What’s up with the home prices in Salt Lake City?

 

I wrote this to a friend asking my opinion on home prices in the Salt Lake City area. Thought I should share….

 

Regarding the current home prices in Salt Lake, I think we all would be in sticker shock if we sold our homes now and wanted to purchase a new one. However, “No” I do not believe we are in a bubble zone. While there has been some easing in the mortgage industry, banks are still being fairly conservative with their lending practices which means demand is not as high as it used to be when “everyone” could get a “no money down” home loan.

 

Additionally, separate reports such as: http://gardner.utah.edu/demographics/population-projections/ say that Salt Lake and Utah counties combined (specifically Riverton and Herriman areas) are expected to see a population increase of up to 300k – 400k people by 2025– yikes!  Obviously this will keep the pressure on housing prices for the near future… as will labor and materials costs for new construction. Home affordability is a major issue locally and is not going away anytime soon.

 

Deric Gurley