September 2018 RE Report Card for Salt Lake County
Housing sales in Salt Lake County are softening a bit for the post-summer as expected but still very strong due to limited inventory, particularly at the lower price ranges. Homes are sitting on the market at an average of 34 days.
The median home price in Salt Lake County is $337,480 with a projected 1-yr appreciation at a healthy 4.30 percent. This is right in line with the 43-yr historical appreciation rate of 4.25% leaving little doubt that we are not in a housing bubble.
With a population of 1.12 million, Salt Lake County has 331,000 renters of which nearly 85,000 can afford to purchase. Unemployment rates in Utah are at an historic low of 2.79% creating higher wages to help offset the rising housing prices. Average annual income is Salt Lake County is nearly $75,000, which is $20,000 over the national average. Annual potential first-time home buyers (ages 27-35) are projected to climb over 30,000 just in Salt Lake County alone. We have plenty of qualified buyers.
Great time to buy AND sell!
It’s not often you hear that both sides of the transaction are hot, but this is not a typical market. The housing shortage is helping sellers get top market value for their homes. On the buyer side, a $337,000 single-family house purchased today is expected to be worth nearly $385,000 in 5 years. A 5-yr gain of over $47,000. Investors and primary resident homebuyers should not be worried to put their money down on a home in Salt Lake County right now.
Salt Lake County currently has over 2,200 homes on the market which is a slight increase from the summer months but still well short of the demand. We need more homes on the market, particularly in the lower price points.
This is a great time to sell a starter home and move up, even in the same Salt Lake-area community.
Loan Approval is a Must
Getting fully approved for a home loan is a must in this tight market. A loan approval requires the loan office to collect and verify all the loan application documents and funds to ensure a buyer can actually close on the offered amount. At Intercap Lending, we provide a guaranteed loan approval, which provides a $1,000 payment to the seller if we are unable to close a loan of an approved buyer due to any fault on our part.