Online Calculator | Salt Lake Real Estate Condition After The Housing Boom

Salt Lake Real Estate Condition After The Housing Boom

For real estate agents, and some home owners, the housing boom was great. Home values skyrocketed, and people who sold at the right time made the easiest money of their lives. But, those boom days are long gone, and the reality of the Real Estate in Salt Lake Utah market is one of decline. Most of us now wish that the housing boom never happened.

Where would home sales and prices be if market conditions stayed stable and constant? The red line shows an imaginary figure of where annual home sales in Salt Lake City would be if they increased by exactly 2% each year. There would have had about 4,750 single family home sales this year if this were the case. This is approximately twice the number of home sales more likely expected to be somwhere around 2,400.

The real estate market in Salt Lake has been in a roller coaster ride. But due to economic recovery and home buyer’s tax credit, it is still considered weaker than the average rates. For buyers, this is a an oppotunity to take advantage of the low prices. For investors, this is the perfect time to deal with properties but be careful for competition is increasing. For sellers, it is best to be patient because this is still the buyer’s market.

They would still be too high compared with home price averages from 1998-2001 if Salt Lake home prices increased by exactly 3% every year. The yellow and red lines show what “average” home values would be, while the blue and green lines represent the median values. Under this model, average home prices in 2007 were about 28% too high. This year they are still nearly 12% above the turn of the century adjusted for inflation levels.

The SLC Real Estate market has come down a long ways over the past three years, but with the way things are looking, it looks like Homes in SLC will see further price declines over the next year.

 

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