Wednesday, January 3, 2024
There's signs of hope for renters and home buyers in 2024
Urban Living
Posted By Babs De Lay on January 3, 2024, 4:00 AM
It's a new year and many folks will be on the move. Why? In-migration to Utah is the reality, not people moving out of the state. Many will opt to rent when they first arrive, to take time to educate themselves about neighborhoods, schools, commuting times and proximity to things like stores, mass transit, outdoor activities, bike lanes, etc.
For a while, our capital city had a dearth of available rentals. But high-rise apartment buildings have sprouted up faster than a rat up a drainpipe and now landlords are finding they need to offer incentives to get vacancies filled in a timely fashion.
The waitlist for affordable rental housing, with below-median income prices is still long, though, no matter which big city in Utah you look at. The same is true if you're looking to purchase a home or condo in our larger cities—anything under $450,000 will generally get snapped up, sometimes still with multiple offers. And if the property for sale is a "fixer-upper," it will often get sold to investors paying cash and closing fast, which blocks out any chance for first-time buyers to purchase, update and build sweat equity in their home or condo.
The good news I'm seeing is that the Biden Administration has finally got a grip on inflation. People appear to be feeling better about the economy because sales were up, on-line and at brick-and-mortar stores this past holiday season.
The Federal Reserve has chosen not to raise interest rates. From March of 2022 to June of 2023, the Fed raised the federal funds rate by a total of 5.25 points. The 30-year mortgage rates rose to almost 8% in October, but have been falling ever since. I did have a client get a rate under 6% just before the end of the year and most predictions are that interest rates on home loans in 2024 will keep heading downward.
The more rates go down, the more buyers will enter or re-enter the market to attempt to buy a home and putting pressure on low inventory around the state. Also, first-time buyer programs are readily available, offering lower interest rates and monies for down payments and closing costs.
My best advice for anyone looking to buy is to cozy up to a seasoned, full-time mortgage/loan officer. Have them run your credit to see if you need any repairs to improve your score. Yes, lenders can help you do that at no cost. They will also watch interest rates for you and stay in touch when the rate is in your favor for what you can qualify for in a loan and then go shopping with your realtor for your new home.
And if you currently own and have a mortgage interest rate that's high, most lenders these days offer free refinancing of your current loan, which could save you hundreds of dollars each month in loan payments.
About The Author
Babs De Lay
A full-time broker/owner of Urban Utah Homes and Estates, Babs De Lay serves on the Salt Lake City Historic Landmark Commission. A writer and golfer, you'll find them working as a staff guardian at the Temple at Burning Man each year.
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