The housing situation is good in Utah. The demands of the home are high and the number of houses sitting idle in the market has become lower. The Salk Lake housing market saw a remarkable growth last year, and the same is also expected this year. According to the Salt Lake Board of Realtors, 13,323 existing single-family home were sold last year. This was the highest number in a decade and the third highest number in the Salt Lake County’s history. Last year, the market saw a growth of 22% over last year. This year also, a double-digit market growth is expected. Here are the reasons why the market is in such a good condition.
• The high demand for housing is not limited to single-family homes only. There has been a huge demand for multifamily units like townhouses, twin houses and condominiums as well. This mainly accounted for the 22% growth of the real estate market.
• The prices of the properties were also high. The median sales price for a single-family house was $272,000 which was 7% more than the previous year. The price of the multifamily unit was also up by 8%.
• The number of homeowners having negative equity in 2010 was 21%. This has now dropped to around 4%.
• In 2014, the median household income in Salt Lake County was $63,000. About 30% of this income was allocated as a mortgage payment. This year also, the affordability factor remains high. So, more people have the ability to pay off their mortgages.
• There is now more demand for houses compared to the number of homes in the inventory. This had increased the prices of homes.
There has been a strong growth in the job market and the income of people has increased. These conditions are favorable for the real estate market in Salt Lake this year.