I was down in Sandy last week right before sunset at a friend’s house with a view. I noticed that the gap between Herriman, Riverton and South Jordan has shrunk quite a bit over the last 10 years, filled in with homes and businesses. Most of that growth occurred prior to Summer 2007 while the market was booming.
According to the 2010 Utah Econocmic Summary put out by the Governor’s office, the state of Utah had the second fastest population growth rate in the nation, at 2.1%.
This growth is second only to our neighbor to the East, Wyoming. In 2009, Utah had a population of 2.8 million. Wyoming had only about 532,000 people. The average U.S. state is growing at a rate of 0.9%. Utah is more than double that! So we’re growing pretty fast.
The projections for population in Utah by 2020 is 3.7 million people. The average person in Utah is 27 years old.
Considering that between 75 and 80% of Utah’s population currently live on the Wasatch Front and about 35% of the population live in Salt Lake County, it seems like our long term outlook for the value of real estate in Salt Lake and the Wasatch Front is good, because demand will likely be there.
Eventually young people buy homes and the first time home buyer creates more opportunities for current home owners to move up or down. In time our down market will change and demand for Salt Lake City homes will increase.
Right now a smart buyer can get a lot home for the money compared to a few years ago and finance that Salt Lake City home at historically low interest rates. It’s also possible to get up to an $8,000 tax credit.
One last thing and this is important. The average person lives in their home for 5 to 7 years which from now would be 2015 to 2017. So let me ask you 3 questions:
Do you think prices will be higher in 2015?
Do you think interest rates will be lower?
Do you think the federal government will be giving tax credits up to $8,000 if you buy a home?
KevinKevin Coyle Associate Broker, GRI, MBA Kevin@SLCHomeBuyer.com 801-243-0699 (Mobile) Stonebrook Real Estate