Real estate markets go in cycles. They appreciate, slow down, equalize, and then appreciate again. Investing in real estate is not just about location, it’s about timing as well. There are good investments in any real estate market, but when you buy while the market is appreciating, you’ll ride a bigger wave than if the market is slow.
The Salt lake City real estate market doesn’t seem to follow national trends. The closest historical gauge of the future of our market seems to be looking at California’s market and plan on the opposite. In the early 1990’s, as California’s market crashed Salt Lake soared. During the tech boom, and until around 2005 California’s markets boomed and we were slow. Since 2005 as California has gone soft- we have been very strong. This seems to be the natural order of things…
Anytime the market appreciates as we have been doing- there becomes a growing speculation about where the market is headed and when it will slow. Sellers are the last to see things slow, and buyers find any reason to think the market is slowing and want to find the deals, even while the market is very hot.
Currently Salt Lake has a great real estate market. Prices continue to be strong, which is good for sellers- but there are a lot of good homes on the market, which is good for buyers. Prices continue to appreciate, which is good for everyone (except those who sit and watch).
Tons of jobs are moving into the area, which is one of the reasons the market is strong. This type of market is good for both sides and is a balanced market. My advice for anyone in the market to buy or sell real estate is get one of the best agents in the business to help you and you’ll do very well.
First-time buyer price range (under $250,000) is always the strongest, and now FHA loans go up to $320,000 in Salt Lake county so that opens the doors for more people to buy. West Jordan, Taylorsville, Holladay, Cottonwood, and West Valley all seem to be strong right now. Southern areas such as Riverton, Herriman, South Jordan, Draper, Lehi, and Bluffdale seem to be a bit slower with so much inventory in the mid price ranges. Condos downtown are slower I think because of all the new condos being built and that are planned- many people are holding off for the new ones.
The mid-range market ($250-$500) seems to have a lot of inventory, but in some areas, such as Sugarhouse, Millcreek, and Canyon Rim there are some great homes that are selling fast in the $300-$400 range.
At least this is what I see with my team (we sell about a home every other day).
Here’s a current sales graph representing all homes listed in Salt lake County from Jan 1- July 5, 2007:
Interesting point to notice- the price range that has had the second-most new listings this year is $500,000-$749,000 with 1808 new listings (but only 399 sales). By contrast, the $180-$199,900 range has had 1325 new listings and 803 sales.
The average priced new listing this year (Salt Lake County) has been $358,556.
Average days on market for the year (all price ranges) is 54 days.