We could use a few more housing options

In the most recent Salt Lake REALTOR Magazine, Adam Kirkham, Salt Lake Board of Realtors President, wrote an article stating that the housing shortages we are experiencing here in Utah, will be with us for a few more years.

The hot market in Utah has led to a higher demand for houses and that demand has outpaced the supply of homes available. The result, especially along the Wasatch Front and Back, is a bidding war with multiple offers on a single home and prices far above the original listing price.

Kirkham states that there are 28,000 households being created each year in Utah and those still do not fulfill the need required for all the buyers. According to the University of Utah, the housing shortage will persist over the next 3 to 4 years, possibly longer.

Many potential buyers and municipalities are looking at higher density housing and mixed use communities as the answer. Daybreak in South Jordan is one example many are looking 
towards.

Daybreak has a blend of townhomes and detached housing, all mixed together that appeal to all age categories. Some younger buyers are liking the prospect of no yard to care for, as well as many older buyers. 

The desired 1/2 acre lot of happiness from years gone by may not be everyone's American Dream anymore. As cities around the state adjust zoning requirements, we will see more and more affluent mixed use and higher density housing available. We are already seeing it here in Wasatch County. The 'one size fits all' rule does not apply to housing here in Utah where our population is growing considerably.

If you have any real estate concerns you would like to chat about, I would be happy to talk with you. If you are frustrated with the housing shortage, give me a call and we can figure out together what the best housing options are for you. 801-631-3430

Brought to you by Heath @ HeathsHomes.com

Have you been wondering what the big deal is about interest rates recently?

Mortgage Rates Outlook for 2018

It seems like we keep hearing about interest rates on the rise for this year. Let me share the latest forecast on mortgage rates by James Wood, real estate and economic development research specialist at the University of Utah, found in the February 2018 Salt Lake Realtor Magazine.

Dr Wood reports on several predictions for the 30-year fixed-rate mortgage from some of the largest housing and mortgage groups:

- The Mortgage Bankers Association predicts the rate will rise to 4.6 % in 2018.

- The National Association of Realtors expects the mortgage rate to be around 4.5 percent at year-end.

- Realtor.com believes the mortgage rate will average 4.6 percent over the year but reach 5.0 percent by year-end.

- Freddie Mac's forecast is for 4.6 % by year-end 2018.

- CoreLogic's consensus view from six forecasters has the rate at 4.7 percent in December of 2018.

So there we have it. We can expect mortgage rates just under or at 5 percent as 2018 progresses and that will help preserve favorable housing affordability for another year.

However, if you are planning to purchase a home this year, the sooner you start, the better. You will be able to get a better interest rate earlier in the year. According to Bankrate:

The average 30-year fixed mortgage rate on 1/31/18 was 4.38%

The average 30-year fixed mortgage rate on 2/7/18 was 4.44%.

The average 30-year fixed mortgage rate on 2/14/18 was 4.51%

Here are a few numbers for you to think about.

A super simple, online mortgage calculator tells us that the payment for a 30 year loan for $350,000 at 4.44% would be around $1761. The same calculator tells us that the same loan at 5% would be $1879. That is a $118 difference per month. (These are generalized numbers, a real mortgage lender can give you real numbers for your situation.)

If you are thinking about buying a home this year, give me a call and we can get the process started. We can get you pre-approved and ready to purchase as soon as we find the home you are searching for. 801-631-3430

PS, here is my post about 2017's rates. Pretty close forecast.

Brought to you by Heath Harvey @ HeathsHomes.com

Home sales and prices predicted to rise in 2018

Salt Lake City was named #6 in the Top 10 Housing Markets for the upcoming 2018 year by the National Housing Forecast. The list was made up of markets based on the largest sales and price gains. The report also predicts that 2018 home prices will be up from 2017's prices by 3.2%. To put that in perspective, 2017's prices were up 5.5% from 2016. We can expect more manageable home price increases as well as a modest acceleration of home sales for the upcoming year.

The other real estate markets to make the Top 10 list are; 

1. Las Vegas/Henderson/Paradise, NV

2. Dallas/Fort Worth/Arlington, TX

3. Deltona/Daytona Beach, FL

4. Stockton/Lodi, CA

5. Lakeland/Winter Haven, FL

7. Charlotte/Concord/Gastonia, NC, SC

8. Colorado Springs, CO

9. Nashville/Davidson/Murfreesboro/Franklin, TN

10. Tulsa, OK

What does this mean for Wasatch County?

Nationally, the low inventory of homes in 2017 drove prices high and made it difficult for buyers to purchase a home due to intense competition with other buyers. Even though that will subside in 2018 with builders catching up to the housing demand, it may take a little more time for that trend to be witnessed in Wasatch County. We live in a desirable location with talented and skilled craftsmen and contractors and my prediction is that their skills will still remain in demand in our valley for quite some time. Although the overall increase in the inventory of homes is expected everywhere else, it may take a bit longer to feel the effects here in Wasatch County.

Brought to you by Heath @ HeathsHomes.com

2017 predictions for Wasatch County real estate

The US Census Bureau recently released the news that Utah is the fastest growing state in the Union. We hit the 3 million mark in 2016. This growth is not just because we are the nation's baby making state, but also because it is an amazing place to live and Utah is experiencing a net inward migration.

The demographic director at the U of U says Utah's growth is not a rip roaring growth but a sustainable controlled growth as we emerge from a recession. James Wood, a senior fellow at the U of U, says there is a housing shortage in the state as we experience this growth. What does that mean for the real estate market in Utah and in Wasatch County?

James Wood states, "The number of new listings of “for sale” homes have been disappointing. Listings have lagged well below demand, limiting home buyer choices."

Experts that predict real estate market conditions expect 2017 to be very similar to 2016. If you are selling your home in 2017, you can expect to benefit from the housing market with quick sale times and many potential buyers interested in your home. If you plan on purchasing a home this year, you can expect to have quite a bit of competition with other buyers for homes you are interested in buying.

The Heath Harvey 2017 Outlook for Wasatch County shows a low inventory of homes for sale with a high demand of buyers. Home prices in the Wasatch Back will increase slightly along with interest rates. The market is still good overall for both buyers and sellers. Sellers will see a good return on their investment and buyers can still take advantage of low interest rates.

As the demographics of Utah and Wasatch County change and shape the real estate market and home buying experience, questions may arise. Please feel free to call me and talk about your real estate investment. 801 631-3430

Brought to you by Heath Harvey @ HeathsHomes.com.

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