This guide covers buying a house in Salt Lake City Utah, and how to get approved for a mortgage. Breaking Down the Numbers: A Comprehensive Look at the Salt Lake City Real Estate Market. Are you curiously interested in learning about the real estate market in Salt Lake City? The cost of living index in the Salt Lake City area is 96.4 (the national average is 100). It is less expensive to live in Salt Lake City than it is to live in other parts of the country. Several programs and initiatives help make housing affordable for low- and moderate-income families.
With home prices on the rise, now may still be a good time to look into investing in the Salt Lake City housing market. Whether you’re contemplating buying your first home or investing in a rental property, there are still opportunities for growth in this market.
This blog post looks at everything from home prices to rental rates. Whether you’re a buyer or seller interested in keeping up with current trends, dive deep into the Salt Lake City real estate scene! As one of the fastest-growing cities in America, it’s no surprise that its housing market is booming in some areas, but some consider it an “Iffy” market. But what is happening in this vibrant city’s property landscape? In the following paragraphs, we will cover buying a house in Salt Lake City Utah.
Overview of Buying a House in Salt Lake City Utah Real Estate Market
The Utah housing market report for closed sales and median sales price reveals a mixed picture of the state’s real estate industry. Between February 2022 and February 2023, seven of the 23 counties registered an increase in closed sales, while sixteen reported a decline, according to data provided by the Utah Association of REALTORS®. Also, there was a similar trend in median sales prices, with nine counties experiencing an increase and fourteen counties experiencing a slump.
The data shows that the state’s monthly and year-to-date figures have declined significantly. There were 3,431 units sold in February 2022, but only 2,676 units sold in February 2023, a 22% decrease. Likewise, the year-to-date (YTD) figures for 2022 and 2023 showed 6,624 and 4,841 units sold, respectively, representing a 26.9% decrease.
It was $502,000 in February 2022 but dropped to $464,000 in February 2023, a 7.6% decrease. The median sales price for 2022 and 2023 was $494,970 and $460,000, respectively, representing a 7.1% drop from the previous year. According to the data, month-by-month and year-to-date figures indicate a challenging real estate market in the state, with fewer units sold and lower median sales prices. If you should decide to buy, before you begin looking for a home and during the process, we have vast experience working with buyers to get them ready to purchase their dream home.
Buying a House in Salt Lake City Utah Forecast
Closed sales in Beaver County and Carbon County rose by 60.0% and 25.0%, respectively. On the other hand, closed sales in Daggett County decreased by 100%. Piute County and Carbon County saw a rise of 20.0% and 32.4% in median sales prices, respectively, while Garfield County saw a decline of 64.5%.
In Salt Lake County, which has the highest population in Utah, closed sales and median sales prices declined by 24.0% and 4.0%, respectively, between February 2022 and February 2023. The closed sales and median sales price in Summit County, known for its ski resorts and scenic beauty, decreased by 58.6% and 10.3%, respectively.
Utah has seen a mixed housing market, with some counties experiencing a surge in closed sales and median sales prices while others are declining. It may indicate a need for uniformity in the real estate industry across the state. However, despite the fluctuations, the market remains strong in some counties, and it will be interesting to follow how these trends develop.
Past Housing Market Trends in Buying a House in Salt Lake City Utah
To understand the current real estate market in Salt Lake City, it is important first to look at some historical trends. The average median home value in Salt Lake City has increased steadily over the past few years, from $205,000 in 2013 to $225,000 in 2016. This past trend is expected to continue as the population of Salt Lake City grows. The average rental price in Salt Lake City increased over the past few years, from $1,200 in 2013 to $1,500 in 2016. This is due to the increasing demand for rental units as more people move to the city.
The vacancy rate for apartments in Salt Lake City has remained relatively stable over the past few years, hovering around 3%. This is a good sign for landlords, as it indicates that there is still high demand for rental units. However, this also means that competition for apartments is fierce, and rents will likely continue rising.
Several factors are driving these trends. The population of Salt Lake City is increasing as more people are moving closer to the city for work or leisure. The city’s economy is also strong, with job growth remaining steady. Another factor that contributes to affordability is the city’s relatively low cost of living.
Home Prices of Buying a House in Salt Lake City Utah
In recent years, the Salt Lake City real estate market has increased. The average price of a local home in the city has increased significantly while the total number of homes on the local market has decreased. This trend will likely continue in the coming years as more people move to the city for its many amenities.
If you’re contemplating buying or selling a home in Salt Lake City, it’s important to be aware of these trends. Here’s a closer look at some of the most notable housing market trends in the city:
Again, prices are rising even as we see a slight decrease in some areas. In the past few years, the average home price in Salt Lake City has increased significantly. According to Zillow, the median home value in the city was $355,000 in September 2019, an increase of nearly 13% from the previous year. This trend is expected to continue as demand for homes in the city remains high.
Population Growth on Buying a House in Salt Lake City Utah Real Estate Market
Some different factors impact the real estate market, and population growth is one of the most important. As the city population of an area grows, so does the demand for housing. This rise and increased demand can lead to higher prices and more home competition.
Recently, in Salt Lake City, we’ve seen population growth that was outpacing the national average. According to the U.S. Census Bureau, the Salt Lake City metro area grew by 1.7% from 2010 to 2017. That’s nearly twice the national rate of 0.9%. This population growth is positively impacting the real estate market, as we’re still seeing more buyers.
As the population of Salt Lake City continues to grow steadily, the demand for housing will continue to increase. This will have a beneficial positive impact on the real estate market, as prices will likely continue to rise. Also, from past population data, Salt Lake City grew by 1.7% from 2016 to 2017 and another 2.0% in 2018. This was great news for the real estate market, as an increase in population usually leads to an increase in demand for housing.
Types of Properties on Sale in Salt Lake City Utah
SLC is home to a variety of properties, from single-family homes to apartments and condos. There are a few important factors to consider when choosing the right property for you, including price, location, and amenities. The current local trend is that we are still seeing growth as we reach back and compare past data.
Single-family homes are still SLC’s most popular property type, accounting for nearly 60% of all sales. These homes offer buyers more privacy and space than other types of properties. They are also usually located close to schools, parks, and other amenities.
Apartments and condos are SLC’s second most popular property type, accounting for around 30% of all sales. These properties offer buyers a more affordable option than single-family homes, as well as a lower level of maintenance. They are many times located close to shopping, dining, and entertainment options:
Is Buying a House in Salt Lake City Utah a Good Investment
Buying a house in Salt Lake City Utah is a great investment. Whether buying a single-family home,, townhouse, or condo, you will not go wrong buying real estate in Utah. These attached dwellings usually have common spaces that the homeowners association takes care of, making life a little easier for residents. Land for sale is always an option for those who desire to build their dream home from scratch. With so much open space available
- Single-family homes
- Multi-family home
- Condos and townhomes
- Land for sale
When it comes to properties listed on the market in Salt Lake City, there is a good variety to consider. Whether you’re looking for a local single-family home, a multi-family dwelling, or even just some land to build on, you’re sure to find what you’re looking for in this city. Let’s look a little closer at each of these types of properties.
Single-family homes are, as the name implies, standalone residences. These are the most commonly sought out types of property on the market, and they come in all shapes and sizes. Whether you’re looking for a cozy small bungalow or a spacious grand estate, you will find something that suits your needs in Salt Lake City.
Multi-family homes are perfect for those who want to live close to relatives or friends. These can be anything from duplexes to apartment buildings, and they offer the added benefit of income potential if you choose to rent out some or all of the units. Condos and townhomes are also great options for those who want low-maintenance living without giving up their privacy.
Affordability Buying a House in Salt Lake City Utah
Despite being on the rise in recent years, Salt Lake City’s rental rates are still relatively affordable compared to other major metropolitan areas. The average rent for a 1-bedroom apartment increased by 4% to $1,345, and the average rent for a 2-bedroom apartment increased by 1% to $1,629. Although these rates are slightly higher than the national average, they are still lower than those in cities like New York, San Francisco, and Los Angeles.
Numerous factors contribute to the affordability of rental rates in Salt Lake City. One of the most vital factors is the city’s strong job market. The low unemployment rate in Salt Lake City is just 3.5%, significantly lower than the national unemployment rate of 4.4%. More people are employed and able to afford rent payments.
According to the latest Census ACS 1-year survey, Salt Lake City’s median household income in 2021 was $81,307. The median household income in Salt Lake City is $1,858 higher than the median household income in Utah and $11,590 higher than the median household income in the United States. In September of 2023, they will release metro income data for 2022 (including Salt Lake City’s median household income).
Economic Forecast for the Real Estate Market
The current economy is positively affecting the real estate market in Salt Lake City. Strong job growth is boosting demand for both buying and renting homes. Apartment vacancies have reached their lowest level in years, and prices are rising. Salt Lake City’s median home price has increased by 6.2% over the past year and is expected to continue to rise.
Over the next five years, Salt Lake City is predicted to grow by 1.9% annually, which will help to keep vacancy rates low and prices high. Increasing interest rates could cause fewer people to buy homes or delay their purchase until rates decrease again. As rates rise, borrowing money for a mortgage will become more costly.
As people decide to sell more homes coming on the market than buyers looking to buy them, prices will likely go down. This is already happening in places where the housing market has cooled off. Assuming that these factors don’t have a major impact on the market, we still expect prices to continue to rise in most areas across the country. Salt Lake City should see healthy price growth in existing homes and new construction.
In Summary on Buying a House in Salt Lake City Utah
Salt Lake City is an attractive market for real estate investors, as it boasts strong population figures and a stable economy. With rising home prices and increasing rental demand, this area looks poised to remain a hot spot in the years ahead. By breaking down and looking at the data into smaller chunks to gain greater insight into the market’s performance, potential investors can more easily identify areas of opportunity that fit their specific goals. Whether you’re looking for short-term or long-term investments, Salt Lake City could be a great choice.
With the ever-changing real estate market and its effects on Salt Lake City, it is important to understand all the intricate factors that come into play when investing in this area. By taking a comprehensive look at the median home price, rental rates, population trends, job growth, and more, we can get an overall picture of how this market is performing.
Whether you are seeking a place to call your own or want to invest in property here, understanding these key data points can help ensure that you make informed decisions and reap maximum rewards from such investments.
The local real estate market in Salt Lake City is looking strong and generally holding steady from looking at data. Prices are rising due to population and job growth, and there is no reason to expect this trend to stop anytime soon.
We can take you through your home loan’s buying and financing process. We also can connect you to title companies, home inspectors, loan officers, attorneys, and real estate agents in your area that can help as needed. Call or text Ronda Butts at 407-460-7999 or email at ronda@gustancho.com for more information and further assistance. Ronda is an experienced referral agent, a dually licensed real estate agent, and a mortgage originator. She has successfully guided many homeowners through obtaining a home on both the lending and real estate side. She does not represent buyers or sellers but offers free consultation in 48 states at Gustan Cho Associates by connecting homeowners, buyers, and sellers to the needed sources.
