The Utah market depends on a lot of things. The East bench of SLC has been pretty bulletproof over the past 15 years. Even when the SLC market was brutal for years in the 90s, the east bench kept creeping along at a 4-7% clip while the rest of the valley was in the 0-4%. The huge increase in the past 2 years will not continue much longer and it will fall back to that sub 10% range.
The areas that are in danger, in my opinion, is the newer homes areas of Herriman, South Jordan, etc. I think so because there are SO MANY new homes and new homes still going in and the homes are priced in the $400,000...that in 5 years it will get to the point of: Are people really ready to spend $500,000 for a 5-10 year old home that is a long way from downtown SLC? I really don't know and that demand may stay for a long time but there are so many new homes going up that people will be deciding to buy a brand new home in the same relative area or to buy a 10 year old home for the same price in the same area.
The east bench of SLC can't grow anymore, is close to downtown and there is always a demand because of the lack of finding new ground. The next 5 years will be interesting to see how the valley holds up.
|