After inventory and affordability challenges in 2018, prospective home buyers may have better chances of scoring a property this year.
Here are a few reasons that the market is looking brighter for buyers who have stayed on the sidelines.
More homes are for sale. For the last few years, a limited number of listings has given buyers fewer choices. But housing experts predict more robust inventory this year and we’re certainly seeing an increase in new listings right now.
Home price growth is slowing. The first signs of a slowdown showed up in the last half of the year. Home prices will still rise but at a much slower pace than the last few years. The median sales price of a single-family home will increase 5 to 7 percent to around $375,000 while the median price for condominium will increase by 10 percent to $275,000. Utah’s relatively strong economy may provide the Salt Lake County real estate market with a buffer to the anticipated slowdown in the real estate market.
Mortgage rates are lower. The 30-year fixed-rate mortgage has backed away from moving above the 5 percent that experts previously predicted. That means lower borrowing costs for buyers. The 30-year fixed-rate mortgage averaged 4.41 percent last week. That’s definitely a huge opportunity for buyers because it drastically improves affordability.