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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.
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!
