We have been talking about investing in real estate, and today I want to provide a Utah housing market update. I had an opportunity to attend the 2017 Market Forecast meeting for Salt Lake County, which is run every year by the Salt Lake Board of Realtors. These events attract a lot of high profile speakers. We heard from the Director of Economic Development at the University of Utah, who consults for the state of Utah. This year we also heard from the economic advisor for the National Board of Realtors, who gave us some idea of market trends nationally as well as what’s happening here in Utah.
Real Estate Market Analysis
We handle a lot of cities in the south end of the valley, and I want to touch on the median prices here. For a long time, median single family home pricing has been at around $272,000. We made it through the downturn when I first got my broker’s license in 2006, and then median prices began to settle at around the $200,000 mark. We have seen an increase over the last three or four years, and a lot of migration to the area is causing that increase. There are tech jobs coming to Utah, and those pay more. So, the average household income in Utah has almost doubled in the last four or five years. People can afford more, and that has allowed prices to rise and stabilize.Real Estate Price Utah Cities
Let’s look at South Jordan specifically. In 2015, the median sales price for a single family home was $357,400. In 2016, it rose to $389,900. That’s a 9 percent increase. This gives you an idea of the appreciation in South Jordan. In Sandy, Utah, prices are up 9.3 percent. We do a lot of management in West Jordan, where the median home price has also increased by 9.3 percent. In Draper, prices went up 5.7 percent, and in Riverton they went up 6.8 percent. The median home price there is $329,000.On average, between 2015 and 2016, there was a 9 percent increase. We don’t expect that’s sustainable. We can only make so much money, and once we catch up to household income, we expect prices to level out. It’s a great time to invest in rental property.
If you have any questions about rental market trends or you’d like a copy of the report I’ve been talking about, please contact us at Property Solutions of Utah. We’d be happy to help you find an investment property and to provide property management in Salt Lake City.
If you have any questions about rental market trends or you’d like a copy of the report I’ve been talking about, please contact us at Property Solutions of Utah. We’d be happy to help you find an investment property and to provide property management in Salt Lake City.
