September 2018 RE Report Card for Utah County
Housing sales in Utah 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 Utah County is $345,260 with a projected 1-yr appreciation at a healthy 3.96 percent. This is below the 43-yr historical appreciation rate of 4.41% leaving little doubt that we are not in a housing bubble.
With a population of 592,300 Utah County has 164,200 renters of which 41,380 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 Utah County is $75,457, which is $23,000 over the national average. Annual potential first-time home buyers (ages 27-35) are projected to climb over 13,000 just in Utah 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 $345,260 single-family house purchased today is expected to be worth $411,519 in 5 years. A 5-yr gain of over $66,000. Investors and primary resident homebuyers should not be worried to put their money down on a home in Utah County right now.
Utah County currently has nearly 1,700 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 Utah County 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 officer 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.