If you're looking in Weber and Davis counties, such as Bountiful, Layton, or Ogden, I think we will be below the national average. Unfortunately, I have misplaced my magic 8 ball.
Whatever price drop we do see, there is still a very strong case for buying a home right now rather than waiting for the bank-owned inventory to do its thing. This is especially true for those looking to "move up"....in other words, sell their house, and then buy a home that's larger, nicer, or in a better area. Of course, what we really mean is more expensive!
The following graphic illustrates this well. For nice round numbers, we just started with a $500,000 house. If you're more interested in a $200,000 house, or a $700,000 house, the principle is still the same.
Compared to 2006 prices, depending on your specific area, we have seen about a 20% drop in prices. If you're thinking back to what your home was worth in 2006, you might be thinking, I've lost $100,000, and you may be tempted to wait until prices come back. As you can see below, the amount you will save on the house you buy will far exceed the loss.
If you take it one step further, and look at the affect of future appreciation once the market turns around, the case for buying now is even stronger. (see below)
If you aren't convinced yet, the affect of interest rates on monthly payment will be the nail in the coffin of this debate. Right now, it is so cheap to borrow money that homes are at affordability levels not seen since the 50s...and that's just crazy! Check out the graphic below that shows and example the savings you might realize if you bought now before prices go back up.
So if you are thinking about selling and moving up, there has never been a better time. Take the hit on the house your selling so you can realize the benefit on the house you're buying. Find out what your Utah home is worth below:
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