Effects Of The Housing Boom To Salt Lake Real Estate
For real estate agents, and some home owners, the housing boom was great. What happened was home values escalated and the people who sold at the right time made money effortlessly. But, those boom days are long gone, and the reality of the Salt Lake Real Estate market is one of decline. Nearly everyone now might have wished that the housing boom never happened.
If market conditions remained steady and constant, where would home sales and prices be? The red line shows an imaginary figure of where annual home sales in Salt Lake City would be if they increased by exactly 2% each year. There would have had about 4,750 single family home sales this year if this were the case. This is two times the original home sales we'll see that are probably around 2,400.
The real estate market in Salt Lake has been going up and down. Because of economic recovery and home buyer's tax credit, it is still considered feeble than the average rates. For buyers, this is a an opportunity to take advantage of the low prices. For investors, this is the perfect time to deal with properties but be careful for competition is increasing. For sellers, it is best to be patient because this is still the buyer’s market.
They would still be too high compared with home price averages from 1998-2001 if Salt Lake home prices increased by exactly 3% every year. The yellow and red lines show what “average” home values would be, while the blue and green lines represent the median values. Under this model, average home prices in 2007 were about 28% too high. They are still nearly 12% above the turn of the century adjusted for inflation levels this year.
The Salt Lake Real estate market has come down a long ways over the past three years, but with the way things are looking, it looks like SLC Homes will see further price declines over the next year.
Posted at 03:03PM Oct 26, 2010 by Cornerstone Real Estate in Real Estate |