Did you know that in April 2022, the median price of a home in Utah was over $534,000?
With house prices continuing to rise, potential buyers may be curious about when the best time to get into the real estate market is. Potential investors may be curious if this is a good time to invest in this market.
Well, this guide will reveal the current Utah trends in real estate.
One thing that you should expect in the Utah housing market is to have a shortage in inventory. If you have been paying attention to this state's real estate market over the last decade, you know this is not a new problem.
From 2010 to 2020, Utah was short about 44,500 houses compared to the state's demand. This is a problem in almost every state in the country. However, Utah happens to be one of the worst-hit states when it comes to this.
What does this mean? Because so many people want to move to Utah, the inventory supply has failed to keep up with this demand. As a result, the listing prices of houses are going to be higher.
As a counter to the above report, one thing that could help balance that demand is the current mortgage rates. As of December 2022, the average mortgage rate for 30 years fixed is 6.33%.
Compared to just one year prior, the interest on mortgage loans has nearly doubled. In December 2021, the average mortgage rate for the same terms was around 3.17%.
What does this mean? It means that it is getting much more difficult to financially afford a mortgage loan.
The same buyers that could afford to pay the interest on a loan that would get them a $500,000 house would have to pay a lot more in interest payments to get that same $500,000 house.
It could be the difference between having to pay $150,000 in interest fees compared to paying $300,000 in interest fees over the next 30 years! So, those that are not willing to financially cripple themselves may hold off on buying a house at those same prices with these new rates out there.
Buy Low in Salt Lake City?
For those that are considering a home to use as an investment, you may want to consider Salt Lake City.
Why is this? Because that market appears to be cooling down. In 2022, the median price of homes in that area went down by as much as 32%. So, if you like that area, there is a better opportunity to jump in now compared to last year.
Follow More Trends in Real Estate
These are some of the biggest trends in real estate that you should be aware of. Consider investing in the Salt Lake City area; remember that the housing inventory has been short for years in Utah and that mortgage rates are higher than ever.
Do you need help reading through Utah market trends? Message us today to see what we can do for you.