The United States economy has taken a major hit this year due to the Coronavirus. One exception has been the housing market which continues to thrive and supports the overall economy in a major way.
Residential real estate is the greatest source of wealth and savings for most Americans and the industry itself provides a source of revenue for millions. As the industry thrives, the value of homes increase as well as the amount of home equity loans available to owners. Ultimately, this stimulates the economy because more cash is available to homeowners which increases consumer spending.
Mortgage rates remain extremely low, which also encourages buyers to purchase. Partly due to Covid-19, many city dwellers are escaping to the suburbs which has caused an increase in demand.
Many people are also conserving funds right now, giving them a more robust savings. The personal savings rate in June was about 19%. With more money in their pockets, many people are looking to invest in a home.
Utah’s housing market
The market in Utah is no different. Utah’s housing market is extremely active and homes are selling quickly. We are also seeing an increase in demand which makes the market extremely competitive. The average time on the market in Utah is 43 days and the average closed sales is up by 3.1% compared to 2019.
What does this mean for homeowners?
If you are looking to purchase a home and are able to qualify, 2020 is a fantastic year to buy. The continued low mortgage rates give you more buying power right now. However, due to a shortage of homes, you may find yourself in a multiple offer situation and will want to have an experienced Realtor in your corner.
If you are selling a home, the time is right! The Utah market is seeing a quick turn around on new homes on the market. Many sellers are receiving multiple offers within 24 to 48 hours of listing. Before you list, you’ll want to make sure you are ready to move quickly. Work with your Realtor to have your house in tip top shape before your listing goes live.
Whether you are ready to buy or sell, or just have a few questions, we would be happy to give you more information so you can make the best decision for your situation. Contact us today at 801.210.0819.
Image from Utah Central Association of Realtors