Buyer Demand Surging in Utah as Spring Market Begins
Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.
However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).
Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.
Why the increase in demand? Increased buying power.
According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.
“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”
Bottom Line
It appears the spring buyers’ market is going to be much stronger than many had projected. Whether you are selling or buying, this is important news.
*The methodology behind the indices:
The ShowingTime Showing Index
“The ShowingTime Showing Index® tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.”
The National Association of REALTORS® Buyer Traffic Index
“In a monthly survey of REALTORS®, NAR asks respondents ‘Compared to the same month last year, how would you rate the past month’s traffic in neighborhood(s) or area(s) where you make most of your sales?’ NAR compiles the responses into an index, where an index above 50 indicates that more respondents reported “stronger” traffic than “weaker” traffic.”
Is Now a Good Time to Buy in Utah
Buy or Sell with Marty Gale "Its The Experience" Principal Broker and Owner of Utah Realty™ Licensed Since 1986 CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM) PSA (Pricing Strategy Advisor) General Contractor 2000 (in-active) e-pro (advanced digital marketing)...
Why Today’s Housing Market Is Not About To Crash
Why Today’s Housing Market Is Not About To Crash There’s been some concern lately that the housing market is headed for a crash. And given some of the affordability challenges in the housing market, along with a lot of recession talk in the media, it’s easy enough to...
Cinco de Mayo -Mexican Independence Day!
Today is Cinco de Mayo May 5th Happy Cinco de Mayo! Cinco de Mayo is a holiday that is celebrated in the United States every year on May 5th. While many people associate the holiday with Mexican Independence Day, which is actually celebrated on September 16th, Cinco...
How Homeowners Win When They Downsize
How Homeowners Win When They Downsize Downsizing has long been a popular option when homeowners reach retirement age. But there are plenty of other life changes that could make downsizing worthwhile. Homeowners who have experienced a change in their lives or no longer...
What’s in store for the Housing Market for the rest of 2023, and beyond?
What’s in store for the Housing Market for the rest of 2023, and beyond? According to industry experts, the housing market is expected to remain strong in the coming years, with steady demand and limited supply driving up prices. This trend is likely to continue into...
Ways To Overcome Affordability Challenges in Today’s Housing Market
Ways To Overcome Affordability Challenges in Today’s Housing Market Some Highlights With so few homes on the market right now, widening the scope of your search to include nearby areas could help you find more options in your budget. You can also work with a trusted...
Why Today’s Foreclosure Numbers Are Nothing Like 2008
Why Today's Foreclosure Numbers Are Nothing Like 2008 You’ve likely seen headlines about the number of foreclosures climbing in today’s housing market. That may leave you with a few questions, especially if you’re thinking about buying a house. Understanding what they...
Market Update for Real Estate in Salt Lake County 2023
Market Update for real estate in Salt Lake County 2023 As we approach 2023, the real estate market in Salt Lake County is showing no signs of slowing down. In fact, experts predict that the market will continue to be strong, with steady growth in both home prices...
Why You May Want an Energy-Efficient Home
Why You May Want an Energy-Efficient Home Some Highlights Since inflation is increasing the cost of goods and services, it may make sense to look for an energy-efficient home. Energy prices have increased over the last year, so look for energy-efficient features in...
Why Use A Senior Real Estate Specialist?
Why Use A Senior Real Estate Specialist As we age, our housing needs change. Whether you're looking to downsize, move closer to family, or find a home that better suits your lifestyle, the process of selling your home can be overwhelming. That's where a Senior...