Utah is a great place to live, not only because of its majestic scenery and beautiful landmarks that cover the state, but also because it currently leads the nation in real estate appreciation.
This is significant because the latest data from January 2019 shows that home price growth has slowed in 33 states and 71 of the nation’s largest markets. While Utah’s appreciation has slowed somewhat when compared to last year, our 5% appreciation rate is still well above the 100-year nationwide average (which is 3.5%). Is this slowing rate of appreciation the burst of a bubble? Most likely not, because, unlike the conditions before the real estate bust in 2008;
Rising prices are a result of legitimate demand (people want to live here)
Builders are being careful not to over-build
Risky/problematic loans are largely unavailable
The vast majority of home purchases are for people actually planning to live there (not investors)
You may find yourself asking “Why does home appreciation matter? How can it benefit me?” Any amount that your home appreciates contributes to your home equity, meaning the money that is yours to keep when the house is sold. Ultimately, money that comes from home appreciation is your profit, minus home sale closing costs.
So, is it a good time to buy? Definitely! Example: A home purchased this summer for $280,000 will be worth $14,000 more next summer (5% appreciation). As mentioned before, that $14,000 is YOUR profit! All in all, now is a great time to buy, because Utah’s anticipated growth will keep your home appreciating well above average for decades to come. This is something that not many other states can say at this time.
So, what are you waiting for? Give us a call!
