With as big of an investment as real estate is, it’s important to have all the facts before purchasing so you can make sure you’re making a smart choice. Utah’s real estate has its ups and downs like any market but has become increasingly in demand in the last few years.
With that demand and the current housing market climate, is it smart to buy a house in Utah right now? Before we can answer that question, let’s tackle some of the common concerns homebuyers have when looking into Utah real estate.
How Much Money Do You Need To Buy a House in Utah?
As of May 2023, the average price of a home sold in Utah was close to $530,000. This means that after a down payment and closing costs, you could spend anywhere from $40,000 to $150,000 to initially buy a home, depending on how much money you put down and what sorts of loans and grants you may qualify for.
However, if you are a first-time home buyer and are looking to build a new home, you can check out Utah’s legislature’s new first-time home buyer assistance program. This program allows a loan of up to $20,000 that can be used to either add to your down payment, pay for closing costs, or buy down your mortgage rate. This loan comes without any interest and will only need to be paid back when you sell the home or refinance. If you think you’re eligible for this assistance, make sure to talk to your real estate agent about applying.
Why Are House Prices So High in Utah?
Housing prices anywhere are subject to supply and demand. If an area is highly sought after, prices will reflect that. Utah’s population is booming because of its strong and growing economy, low unemployment rates, family-friendly atmosphere, and low taxes. We not only see people from out of state flocking to Utah, but more Utahns not moving away as well. Although high demand can mean higher prices, this can also mean greater safety in your real estate investment. Because Utah is becoming so popular, and demand continues, your home’s value will increase, or at the very least, stay stable.
Is Utah Real Estate in a Bubble?
A lot of critics like to forecast a housing recession and attribute high prices to a housing bubble rather than the economics of supply and demand. Luckily for new home buyers, Utah’s housing prices have decreased a bit in the past few months, coming off from a high in the last few years. However, dips in the market are significantly different than a bubble bursting.
The factors that caused the housing market crash in 2008, such as unregulated markets and lenders loaning more money than homeowners could afford aren’t happening right now. What is more likely to happen is that housing prices will dip a little (as we see now) but continue their upward trend, as there is still a shortage of homes on the Utah market.
Is It Smart to Buy a House in Utah Right Now?
In reality, there is always going to be some sort of challenge when it comes to investing in real estate. Your personal financial standing is the greatest determinant of whether or not your home purchase is a smart choice to make. As far as the Utah housing market is concerned, our experts are confident that it is still a good time to invest in real estate. Housing prices are high, but they are expected to climb even higher, which not only will help your resale value but makes it dangerous to try to wait out the market—something that could cost you thousands of dollars later.
With the right agent, you can still find the right home for you for a competitive price that will be a smart investment now and in the future.
Contact Our Team of Experts at Harvest Park Group
Our Harvest Park Group team are resident experts in Utah’s real estate market and help make the home-buying process as smooth as possible. Contact us today to see if buying a home in Utah is right for you.