Table of Content
Where there are currently good-paying jobs, new residents are sure to move in. And that only puts more pressure on the Salt Lake City housing market. The very low crime rate in Utah compared to surrounding states is merely a bonus. The industry tends to spread out along the highways, and housing follows.
If you plan on commuting via train every day, your best option is the $83 monthly pass which can save you $70 or more. Riding the train is one of the more common methods of public transportation, and a day pass costs $6.25. You can also spend $5 and get a round trip ticket, and it’s popular amongst those commuting for work. Currently, roughly 27% of the population of Salt Lake City is below 18 and attending school.
Salt Lake City Market Is Everything Which California Isn’t
You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023. Let us look at the price trends recorded by Zillow over the past few years. Salt Lake City has a track record of being one of the best long-term real estate investments in the U.S. Since Oct 2012, Salt Lake County home values have appreciated by nearly 8.1%. The typical home value of homes in Salt Lake County is currently $589,910.
All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make.
Market Overview
The rapid appreciation witnessed over the past two years may have begun to decelerate as a result of rising financing costs and deteriorating affordability. This is nothing to worry about; rather, it indicates that the market is beginning to return to normalcy. Pandemic supercharged Utah’s housing market driven by historically low-interest rates and low unemployment rates. Continued historically low mortgage rates and a solid recovery from the pandemic predicted Utah's housing boom. 2019 was another great year if you owned property in Salt Lake County with the year again seeing record home prices and a high single-digit sales price increases. The median sales price for a property climbed 7.12% to stand at $342,000.
When that time comes, those who can’t comply may find themselves distressed, and well-positioned investors in Salt Lake City may be able to offer a helping hand. Local investors are lucky to have several viable exit strategies at their disposal, but none appear more attractive than building a proper rental property portfolio. Too many important market indicators are pointing towards becoming a buy-and-hold investor to ignore. With the right exit strategy, now is the perfect time to invest in the SLC housing market. Specifically, the new market landscape looks to lean heavily in favor of long-term investors, and those who position themselves well now will be glad they did in just a few short years.
Salt Lake County 2019 Annual Median Home Prices
This compares to 8852 homes sold in 2009, with a median home price of $233,000. And with a variety of affordable homes in high-quality neighborhoods, it is a market that is not yet closed to first-time home buyers. Is Salt Lake City going to be a sizzling real estate market for investors in 2021? Looking at the positive forecast, the annual appreciation rate is predicted to be between 10% to 12%. Utah’s rock-solid economy has provided a big help to the housing market.
In November 2022, Salt Lake County home prices were up 3.4% compared to last year, selling for a median price of $504K. On average, homes in Salt Lake County sell after 40 days on the market compared to 17 days last year. There were 729 homes sold in November this year, down from 1,489 last year. Over 50% of the renters in Salt Lake City spend between $1,000 and $1,500 per month. Salt Lake City rentals don’t just apply to apartments, and household rentals make up 48% of occupied homes.
The average home sale price in the third quarter was up 5.9% from a year ago to $627,503. In the third quarter of 2022, 7,134 homes were sold, representing a 31.6% decrease year-over-year. Fire risk estimates the risk of wildfires, based on the likelihood of burning in the future and the potential size and severity of a fire. Explore how many homes are likely to flood in nearby cities, compared to . Flood risk in Salt Lake City is increasing slower than the national average. The most expensive neighborhoods in Salt Lake City are Capitol Hill ($1,763), East Bench ($1,821) and Sugar House ($1,868).
Listings began receiving multiple offers, driving up asking prices and home values in the process. Escalating prices forced the Salt Lake City real estate investing community to rethink its best exit strategies in 2020. Instead of rehabbing, more investors turned to long-term strategies like rental properties. If for nothing else, low borrowing costs simultaneously justified higher acquisition prices and increased monthly cash flow potential. The new market created in the wake of COVIF-19 appears to tilt in favor of long-term strategies, and rental properties came out on top in 2020. As of July, the average rate on a 30-year fixed-rate loan was 2.87%, according to Freddie Mac.
Salt Lake City requires landlords to get a business license, even if they own one rental home. The fees that you are required to pay as part of the rental program depend on how well-maintained the units are. Eviction for nonpayment of rent can get someone out in two to four weeks.
The average homes sell for about 2% below list price and go pending in around 34 days. The average homes sell for about 2% below list price and go pending in around 47 days. The average homes sell for about 2% below list price and go pending in around 40 days.
The latest real estate investing content delivered straight to your inbox. Foreclosure Market Report, a total of 65,082 U.S. properties received a foreclosure filing in the first six months of the year. “That figure is down 61 percent from the same time period a year ago and down 78 percent from the same time period two years ago,” according to the report.
It is also an effective way to get around Salt Lake City, and light-rail, commuter trains, and city buses make it possible. Expect to spend roughly $13 per person or more on meals in Salt Lake City when eating out. Buying groceries is the most cost-effective and sustainable option for living well and saving money in Salt Lake. For example, a gallon of milk in Salt Lake City is $2.46, and that’s $1.10 below the national average. Taxable income is determined by subtracting all personal exemptions from the total income. In the state of Utah, you can claim a personal exemption of $579 for each of the dependents that you claim on your federal tax return.
Rising salaries, according to Matthew Gardner, will likely offset the majority of the potential hardship from higher mortgage payments. The state has a robust economy, the unemployment rate dropped to 2%, which is the lowest level recorded since the Labor Department started keeping records in 1976. The area’s economic outlook received a lot of support from the job sector, as employment held up and was on an upward trend. In fact, unemployment was better than the national average and improving. The improvement was enough to get excited about the area’s potential, and the Salt Lake City real estate investing community capitalized immediately.
Consequently, While up slightly year to date, the cost of borrowing institutional money is attractively low. As a result, the cost basis for real estate in Salt Lake City is lower than what median home prices suggest. At their current rate, mortgage rates will save today’s buyers thousands of dollars, and real estate investors will be able to pad their bottom line. At the very least, investors will be able to justify the latest bout of appreciation with much lower borrowing costs. Additionally, lower monthly mortgage payments mean landlords will be able to increase cash flow from properties placed in operation.
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