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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!
