Utah is a great place to live! Breathtaking mountains, family friendly neighborhoods, a solid economy, what’s not to love? And because Utah is such a great place to live, we’ve seen a strong housing market for the past couple of years. 2016 was no different. It was an awesome year for real estate.
Here’s a couple of reasons why:
17,913 units were sold, which is only about 100 below the all time high of 19,000 units.
Median sales price for a single family home was $295,000. In inflation adjusted dollars that the highest price ever.
Home prices are now just slightly above what they were 10 years ago before the housing bubble burst and the great recession. So the price recovery is considered complete. (*Hallelujah!*)
2016 was a great year, but let’s look ahead and have an honest conversation about 2017. What are the market predictions for Spring and Summer 2017? Well, it’s kinda mixed. It’s still looking to be a strong market, but it’s also beginning to normalize, so we most likely won’t be seeing the same type of fast rising home prices or low mortgage rates.
Here’s the housing forecast for the next 6 months:
Slight up-tick in mortgage rates. We knew it was coming, the low rates we’ve been enjoying look like they are finally coming to an end. But luckily, rates are not expected to rise too significantly during 2017.
Appreciation will start to slow. Prices aren’t expected to drop, but 2017 likely won’t see the large percent increases that were typical in 2016. It will likely will be somewhere around 5-7% higher.
More millennials will move to home ownership. In fact 17% of Utah’s population are millennials, higher than the national average. In 2017 and the years to come, these first-time homebuyers will be reaching prime home buying age, which can keep Utah’s housing market healthy.
Low inventory on the market. There just aren’t enough available homes on the market to satisfy the increasingly high demand. Homes that do come on the market, usually do not stay on the market long.
So overall, Utah’s housing market should remain healthy in the next 6 months, but we do see it beginning to slow a bit in comparison to previous years. But what does all this mean for you?
Well, whether you are buying or selling, Spring and Summer is looking like a good time to dive into the housing market. Sellers can look forward to low inventory and rising prices. And while it’s still looking to be a tight market with low inventory, buyers should be able to enjoy reasonable interest rates.
So if you've got that real estate Spring fever, we’d love to talk with you. Call a member of the BHURDinUtah team today and we’ll work with you to get you on the track to your new home.