The Utah County real estate market
Real estate around the country has grown significantly during the last year. However, Utah has seen one of the most incredible real estate booms in the country. During the year 2020, home sales in Utah County saw a decline with the economy's shutdown in April and May. However, this was short-lived as buyers rushed to take advantage of inventory, location, and record-low mortgage rates.
If you're looking for homes for sale in Utah County - or to invest in the Utah County real estate market, now is the time. Read on to see what's causing an influx of people to move to Utah County.
Mortgage rates have reached a record low
Historically, there has never been a better time to buy a house in Utah County. During the year 2020, mortgage rates fell significantly. However, it's reached a new record low in January of 2021, falling to only 2.65%. These rates have impacted the number of people who want to take advantage of the potential savings to purchase their first or second homes.
The mortgage rate has a significant impact on the amount of money you'll end up paying for your home. For example, according to Statistica, If you were to purchase a $300,000 home in 2019, before the pandemic, the average mortgage rate would have been 3.73%. Over 30 years, you would end up paying about $498,940 for that home.
However, if you bought during 2020 with a low-interest rate of 2.67%, you would only be paying $436,337 over those 30 years. That's over $60,000 that can be saved by purchasing a home with the market's historically low mortgage rates.
Utah Among Hottest Housing Markets in Q4 2020
New Construction Homes in Utah County
Lots for Sale in Utah County
Land for Sale in Utah County
Millennials have entered the housing market
According to Pew Research center, during the year 2020, millennials have passed baby boomers as the largest generation. Millennials are in their prime home-buying years in Utah County, with the youngest of the generation about to turn 30.
Those who can take advantage of the housing market, and historically low rates, are looking at homes for sale in Utah County. According to Mortgage Bankers associated, new home mortgage applications have increased by 33% compared to 2019. Those who may have been waiting to buy a home are now jumping into the housing market, including many first-time homebuyers.
Work from home allows more flexibility
Many jobs have transitioned to a permanent work-from-home situation, allowing workers not to be location-dependent. This flexibility has pushed tons of people to move from tiny cramped apartments with high rent prices to areas where they have more space. Real estate buyers are looking for homes for sale in Utah County that feature large exercise rooms, home offices, and ample outdoor space, like bigger yards or outdoor parks.
Utah County is a prime candidate for home buyers, with its ability to offer lots of land and outdoor activities. Plus, the cost is less expensive than coastal cities like Seattle, Los Angeles, and San Francisco. Many people from out-of-state locations are purchasing homes for sale in Utah County, as well as land for sale in Utah County. Even international investors want a piece of the Utah County real estate, with buyers from China and Europe purchasing property.
Utah's significant job market recovery
According to the Bureau of Labor Statistics, overall job loss across the United States in 2020 was a whopping 6.7%. However, Utah's economic story is a little different. In less than nine months, Utah was able to undo the deep job losses suffered early on in the pandemic and ended 2020 slightly ahead in employment.
In Utah, the unemployment rate went down from 4.3% in November of 2020 to 3.6% in January of 2021. The key to Utah's economic success is the addition of employment in seven of the ten major industries, with over 14,000 jobs popping up in utilities, transportation, and trades, followed by construction which added about 7,000 additional jobs.
The state has so many diverse industries located in one place, allowing job seekers to find both, homes for sale in Utah County, as well as an open job role according to their qualifications.
Low inventory of homes for sale in Utah County boosts prices
With so many people willing to buy homes for sale in Utah County, it has become a seller's market, meaning that sellers have control over the prices and can be picky with their home's listing price. Bidding wars are common over the houses that pop up on the market, and almost always, the final price paid for the home exceeds the original selling price.
There is however a low inventory of homes for sale in Utah County, as well as land or building lots available on the Utah County real estate market. During the financial downturn of Coronavirus, many people were forced to make changes due to uncertainty about the future. If sellers were going to sell their house initially, they might have reconsidered their actions and took their home off the market as Coronavirus spread worldwide.
When homes are found on the market, homes for sale in Utah County are sold at record speed. The low availability of houses for sale in Utah County has caused new construction to be in very high demand. However, some regulations can restrict the amount of housing that can be built in a specific area. For example, if the land is zoned for single-family, it is illegal to build condos, townhomes, and apartments on that land.
Plus, citizens can try to block new development in their area due to neighborhood character, which is the belief that home property values will drop due to lower-income housing built in the area.
Request for a virtual tour
If you have been waiting for the right time to invest in Utah County real estate, now is the best time to do so. Because if you put your money in any of the available homes for sale in Utah County, you will be able to enjoy better returns in the near future.
So if you do not want to get exposed to the infection, place a request for a virtual tour of any property you like, and we will get back to you shortly.