Market Updates

2018 Salt Lake Housing Market Trends

2017 was been quite a year for SLC’s economic growth and real estate development. According to Realtor.com, it’s just the beginning for a hot market that will continue to steadily grow. Salt Lake is ranked number six of the top ten US cities expected to dominate the real estate market in 2018. With a secure and growing economy, new inventory entering the market, and a steady increase in home values, it’s no surprise that Salt Lake’s real estate outlook for 2018 is sunny. Expect to see these five real estate trends as 2018 unfolds.

#1. The Economy is On the Rise, and So Are Home Sales

People from all over the country are being drawn to Salt Lake City. The city’s economy is thriving, and our unemployment rate reflects that. The unemployment rate is currently 3.3%, while the national average is nearly 4.1%. People have good jobs, and they’re ready to buy homes. Danielle Hale, chief economist at Realtor.com, expects a 4.6% increase in home sales in 2018.

#2. Inventory is Slowly Catching Up with Demand

Multiple factors have caused Utah’s housing shortage, but one of the biggest problems is a shortage of homebuilders. An article in the Salt Lake Tribune attributes part of the current housing shortage to the Great Recession. About 40% of Utah’s construction workers left the industry during that time, and many haven’t returned. The good news is that Utah is doing an amazing job rebounding. While growth is slow, more inventory is expected to hit the market by the fall of next year.

#3. The Market is A Little More Balanced

The affordable starter home has been elusive over the past few years. Lack of inventory has been the major cause, and the market has been skewed in sellers’ favor. Lower percentage rates enticed homeowners to refinance and stay put. With millennials growing up and getting better jobs, they’re ready to buy, and supply just hasn’t kept up with the demand.

The good news for buyers in 2018? The market is beginning to see a balance between buyers and sellers, despite the lack of inventory, according to Fox13 Salt Lake. While home prices continue to steadily rise, sellers are generally a little more willing to give slightly on price unless there are multiple offers on the table. Multi-family options are also becoming more popular and are usually more affordable than single-family homes. Of course, downtown homes may be an exception as city living becomes more and more popular.

#4. Home Values Are Steadily Increasing

Nationally, home values are expected to increase by 3.2% in 2018, while Salt Lake could see a 4.5% increase in price. People are moving to Salt Lake for its great schools, beautiful scenery, and growing employment opportunities. With high demand and a growing economy, real estate value is also expected to grow at a steady, uninflated, and healthy pace.

#5. Tax Reform

While tax reform ping-pongs on Capitol Hill, the future of the housing market is unclear. The current proposal sets the cap for the mortgage interest deduction at $750,000 (for future home sales only), but that could change before the new law is finalized. Since this is far above the value of nearly all Salt Lake homes, it shouldn’t have a big impact on our market.

On the other hand, potential tax cuts could increase take-home pay for many middle-income Americans. With a little extra cash each month (near $2,078 for a single, childless taxpayer earning $75,000 a year) potential buyers may feel more confident in taking on home ownership. Another plus for 2018 real estate.

The 2018 market forecast for Salt Lake looks sunny. The economy is strong, new construction is on the rise, and home values are increasing. Salt Lake City’s real estate market is firing on all four cylinders and is ready for a great ride in 2018.

Aubrey D.

Ryan did an excellent job listing our home as our listing agent. He met with us ahead of time, suggested a list of things to work on around the house to get it ready for the market, and listed it in a timely manner. We had multiple showings right away and received several offers on the first day of showing. We were in a time crunch due to work and school schedules and Ryan was always attuned to our needs to sell the home quickly before school started. While under contract, Ryan worked with the buyers over several issues and ultimately was able to negotiate a closing that both parties were comfortable with even though there were discussions of walking away from the sale on both sides. Ryan is calm, professional, and knowledgeable, and really demonstrated the value of such an agent during our sale. We have recommended and trusted him to help us purchase multiple homes as well as represent several families members to do the same. I would definitely recommend Ryan Eborn for your real estate needs.

Renee

Ryan has helped me buy and sell houses on more than one occasion. His tireless efforts and tenacious expertise made the process as simple as possible, especially considering the amount of work involved. Ryan has always been reachable and quick to respond, and has proven that he works with my best interests in mind. When faced with the challenge of matching multiple offers and terms with the most desirable end, Ryan ensures that I feel well cared for. A+, would recommend.

Brandon B.

When we decided to buy our first house, we had no idea what we were doing or what we were looking for. Choosing Ryan to help us with the purchase was the best decision we made. He knew everything! When he would show us houses, he could easily point out problem areas or issues that would fixing in the near future. He had the foresight to use a plumber to inspect the pipes, which saved us thousands of dollars that would otherwise been paid after we closed on the home. When we were having problems with our own mortgage broker, Ryan sought out advice from his own trusted mortgage brokers to ensure that we got the loan we needed. Finally, Ryan has a fantastic sense of how to best utilize home spaces, so he was always giving us ideas on how we could update potential houses to make them more functional. He absolutely went above and beyond what we ever could have imagined. If any of you are looking for a new home and need a realtor, we HIGHLY recommend Ryan!!! You won’t regret it.

Billy H.

My wife and I have had the absolute pleasure of working with Ryan for the purchases of two homes and the sale of another. Throughout these processes he consistently made us feel like we were his top priority. Ryan helped us find our first home when we were a young couple and needed all of the experience and expertise we could get. He made the process enjoyable and smooth. When it was time to search for our second home, there was no doubt we wanted Ryan to help us again. When we found the house we had been dreaming of, he handled all of the challenges the purchase presented. Ryan really listened to our wants and concerns. He was thorough and reliable. He made the process easy, understandable, and enjoyable, and he was an exceptional advocate for us throughout the entire process. There is no question that when it comes time again for us to buy or sell that Ryan will be our agent.