(GTU) – Utah home values are skyrocketing and the housing market doesn’t show any signs of slowing down. “Will the bubble burst, or are the high prices here to stay?” This is the question at the front of everyone’s mind.
Utah’s market is unlike any other in the country. It’s leaving potential home buyers to question if they should invest in property now or later. There is fear that this upward trend is destined to develop into something reminiscent of the monster housing market demise and economic crash of 2008. Though, people in the industry are quick to point out the differences.
Rapid population and job growth are the biggest drivers of housing demand in Utah right now. Local real estate agents acknowledge that there aren’t enough single-family homes to meet the rising demand. But the market is stable. Prices have risen sharply and steadily for more than two years and there is every indication that Utah home prices will continue to rise. So buy now, right?
No one can predict the future perfectly, not even the countries leading economists. That being said, investing in property now is probably a safe bet.
Housing supply is reaching all-time lows, and demand remains high – meaning prices are primed to continue upward. And unlike 2008, the country doesn’t have to worry about grimy lenders offering predatory subprime mortgage products. The economy and market conditions are at a different place now as supply and demand are more of the fuel to this housing market spike, not shady business practices.
This simple economic comparison serves as an added level of assurance to many involved in the industry – builders, real estate professionals, and lenders alike. The housing market will stay competitive for a while and what you pay now will probably be the same, or likely more expensive if you choose to dig your heels in.
There are a few things you can do right now to get offers accepted in this competitive seller’s market.
First, make sure you find a lender you trust and get pre-approved before submitting offers so that you are as attractive as possible to sellers even without a large down payment or cash offer. It shows you not only completed a loan application but also provided supporting documentation for employment, income, assets and that an Underwriter has reviewed your credit history and qualifications.
Get a fully-written pre-approval – It only takes a couple of days.Marianne Rasmussen with Wyndham Capital Mortgage
Second, be flexible with your closing date and be vigilant about costs.
Ask the seller if they prefer a short or long closing. They might need to close in 30 days, but maybe they need 60 days or longer to be ready for their move. Most loan programs will also allow you to let the seller do a lease back for 60 days.
Closing costs vary depending on the price of the home – and lender. Make sure your loan officer goes over these costs with you up-front during the preapproval process. You want to be prepared so you don’t have surprises down the road. Wyndham often has lower costs than most other lenders because they do not charge lender fees. This means we don’t have a processing fee, underwriting fee, administrative fee, etc.
Wyndham Capital is a lender that knows the ins and outs of the process. But don’t take our word for it – they’ve got more than 6,000 5-star reviews to back us up. With more than 20 years of tenure, Wyndham Capital delivers transparent and trustworthy mortgage experiences using industry-leading technology to save you time and money.