Home buyers in Utah should aim to find the best mortgage rate in Salt Lake City and other parts of the state when planning to acquire a house, as average prices don’t seem to slow down anytime soon.
The median sale price for a residential property costs $347,000 based on research by the Gardner Policy Institute. However, as City Creek Mortgage and other experts noted, there is a possibility that it may rise by more than 50% to $700,000 by 2044.
Lack of Supply
Population growth combined with a lack of housing supply has led property values to increase exponentially. The research showed that nationwide prices in 1991 used to range around $125,000 before hitting $187,000. The higher number of citizens means that it greatly affected real estate prices, and caused them to increase higher than the national average.
Some local officials said that city councils’ approval for new development projects will be crucial to solving the housing crisis. In the meantime, it’s better to focus on finding the best mortgage lenders that can provide reasonable rates. Aside from population growth, the influx of luxury home buyers serves as another reason for more expensive prices.
Homes priced at $1 million and above rose almost 60% in May in five Utah counties. The Salt Lake Board of Realtors said that 257 luxury homes went for sale in Davis, Salt Lake, Tooele, Utah and Weber Counties in 2017.
Sellers in the five-county region also offloaded 110 properties so far between January and May. The stronger demand for high-end houses affects values for lower-priced properties, partly because many sellers take the opportunity to raise their asking prices given the high demand and low supply.
Utah’s population growth would surpass the five million mark by 2050, which means more people would need to buy homes. It’s best to consult with a mortgage lender to learn more about your options before prices increase at a rate that may no longer be affordable for you.