Should you buy or sell a home right now? Depending on your location and personal circumstances, the answer will vary throughout the year. It’s no secret that some markets are healthier than others. In light of COVID-19 some markets are not only in better shape, but some are in a better position to recover quickly. Here’s what you should know about the Utah housing market and its ability to return to stability.
In order to understand how well the real estate market will fare during and after a pandemic, you have to look at it historically. Looking to the recent past, Norada Real Estate investments reports that homes in Utah were selling faster than last year and selling 30.5 days faster than homes throughout the rest of the nation as of March 2020. They also report a high demand and forecasted property appreciation over the next year.
During an Economic Downturn
In 2008-2011 the price of homes in SLC dropped by 20%, according to Niche Homes. However, while parts of the country were on a slow rise to recovery, Salt Lake made upward movement faster than other areas and returned to the same prices as before 2008.
The market is just a reflection of the population and their job and financial health. Utah has seen a rise in unemployment during quarantine and COVID-19, but the forecast for job recovery shows increases in June and throughout the summer, with employment back at 2019 fourth quarter levels in fourth quarter 2020, according to James Wood, Ivory-Boyer Senior Fellow at the Kem C. Gardner Policy Institute.
Utah remains a place where the demand for housing is higher than the inventory. This is likely due to the rapid growth of population.
Looking to the Future
Pamela Perlich is the director of demographic research at the Kem C. Gardner Policy Institute. She projects Utah’s population to exceed five million by 2050. The ever-growing population creates a huge demand for more and more new constructions and homes for sale.
The long-term economic impact of COVID-19 is not yet known, and we know that economic recovery is usually not instant. Growth can, however, be accelerated and Utah is in the right position to boom. Little Big Homes marks the third quarter growth in three years (2021) to be up as compared to historic data, and that gives us all the impression that things are still going strong.
The Part Homie Plays
Regardless of the economic climate, saving money while buying or selling is always a smart personal financial decision. Everyday, Homie saves customers thousands of dollars in real estate commissions by offering listing services for a low flat fee and refunding buyers up to $5k to put toward their closing costs.
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