A review of some key reports from 2016 yields some revealing information about how much Utah is growing, and what that’s doing to the real estate market.
Fastest Growing State
The US Census Bureau declared Utah the fastest growing state in the country, with a 2% population increase in 2016 (reference this article: http://www.builderonline.com/design/consumer-trends/census-utah-leads-all-states-in-growth-in-2016_o). Compare this to the national average of only 0.7%. The country in general is seeing a migration from the northeast (avoiding extremely high tax rates/costs of living) to states in the south, west, and southwest, and some of that population growth can be attributed to birthrate (we Utahns like to have babies!), but a large driver seems to be Utah’s fast-growing high-tech industry (the “Silicon Slopes”). Having many Utah cities (Orem, Provo, Salt Lake) being listed at the top of many “Best Places to Live” surveys helps to!
…And People Need a Place to Live!
In 2016, home values increased 7.1% and are expected to rise another 5% in 2017. Compare that to the national average of 4% (the rate of real estate appreciation nationwide). Salt Lake City, Provo, and Ogden are all “sellers’ markets”, with very strong buyer demand, but are still considered affordable areas.
What Does this Mean for You?
If you’ve owned a home for the last few years, you likely have equity. If you’re thinking about “trading up”, that equity can cover the down payment for your new home (and then some!). Be prepared, though, to compete with multiple offers, and low-balling will probably get you nowhere (unless the home is significantly over-priced).
