"For those already in the homeownership market, they should expect to build a lot of equity in the coming year, but for those on the outside — the market will be particularly challenging. Wood said the rising costs are also making affordability difficult for renters as well who struggle to find units that won’t bust their budgets." - KSL
The median sales price for single-family homes in Salt Lake County last year was $380,000 (91% increase from where we were nine years ago).
James Wood, a senior fellow at the Kem C. Gardner Policy Institute discussed a recent forecast, stating that—while we've seen a 67% jump in median home value in the last 7 years—we expect the median sales price of a single-family home to rise another 5% in 2020.
This increase would bring the median home value above $400,000 for the first time ever. The forecast also predicts that condo/townhouse prices will climb 10% this year as well, surpassing a $300,000 median in 2021.
Forecast Highlights Presented to SLC Board of Realtors
Condominium/townhouse median cost in SL County rose 10.6% in 2019 (3rd straight year of double-digit increase) (KSL)
Median sales price in 2012: $144,000. Average annual rate of increase since: 9.7% (KSL)
“Economic growth, demographic growth and on the cost side with land, it’s just inevitable. You’re going to get a lot of upward pressure on prices,” Wood said. “There’s no way to avoid it... Some developers are moving toward building more affordable products — under $350,000 in outlying locations where land is less expensive.“
Some of these nearby growth areas we've seen are in and around Eagle Mountain/Saratoga Springs, Magna, South Utah County (Payson), Lehi, etc.
Utah County Market Report: Click Here