CHART: Reaching Peak Expensive
Published On: December 18, 2018 Posted by: Jeremy Peterson
Utah’s housing shortage and affordability crises has been making headlines for the past year or so. In April, I explained why I thought December of 2018 might be the turning point for affordability in the housing market. At the time, I suggested that home values would top out around $125/SQFT if mortgage rates reached 5.5%. We aren’t there yet…but we’re close. Today rates are at 4.87% and homes in Weber County are valued around $123/SQFT.
You can see how those figures, combined with inflation, have shown up in our chart.
As you see here, our present situation is the worst for affordability that it has been since November of 2007. To look at it another way, this chart represents 23 years of information. In that time, only 10% of it has been a period where homes are more expensive (payment wise) than they are now. This should tell us a lot about where we are in the real estate cycle and what lies ahead. Things to ponder while sipping on eggnog.
If you are wondering whether to buy or sell and need help navigating the real estate market, CONTACT ME, and let’s figure out the best course of action for you.