2020 is a relatively good year to buy homes for sale in Salt Lake County. If you’re thinking of buying a house this year, read on for some helpful home buying tips.
A Snapshot of the Utah housing market
Experts predict that the Utah real estate market will perform well in 2020. Home prices are expected to grow as the changing demographics, growing population, strong job market, and robust economy create more demand for housing in the state. The Salt Lake City Metro Area has seen the most growth.
Builders are under pressure to deliver homes on demand and have expanded to outlying areas where land is more affordable in order to keep homes affordable.
Industry insiders also believe that homeowners can expect to build more equity this year as the housing market gets stronger.
Despite the projected growth in home prices, however, properties are still relatively affordable in Utah’s top cities.
Median home prices in Duck Creek Village, Eagle Mountain, Ogden, and Washington are below state median home prices, some of which are below $400,000.
The National Association of Realtors (NAR) named Ogden among 10 cities poised for long-term performance based on consistent job growth, age of the population, home appreciation, and affordability for new residents.
When to buy in Utah
With Utah home prices expected to grow in the foreseeable future, the time to buy is now. Those who seize the opportunity to buy a home in the market today are set to reap the benefits of doing so in the future, such as the ability to build equity on existing homes as well as resell for a higher price later on.
30-year mortgage rates fell to a record low of 3.35% in February 2020, down from 4.41% from the same time in 2019. Likewise, the average 15-year mortgage rate dropped to a three-year low at just 2.97%, making this a good time to apply for a home loan if you intend to secure lower interest rates. Current homeowners can also take this opportunity to re-finance existing mortgages.
Home-buying season typically starts in spring, when numerous listings hit the market and the weather makes it easier for buyers to attend open houses. However, with so many house hunters, spring can also be a competitive time to buy, so be ready to make quick decisions.
It can also be possible to find great real estate bargains during off-season, which usually spans the winter or holiday seasons, when there are fewer buyers in the market.
Utah first-time home buyer programs for 2020
Utah Housing’s First Home Loan program helps eligible first-time home buyers secure 30-year mortgages with competitive interest rates.
Advantages of the First Home Loan Program
- Buyers can take out a second mortgage to help with down payment and closing costs
- Primary mortgages are available as 30-year fixed-rate loans
- Minimum credit scores range from 620 to 720
- The loan can only be used to buy a primary residence in Utah
- Income limits apply
- Home price limits apply
Other loan programs available to first time and repeat home buyers include:
- NoMI Loan
- HomeAgain Loan
- Score Loan
- Grants for Veterans