By The real estate market in Utah has been extremely competitive. Prices are up almost 9% year-over-year, but have decreased 3% month-over-month. Long-term rentals are much more viable than they used to be. In this article, we’ll discuss how to invest in real estate in Utah.
Home prices are up nearly 9% year-over-year
The Utah housing market is experiencing a boom. As of early May, home prices were up nearly 9% year-over-year, and Utah’s economy is doing well. The state’s unemployment rate has dropped to the lowest since the Labor Department started keeping records in 1976. Meanwhile, income growth is strong, which should help alleviate the pinch of rising mortgage payments.
As a result, the housing market in Utah is a seller’s market. The current housing supply isn’t sufficient to meet the growing demand. The higher supply forces sellers to be more competitive, and this is reflected in the declining median list prices. But the Utah housing market is not going to crash. The market is likely to return to a seller’s market in the next six to twelve months.
The high price of homes is driving buyers away from the market, and a lack of new housing inventory is one of the primary reasons. Low interest rates and changing consumer attitudes are also contributing to the shortage. According to a recent report from the research firm Robert Charles Lesser and Company, there are only 3.3 months of inventory available. This means that demand for new housing will stay high and builders will have a hard time keeping up.
The Utah housing market will remain strong, as long as there is more demand for housing than supply. The number of people who want to live in Utah will continue to rise, and the population growth will contribute to a strong housing market.
Home prices have decreased 3% month-over-month
The housing market in Utah is in a seller’s market and there are currently more homes on the market than there are buyers. With the shortage of available homes, prices are likely to stay elevated. However, the rapid appreciation that occurred in recent years has slowed down. This may be attributed to rising financing costs and deteriorating affordability. Despite the slowdown, the competitive nature of the Salt Lake County housing market remains strong.
In August, Utah house prices decreased 3% month-over-month, compared to June. However, the overall price of a home in the state was still higher than in any other state in the nation. Utah’s housing market is being pushed by a number of factors, namely population growth and the Pandemic migration.
As the housing market cools off, the effects will be more regional in nature. The biggest drops will be felt in areas that saw larger gains during the pandemic. This means that a decrease in home prices will be more felt in the West and the Sunbelt.
While the overall housing market is experiencing a downward trend, Utah’s housing market remains relatively stable despite the recent recession. The number of homes for sale has dropped by as much as 27% in August. A significant portion of those homes are priced below market value.
Long-term rentals are more viable in the wake of the pandemic
The COVID-19 pandemic has sparked a housing shortage in Utah and has thrown the housing market into a frenzy. As a result, mortgage rates have risen for more than 70 percent of Utahns. And the median home price has increased to more than $500,000, with even higher prices in Salt Lake and Utah counties. And with fewer people able to afford homes, long-term rentals have become more viable than ever.
Rent in Salt Lake City has risen quickly. The COVID-19 pandemic has also taken a toll on commissions. But Fei’s income is still “decent,” so she doesn’t think she will have a hard time affording a small home. She’s also frustrated that her wages have not kept up with the rapid price increases. She earns an average of $60,000 per year, but her rent is nearly double what she earns.
After the pandemic, the economy began to recover. As the labor force participation rate rose, new jobs began to open. COVID restrictions were beginning to ease. As a result, the hiring and firing rates increased and the unemployment rate decreased. This boosted employee confidence.
In the wake of the pandemic, many investors are looking for alternative exit strategies. For some, a rental property portfolio has proven to be the best option.
Investing in real estate after the Great Recession
Real estate investing after the Great Recession will be different than investing in the boom times. For starters, it is not advisable to invest in luxury homes, because these types of homes may not sell quickly and are not likely to generate a profit. Furthermore, you should avoid investing in homes that are near freeways, railroad tracks, or electrical lines. You should try to find traditional houses that have better chance of selling. You should also have an exit strategy ready in case of any sudden changes in the market.
Another important factor to keep in mind when investing in real estate after the Great Recession is the inflation factor. A high inflation rate and high unemployment rate are known as stagflation. But real estate prices tend to keep pace with rising consumer prices. Therefore, they tend to be more inflation-proof than other investment choices. Real estate investments can be a great way for families to build generational wealth.
It is also essential to diversify your portfolio with different types of assets. For example, if you are a cash investor, you might want to consider investing in sectors that are recession-friendly, such as consumer staples, utilities, and healthcare. Alternatively, if you are interested in investing in stocks, you should focus on dividend-paying companies, which have historically been recession-resistant.
Buying a house during the pandemic
While Utah’s housing market is currently experiencing an increase, it’s also a time of high prices and low supply. During the housing boom, more people listed their homes for sale, but that’s now not the case. This means that houses are sitting on the market for longer than usual. During the housing frenzy, homes would spend five or six days on the market, but today they’re staying on the market for nine days. This indicates that Utah has an extremely strong housing demand.
Despite the high prices, home builders are still selling single-family homes, townhomes, and estates. Many builders have instituted safety protocols following the pandemic, so construction can continue without interruption. Despite the housing market’s slow recovery, Utah is seeing some of its highest housing sales since the recession. Prices are up, but inventory is low and multiple offers are common. This is great news for buyers. This means lower interest rates and shorter commute times for borrowers.
The pandemic has brought about a shortage of housing in the state, which impacted the real estate industry. Although COVID has prevented construction in most of the country, the disease has also highlighted a long-standing problem in Utah.
Working with a real estate agent
Working with a real estate agent when buying property is crucial to a successful transaction. A good real estate agent will help you get the most out of your purchase by negotiating the best possible price for your property. They will also handle all the paperwork, make sure you get the right mortgage and make the closing process go smoothly. Additionally, a good real estate agent will make selling your home in Utah as smooth as possible, allowing you to get top dollar for your home. In Utah, the average commission for a real estate agent is 6% of the selling price of the property, split 50-50 between the buyer and listing agent.
When buying real estate in Utah, it’s important to work with an agent who is familiar with the market, and who understands contracts and disclosures. A good agent can protect your interests, avoid making exaggerated statements and help you avoid making costly mistakes.
A real estate agent should be a member of a professional association and understand the market in your area. Members of these organizations adhere to strict ethical standards and are encouraged to continue their education. A good real estate agent will know which properties are worth the most money and which ones are overpriced. They should also be familiar with the neighborhoods and prices in your chosen area.
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