you $40,000 more in purchase price, you would need to put $8,000 more down, and you would be loaning an additional $31,000. When coupled with a .5% interest rate jump, your monthly payment would be $222 more right now than you would have back in April!

We talk about these numbers because here at Utah Cribs we're educated and we know what the market is doing. Of course, no one has a crystal ball, us included - but we pay attention to the market every day so you don't have to. So, what can we expect to see in the Utah market moving forward? Stay tuned for our future videos where we'll share sound advice about the direction our market is heading!

Property Taxes Are Approaching in Utah

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Between August and September you can expect to receive a property tax notice in the mail. When you do receive it, keep in mind that it's not a bill, it's just a notice. It will tell you what your property valuation is from the tax assessor.

This is important because sometimes the value given by the assessor can be off by quite a bit. The higher your home valuation is, the higher your taxes will be.

Luckily we have a system set up in order for you to protest these taxes. This way, it is much easier for you to petition for a new valuation.

If you think your home value is higher than it should be, feel free to give us a call and we will go to bat for you and contact the county assessor's office. 
 
We would be extremely happy to help you with all of your Utah real estate needs!

Why Now Is a Perfect Time to Buy a Home

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A lot of people have been asking me this question lately, and I'm going to provide you with some pretty convincing reasons why now is the time to buy a home.

Interest rates and appreciation are both reasons to buy a home now. We're seeing historically low interest rates right now, and if you invest in a decently priced home now, it could really pay off when that home appreciates and you go to sell it in 4-6 years. The thing about this investment is that you need to buy soon because interest rates will rise - and it's not a matter of when - it's a matter of how much. Where interest rates stand right now, it's very hard to think that they could possibly get any lower.

This is a golden opportunity to invest in real estate right now. I am investing in a small apartment complex right now, and I'll be clearing at least $1,000 a month, and that's a no-brainer. Also, rent prices keep rising, so this is a worthwhile investment. Rising rent prices should also be a concern for potential homeowners, because why pay someone else's mortgage every month?

My only advice is that you shouldn't wait to buy. If you need any help purchasing in Salt Lake this summer, please don't hesitate to contact me!

What Can 90 Days Do to the Value of Your Salt Lake Home?

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Recently, we've examined market statistics from April to June, a 90-day time period that will give us a good snapshot of market trends in Utah. Let's take a look at the facts...

In 2013, the median price in Salt Lake City from April to the end of June increased 12%, as our market was rebounding sharply from the lows we experienced after the market crash. During the same period in 2014, appreciation slowed down, but prices still increased 4%. What can we expect as we begin that time period in 2015?

If you're buying a $300,000 house in our current market and median price does the same thing it did two years ago, in 90 days your home will appreciate by $336,000! It's unlikely we'll see that rapid of growth this year, so let's assume prices appreciate at the same rate they did last year; your $300,000 home would still appreciate to $312,000! What this example shows is that pricing can change drastically while people shop!

Right now, there is a lot of talk about interest rates, which are still near historic lows. We have some clients recently who have closed with interest rates below 4%! What kind of effect will rising rates have on your spending power? Well, if we go back to the example of the $300,000 home, if rates rise 1% in the next 90 days, your monthly payment would be $1,442 instead of the $1,111 you would pay today.

In the next 90 days, based on numbers we've seen in Salt Lake City from April to June over the last two years, you could watch a $300,000 house go up to a purchase price of $336,000, which would cost you an additional $7,200 if you put 20% down, and see your monthly payment rise by $331 a month! In other words, being indecisive about making your move could cost you a lot of money in the long run.

Here at Utah Cribs, our goal is to share this information with you so you can be an informed buyer in the Salt Lake marketplace. If you would like to discuss your moving options, or if you need real estate assistance of any kind, we would love to help you out. Give us a call or shoot us an email if you would like to make the most of these stellar market conditions!

Wasatch Front Real Estate Market Update

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Today we're going to be filling you in on the real estate market on the Wasatch Front. We hope that you'll use this information to your own advantage when you enter the market to buy, sell, or invest. Here is a brief explanation of what's happening:

• Last year at this time in Salt Lake, there were 3,765 active listings available, and this year we only have 3,351. This is an 11% decrease.
• In 2014 at this time, there were 1,469 homes under contract, but there are currently 2,311 properties under contract right now. That is a 40% increase.

What this means for you is that you need to be prepared for an extremely hot spring market here in Salt Lake City. Prices will be rising, and buyers will be able to afford bigger and better homes with low interest rates and great new loan products for Fannie Mae and Freddie Mac. 

You'll also need to remember that spring is now. We're already seeing a lot of activity in the market, and we don't want you to miss out on the action. If you've been thinking about buying or selling, now is the time to make your move!

If you're selling, keep in mind that you're in a seller's market, so you have the chance to get top dollar in a sale. Buyers are motivated to purchase, so if your home is not selling, then you may have overpriced your home. 

Please reach out to us if you need any assistance with real estate in Salt Lake City. We're always willing to speak with you!

Should You Rent or Buy a Home on the Wasatch Front?

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Recently, many people have asked us whether it's better to rent or to buy real estate. Today, we provide some tips to help you make the right decision in our current market.

There is really no clear cut answer when it comes to the question of renting or buying. In 2008, our peak median price in Salt Lake County was $256,000; of course, our market began a steady decline shortly after and we had a four-year downturn. During that time, in winter of 2012, the median price had dropped to $190,000. If you wanted to make a general statement about the market during that time, you could say that most people lost about one-third of what their home was worth. 

However, since the winter of 2012, the market has made a strong comeback - the market bounced off the bottom in only six quarters. Now, we are 88% of where the market was at the peak back in 2008. 

So, given this information, is it safer to buy or to rent in Salt Lake City? 

The reality is no one has a crystal ball, and trying to time the market can be dangerous. It's very tough to perfectly hit the peak and bust times.

If you're trying to decide whether to rent or buy, you need to examine the facts of the market. At the moment, it's a phenomenal time to buy real estate. Median price in Salt Lake County is currently at $250,000, interest rates are at historic lows, and the market is in a very stable place. When looking at Salt Lake's demographics and market trends, you'll see that we are experiencing solid job growth, have some of the lowest unemployment numbers in the country, and have some of the strongest appreciation rates among other cities our size. 

If you can find low rates, strong appreciation, and strong market fundamentals in any area, you have a very good reason to purchase real estate. Salt Lake City has a very cyclical spring market - we usually see most of the year's appreciation between the months of March and July. In our opinion, right now is the best time to buy! 

If you would like to discuss this topic further, or if you have any real estate questions of any kind, don't hesitate to give us a call or shoot us an email at any time. We would love to assist you!