Investing in Utah Real Estate in this Market
Should I wait to buy real estate in Utah?
I hear the question everyday. Should I wait? Is the Utah real estate market nearing the next peak? Am I better off waiting a few months?
These are all good questions that any investor or first time home buyer should be asking. Historically, home prices from Ogden to Provo haven’t fluctuated as wildly as other markets. Las Vegas and Phoenix for example were hit so hard in 2008, investors bought entire neighborhoods at rock bottom prices.
Utah’s relatively stable market is both good and bad for the first time investor or home buyer. If you are waiting for the next bubble to pop and prices to plummet, move out of state. That isn’t likely here in Utah. At the same time however, if you buy at the peak and prices go down, as long as you are smart you won’t lose you shirt.
So is it the right time to buy property? If you are a first time home buyer, I would say no. When comparing the drastic rise of prices to median income, I believe there is a grave inflation which will cause a market correction soon. Average income just isn’t high enough to justify the prices I am seeing properties listed at.
If you are looking for a duplex or a multi-unit property, I would say it depends. I look at new listings in Salt Lake City everyday and am disgusted at some of the prices I am seeing. Sellers are just getting greedy. They are listing 100 plus year old properties that don’t even cash flow 2k a month for half a million dollars. Talk about a negative cash flow nightmare. If the numbers make sense however, I see no reason not to purchase a multi-unit property in the current market. The deals are hard to find, but they are still out there.