Multifamily Sales in Salt Lake City Amounted to More Than 1$B in 2017

Apartment complex

Apartment complexThe Salt Lake Board of Realtors reported that sales of multifamily units in 2017 amounted to more than $1 billion, due to an increase in median sales prices.

Despite the increase, there were 4,500 units that exchanged possession in the previous year. This indicated that demand from buyers remained stable amid higher sales prices, up 11% to $225,000, according to the report.

Property Development Activity

Fitch Ratings expects home prices nationwide to increase 4.6% in 2018. It listed Utah’s housing markets among the top five states that will perform well this year. In Salt Lake City, home prices would increase by 3.2% from the current average prices of $360,000.

A reason for the projected increase involves the influx of several companies, which continue to set up business in the state.

For instance, many enterprises have flocked to the Provo/Orem region because of its high-tech industry. Workers from out of the state also moved to the region because of job prospects and higher salaries. While rising home prices normally elicit concerns of a bubble, experts say there should no reason to worry over a potential crash for now.

Housing Bubble?

Jim Wood of the University of Utah’s Kem C. Gardner Policy Institute said that the most number of sales occurred in Salt Lake City, West Jordan, and Sandy. He attributed the increase to a larger demand for affordable housing options. Wood believes that the likelihood of a real estate bubble remains low, as mortgage lending standards have become stricter in recent years.

For this reason, cash-strapped developers that remain undecided should consider launching new projects this year. Good thing, as bmfcap.com mentioned, The U.S. Department of Housing and Urban Development’s (HUD) multifamily loans will help you finance your next development.

An opportunity to make a profit awaits property developers since demand for multifamily units in Utah will likely continue to increase in the near future.