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  • RealDealUtah Blog

    Wednesday, June 12, 2024   /   by Michael Anglelodalogdog

    "Rising Tides and Soaring Prices: A Chronicle of Real Estate Inflation from 1977 to 2023"

    In the ever-evolving world of real estate, predictions and forecasts abound, often based on a myriad of factors and theories. But amidst the cacophony of voices, one undeniable truth stands out: history tends to repeat itself. In this blog post, we'll delve into a compelling analysis of the history of home prices from 1977 to 2023 and explore how it could shape the future of real estate.

    The journey begins with a graph that paints a vivid picture of the past and offers profound insights into what lies ahead. It's a narrative that transcends mere opinions and dives deep into the annals of economic history.
    As we scrutinize the graph, one striking similarity emerges – the inflationary years of the late '70s and early '80s, reminiscent of the recent surge in prices. However, what follows next is both enlightening and instructive.
    Back in the 1980s, as inflation soared to unprecedented heights, measures were taken to curb its relentless ascent. Interest rates were raised not oncr ...

      housing predictions, economicanalysis, homeprices, housingmarket, inflationarypressures, inflationinsights, investmentinsights, marketfluctuations, propertyvalues, realestatehistory, realestatetrends

    Monday, March 11, 2024   /   by Justin Critchfield & Michelle Aspseter

    The Dilemma: To Buy Now or Wait for Lower Interest Rates in 2025?

    The Dilemma: To Buy Now or Wait for Lower Interest Rates?
    In today's rapidly changing real estate market, potential homeowners are faced with a critical decision: to buy now at current interest rates or wait, hoping for a decrease. With current interest rates at 6.5% and the anticipation of a drop to 5% by the end of next year, the question looms large. Let's dive into the numbers to see what makes the most financial sense.

    The Current Market: 2024 Scenario
    Assuming you're eyeing a home priced at $500,000 in 2024, with the current interest rates at 6.5%, it's crucial to understand how this compares with the projected market conditions in 2025. Expectations suggest a 3 to 5% increase in home prices, potentially inflating the cost to $550,000. Additionally, a drop in interest rates is likely to further increase demand, pushing prices up even more.
    Today's Purchase Scenario
    Purchasing a home today at $500,000 with a 6.5% interest rate results in a monthly mortgage payment of approxr ...

      housing predictions

    Tuesday, February 6, 2024   /   by Michelle Aspseter

    Fed just announced when they may be dropping rates

    The Federal Reserve's Path to Interest Rate Cuts: Implications for Buyers and the Market

    In recent developments, Federal Reserve Chair Jerome Powell hinted at the possibility of interest rate cuts during a notable appearance on CNN's "60 Minutes". For many, especially prospective buyers in Utah, this news is both crucial and timely. As it stands, the Federal Reserve's benchmark interest rate is positioned at 5.4%, with the average interest rate for buyers in Utah hovering around 6.5% to 6.75%. This disparity between the Fed's rate and consumer rates means buyers are paying significantly more, stirring questions and anticipations about the timing and impact of potential rate cuts.

    Anticipating the Timing

    Jerome Powell's statements have set the financial community abuzz, suggesting that the first glimpses of rate reduction could emerge around May or June. This timeline is critical for buyers and investors alike, as it sets the stage for financial planning and strategic dec ...

    Thursday, January 4, 2024   /   by Michelle Aspseter

    Unpacking the Potential Drop in Rates to 3%

    The real estate market is buzzing with anticipation as recent discussions suggest a potential drop in rates to as low as 3% next year. It's a scenario that has many prospective homebuyers and investors on the edge of their seats. Let's dive into what this could mean for the housing market and, more importantly, for you.
    The Federal Reserve's Possible Rate Cuts in 2024
    As many of you may have heard, there's a strong likelihood that the Federal Reserve (FED) will implement rate cuts three times in 2024. Experts are predicting that these changes could occur sometime between April and June. If this prediction holds true, we might witness a market frenzy reminiscent of 2021.
    The 2021 Market Redux?
    Remember the bidding wars and the rapid sales of houses we saw in 2021? Well, brace yourselves, as we might be heading for a similar situation. Already, there's a noticeable trend of declining inventory, a clear sign that buyers are jumping back into the market, spurred by the recent drop of a ...

    Thursday, July 27, 2023   /   by Justin Critchfield & Michelle Aspseter

    A Reviving Real Estate Market: Analyzing Rising Prices in Salt Lake and Utah Counties

    Hello there, property enthusiasts!
    If there's one thing certain about the real estate market, it's that it's always changing, always surprising us. And this year is no exception. We've seen quite a few twists and turns in 2023, and I am here to break it down for you.
    To start, I'd like to draw your attention to a specific graph (as depicted below). This graph showcases median single-family home prices in Salt Lake County. It's interesting to note that we witnessed a significant peak in 2023, followed by a steady decline.

    What caused this peak and subsequent decline? Well, the prime culprit was the rise in interest rates in 2023. But as the famous saying goes, "What goes up, must come down," and the same holds true for interest rates. Their impact on the housing market, however, is often less predictable, and in this case, it led to a dip in home prices.
    The yellow part of the graph points to an intriguing development in the housing market. The latter part of 2023 started to witne! ...