So the average price of a home has increased in Salt Lake County from
$224,641 in 2005 to $298,214 by the end of the second quarter in 2007.
Seems like a substantial jump doesn't it? I'm sure that we have lost many of the buyers who would be available to purchase first time homes, because we don't have that many homes in the price range.
So you can imagine that areas like Rose Park, Glendale, parts of West Valley and Kearns will see prices continue to increase at a fairly good rate because there is a lack of inventory for affordable housing and a lot of competition for that limited supply. If you are an investor these areas should be good places to invest for longer term holding and appreciation. In fact, we just sold a home to a client of ours on Valentine St. in Rosepark (a phenomenal area for those who haven't visited it between 600 N.-1500 N. and 700 W.-1700 W.) and he had 6 applicants for rent within the first week. He rented it at $1200 per month and has a great tenant. Given the fact that he put 20% down, he has a nice cash flow position and an asset that is appreciating.
Utah currently has some of the lowest vacancy rates in history for tenant occupied properties. Therefore the demand is up and the rental rates go up along with demand. Also, Utah is still top in the nation in economic growth and population growth boasting the lowest unemployment rates in the nation as well, around 2.7%.
Just thought you may want to hear some news that would be pertinent to you, rather than all the doom and gloom we here in the national media.
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