Early 2009 May Be the Best Time to Buy a Luxury Home in Salt Lake

By
Real Estate Agent with Homebuyer Representation, Inc. DRE# 5467433

Considering a Luxury Home purchase in Salt Lake? Now may be the best time to buy.We all know that the Salt Lake area real estate market (and the economy at large) is doing better than most areas of the country. Still, some things have slowed considerably.

Some things that have slowed the most:

  • New Construction Permits
  • The Time it Takes to Sell a Home (Days on the Market)
  • The Number of Home Sales for Homes Priced Over $400,000

New Construction

The good news is that less new construction actually will help slow the supply, which will help equalize the market sooner, meaning a healthier housing market.

Days on the Market

Currently, however, inventory (supply) still substantially exceeds the number of qualified Buyers (demand), which has directly impacted the length of time it takes to sell a home in today's market. That extra time helps Buyers because many Sellers who need to sell get more motivated as more time passes than they originally expected which translates into more and larger price reductions than was seen in the past as well as more success in negotiations for Buyers with excellent credit and no home to sell.

Average Sold Price

Since the Average Sold Price includes sold homes over $400,000, fewer homes selling above that mark actually artificially skews the Average Sold Price downward. (Well, not artificially, but it should be expected to be lower if very few luxury homes are selling relative to a year ago.)

This means the Salt Lake City real estate market isn't as bad off as some news headlines could lead you to believe, unless you are trying to sella home with an over 1/2 a million dollar price tag. You should expect to sell it for substantially less than you could have during the peak of Salt Lake's boom, say, 20% - 50% less. The higher the price a Seller could have commanded during the peak of the boom, the bigger the hit they will need to take to sell that home in today's market. (While it would be highly unlikely to see a home that could have sold for $400,000 at the peak of the boom selling in the $200,000 range, seeing a home that could have been sold for 1.8 Million Dollars during the boom listed at $900,000 today is conceivable.)

Now May Be the Best Time to Buy a Luxury Home in Salt Lake

The good news here is also for buyers who are able to purchase homes over $400,000. Luxury homes and homes over $400,000 are taking the biggest hit (the largest price reductions) in this market. These homes also historically give you the greatest return if you buy them in a down market and then sell during a future boom. Buyers with excellent credit and down payments over 10 or 20% have the greatest leverage in negotiations in today's market because the pool of available Buyers who can close a loan in this price range is also much smaller than normal.

So if you are thinking about buying your dream home, now would be the time to get the best deal, not after the market bounces back.

If you plan on buying your dream home in the Salt Lake City, Utah area, make sure you work with an agent who will negotiate on your behalf and not in the best interest of the Seller. Exclusive Buyer's Agents work only for Buyers in every transaction.

If you have excellent credit, and will be purchasing a $400,000-$1,500,000 home in the Salt Lake City, Utah area in the next 90 days and would like to be represented by a Certified Negotiation Expert and an Exclusive Buyer's Agent (an agent who will work exclusively for you on your side of the transaction), call us at (801) 969-8989 or contact us via the link on this page.

©2008 Homebuyer Representation, Inc. - Salt Lake City, UT

"The Real Estate Agents on the Buyer's Side" TM

Exclusive Buyers Agents (EBA) - All Rights Reserved

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Rainer
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Rob Aubrey
Cottonwood Heights, UT

I agree Ben it is the perfect storm for stepping up. The $300k and under are definitely selling (not flying of the shelf) and the $400k and up are not selling so much.

I keep telling sellers that WANT to upgrade to take the hit on the existing home and get into the next at a bargain price and not to mention those rates.

Dec 07, 2008 05:40 AM #1
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Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

It certainly helps clear the air with new home permits down for awhile,  Karen

Dec 14, 2008 12:03 PM #2
Anonymous
private residential communities

I agree with you, however I don't think people would wait that long with the new reduced mortgage rates! Thanks! Robert

Dec 22, 2008 01:31 AM #3
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Rainmaker
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Benjamin Clark

Buyer's Agent - Certified Negotiation Expert
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