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Salt Lake City, UT: Real Estate Market & Trends 2016

Published on Monday - January 02, 2017

Home prices and values continue to climb for the Salt Lake City real estate market in 2016. The first-half of the year witnessed a combination of growth in both prices and appreciation rates for real estate in the area. The pair surpassed the national average in the second quarter, with home prices continuing to grow relative to last year, while price appreciation and principle payments in the last three years have boosted total equity growth since the recession.

The positive trends moving forward appear opportune for Salt Lake City real estate investors. Positive influences on the market include ancillary components like home affordability, new housing construction and the local economy, all of which have seen improvements in the first-half. Additional factors like foreclosures and REOs should also remain favorable for investors as well. That said, the Salt Lake City real estate market is expected to flourish in the latter part of 2016, benefitting investors and homeowners alike.

Salt Lake City, UT Real Estate Market Statistics:

Salt Lake City real estate

One of the bigger highlights of the first-half of 2016 has been in the form of home appreciation. Salt Lake real estate remains on pace with the national average, as one-year and three year rates reached 5.7 percent and 17.3 percent during the second quarter. In comparison, the national average saw one-year and three-year rates of 4.9 percent and 17.8 percent. For Salt Lake City real estate investors and homeowners, appreciation rates have paid handsomely in the form of total home equity gains. For those considering Salt Lake City real estate investments, the following outlines appreciation gains in previous years:

  • Homes purchased in the Salt Lake City, UT housing market one year ago have appreciated, on average, by $19,225. The national average was $14,963 over the same period.
  • Homes purchased in the Salt Lake City, UT housing market three years ago have appreciated, on average, by $53,221. The national average was $46,878 over the same period.
  • Homes purchased in the Salt Lake City, UT housing market five years ago have appreciated, on average, by $103,245. The national average was $82,353 over the same period.
  • Homes purchased in the Salt Lake City, UT housing market seven years ago have appreciated, on average, by $84,178. The national average was $77,054 over the same period.
  • Homes purchased in the Salt Lake City, UT housing market nine years ago have appreciated, on average, by $72,817. The national average was $31,126 over the same period.

From a Salt Lake City real estate investing perspective, the market has yielded overwhelming results. The last nine years have produced total home equity gains above the national average, with homes purchased five years ago earning the highest total: $103,245. In the last three years alone, price and appreciation and principle payments have boosted total equity growth since the recession. With one-year home appreciation rates outpacing the national average, investors and homeowners should expect to see further gains in total home equity in 2016.

Foreclosures and REOs are another facet to consider when buying and investing in real estate. The Salt Lake City real estate market experienced 1,406 properties in some stage of foreclosure during the month of November, according to RealtyTrac. Compared to last month, this represents a 57 percent decline, including a 53 percent drop from this time last year. The number of REO properties in Salt Lake City also dropped. Bank owned real estate diminished 20 percent from the previous month and 54.5 percent from the same period last year. The culprit for the decrease in foreclosures is due to a invigorated economy, which is helping to spur home prices and values. Investment opportunities in the Salt Lake real estate market remain widely available.

Salt Lake City, UT Real Estate Market Summary:

Salt Lake City real estate investments

  • Current Median Home Price: $276,900
  • 1-Year Appreciation Rate: 5.7%
  • 3-Year Appreciation Rate: 17.3%
  • Unemployment Rate: 3.9%
  • 1-Year Job Growth Rate: 3.2%
  • Population: 191,180
  • Median Household Income: $45,833

Salt Lake City, UT Real Estate Market (2016) — Q2 Updates:

Salt Lake City real estate investors

Home prices for the Salt Lake City real estate market continued to grow in the second quarter of 2016. The median home price for real estate in Salt Lake City area was $276,900, compared to the national average of $239,167. For homeowners and investors, gains in the last three years have extended the trend of positive price growth since the recession. One-year appreciation rates reached 5.7 percent during Q2, while three-year rates climbed to 17.3 percent.

Factors helping to support the Salt Lake City real estate market in the second quarter included the local economy, new housing construction and even home affordability. Employment has held up and on an upward trend, as one-year job growth reached 3.2 percent during the quarter, compared to 1.9 percent by the rest of the nation. In terms of unemployment, Salt Lake City experienced an unemployment rate of 3.9 percent in Q2 versus the national average of 4.9 percent. Although unemployment has risen since the same period last year (3.7 percent in 2015), the labor market in Salt Lake has been more resilient than the national average.

New housing construction is another component that will influence home prices and affordability in coming years. The level of construction during the second quarter reached 56.2 percent above the long-term average, with single-family housing permits rising 20.3 percent since last year. In comparison, the national average is experiencing single-family housing permits at a rate of 10.6 percent. For the Salt Lake City real estate market, construction is on the rise relative to last year which suggest that local inventory has stabilized.

Home affordability for the Salt Lake City housing market is another factor to consider for potential homeowners and investors. Homeowners in Salt Lake City paid 13.3 percent of their income on mortgage payments during the second quarter, whereas the national average paid 15.8 percent. Affordability has historically been strong in SLC, but the area experienced weaker numbers in the second quarter. Although higher than a year ago (12.7 percent in 2015), affordability for the Salt Lake City housing market is still lower than the majority of today’s markets, especially in New York, NY, San Francisco and San Jose, CA real estate markets.

The second-half is forecasted to see greater price growth in the Salt Lake City real estate market than in the U.S. in the next 12 months. According to the National Association of Realtors (NAR), Salt Lake City real estate is predicted to grow by 3.9 percent, compared to the national average of 3.6 percent. The second-half prediction is higher than a year ago, which bodes well for Salt Lake City real estate market, including investors and homeowners alike.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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