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.”
Endless Utah Real Estate Possibilities
Top 4 Reasons to Own a Home
Top 4 Reasons to Own a Home Owning a home can have an incredible impact on your quality of life. Let's connect if you're ready to make your dream of homeownership a reality.
4 Major Reasons Households in Forbearance Won’t Lose Their Homes to Foreclosure
4 Major Reasons Households in Forbearance Won’t Lose Their Homes to ForeclosureThere has been a lot of discussion as to what will happen once the 2.3 million households currently in forbearance no longer have the protection of the program. Some assume there could...
Don’t Sell on Your Own Just Because It’s a Sellers’ Market
Don’t Sell on Your Own Just Because It’s a Sellers’ MarketIn a sellers’ market, some homeowners might be tempted to try to sell their house on their own (known as For Sale By Owner, or FSBO) instead of working with a trusted real estate professional. When the...
Top 10 commercial real estate markets for 2021
NAR Study Puts Salt Lake in Top 10 Commercial Markets The National Association of Realtors® identified the top 10 commercial real estate markets for 2021. They are: Austin-Round Rock, Texas; Cape Coral-Fort Myers, Florida; Charleston-North Charleston, South...
What It Means To Be in a Sellers’ Market
What It Means To Be in a Sellers’ Market If you’ve given even a casual thought to selling your house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make...
2021 Real Estate Myth Buster
2021 Real Estate Myth BusterSome HighlightsThere are a lot of misconceptions about buying or selling a home today, making it challenging to know exactly how to navigate the current real estate landscape.Here’s a little clarity when it comes to 5 common myths about the...
What Credit Score Do You Need for a Mortgage?
What Credit Score Do You Need for a Mortgage? According to data from the most recent Origination Insight Report by Ellie Mae, the average FICO® score on closed loans reached 753 in February. As lending standards have tightened recently, many are concerned over whether...
Thinking of Buying or Selling This Spring? Free How to Guide
>>>> Free Guides to Buying and Selling this spring! <<<<
6 Simple Graphs Proving This Is Nothing Like Last Time
6 Simple Graphs Proving This Is Nothing Like Last Time Last March, many involved in the residential housing industry feared the market would be crushed under the pressure of a once-in-a-lifetime pandemic. Instead, real estate had one of its best years ever. Home sales...