DD Web • January 23, 2017
5 Major Utah Real Estate Trends to Watch in 2017
Those who live here know why Utah is a great place to call home, and not just because our mountains host the ‘greatest snow on earth.’ We’ve already bragged about our foodie scene, music hot-spots and year-round festivals. On top of all that, Utah also has one of the strongest economies in the nation, including a robust real estate market that is attracting the attention of a new generation of home buyers. We’ve enjoyed strong growth, short sale-cycles and rising home prices over the past year and those trends are expected to continue through 2017.
In 2016, Utah was recognized repeatedly for its impressive real estate market. Zillow named both Salt Lake City and Ogden among their top 10 “hottest housing markets of 2016.” In addition, Realtor.com recently placed Provo-Orem and Salt Lake City in its top 25 housing markets for the coming year, as part of their 2017 National Housing Forecast.
The combination of low unemployment, above average incomes and steady appreciation have made Utah one of the most solid housing markets in the nation. While appreciation is expected to slow in 2017, factors such as first-time millennial home buyers and an influx of new homebuyers will keep Utah’s housing market healthy in the coming year (a reported 15,000 people moved to the state last year in need of housing).
Looks like a promising year ahead for The Beehive State. Keep these 5 Utah real estate trends on your radar for 2017:
Millennials and boomers coming in strong –– Next year, the housing market will be in the middle of two massive demographic waves, millennials and baby boomers – that are expected to power demand for at least the next 10 years. Even with increasing interest rates, millennials and boomers will still comprise the majority of the market. Baby boomers are expected to make up 30% of buyers in 2017, with the millennial market making up 33% of the buyer pool.
Price increases will level out –– The steady appreciation that Utah sellers have enjoyed over the past few years will start to slow. That doesn’t necessarily translate to lower home prices, but 2017 won’t see the large 8% increases that were common in 2016 (home prices are expected to top out around 5-6%). Nationally, home prices are predicted to slow to 3.9% growth year over year (from an estimated 4.9% in 2016).
Lower inventory = increased competition –– Inventory is currently down an average of 11% in the top 100 metros in the U.S., and the conditions that are limiting home supply are not expected to change in 2017. Median age of inventory is currently 68 days in the top 100 metros, which is 14% – or 11 days – faster than U.S. overall. Utah is one of these fast-moving markets, with many homes being sold above market value after multiple offers. Even new home construction has seen bidding wars due to high demand from buyers and limited homes for sale.
Home purchase over renting –– According to MarketWatch, there are only 8 states in the country where renting is more affordable than buying a home. And as reported in July 2016, Utah was one of them. However, increasing competition for rental properties (and raised rents) in Utah may give long-term renters the push they need to buy instead. USA Today reported that nearly 80% of renters in Salt Lake City spend at least 30% of their income on rent — and many spend significantly more.
Interest rates may be on the rise –– The presidential election, inflation, and fear of the unknown could all affect interest rates in 2017. However, rates won’t move too quickly — or too much. Current Utah rates range from 3.15 to 4.20% (depending on the mortgage type). Kiplinger predicts rates for an average 30-year fixed mortgage (nationwide) to end up around 4.5% by the end of 2017 (with rates for a 15-year fixed mortgage topping out at 3.8%).
Despite a normalizing housing market over the coming year, Utah’s strong economy and population growth will continue to fuel its market health. Sellers have many factors remaining in their favor, including low inventory and rising prices. Buyers may be in for a fight for their dream home, but even first-time buyers can look forward to a fair market with reasonable interest rates and leveling home prices. Whether you’re buying or selling a home this year, enlist the help of a real estate expert to help you navigate these trends and the Utah real estate market in 2017.
At Novation Title, we take immense pride in being recognized on the 2024 Top Latino-Owned Business List ! As a Latino-owned company, we are passionate about empowering our community through homeownership—one of the fastest ways for Latinos to build generational wealth in America. Why Hispanic Homeownership Matters Homeownership is more than just buying property; it's about creating stability, financial security, and opportunities for future generations. We believe in providing the resources and education needed to help our Latino community navigate the path to homeownership with confidence. Educating & Supporting Latino Homebuyers Our team uses key insights from the NAHREP (National Association of Hispanic Real Estate Professionals) reports to share real data on Latino homeownership growth and opportunities. We know that numbers don’t lie , and we want to ensure that every aspiring homeowner and entrepreneur has access to the right information. Advice for Latino Entrepreneurs For those looking to start a business in the title and real estate industry, our advice is simple: educate yourself and lean on data. By understanding the numbers and trends, you can position yourself for long-term success. Thank you to our community and partners for trusting Novation Title. Together, we continue to break barriers and build wealth through homeownership!
At Novation Title, we take immense pride in being recognized on the 2024 Top Latino-Owned Business List ! As a Latino-owned company, we are passionate about empowering our community through homeownership—one of the fastest ways for Latinos to build generational wealth in America. Why Hispanic Homeownership Matters Homeownership is more than just buying property; it's about creating stability, financial security, and opportunities for future generations. We believe in providing the resources and education needed to help our Latino community navigate the path to homeownership with confidence. Educating & Supporting Latino Homebuyers Our team uses key insights from the NAHREP (National Association of Hispanic Real Estate Professionals) reports to share real data on Latino homeownership growth and opportunities. We know that numbers don’t lie , and we want to ensure that every aspiring homeowner and entrepreneur has access to the right information. Advice for Latino Entrepreneurs For those looking to start a business in the title and real estate industry, our advice is simple: educate yourself and lean on data. By understanding the numbers and trends, you can position yourself for long-term success. Thank you to our community and partners for trusting Novation Title. Together, we continue to break barriers and build wealth through homeownership!
Welcome, 2020! We made it through the first week of the New Year and are already excited for what’s to come in this brand new decade. Anything can happen, and we have so much to create! Whether you’re a fan of long-term resolutions or prefer setting smaller, short-term goals, it feels good to start the year off with a desire to change for the better. If you know us, you know our approach at Novation Title has always been goal-centric, not only within our business but in our personal lives and out in the community. In today’s world where we are constantly connected (and distracted), it’s no wonder that we increasingly find ourselves overwhelmed mentally and physically drained. Often, the issues in everyday life are the ones that prevent us from enjoying the very same everyday life! How can we balance this out? We believe we can do better. That is why we are introducing meditation into our workspace. While meditation has been practiced for over 5,000 years, it is increasingly becoming a necessary way for us to unplug from the modern world. But what, exactly, is it? Meditation is a practice where an individual uses a technique — such as mindfulness — to train attention and thoughts. Mindfulness is awareness, it is a state of peace. It is being in the present moment, intentional and serene. It is the process of being aware of your thoughts while also disconnecting from them so you can connect within. Connecting within is the highest form of intelligence and results in proven mental, emotional and spiritual health benefits. Here are just a few science-based benefits of meditation: Reduces blood pressure Increases serotonin production that improves mood and behavior Improves immune system Increase in energy levels Lessens stress and anxiety Increases happiness and creativity Clarity and peace of mind Increased memory retention and recall Enhances self-awareness and self-acceptance Each one of us, regardless of gender, age or other factors, undergo daily stress and tension at some level or the other. That’s why we’re so excited to introduce #NovationMeditation into our business and we encourage others to join us this year. We can ALL benefit from improved mental and physical health in 2020. Who’s with us?!
