Category: Salt Lake City Home Buyers

Buying a home in Salt Lake City

Is now a good time to buy a house in Salt Lake City?

Whether or not now is a good time to buy a house in Salt Lake City depends on your individual circumstances and goals. Here are some factors to consider:

  • The current housing market: The Salt Lake City housing market is currently cooling off after a period of rapid price appreciation. Home prices have started to decline, and the number of homes for sale has increased. This could make it a more favorable time to buy for buyers who are willing to act quickly.
  • Your financial situation: Can you afford the monthly mortgage payments? Do you have a down payment saved? Are you prepared for rising interest rates? It’s important to make sure you’re financially ready to buy a house before you make an offer.
  • Your long-term goals: Are you planning to stay in the house for many years? If so, then a slight decline in home prices now may not be a big deal in the long run. However, if you’re planning to sell the house in the near future, then you may want to wait until the market cools down even further.

Ultimately, the decision of whether or not to buy a house is a personal one. There is no one-size-fits-all answer. However, by considering the factors above, you can make an informed decision that’s right for you.

Here are some additional things to keep in mind:

  • Mortgage interest rates are rising: Mortgage interest rates have been rising steadily in recent months, and this trend is expected to continue. This means that your monthly mortgage payments will be higher if you buy a house now than they would have been a few months ago.
  • The economy is slowing down: The US economy is showing signs of slowing down, and this could lead to a decline in housing demand. If demand for homes falls, home prices could also decline.
  • The housing market is unpredictable: It’s impossible to predict with certainty what the housing market will do in the future. Even if experts believe that the market is cooling down, there’s always a chance that it could rebound.

If you’re considering buying a house in Salt Lake City, I recommend talking to a financial advisor or real estate agent to get more personalized advice. They can help you assess your financial situation and goals, and they can also give you more information about the current housing market.

Home Price Appreciation Is as Simple as Supply and Demand

We are told that interest rates will remain at historic lows for the foreseeable future.

Home price appreciation continues to accelerate. Today, prices are driven by the simple concept of supply and demand. Pricing of any item is determined by how many items are available compared to how many people want to buy that item and are able to access low interest rates. As a result, the strong year-over-year home price appreciation is simple to explain. The demand for housing is up while the supply of homes for sale and interest rates hover at historic lows

Let’s use three maps to show how this theory continues to affect the residential real estate market.

Home Price Appreciation Is as Simple as Supply and Demand | MyKCM

Map #1 – State-by-state price appreciation reported by the Federal Housing Finance Agency (FHFA) for the first quarter of 2021 compared to the first quarter of 2020:As the map shows, certain states (colored in red) have appreciated well above the national average of 12.6%.

Home Price Appreciation Is as Simple as Supply and Demand | MyKCM

Map #2 – The change in state-by-state inventory levels year-over-year reported by realtor.com:Comparing the two maps shows a correlation between change in listing inventory and price appreciation in many states. The best examples are Idaho, Utah, and Arizona. Though the correlation is not as easy to see in every state, the overall picture is one of causation.

The reason prices continue to accelerate is that housing inventory is still at all-time lows while demand remains high. However, this may be changing.

Is there relief around the corner?

The report by realtor.com also shows the monthly change in inventory for each state.

Home Price Appreciation Is as Simple as Supply and Demand | MyKCM

Map #3 – State-by-state changes in inventory levels month-over-month reported by realtor.com:As the map indicates, 39 of the 50 states (plus the District of Columbia) saw increases in inventory over the last month. This may be evidence that homeowners who have been afraid to let buyers in their homes during the pandemic are now putting their houses on the market.

We’ll know for certain as we move through the rest of the year.

Bottom Line

Some are concerned by the rapid price appreciation we’ve experienced over the last year. The maps above show that the increases were warranted based on great demand and limited supply. Going forward, if the number of homes for sale better aligns with demand and interest rates rise, price appreciation will moderate to more historical levels.

A Discussion on Multiple Offers at the Salt Lake Board of Realtors, Part 1 of 2

Here is Part 1 of an interesting discussion between members of a Salt Lake Board of Realtors panel and Shane Norris of the UAR forms committee discussing how to navigate multiple offers.

I think this should help clarify why every buyer and seller needs to use a real estate professional to bring the transaction to closing, especially now, while the market is so tight.

EPISODE NOTES:

The SL Board panel is joined by Shane Norris from the UAR Forms Committee to discuss how to navigate multiple offers including escalation clauses, multiple offer disclosure forms and other pit-falls for buyers and sellers to avoid.

  • Alicia Holdaway, Past President
  • Steve Perry, President-Elect Salt Lake Board
  • Jennifer Gilchrist, Director Salt Lake Board
  • Shane Norris, UAR Forms Committee, Chair PC Board Forms Committee

My Experience as a First-Time Home Buyer

My wife Melanie and I bought our house when I was 40 years old.  To some, that may seem a little late, but I was self-employed as a designer/craftsman building Craftsman and Prairie School furniture and money came in fits and starts.  Even then I thought taking on a house payment was a little risky, but Melanie was determined: it was time for a house.  We had two little girls and they needed a home.

We started out with very little knowledge about the process, or even really knowing where to begin.  We had seen a “for sale by owner” sign in front of an older home we had admired on 900 East.  We contacted the owner and he walked us through the house.  It wasn’t perfect, but it was affordable, so we put down our earnest money.

I really liked that house, but I was unaware that Melanie was not entirely sold on it.  I think that I was mainly glad that the “looking” part was over.  But it wasn’t over for Melanie, she was still looking; she had contacted an agent and was diligently looking for something better.  This turned out to be a good thing.

The agent Melanie found was a Godsend.  I had avoided this idea for a couple of what I thought were good reasons.  I just wanted to do it all myself and I didn’t want to have pay an agent.  I didn’t know that the seller pays the agent.  I also didn’t have access to or even know what was available or any idea other than to drive around looking for “for sale” signs wherever I could find them.  Having an agent changed all that; for the better.

Her name was Diana Woodside, and she was a classy older lady and an agent with Coldwell Banker.  I am forever grateful for her help; I am actually affiliated with Coldwell Banker now as agent myself because of her. 

She sat us down and took us through the whole looking/lending/buying process.  She helped us clarify what we wanted, how to look for it, and how to make it happen.  We realized pretty quickly that we were rookies and she was a pro.  She showed us homes in neighborhoods we weren’t even aware of.  She also introduced us to a couple of lenders who started us through the other process we had no real handle on: borrowing, something we knew we would have to face, but really didn’t know anything about.  We were clueless.

She showed us lots of houses, and the house we finally bought is where we still live on DeSoto Street.  The house is small, which I like, and I can see Nevada from the kitchen window, which I love.  I didn’t know how important that was until Diana sat us down and helped us clarify just what we were looking for.  We have raised four daughters here and it has become more than our family’s home; it is our anchor. 

While I am grateful for everyone’s help in what turned out to be a surprisingly collaborative process: Melanie, the lender, the title company, and our agent, Diana, I am forever especially grateful for Diana’s help; she took us through what can be a very daunting and complex process and made it easy for us; thank you, Diana, wherever you are.  She has inspired me to help other first-time buyers, and to share the wonderful experience we had because of her help.