3 Predictions for The 2019 Utah Real Estate Market
Utah’s real estate market had another strong year in 2018. It only takes having two eyes to tell the population in the state continues to move in the right direction. The migration of out of state families flocking to Utah has been a key factor in the amount of new construction and overall growth.
Interest rates are one thing that slowed down the purchasing of new homes in the second half of 2018. Even with the cost of a loan being more than it has been in over 3 years, there were still plenty of people making investments in the Beehive State.
Now, the big question is what will the market look like in 2019. Will builders continue to put up new townhomes, apartments, and luxury homes at the same rate as they have in the last several years? Will out of state professionals continue to seek employment in Utah? Will the Fed lower interest rates spurring a wave of refinances and new loans? These are all good questions with which know one exactly knows the answer. However, below are our top predictions for the 2019 Utah real estate market.
1. Interest Rates Will Go Up in 2019
If you’re thinking about buying a home, now is the time to make the investment. Market experts are predicting interest rates will move to the mid to low 5’s in 2019. That’s over a full point compared to the current cost of getting a loan. When you calculate that increase over a 30 year period, you’re looking at an extra 30K.
Housing markets with an increase in interest rates is a sure sign of a healthy economy. While it will cost you more money to get into your next property, hopefully you get a nice bump in salary to even things out.
The unemployment rate is at an all time low in the last 40 years. Ending the year at 3.6 % is another strong sign the economy is doing well under Trump’s leadership.
So, even with the cost of a loan getting more expensive quarter by quarter, people shouldn’t shy away from the Utah real estate market.
2. Utah Property Values Will Explode in 2019
Experts are predicting Utah property values should increase by almost 4% in 2019. That is very strong growth considering houses along the Wasatch Front have see an increase in value annually over the last 5 years.
There were a lot of bold predictions about the Utah housing market in 2018. If you look back a year, experts forecasted Utah to be one of the top 4 states in terms of growth of market and value of property. Our very own Orem/Provo area was actually ranked as the best preforming city in the county according to the Milken Institute. Even with the high expectations for Utah, it was able to realize the profits and value predicted.
One of the main things that is driving the explosion in the Utah economy is the number of out of state professionals moving to the state. Many of these people are used to California or Arizona real estate prices. Seeing how a house with similar size and value in the other states can cost two or three times more than Utah, it makes sense why families are looking to make the move.
We predict Utah County will continue to see outstanding growth with commercial real estate. There has been a flood of large, tech companies moving to our state. They are attracted to the region because of the educated workforce that is willing to work for a competitive wage. There are also a number of successful startups looking for premium offices to run their businesses. Overall, Silicon Slopes is starting to look like the real deal that will bring high paying jobs to the Utah economy.
All of the employment opportunities in our state are sure to be reasons for out of state transplants or recently graduated college students to make Utah their home. This increase for demand of real estate will be a major factor for the continued increase of property values in 2019.
3. Increased Diversity in Utah’s Population
I first moved to Prove in 1999 to attend BYU and later UVU. Back then, it seemed like most of the population came from an LDS background. Sure, you could go to Salt Lake if you were looking for a more diverse experience, but most of the residence in Utah were pretty much one note.
Now, there is a wide range of different culture and sub-cultures all over the state. I think that’s a good thing on many different levels. I don’t think its healthy to only see one person or group’s perspective. Not having the opportunity to live and work around a wide range of cultures limits a person’s ability to empathize with the rest of the world.
We predict Utah will continue to see a steady increase in diversity in 2019. The large number of universities will bring in students from every corner of the world. Many of these foreigners will make Utah their home after they finish with their degree.
The increase of diversity will be another factor for improving Utah’s real estate market. In the past, people have felt out of place if they didn’t belong to the state’s popular religion. Now, its easy to find others that have similar beliefs or background that might be different from the overall majority.
Things are looking very positive for the Utah housing and job market in 2019. The increase in interest rates will surly slow down the number of new loans in the new year. However, with the number of new jobs, new residents, and quality of life, Utah will continue to be one of the strongest economies in the country.
If you are looking to buy or sell a property in 2019, be sure to give us a call. W² Realtors is one of the fastest growing real estate agencies in Utah. Our property marketing program will ensure you find the highest priced offer for your listing. Our price match guarantee ensures you get the lowest agent commission rate available. Please give us a ring at 208 709-6042 or schedule a free consultation when we can discuss your real estate goals.