Thank you very much to everyone that worked with me, or referred friends or family, to buy or sell real estate last year! 2016 was another great year for my business and another positive year for Salt Lake City and County real estate! Property values increased in all residential categories.
Median Prices Rise Again:
The median price of a single family home in Salt Lake County increased from $273,000 in the 4th quarter of 2015, to $295,000 in the 4th quarter of 2016, a 8.1% increase. If you look at the same time frame in 2015, the increase was 6.6%.
The median price of a single family home in Salt Lake City increased from $274,000 to $300,000, a 9.5% increase. During the same time frame in 2015, the increase was 9.6%, nearly identical to 2016.
The median price for a condo or townhouse in Salt Lake County increased from $200,000 to $210,000, a 5.0% increase. If you look at the same time frame in 2015, the increase was 14.9%, nearly three times what it was in 2016.
The median price for a condo or townhouse in Salt Lake City increased from $189,000 to $200,000, a 5.8% increase. During the same time frame in 2015, the increase was 10.6%.
Housing Inventory Remains Scarce:
Looking forward to the first half of 2017, I predict that we’ll see more of the same due to lack of housing inventory, high buyer demand and interest rates that are still holding near historical lows.
Current housing and condo inventory levels are still very low and the market is a seller’s market in all categories. In the neighborhoods of Salt Lake County and Salt Lake City, there is about 7 weeks of housing inventory across all price ranges, 4 to 5 weeks of inventory for homes under $400,000, and 3 to 4 weeks for homes in the $200,000 to $300,000 price range. To put that in perspective, during the spring of 2016, inventory got as tight as I’ve ever seen it with 10 days to 2 weeks of inventory in some price ranges and neighborhoods. During the recession there were 6 months or more of inventory at times.
The condo and townhouse market is even tighter than the housing market, with about 5 weeks of inventory across all price ranges in Salt Lake County and City, and 3 to 4 week of inventory for condos under $300,000.
30-year Mortgage Rates still at Historical Lows:
The 30-year mortgage rate was at 3.42% on October 6, 2016, and had been hovering between 3.4 and 3.5% for the previous three months. Rates that low are about as good as it gets. Rates steadily increased from 3.42% on October 6th, to 4.32% on December 29th, an increase of 0.9%. Since then rates have receded back to 4.09% as of January 19th, 2017.
Buyer’s have lost some purchasing power during the past few months, but interest rates are still within the historically low range of 3.3% to 4.6%, that began back in July 2011.
Salt Lake ranks #16 out of top 100 metro housing markets for 2017:
Realtor.com’s 2017 Housing Forecast ranks Salt Lake City at #16 out of the top 100 metro housing markets with a projected price increase of 6.66% and a sales increase of 4.67%. Provo-Orem was ranked at #18 with a 5.16% price increase and a 5.84% increase in sales.
Economic Outlook for Salt Lake and Utah is positive out to 2020:
Salt Lake City’s Unemployment rate was at 2.9% in October of 2016 down from 3.1% in October 2015. The U.S. as a whole is at a 4.7% unemployment rate.
Utah’s job growth is among the best in the nation, with a job growth rate of 2.8% in 2016, compared to 1.4% for our nation as a whole. And our job growth rate is projected to continue to be strong through 2020. According to Forbes Magazine in their November 16, 2016 article, “Ten Best States for Future Job Growth”, Utah ranks #3 with a job growth rate of 2.2%, behind #1 Nevada at 2.6% and Florida at 2.3%. Also, of the top 10 states with the highest job growth, Utah’s Median Household Income was the third highest at $62,912, behind Washington State at $64,129 and Colorado at $63,909.
Forbes magazine also ranked Utah #1 for the third straight year for its overall business climate in Forbes annual “Best States for Business” due to its educated labor force, pro-business regulatory climate and growth prospects.
Job growth, employment and median household income, are all key factors for a strong economy and they all look positive for 2017 and beyond. Interest rates have been within a range of 3.3 to 4.6% since July 2011 and are currently at approximately 4.1%. Hopefully interest rates will continue to be within this range. Current housing inventory in Salt Lake is very low and it continues to be a seller’s market. It’s looking like the first half of 2017 should be another positive year for Salt Lake real estate!
If you have any questions about buying or selling real estate in and around Salt Lake County or wonder what your home is worth, please contact me. I’ve been a local Realtor since 1999, and love what I do, and I can’t do it without you.
Until next time, “Let it snow!”
Thank you!
Kev
Kevin Coyle
Realtor Broker MBA CRS
SLC Homes
M: (801) 243-0699
Kevin@SLCHomeBuyer.com
