How is the South Jordan Market?

Great question!   It totally understand the nervousness of buying anything when the market has decreased.  This however is my favorite market because its the market I have always made the best investments when buying real estate. 

First, Lets take a look at new construction. Nationwide housing has slowed down.  When new construction slows down....that tightens up the supply on the market.  Once demand starts to pick up...than they will start building again.  Right now the market is adjusting its supply levels to meet demand.  Daybreak is doing the same.  The amount of new homes being built are decreasing.  The builders have decreased the amount of homes that they want on hand as inventory to lower their costs.

 Second, Lets take a look at future demand. Economists have pegged Salt Lake Valley to be in a temporary large supply.  They view it as temporary due to certain factors.  First, our low employment. Second, our large supply of great paying jobs.  Third, Our future growth based upon our own population.  The Wasatch Front is expected to have over 1 million more people live here by 2020.   We have one in the top 3 largest growth forecast in the nation by 2020.

Now that we have discussed about our local economy lets get specific about Daybreak. Daybreak right now is in its infancy.   Whenever you have a new neighborhood prices are low until its finished building out.  Prices typically rise over time.   The demand for moving to the area is definite.  All million people across the valley arent going to live in sugarhouse.   Also, if Sugarhouse prices are twice as much as Daybreak....people start moving to Daybreak.   The appreciation in the valley has a ripple effect...just like the country has  a ripple effect.  When California prices skyrocket..People move to Utah in flocks.  The same would hold true with Sugarhouse.....Daybreak will get the same appreciation. The demand to live in Sugarhouse and pay twice the amount than Daybreak appreciation wont happen.

 Also, you have UTA TRAX system moving into Daybreak.  I moved to Daybreak for one reason....I knew it would be a great investment.  Now I live there for a second reason.  It provides the environment, culture, and activities for my family that we love to enjoy.

You are welcome. Its my pleasure! :)    I do get paid whether its build a home or buy a home.  So there isnt a money incentive for me to answer either way. Just in case that might have been a thought.    On building or buying the answer is......It depends.  It depends where you are looking, what you are looking for, how many years you intend to stay in the home, the price range that you are in, the availability of a loan that fits your situation.  It all depends on your situation and where you are looking to buy.   I know many people out there building a home that they are in over their heads because its worth less than what they are building it for.  For instance, I know of a buyer that just bought a million dollar home for $625k.  He couldnt have built it for that.  In many cases we have renegotiated with the builders and were able to drop our clients purchase price even 20k dollars after the home was finished.  Right now we also know of lots or homes from builders that would be a great buy due to foreclosures and etc.  The number one rule is to evaluate each home individually.  Here are the guidelines when looking at properties.

1. How many homes are on the market versus how many homes are selling in that neighborhood per month?  (A neighborhood of 2% turnaround means home prices could be declining...that would help decide what to offer.)

2. How many homes are owner occupied versus investor in the neighborhood?

3. What is the sellers situation?  (Why are they moving...are they in foreclosure...are they flexible?)

4. What have the homes sold for recently AND what are homes currently going for?  (There are neighborhoods of fraud and inflated prices due to the recent years of investor flipping...this is something to be careful of.)

5.  What is the average sold to list price in that area?

These are general guidelines when evaluating purchasing a home so that you make a great financial investment.   You would evaluate the same whether its building or buying.   Building could have different unknown factors that could apply down the road.  (That is why we renegotiated with builders on many homes that went down in price recently.)