Utah's Home Prices | History, Update, and Predictions!

Today I want to talk about everyone’s favorite housing statistic, home price!
Let’s look at Utah home prices since 2000, then take a deeper dive into Utah county home types in 2017 through 2018.

Transcription:

Today I want to talk about everyone’s favorite housing statistic which is home price. I wanted to go through this because I think it’s fascinating. As we look at Utah home values and what we’ve seen over the last seven years and I have some notes here to help me. OK. So first I want to show you is median home price over the last seven years and it’s gone up substantially. Now median home price is the middle price. Seven years we’ve had very consistent appreciation we’ve gone up one hundred and twenty eight thousand dollars in that time. Now I want to show you another graph which is also interesting. And it says something a little different. Now if you take the most expensive and the the least expensive house of all types condos everything. This is we’re going to now average the price instead of averaging is a little bit higher because on the median we saw that the max price was three hundred thousand. But on average as we see the maximum price is now three hundred and fifty seven thousand or really I should say I said maximum I really meant average because the average real estate which includes townhomes condos and single family residence is three hundred and fifty seven thousand dollars right now. And this includes the entire Wasatch Front MLS. So this is like Utah County Salt Lake County Davis county Wasatch and County. There’s quite a few counties in there but the majority of them are really in the Davis Salt Lake and Utah counties. I think that’s where the majority of homes are. So what we see is that again when we look at average home prices the average value again is saying a very similar number. And we are going up substantially. Now I did some I did some calculations on this. And so like if you when you look at two thousand eight to two thousand or sorry 2011 to 2012 we had eleven thousand dollar increase that year the next year we had an eighteen thousand dollar increase of seventeen thousand dollar increase of fifteen thousand dollar and nineteen thousand dollar and then the last two years a twenty one thousand dollar increase and a nineteen thousand dollar increase respectively to bring us up to total hundred forty nine thousand dollars total appreciation over seven years. It’s fantastic. And one of the stats what we’ve seen is that Utahns have more equity in the homes than ever in the history of home ownership. And it’s because we have we’ve had such such amazing home appreciation. So what that’s broken down to is as I divided that total appreciation by by the number of months. And it’s one hundred one thousand seven hundred seventy three dollars increase in home price per month on average over seven years. So pretty phenomenal. And right now again the forecast is for us to go up another 6 percent. The interesting thing is we they said we were gonna go 5 to 6 percent last year. We ended up much higher than the total average was eight point eight percent on average. OK. So let me put more context into this. Let me show you another graph in this graph that I’m showing you is the average home appreciation starting in the year 2000. We have 18 years of home appreciation. Now you could have bought a house here 18 years ago for one hundred and sixty two thousand dollars and at the peak of the previous housing market peak we were two hundred and fifty thousand dollars average price and we thought that was really expensive. Everything dropped and then we hit an average low of two hundred and eight thousand. Now notice that drop in total was was only about twenty five percent on average from top to low. We know that there were definitely discounts or foreclosures out there but on average we only really lost about 25 percent total value. And since then it took us three years to basically get back to the previous high. So. So we had a pretty prolonged low. So it One two three four five six years before we got back up to where we were. But since then it’s been gangbusters and we’re making up for it. And so we’ve had huge growth since then. And it’s really driven by all the jobs and opportunities people have which are bringing people to the state of Utah. OK. So we anticipate this to continue to grow because we still just can’t build enough houses for the demand. So less jobs change as a whole the economy slows down and we stop hiring. We would continue to anticipate this growth. OK. So I want to give you more details and break it down so you really understand the housing market and how prices are from counties. And also to property types. So what I’ve done here is off the look at my notes is if you look again at the average real estate property in the Wasatch Front MLS it is three hundred and fifty seven thousand dollars. But if we look just Salt Lake County it’s three hundred sixty six thousand. And if we look at Utah County it’s three hundred and forty six thousand dollars. So real estate on average is cheaper in Utah County. And obviously if you go further south or if you go further east or west those counties are cheaper. Now if we look let’s break down Utah County if we look at Utah County you know I want to break down three property types one is condos townhomes and houses. So let’s start with condos condos in in twenty seventeen were one hundred eighty seven thousand on average at the end of twenty eighteen. There were two hundred and five thousand dollars. So we went up eighteen thousand dollars or that’s a ten point four percent increase in price. If we look at townhomes we started and at the end of 2017 at ten or forty thousand and went to two hundred and sixty seven thousand. That’s a twenty seven thousand dollars increase or eleven point two five percent. And lastly single family residences, homes. We started 2017 at three hundred fifty seven thousand. We went to three hundred and eighty six thousand. That is a twenty nine thousand dollar increase but represents only eight point one percent. I said only Well these are all huge numbers but most people are trying to get townhomes which is pushed that value more than condos mainly because they have more square footage but they’re more convenient or cheaper than homes still. The average price again when you really look at homes. The average person is paying three hundred and eighty six thousand dollars for a house in Utah County. These are pretty substantial numbers. Hopefully it’s giving you a good idea of what real estate has done basically over the last seven years we’ve seen so much. Everybody knows that and that’s why we have more equity now than we ever have in the history of home ownership in Utah. So that’s all good news. It also buffers us from any bad economy because if the economy does turn and we do lose value we’ve gained so much over time that people can still sell their houses they can still move real estate because they do have equity. So that’s that’s one of the security buffers that we have right now. No one’s really or not that many people are really cashing out refinancing to decrease that equity. Most people if they lose their equity what they’re doing they’re selling the house and they’re taking that equity as down payments towards a new house. So a lot of great things are happening. Utah is a hot market. Hope this was helpful for you guys. And as always Like and Subscribe below follow us and if you have any real estate needs please give us a call. We’d appreciate to hear from you. Thanks bye.