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.

Don’t Miss the Salt Lake Parade of Homes

Selling your Wasatch Front home? Get a free home value report

Buying a Wasatch Front home? Click here for full MLS access

Before I begin my report on the shifting market here in Salt Lake City, please don’t forget to check out the Salt Lake Parade of Homes. There are some absolutely amazing homes in that lineup, and even if you’re not buying they are really fun to go and see. We are lucky enough to have four of those listings in our pockets right now.

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Tickets will be running out soon.

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Please contact us if you would like access to tickets. They are a first-come first-serve basis, so please ask soon or we may not have any left for you.

Be sure not to miss our listings, which are right off of Dimple Dell and Sandy!

Please don’t hesitate to contact us to learn more details.

What’s the Difference Between an Improved and Approved Lot?

Selling your Wasatch Front home? Get a free home value report

Buying a Wasatch Front home? Click here for full MLS access

Today, I want to talk about lots and land in the Wasatch Front area. People tend to think of land just like they think of residential homes. They look at the information online, feel excited, and call us to build a house! However, it’s not that simple. There are a lot of factors involved with buying a lot, including if the property has been improved or approved.

When we ask if a lot is approved, we ask if the city has approved building on the lot. Does the zoning for the area fit the lot? Is the lot meant for a residential property? There is much to consider to ensure a home can be built on a lot.

Most of the lots for sale in Salt Lake County may be buildable but they haven’t been approved yet. It’s quite rare to buy a lot that has already been approved. You have to check in with the city because there’s a laundry list of things that have to happen before the home can be approved. You need house plans, paid permits, utilities, and so much more.

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Not all lots are approved to build on.

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You should also check to see if the lot is improved, which means the lot has had physical improvements added to make the property buildable. Some of these signs are not visible to the naked eye. However, if you see a green power box on or near the property, or if there is piping coming straight out of the dirt, those are signs that improvements have been made because you can tell that utilities have been brought to the property.

Subdivisions that are newly improved with roads, curbs, gutters, and sidewalks have lots that are most likely improved and approved. Some house plans might not have been approved yet, but most of them should be buildable. These subdivisions will be in rapidly growing areas, like South Jordan and Daybreak.

We often handle eastside Salt Lake projects and many lots purchased in that area are not improved or approved. Clients call all the time asking for a number, but the costs for improving a lot can vary wildly. We’ve had lots that cost more than $175,000 to improve, and that’s before you even build a house.

For example, there’s a lot right now on Kennedy Drive that’s listed for $160,000. That sounds like an amazing deal, but this lot has been for sale for years because $160,000 is a fake price. It’s going to cost hundreds of thousands of dollars to improve that lot. You will probably be half a million dollars in before you can even build on that lot.

If you have any questions about lots and land or about real estate in general, give me a call or send me an email. I would be happy to help you!