People come to Salt Lake City from all around the country – and the world – because of the outdoor activities that are offered there. It is a good place for younger people who love to hike and ski, and it is great for retirees who want a pleasant mountain climate for their golden years. It is just a beautiful city for everyone.
Because of this, Salt Lake City is a great place for real estate and for buying and selling houses. People want to make this city their permanent home. They are buying all types of houses – both ready to move-in and fixer-uppers and everything in between.
This article will help you to learn more about the area in and around Salt Lake City. It will give you some ideas about real estate and buying or selling your home. You can also get more information if you do research on the subject.
Housing Market Trends in Salt Lake City
The median sales price in the city fell by about sixteen percent from April of 2022. It is still an extremely competitive market with homes in the range of about five hundred thousand dollars. That is down from about five hundred forty thousand dollars.
The number of houses that were sold over the selling price has decreased by about thirty five percent from last year. There was an increase of about ten percent in the number of homes that sold below the asking price. This means that you should be able to get a home for under the selling price if you were to move there now.
There were slightly more than one hundred sixty homes sold in April of 2023, which was a decrease of about thirty five percent from the same time in 2022: https://www.doorloop.com/blog/the-salt-lake-city-real-estate-market. Although it was down from 2022, it was up from January, February, and March of 2023. There were about nine hundred fifty homes for sale in April of 2023.
The median days those houses on the market were up from 2022. Then it was just a week, in 2023 it was twenty-four days before homes went into contract. Homes are still selling faster than in February of 2023.
Out of fifty states, Utah ranked twenty-eighth in bank foreclosures on homes in March of 2023. There were 1.3 million homes in Utah in 2023, but only one hundred seventy-five went into foreclosure. This is about one in sixty-five hundred houses.
Factors That Could Affect the Real Estate Market in Salt Lake City
The city’s economy is one thing that can affect the real estate market. The leading trade is the healthcare services, followed by government, trade, transportation, and utility services. All these services play a key role in the economy.
The unemployment rate there was 2.5% in March of 2023, which was lower than February. This makes the economy prosperous and robust. This influences the real estate market by making it more robust, as well.
Usually, in a city that has a healthy economy, the housing market is also healthy. People with jobs that are stable are more likely to invest in real estate. They feel that they can afford it and want to provide for their families.
There are government policies and regulations that can affect the market, too. Legislation can influence the prices of homes and the demand for housing. Things such as tax deductions, credits, and subsidies can affect it, as well.
The composition of the population in the city also has an effect on the market. This information includes age, gender, income, race, and even migration patterns can show different trends in real estate. The more people that move into the city the more demand for houses, which will drive the prices up and the inventory down.
One of the biggest factors that affect the housing market is interest rates. In May of 2023, the average interest rate for home mortgages was 6.39%. The federal government expects this rate to continue to rise in the coming months.
Types of Homes
There are three basic types of homes that you can buy in the city. You could choose new, turnkey, or fixer upper. New homes are those that have just been built, turnkey homes are those who have been remodeled or restored, and fixer uppers are those that need work done on them. Different people choose several types of homes depending on many factors.
The biggest factor is price – new homes and turnkey homes are going to cost more for the same square footage than fixer uppers. This is because you will have to spend more time and money on the fixer uppers. The others have already had the work done for you.
Most fixer uppers need only a small amount of work done. This could include painting, drywall repair, new countertops in kitchens and bathrooms, and new plumbing fixtures. Sometimes, the work can be considerably more than that, but it could be worth it depending on the price of the home.
Do Experts Predict a Real Estate Market Crash in SLC?
Many people believe that the market could crash soon in Salt Lake City. Experts think differently and believe that there will be a slowdown, but not a crash. They feel that a market crash will not affect this city for a few reasons.
One reason that they think the crash will not affect them is a low housing inventory. Earlier in 2023, the National Association of Realtors said that the country only has homes ready for about three months. See here to learn more about the NAR. The market rarely crashes when demand is high, and supply is low.
There are fewer foreclosures right now which means that homeowners have more equity in their homes. They also have stronger finances which means that there is a lower risk of foreclosures. This means that the market is less likely to crash here.
There are also stricter lending requirements that are in the industry now. Lenders expect a better credit score than in the early to mid-2000’s. They also expect a better overall credit history because there are more buyers, and they can be more discriminating.
The housing market in Salt Lake City is doing well and it seems that it will continue to do so. All the marketing factors that affect housing in SLC are going in favor of that. Salt Lake City seems like it would be a great place to live with housing prices that are about the same as in the rest of the country.