Demand for rental homes and units in many parts of the country is on the rise as many homeowners who are unable to refinance their mortgages to today's lower rates because their property values have declined have sold their homes "short" or left them altogether after foreclosure. Increased restrictions for obtaining mortgage financing (high credit scores and larger down payments) have also reduced the pool of renters who "qualify" for homeownership.
As demand rises for rental units, the cost of renting should rise. As inventory of homes available for purchase grows, and demand shrinks (or is reduced due to a smaller pool of buyers who "qualify"), the downward pull on home values takes its toll.
For those with excellent credit, stable employment and a reasonable down payment (about 5% or more will do), this may be the best time ever to purchase a home. Not only have prices been "slashed" by as much as 10-50% in many areas, but interest rates are about as low as they have ever been (just above or just below 5% in recent days).
First time buyers (defined as those who have not owned any real estate in the past 3 years) who make up to $150,000 combined or $75,000 alone, may qualify for up to $8,000 in the form of a refundable Federal tax credit. $6,000 is available for any Utah Buyer who purchases New Construction (1600+ grants available first-com first-served. You do NOT have to be a first-time buyer, but similar income restrictions apply).
You used to be able to say it was smart to buy if you were planning on staying in a home for at least 3 years. This was because it took that long for appreciation to cover the costs associated with selling the home. During the boom, you may have been able to buy a home and sell it in 3 months without taking a loss.
In today's economy, it probably still makes sense to buy a home if you plan to stay in it for an extended period of time (5 years +).
If you do buy a home in Salt Lake City or the Surrounding Area in today's economy, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!
If you have excellent credit and will be buying a $300,000-$800,000 home in the next 1-3 months and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.
Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
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