I attended the Utah Real Estate Forecast Breakfast last week and took away some great info that I wanted to share with you! No doubt our economy (especially real estate) has been on a crazy roller coaster in the last decade - but 2015 is looking strong, with steady growth, which is both healthy and exciting! And so I have come up with the top reasons for improved housing in Salt Lake in 2015!!
10. National Economy is Better!
In fact we saw a 3.9% economic growth in the 4th quarter of 2014 compared to the 4th quarter of 2013.9. Job Growth is High!
In the 4th quarter of 2014, 250,000 new jobs per month were created. 125,000 are needed to keep up with the demand of new job seekers entering the marketplace, so to have double that number for three consecutive months is amazing!!
8. Pent Up Demand
Many of those who had to short sale their home have worked on their credit, waited the required time and are ready to purchase again!7. Increase in Price!
At first, an increase in home prices may not sound good, but in fact, during the recession many home owners couldn't sell their home because they were upside down. An increase in prices over the last couple years has put people back in the positive, allowing them to look at making a move. In fact, home prices are nearly back to the 2006 level.
6. Housing Affordability!
Before you start thinking the increase mentioned in #7 is a bad thing . . . 68% of the population can currently afford the median price of a home (which is currently $255,000).
5. Household Debt is Down!
In 2006 the average household debt was 30% higher than their annual income. Currently the average household debt is equal to their annual income (this is still really high, in my "Dave Ramsey" loving opinion, but it is progress).
4. Household Income is Rising!
To be completely honest, it's not rising a lot, but it is rising, nonetheless.
3. Mortgage Credit Access!
Right after "the crash" in 2007/2008 lenders, who would have given a loan to any warm body in 2006, tightened up their regulations making it very difficult for some of the best borrowers to obtain a loan. As time has passed, the requirements have loosened up some, making a mortgage easier to obtain.
