Park City Real Estate For Sale - Deer Valley Real Estate For Sale

In a recent article on WSJ.com, the news is that the National Association of Realtors has recently said it is now becoming a Seller's Market for national real estate sales. The article goes on to say: "The number of homes listed for sale in January fell by 4.9%, leaving 1.74 million properties on the market. That’s the lowest since December of 1999, when there were 1.71 million homes on the market. By contrast, there were 2.91 million homes on the market two years ago at this time."

It was also added that: "The upshot is that there’s a growing pool of buyers chasing a shrinking supply of homes. If the trend holds, prices will keep going up. At the current pace of sales, it would take just 4.2 months to sell the current supply of homes available for sale, down from a 6.2 months’ supply one year ago."

How does this relate to the Park City Real Estate Market?

This is precisely what we have been witnessing for a few months now in our local Park City real estate market. There had been an increase in sales which has highly reduced the inventory. The people who had to sell already did. The distressed properties have been bought up. Now the people who dont really need to sell are either waiting for pricing to come back up, or they are now pricing their properties at higher amounts, knowing buyers have little to choose from and may need to move up in price to get what they want.

At the same time there is this increase of buyers who are all out looking at a very limited inventory. When a good property comes up, it receives a lot of attention immediately. Buyers in today's Park City real estate market are reluctant to make a jump up in price, and sellers are pricing higher and have confidence they can wait for their number. It is leaving a huge gap bewteen the two.

We are finding buyers looking at real estate in Park City and Deer Valley to be very frustrated that they can no longer get the same great deals they have been hearing about from friends and family who bought in the last year or two. For many buyers they feel like they have waited too long and missed it.

Buyers need to understand they have not completely missed the boat. There are still good buys out there. But yes, you're going to pay a little more today, than your family and friends did a year or two ago. But the good news is the uncertainty of the market seems to have been removed. We really do appear to be on our way back up. The good news is we are only at the starting line, with a long road to climb back up (hopefully). If we are lucky we may see a long term price increase in real estate values. Hopefully it is a slow and steady ride, but only time will tell.

Utah Homes for Sale are More Affordable than Ever!

Did you know buying a home for sale in Utah today is more affordable than any time in the last two decades? Homes are actually at a record level of affordability thanks to lower sale prices and historically low mortgage rates. If you’ve been putting off buying a home of your own, now is the time to do it!

2013 is the Year of Home Affordability for Park City

According to the NAHB/Wells Fargo Housing Opportunity Index, nearly 76% of homes sold during the end of 2011 could have been comfortably affordable for households making the national median income of $64,200. This is the highest recorded home affordability in 20 years. What does this mean for you? Chances are good that you can easily afford most Utah real estate for sale today. And if youre looking to buy a home in Park City Utah, the low mortgage rates really help to make the homes more affordable.

Record-Low Mortgage Rates in Utah

While Utah real estate prices are still relatively low, you’re also more likely to afford a home thanks to record-low mortgage rates. The national average mortgage rate for a 30-year fixed loan is only 3.57%, although Utah mortgage rates are slightly lower. To give you a reference point, twenty years ago these rates were as high as 9.03%!

What does that mean in real world mortgage payments? We have samples below of different rates for the same purchase price of $550,000, which is about the median price for homes in Park City.

Purchase Price: $550,000
20% Down Payment: $110,000
Amount Financed: $440,000

Different Monthly Payments (principal & interest) for Various Rates

Interest Rate:	3.57%	4.5%	5.5%	6.5%	7.5%	8.5%
Monthly Payment:	$1,993	$2,229	$2,498	$2,781	$3,076	$3,383

 

 

Wow, the difference in monthly payments is quite a lot as the rate changes. I remember not too long ago (about 10 years back) when I bought my first home in Park City and the rate was about 6.5%. At the time that felt like a great rate! Just look at the difference now from 6.5% to 3.57%. Thats a savings of about $788 a month. Thats a huge difference!

Renting? Buy Utah Real Estate and Save Money

If you’re currently renting your home, did you know that buying a home can actually be cheaper than renting in many areas? After buying a home, you also gain a wealth of tax advantages and begin putting your money to work for you through property value increases and equity you can use. You build your future, instead of building a landlord's future.

Want to know how much home you can afford? Check out our convenient Mortgage Calculator on our website. Its easy to use, and nice to know in advance how much different home purchase prices will end up costing per month.

To learn more about home affordability in Utah and get help finding the home of your dreams, contact us today!

The above charts were supplied by our friends at Veritas Funding. Below is their contact info. We highly recommend them, and if you call or email please let them know we recommended their services!