Tag - utah real estate

5 Questions to Ask Yourself Before Deciding to Buy a Home

Thinking about purchasing a new home this year?

Here are a few questions to ask yourself before buying a home:

1. How long do I plan to live in this house?

2. Where do I see myself in 5 or 10 years?

3. Do I have to or want to make home improvements?

4. Do I want to keep cash on hand for other investments?

5. How quickly do I want to be debt-free?

If you have answers to these questions, give me a call to discuss your options for purchasing. 

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Utah Housing Market Forecast

A recent report from the Salt Lake Board of Realtors described 2021 as the year of record-breaking price increases in Utah. Statewide, housing prices increased by 27%, far surpassing the 43-year-old record of 20.1% set in 1978. For the last nine months of the year home prices consistently increased over 20%, when compared to the same month a year early. Price increases were not confined to Wasatch Front; nearly every county in the state saw increases. In 2021, Utah ranked second behind Idaho for rapid acceleration in home prices. These record-breaking price increases are expected to continue in 2022. It’s no secret that Utah is growing and expanding. Between 2020 and 2021, the state experienced an annual population growth rate of 1.8% – which is the highest increase since 2017. Realtor.com ranked Salt Lake City as the #1 housing market positioned for growth this year. Utah is one of the only states where the homeownership rate has never fallen below 60%. The homeownership rate is the percent of occupied housing units that are owner-occupied and luckily the relentless rise in housing prices has yet to threaten this. Nevertheless, many people believe the continuous rise in home prices has placed Utah in a housing bubble that is subject to burst at any time. However, historical data indicates that a housing bubble appears when there are extended price declines associated with a substantial loss in jobs. Every period of price decline from the 1950s to 2008–2011 has been associated with a weak or contracting labor market. So, for Utah to experience an actual housing bubble it would require a rise in jobs losses, which is an unlikely prospect in the next few years. Utah’s unemployment rate dropped from 2.6% to 1.9% by the end of 2021. From this information we can infer that a more likely outcome for Utah over the next two to three years is a period of price moderation. Although price momentum will trend lower, it is expected Utah is in for another year of double-digit increases of 10% to 12%. High prices, interest rate increases, listing shortages, and a slowing rate of job growth is expected to combine and hold sales to around 17,000 units in 2022. Although mortgage rates are expected to rise, the increase will be modest throughout the year as the Fed continue to taper. The average interest rate for 2022 based on forecasts, is 3.55% (APR 3.884%). We have already seen rates slightly increase; however, they are still low when compared to pre-pandemic rates. The flip side to rising home prices is an extreme benefit for existing homeowners who will gain equity from strong price increases. As owning real estate in a high-growth market is a prime opportunity for wealth creation. The report found that in 2021 alone Utah’s 700,000 homeowners’ experienced home equity increases by at least $82 billion. Wealth was created simply by paying their mortgage each month. In contrast, 300,000 renters in Utah who had no increase in wealth - faced double-digit increases in rental prices. Apartment List’s National Rent Report found that rental prices went up $300 per month in 2021. This is staggering! Owning real estate is still the best way that to create wealth. If you are a renter looking to buy, I highly recommend acting sooner than later to take advantage of current interest rates and home prices before they move more. There is a cost in waiting. If you are already a homeowner, you may want to evaluate the idea of a refinance and when the best time to act would be. Our team is watching the market daily and listening to reports from the nation’s experts, in order to help you navigate the market and identify the most opportune time to move forward with your purchase or refinance. If you have any questions about what’s to come in the market or what is the best move for you this year, reach out! I would love to further discuss the market and how you can benefit from it this year.

*Article Resource: Salt Lake Board of Realtors Housing Forecast*

 
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Increased Loan Limits for 2022

HUGE NEWS‼️

Conventional loan limits are increasing in 2022 This will be effective for loans delivered on or after Jan. 1, 2022. This is huge news for Utah Counties! Give me a call today to discuss how this change could benefit your purchase in the new year, 801.206.4343 ALV Mortgage | NMLS # 888979
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Securing Referrals

Utah Realtors, when is the last time you actually had a strategy to generate referrals from your existing clients? 

What plans do you have in place to make sure that when your existing clients are thinking or talking about purchasing real estate... your name comes up? 

Give me a call and lets schedule some time to talk so I can show you how our marketing tools and systems can help you increase the amount of referrals you receive!

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3.8 Million Homes Needed to Close the Affordable Housing Gap

A recent Freddie Mac study on the U.S. housing supply found that approximately 3.8 million additional homes are needed in order to close the affordable housing gap. The ongoing housing shortage is large and rising, due in part to the effects of the pandemic, as well as the high demand for homes coming from eager buyers rapidly entering into the purchasing market. Even before the COVID-19 pandemic and current recession, the housing market was facing a substantial supply shortage. In 2018, it was estimated that there was a housing supply shortage of approximately 2.5 million units, meaning that the U.S. economy was about 2.5 million units below what was needed to match long-term demand. Using the same methodology, it was estimated that the housing shortage increased to 3.8 million units by the beginning of 2021. The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes as builders struggle to meet exploding demand. In 2020, it was estimated that there were only 65,000 new entry-level homes completed—less than one-fifth of the entry-level homes constructed per year in the late 1970s and early 1980s. "The U.S. is currently experiencing an increase in housing demand that is well beyond what record low mortgage rates would typically yield as many people are spending more time at home. This high demand has driven the housing supply shortage even higher and has caused home prices to rise over 12% from a year ago." Freddie Mac experts do not expect housing demand to decrease any time soon.

*Source: Freddie Mac- Perspectives & Research*

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2021 May Be a Dry Year for Utah

A recent article published in the Salt Lake Tribune outlines that with Utah’s snowpack being below normal levels, the state is heading for a dry year.  Reducing your water use can help ensure the state has enough water to meet everyone’s needs throughout the year. Here are some ideas for ways you can help conserve water this year.

How to Save Water at Home:

  • Repair leaky plumbing and faucets.
  • Reuse cooking water in the garden.
  • Scrape dishes into the trash and soak pots and pans before washing.
  • Thaw frozen foods in the refrigerator, not under running water.
  • Use the same glass all day for drinking water.
  • Cut shower time.
  • Replace an old washing machine with low-water models. It can pay for itself through energy savings, while using half as much water.
  • Turn off the faucet while brushing teeth.

How To Save Water Outdoors:

  • Mulch your plants.
  • Avoid overwatering.
  • Remove unwanted weeds.
  • Adjust the lawn mower’s blade height to a higher setting.
  • Select drought-tolerant plants that require less water to thrive.
For more info on way that you can help save water this year check out Utah’s Slow the Flow campaign and the Utah Division of Water Resources. Check out the full article here.
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Persistence Pays off When Shopping for a Home

Due to a lack of inventory, it may take longer to find the right home for you. But your efforts will likely be rewarded. Recently, the number of new construction homes were not keeping up with increasing demand, especially from those under 35 years old. And the pandemic has made the shortage of housing even tighter! The housing market is hot and forecasted to show strong gains into the future. Our local market here is Salt Lake County is anticipating appreciation of 4.9% over the next 12 months and 23.1% over the next 5 years. So while it might take a little more persistence to find your next home, stay with it and don’t get discouraged because the financial opportunity is significant. To learn more about the cost of playing the waiting game with real estate. Many sellers won’t talk to you without a pre-approval letter. To have that in hand to increase your chances of securing the home of your dreams contact me today and let's get started
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“Professional, Accommodating, and Smart When it Came to my Refinance”

"As always, Anthony was professional, accommodating, and smart when it came to my refinance. I was able to save $200 monthly and will be able to finish remodeling my kitchen as well." -Scott Shepherd
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