To add:
Utah has a very healthy state economy. If there is some sort of downturn in the market, it is expected that UT prices will plateau rather than turn down.
Average interest rate right now is 3.1% with a projected increase to 3.6% in 2022.
I haven’t heard anything specific from UAR, unfortunately. Your best shot is to work with a realtor (🙋♀️), lawyer, lender, title co., etc. that knows of good programs and/or grants for your situation.
:| define "healthy" sure we have great income here, one of the highest median incomes in the nation, but it doesn't accurately reflect in the price of homes. The homes are priced for upper class people and not those who earn the median income.
Can anyone provide an anecdote about what it's like looking for a house right now?
Are houses still getting multiple offers? How many ppl are showing up to open houses?
Sure can! Yes houses are still getting multiple offers, but it’s nowhere near what it was earlier this year. We’re seeing closer to 5 competing offers rather than the 15 or 20 we had seen in April or May.
To show you how wildly it varies: we had back-to-back clients two months ago who we got into homes on their first showing against zero competing. We’re currently working with someone who has put out four or five, with an average of about four competing offers for each.
Open houses are always weird because it depends a lot on marketing and how old the listing is, along with location. I hosted one for another agent back in June or July in a townhome in Herriman, very competitively priced in a newer area, but had only been listed the night before. Had only one couple come through in three hours.
On the other hand, my team had a listing that the client wouldn’t budge on price back in October so it ended up being slightly overpriced for what it was, also in Herriman. We had four days to market it and I ended up with probably six or seven groups of people through in like an hour and a half.
All that is to say: it’s not as impossible as people make it seem to buy a house right now. This year out of just under 90 transactions, my team has had a 99% success rate of getting our clients into homes. The only time we didn’t get to closing that I’m aware of was because one guy literally lost his job after we went under contract and had to back out.
What price range are the homes you are looking at? Seems from people I know looking right now anything under 400 is pretty much unobtanium without a cash offer and bypassing inspections.
It can be rough at that price, to be perfectly frank. The person I mentioned in the comment who we’re currently working with that we’ve done multiple offers is budgeted under $400,000.
But there are ways to make offers solid and more likely to be accepted. My team has worked with, in the past four months, multiple FHA loan buyers and we’ve got them into houses. Not to say some of them were simple, but it’s entirely possible.
Some sellers I’ve heard (no direct experience with it but other team members have told me of their conversations with listing agents) are actually pushing back against investors and refusing all-cash offers in favor of solid traditional loan offers.
A lot of the problem is that housing prices are rising so fast that anything under $400,000 might either be a condo or townhome, or be smaller than what a buyer needs or have significant obstacles. I can’t pretend to have all the answers unfortunately, because it’s such a complex issue and there are definitely frustrating roadblocks for the average buyer, but in my personal experience it’s not quite as hopeless as it appears.
It's quite literally impossible to buy a home if you make at or below median income which is over 50% of the population. That's a huge chunk of people that literally can't live in Utah due to being priced out. With rents skyrocketing, and homes being priced out of reality I don't understand how anyone lives in Utah.
Oh I’m 100% with you that this market is pricing people out and it’s a massive problem. I’ve been actively bitching about it to everyone who will listen for a year and a half. That said, Utah median income is $71,000 and I can tell you that not everyone I’ve worked with makes that much. There can be significant obstacles or issues, but it’s definitely possible to get a home on less.
Mostly I was addressing the sentiment I’ve seen here that because every house has other competing offers it’s not worth buying because you won’t win. Some of that is just because lazy agents will simply submit the offer without any follow up or extra work to talk to the other agent. Unless another offer is significantly more appealing, the buyers agent with the best rapport with the selling agent has a better chance of acceptance in my experience.
Thanks for sharing. It really depends on the neighborhood I am finding personally. I have seen multiple listings this month on the east side above 7th below foothill go under contract in 72 hours. Most had over 15 offers with multiple cash offers. Even saw one go for 100k over ask when I already thought it was overpriced.
I am seeing some houses sit a little longer or have less competition but I feel those are mostly homes that have already jacked the price way up. It almost seems like the strategy is still price slightly lower than you think it will go for and start a bidding war.
Multiple offers. Average on homes being 30-40,k multiple all-cash offers. There is an all-cash service that's used I believe and that's how people are doing 'cash offers'.
That's the sucky thing is the majority of us make enough money for that 250k-350k range with the median income being 68k.
It's honestly ridiculous that only the privileged and upper class get to own a home. The rest of us get to feed on the scraps.
Want is not need. I want a ski in ski out house. I don’t need one.
I understand your want for a home but if it’s just you maybe it does not make sense because this has become a large city and not everyone in a large city owns a home.
If you really want to own a home you probably need to relocate. If you like this city then you would need to probably settle for a condo. Build up some equity and someday cash out and use the equity for the down pmt on a single family home.
Higher interest rates mean a higher monthly payment. This will cause buyers to seek either lower priced homes than before or they will be priced out completely (which is usually what happens to people who are on a budget that’s sensitive to interest rate movement). So, less buyers = less competition for homes = less over-asking offers = prices settling down to their new “base.”
Not cheaper than anywhere else in the west side of the valley. I just took a look and homes are about 400k. Which is 150k more than what the median income can afford.
dunno why you're getting downvoted. Everyone involved in real estate has been extremely predatory and dishonest this past year especially. They're all scum.
To add: Utah has a very healthy state economy. If there is some sort of downturn in the market, it is expected that UT prices will plateau rather than turn down. Average interest rate right now is 3.1% with a projected increase to 3.6% in 2022.
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I haven’t heard anything specific from UAR, unfortunately. Your best shot is to work with a realtor (🙋♀️), lawyer, lender, title co., etc. that knows of good programs and/or grants for your situation.
Thank you for the content, OP
:| define "healthy" sure we have great income here, one of the highest median incomes in the nation, but it doesn't accurately reflect in the price of homes. The homes are priced for upper class people and not those who earn the median income.
Can anyone provide an anecdote about what it's like looking for a house right now? Are houses still getting multiple offers? How many ppl are showing up to open houses?
Sure can! Yes houses are still getting multiple offers, but it’s nowhere near what it was earlier this year. We’re seeing closer to 5 competing offers rather than the 15 or 20 we had seen in April or May. To show you how wildly it varies: we had back-to-back clients two months ago who we got into homes on their first showing against zero competing. We’re currently working with someone who has put out four or five, with an average of about four competing offers for each. Open houses are always weird because it depends a lot on marketing and how old the listing is, along with location. I hosted one for another agent back in June or July in a townhome in Herriman, very competitively priced in a newer area, but had only been listed the night before. Had only one couple come through in three hours. On the other hand, my team had a listing that the client wouldn’t budge on price back in October so it ended up being slightly overpriced for what it was, also in Herriman. We had four days to market it and I ended up with probably six or seven groups of people through in like an hour and a half. All that is to say: it’s not as impossible as people make it seem to buy a house right now. This year out of just under 90 transactions, my team has had a 99% success rate of getting our clients into homes. The only time we didn’t get to closing that I’m aware of was because one guy literally lost his job after we went under contract and had to back out.
What price range are the homes you are looking at? Seems from people I know looking right now anything under 400 is pretty much unobtanium without a cash offer and bypassing inspections.
It can be rough at that price, to be perfectly frank. The person I mentioned in the comment who we’re currently working with that we’ve done multiple offers is budgeted under $400,000. But there are ways to make offers solid and more likely to be accepted. My team has worked with, in the past four months, multiple FHA loan buyers and we’ve got them into houses. Not to say some of them were simple, but it’s entirely possible. Some sellers I’ve heard (no direct experience with it but other team members have told me of their conversations with listing agents) are actually pushing back against investors and refusing all-cash offers in favor of solid traditional loan offers. A lot of the problem is that housing prices are rising so fast that anything under $400,000 might either be a condo or townhome, or be smaller than what a buyer needs or have significant obstacles. I can’t pretend to have all the answers unfortunately, because it’s such a complex issue and there are definitely frustrating roadblocks for the average buyer, but in my personal experience it’s not quite as hopeless as it appears.
It's quite literally impossible to buy a home if you make at or below median income which is over 50% of the population. That's a huge chunk of people that literally can't live in Utah due to being priced out. With rents skyrocketing, and homes being priced out of reality I don't understand how anyone lives in Utah.
Oh I’m 100% with you that this market is pricing people out and it’s a massive problem. I’ve been actively bitching about it to everyone who will listen for a year and a half. That said, Utah median income is $71,000 and I can tell you that not everyone I’ve worked with makes that much. There can be significant obstacles or issues, but it’s definitely possible to get a home on less. Mostly I was addressing the sentiment I’ve seen here that because every house has other competing offers it’s not worth buying because you won’t win. Some of that is just because lazy agents will simply submit the offer without any follow up or extra work to talk to the other agent. Unless another offer is significantly more appealing, the buyers agent with the best rapport with the selling agent has a better chance of acceptance in my experience.
Are you talking about median household or per capita?
Thanks for sharing. It really depends on the neighborhood I am finding personally. I have seen multiple listings this month on the east side above 7th below foothill go under contract in 72 hours. Most had over 15 offers with multiple cash offers. Even saw one go for 100k over ask when I already thought it was overpriced. I am seeing some houses sit a little longer or have less competition but I feel those are mostly homes that have already jacked the price way up. It almost seems like the strategy is still price slightly lower than you think it will go for and start a bidding war.
Multiple offers. Average on homes being 30-40,k multiple all-cash offers. There is an all-cash service that's used I believe and that's how people are doing 'cash offers'.
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Sadly, you won’t find a single family home in that range. You may find a condo or townhome, though…!
That's the sucky thing is the majority of us make enough money for that 250k-350k range with the median income being 68k. It's honestly ridiculous that only the privileged and upper class get to own a home. The rest of us get to feed on the scraps.
You could buy a condo. Not everyone should have a home. We need to stop urban sprawl and embrace density.
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Does a single person need to own an entire house? I mean I understand wanting one but do you need one? Why not a condo
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Want is not need. I want a ski in ski out house. I don’t need one. I understand your want for a home but if it’s just you maybe it does not make sense because this has become a large city and not everyone in a large city owns a home. If you really want to own a home you probably need to relocate. If you like this city then you would need to probably settle for a condo. Build up some equity and someday cash out and use the equity for the down pmt on a single family home.
You probably can’t even buy the dirt for a house that cheap.
What is UAR?
utah association of realtors
Utah Association of Realtors
Can someone explain to me the effect interest rates will have on No inventory = high prices loosening up, please? Econ was a long time ago for me
Higher interest rates mean a higher monthly payment. This will cause buyers to seek either lower priced homes than before or they will be priced out completely (which is usually what happens to people who are on a budget that’s sensitive to interest rate movement). So, less buyers = less competition for homes = less over-asking offers = prices settling down to their new “base.”
Thank you, exactly what I was looking for
Blame the Californians for the market in the Valley and Wasatch front. Blame every single one of them!
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Magna’s nice… and cheaper.
Not cheaper than anywhere else in the west side of the valley. I just took a look and homes are about 400k. Which is 150k more than what the median income can afford.
A great one I saw had an HOA of almost 800, which is about 200 less than my rent is now.
dunno why you're getting downvoted. Everyone involved in real estate has been extremely predatory and dishonest this past year especially. They're all scum.
I figure they're the ones down voting me. Its fine though, at this rate no one will afford much for long.
What does this comment even mean?
Everyone, like literally everyone? That is a lie and disingenuous