States in the West are expecting some of the strongest 2019 Housing Market activity in the country. The Utah housing market is near the head of the pack. The government-backed mortgage loan company Freddie Mack has named Northern Utah one of the top housing markets in their year-end Multi-indicator Market Index. “Housing markets such as Salt Lake City, Provo, and Ogden have strong buyer demand and they’re also still largely affordable for the typical family looking for a median-priced home,” states Len Kiefer, the company’s deputy chief economist.
Utah Housing Market Rise
The Utah housing market rise has not been meteoric. However, the rate is impressive nonetheless. Between 2010 and 2014, Utah went from the 11th worst market in terms of the percentage of mortgage loans with negative equity to the 13th best. In the same time span, the foreclosure rate dropped from 3.3% to 1.2%. Utah has long since recovered from the recession, and all housing market predictions point to sustained growth.
Our top ten rankings for the best investment real estate markets for next year listed not one but two different metropolitan areas in Utah. Utah’s economy has been coming on strong in terms of enticing hi-tech and manufacturing industries. It has recently been at the frontier of advanced manufacturing while also focusing on energy and information technology. Three of Utah’s cities (Salt Lake, Provo, and Ogden) made the list of “The Hottest 15 Metros for Advanced Industries” released last year from Brookings, a website devoted to independent research and policy solutions.
Check out the Utah Housing Market Predictor to Compare and Contrast this year’s forecast
Utah ranks as one of the top states in job growth. It is holding steady with strong home prices, solid housing equity, and low default rates. However, through the first quarter of 2016 sales in the state have been down. This is due to weakening demand from a lack of inventory. There simply is not enough housing to keep up with those looking to buy. Rental prices mirror what is happening with home sales; prices keep climbing. The rental cost averages throughout the state are on par with the rest of the country.
Craigslist Rental Listings
However, a look at rental listings on sites such as Craigslist Salt Lake City shows that the cost for a one-bedroom apartment in a specific highly sought-after market is well above national norms. While the lower sales numbers are something that must be monitored, they are not that concerning. If sales were declining as a result of job cuts then this would be cause for alarm. Sales declining due to lack of inventory is both good and bad. High demand and low inventory are good for sellers and bad for buyers as home prices maintain or increase in value.
The Salt Lake City real estate market had near historic growth last year. In 2015 there were 13,323 existing single-family homes sold in Salt Lake County. This was the highest level in ten years and the 3rd highest in the county’s history. The number of single-family homes sold last year brought in approximately $4.1 billion, a 22% year-over-year increase. With little change expected in the city’s market conditions, Salt Lake looks to again be one of the top Utah real estate markets. Salt Lake City is the anchor in Utah’s advanced industry zone. The region specializes in practically everything related to information technology and medicine. Along with positive job opportunities, Salt Lake City is also host to several cultural events, festivals, and performing arts. Grantsville, Erda, and Stansbury Park are some of the hottest areas located in the Salt Lake area.
Valuable Markets in Utah Housing Market
Some of the more valuable markets in the state are the Sandy and Park City real estate markets. The suburb of Sandy has seen a cool off as of the past year, but values still rose 6.4% to $267,000. Park City has more of an elite housing market with median home values of $679,700. It relies mostly on tourism, home to two major ski resorts and the nations largest independent film event, the Sundance Film Festival. Forbes Traveler Magazine has named Park City as one of the 20 ‘Prettiest Towns’ in the United States. More shocking than the sticker cost is that the housing is moving at a remarkable clip. In the past year, home values rose over 10%. Rental costs in both markets are some of the highest in Utah, with Sandy coming in at an average of $1,562 and Park City at a staggering $2,982.
Provo has quickly become one of the most desirable places to work, live, and raise a family in Utah. The median home value for the Provo real estate market is $205,600. This is one of the hotter markets with the home values rising 8.4% in the past year, but rental units are still modest at $1,124 on average. Once dubbed the “Next Silicon Valley” by The New Yorker, tech-savvy Provo houses two venture-backed firms worth $2 billion or more.
Are you looking to stay near Salt Lake City but avoid the high price tag? Look to West Valley City. West Valley City home values are a steal at $177,200. Like Provo, this real estate market has seen a lot of activity in the past year. Because of this, inventory problems seen throughout the state are becoming prevalent in this market as well.
Ogden real estate is one of the most affordable markets in the state. Median home values in the city are $125,500, and rental prices in the market are some of the lowest in the state at only $952. It has experienced strong income growth as well as low unemployment in recent years prompting Newsweek magazine to declare Ogden a “middle-class oasis,” and data compiled from the U.S. Census shows that Ogden has the narrowest wage gap (the difference between rich and poor in terms of income) in the nation. The proximity in relation to Salt Lake City means that Ogden benefits from the influx of advanced industries. In fact, 11.3% of Ogden’s metro area employment is in advanced industry, slightly higher than Salt Lake City. This figure has been growing nearly 6% annually since the recession. As stated earlier, Ogden was ranked the number 6 housing market in the nation.
Another Honor Ogden Received
But this is not the only honor that Ogden has been bestowed recently. Last year Ogden ranked number 1 on the “19 Best Cities to Start a Family” list published by DatingAdvice.com. The website determined that Ogden overachieved in all of the desirable qualities of a family-friendly city, ranging from great schools, safe neighborhoods, and transportation to entertainment and dining options. Farmington and Kaysville are some of the strongest areas in the Ogden metro area.
The city of Moab carries a median listing price of $240,000, but the reason that this is a desirable market is for its outdoor recreation and scenery. Because Moab real estate is located on the Colorado Plateau just south of the Colorado River, there are many opportunities for outdoor recreation. This includes everything from Whitewater rafting, kayaking, road biking, rock climbing, base-jumping, to hiking and backpacking. Recently Moab has experienced a large upswing of second-home owners. The mild winters and pleasant summers have attracted many people to buy land around Moab and build their own homes.
What is Happening in the Utah Housing Market This Year
The lodging markets of Salt Lake City, Provo, Ogden, and other Northern Utah urban communities outpaced the country in 2018, regarding home-value gains. They’re relied upon to accomplish business as usual through 2019 and into 2020.
A week ago, we announced that Provo, Utah is one of the urban areas where recent college grads are purchasing homes in enormous numbers. This and different elements have prompted huge home-value gains in the Provo lodging market.
Be that as it may, Provo isn’t the main city in Northern Utah with a hot lodging market. The greater part of the urban areas in that district is outpacing the country at this moment, as far as year-over-year home value development. Land advertises in Salt Lake City, Ogden and Orem are additionally encountering better than expected value gains, starting at late-winter 2019.
Utah Home Prices Outpace the Nation
Home costs in Utah climbed quicker than the national normal in 2018, and during the initial segment of 2019. As indicated by Zillow, the middle home estimation for the territory of Utah ascended by 14% over the previous year (as of March 2019). The across the country middle rose by 7.2% during that equivalent year time frame.
The organization’s exploration group anticipated that Utah’s middle home estimation would ascend by another 8.5% throughout the following a year, extending into spring 2020.
Much greater additions were recorded inside the lodging markets of Ogden, Orem, Provo, and Salt Lake City. In those land markets, home costs climbed quickly over the previous year or something like that (see underneath).
Looking forward, the most recent lodging estimates recommend that these urban areas will keep on outpacing the country in 2020 — in any event as far as yearly home-value gains.
Solid Housing Forecasts for Salt Lake City, Ogden, Provo in 2019
As indicated by the most recent information, home costs in the real urban communities of Northern Utah have been ascending at a lot quicker pace than the country in general. Furthermore, there have been solid home-value estimates for the lodging markets in Salt Lake City, Provo, Ogden, and Orem.
We can see this unmistakable contrast by seeing middle home estimations over the previous year. Think about the distinction: The middle home cost for the U.S. ascended by around 7% in the course of recent months. Conversely, the middle home estimation in each of the four of the Utah Cities above rose by at any rate 15% over the previous year, as indicated by Zillow.
How about Odgen?
Ogden, Utah drove the accuse of an incredible 20% addition in middle house costs over the previous year. While land gratefulness is by all accounts moderating in that showcase, Ogden could have one more year of twofold digit value development in 2019.
Here is Zillow’s conjecture for the Ogden lodging market: “Ogden home estimations have gone up 20.0% over the previous year and Zillow predicts they will rise 12.5% inside the following year.” They likewise named this land showcase as being “hot” in spring 2019, in light of the normal time on the market, recurrence of value cuts, and different variables.
The diagram underneath, given by Zillow on April 1, 2019, demonstrates the shocking ascent of home costs in Ogden, Utah. It additionally demonstrates the organization’s estimate for this specific lodging market, into the spring of 2020 (green concealed zone).
The Northern Utah urban communities of Salt Lake City, Orem, Provo, and Logan likewise recorded twofold digit increments in their middle home estimations over the previous year.
Supply is Falling Short of Demand in Some Areas
In most real urban communities crosswise over Utah, the stock of homes available to be purchased is as yet insufficient to fulfill the interest from purchasers. This puts upward weight on home costs and prompts focused conditions inside these land markets.
Ogden, Utah is one of the more “extraordinary” instances of this free market activity irregularity. As of February 2019, the Ogden lodging business sector had about a 2.5-month supply of homes available to be purchased. That is well underneath the 5-to half-year level that financial analysts consider to be a decent market.
Salt Lake City additionally had about a 2.5-month supply of homes available to be purchased in February. In these and different urban areas crosswise over Northern Utah, the land market will in general support vendors over purchasers. For the time being, in any event. In the event that more stock winds up accessible over the coming months, it could tilt the scales.
Are Buyers Getting Priced Out of These Markets?
From a property holder’s point of view, rising home estimations are a major win. An acknowledging land market empowers property holders to assemble value. Be that as it may, some home purchasers will inevitably be “valued out” of these land advertises because of the better than expected value increases of ongoing years.
Forthcoming first-time purchasers, specifically, frequently battle to stay aware of rising home estimations. What’s more, with most lodging business sector figures recommending a proceeded with ascend in Utah house costs, the issue could intensify in 2020.
As of now, we’ve seen a decrease in deals over this district. That could be somewhat because of the enormous bounce in costs (and a relating drop popular).
A January 2019 article from The Salt Lake Tribune expressed: “Flooding costs and constrained supply pushed home deals on the Wasatch Front (which incorporates Ogden, Provo, and Salt Lake City) to their least level in three years, with Utah’s urban areas considering critical to be lulls as 2018 finished.” Be that as it may, there’s some uplifting news for home purchasers. Home loan rates have plunged in the course of recent months.
Apartment Hunting in the Utah Housing Market: Things You Should Know
When you first start looking for a new apartment, there is no way to know what lies ahead. What costs will you face? Where are the good neighborhoods? What qualities should you look for in a new home? From experience, we can tell you how necessary it is to create a list of what you need before you begin your apartment hunt in the Utah housing market. To help you out along the way, we have compiled a list of helpful information to assist you in finding your new home.
This rundown incorporates area, property type, area, conveniences, and a lot more things that you feel is important before settling on an ultimate conclusion. We begin off with our agenda since we need to ensure that the spot we are living is one that will keep us happy and fulfilled. By ordering a rundown of requirements that the condo ought to have, you can scratch off the loft on the off chance that it measures up to your desires, or move to another in the event that it doesn’t. When you have gone along the rundown of prerequisites, we can begin our chase via scanning for the fitting area.
We can’t overemphasize how important location is. An ideal area for your apartment would be near transportation stops for all your everyday needs. No one needs to drive 30 minutes every day to get downtown and then fight traffic all the way back. Finding a good spot for transit cut shave an hour from your day sitting in commute traffic. Consider where you work, and how long it would it take you to arrive from the apartment you are considering.
Another thing to consider is the walkability of the area. Walkability is a measurement of how well disposed a region is when you’re traveling on foot to places you frequent. It encourages us to check whether a territory is effectively walkable to achieve day by day errands, for example, setting off to the basic food items, shopping, or eating at a café. In the event that you live in a region that has a Walkscore of 80, at that point that implies that the zone is genuinely walkable to achieve your everyday needs. In the event that the Walk Score is lower, at that point you may need to travel or your very own vehicle to achieve certain spots. On the off chance that you need to verify whether the area you will live at is walkable or what sort of score it has, visit walkscore.com to see the positioning.
Simply type in the location and see the score. Remember to look at your neighborhood also, Walkscore will give you a wrongdoing grade that will let you know whether the wrongdoing rate is better than expected or beneath normal relying upon the locale. This device will enable you to feel more secure about the spot you live and furthermore give you affirmation of your neighborhood. Make a point to search for school regions and different spots that may come up on the off chance that you have youngsters.
Search for Information on Hidden Costs
Normally when you conclude your choice on the spot you need to live, there are some charges that you may have disregarded. Without a doubt a 50 page contract can get exhausting actually rapidly, however that record contains more than exhausting words. It incorporates charges and costs you didn’t think you need to pay for. More often than not it might be a water use charge, one that is around $25 per month or a trash transfer expense that is around a similar cost. How about we not overlook how much it will be for link or web. The month to month charge you might know about, however there is a store or set-up expense typically. In the event that you have a pet, search for a pet store charge and a month to month pet expense for the cleaning they do. These expenses include up together top of what you’re now paying. Make certain to peruse the fine print, and ensure you explain every one of your costs with them.