In real estate, there are a lot of different buzzwords used to describe market conditions. One you may have been hearing a lot of lately is the term “Housing Shortage”. But what is a housing shortage and how does if affect you?
To say the Salt Lake valley residential real estate market looks different today than it did a few years ago, is a bit of an understatement. Due to a strong economy and rapid demographic growth, the number of households in Utah now exceeds the number of housing units. In other words, there is a high demand for housing and a very low supply.
Whenever there is a housing shortage, we can expect a couple things:
- Home Prices Increase
Simple supply and demand; as the demand for housing increases, and the supply of housing goes down, the price of housing goes up. Salt Lake valley homes have been experiencing quick appreciation the past couple of years with the median price of a single family home climbing to an average of $301K in late 2016.
- Homes Sell Quickly
One day it's for sale, the next day it's under contract. To put this in perspective, in 2009, the typical Salt Lake area property listing was on the market for a median of 81 days before selling. Fast-forward to 2016 where properties lasted just 13 days on the market before selling. Buyers are having to act quickly in order to secure the home they want.
So who benefits from this kind of market? Well, it’s no surprise that an inventory crunch and rising home prices would favor sellers. For example, maybe you were unable to sell your house a couple years ago and decided to rent it out. Now you’re at the point where you’re tired of being a landlord. Our advice? Sell now! Chances are you'll not only get the price you want, but maybe even get more than you thought.
You also could benefit if you’ve been in your home for more than a few years. Home values increasing means more equity in the home for you. If you’re looking to move into a different price range of homes, it’s probably less constricting than the range that you’re selling, which is advantageous for you.
If you are curious to find out more about the market or how just want to see what your home is now worth, contact a member of the BHURDinUtah team. We love to talk local market trends and we’re dedicated to our clients and helping them make smart decisions. Call us today so we can answer your questions and help you on the path to your dream home.