Here’s a look at what is happening in the Wasatch Front real estate market.
As the year comes to a close, it’s time to take a look at the 2016 report card for the Wasatch Front home sales.
The Wasatch Front sales volume for single-family homes is nearly the same this year as it was in 2015. That’s 29,000 single family homes that have sold, which is very strong. In fact, our strongest sales year was in 2006 when 29,300 homes were sold.
Our average sale price along the Wasatch Front in 2015 was $285,250 and in 2016 it is just over $305,000, which is a 7% increase. If we adjust for inflation, we are actually above pre-recession pricing.
Condos and townhomes have been off the charts. There has been an 18% increase in sales between 2015 and 2016. 2015 was already a record year, so this year has been phenomenal.
First-time home buyers should buy before a rate increase.
If we look at the average price of these properties, the condos and townhomes in the Wasatch Front area were $193,000, a 5% increase year over year.
So what might 2017 look like? Utah’s economy remains one of the strongest in the country, and the number of families that are moving into the state remains one of the highest in the nation. The average age of our residents is 29, which is also the average age of a first-time home buyer. Therefore, we anticipate that we are going to continue to see strong sales, but not record breaking sales. However, something is going to happen with interest rates.
Predictions for 2017 are widely varied. They are dependent on world events, the incoming presidency, and signs of a recovering economy. All of those factors will influence the direction of mortgage rates in the new year.
We know that rates have been on the rise for the last 30 days, and the FED has been fairly clear about their intention to raise rates even more. So what does this mean for home buyers? A 1% increase in mortgage rates equates to a 10% increase in the cost of a home over a 30-year loan. Even more unfortunate, it’s predicted that if we have a 1% increase in rates, 18% of first-time home buyers will no longer be able to afford a home. If you are looking to purchase a home, now is the time.
If you have any further questions about what’s going on in the the market, or if you are looking to buy or sell a home, please give me a call or send me an email. I’m here to help!