Did you know that the average home in Utah costs more than $500,000? This makes Utah one of the most expensive states to live in.
Along with other macroeconomic factors, this has created a housing crisis. First-time homebuyers and Utahns with poor credit struggle in these conditions. Without an existing real estate asset to leverage, a mortgage seems out of reach.
Educating yourself about the real estate market is the best way to navigate it. Read on for a comprehensive guide to the latest real estate trends. Explore topics such as the future of real estate and tips for buying a house in a challenging market.
What Are the Barriers to Buying a House?
Many Utahns face an uphill battle to buy a house. In spite of a modest dip, home prices remain near record highs. High home prices result in larger down payments. This is problematic for young homebuyers without sizable savings.
Mortgage rates are another headwind for Utah homebuyers. Many buyers and sellers remain on the sidelines because they do not want a high mortgage rate.
Rates on a 30-year mortgage remain near 8%, which is the highest figure in decades. These rates have a direct impact on your monthly payment.
Inventory is another issue in Utah. Both buyers and sellers stay on the sidelines to avoid these interest rates. This has led to low inventory and sustained high prices.
Is It a Good Time to Buy?
Homebuyers are hesitant to buy under the present conditions. They are hoping that mortgage rates and home prices drop to make their monthly payment more affordable.
There is a significant chance that home prices will not decline in a meaningful way. They may continue to rise, which would further diminish your purchasing power.
The expression "marry the house, date the rate" is popular in the real estate community right now. The U.S. Federal Reserve is expected to cut interest rates multiple times in 2024. This means that you can refinance your home and reduce your monthly payment in the near future.
What Are Some Insights for Selling a House?
The real estate market clearly favors sellers. Due to low inventory, they retain leverage over buyers.
Houses are not staying on the market for long. In fact, homes sell faster in Utah than in any other state in the country. The average home lasts just 27 days on the market.
There is still sufficient demand to cover the existing supply. You are likely to have multiple interested parties in your house.
Sellers also stand to cash in on near-record-high home prices. With the average home selling for half a million or more, a big payday is in your future.
Your Guide to Current Real Estate Trends
This is not an easy time to navigate the real estate market. High rates and home prices present a serious challenge. You need an experienced professional to help you buy or sell a home.
PMI Made Simple has been charting difficult markets for more than two decades. If you want to learn more about real estate trends, contact us today at PMI Made Simple to speak with a seasoned real estate veteran.