Utah's Real Estate Market Boom in 2024

If you have itchy investment trigger fingers; look no further than the Beehive state.

Downtown Salt Lake CityPhoto byTanner Crockett

Happy New Year!

With the beginning of a new year, millions of Americans begin working on their new year's resolutions. For some, November and December are ideal times to begin compiling lists subsectioned into a wide variety of targets.

Let's check off one of those items in your financial section. We all have a section full of Do's and Don'ts. One of those subsections needs to be 'Investing' or 'Investments'. If there isn't one currently, YOU NEED to add it right now.

For those that already do have that section, and for those that are penciling in this new section, let me tell you why 2024 is the ideal year to look at the Beehive state for your next real estate investment.

2020 and 2021 brought a lot of interested parties to Utah. We all experienced the craziness of multiple offers flying left and right. Offers that would make any seller salivate uncontrollably - as well as the listing agent ;) - Offers that were 40K, 60K, 100K well over asking price. The world went mad for a couple of years.

Homebuyers (and those refinancing) got spoiled with interest rates between 2% and just under 4%. Why spoiled? Because it left everyone wanting and expecting more. As the market shifted in the last few years...and to be correct, the word we're looking for here is 'corrected' - the market corrected itself into what we've experienced throughout 2022 and 2023.

The reality is that everyone with a vested interest in real estate - whether you're a licensed real estate agent, an investor, and definitely sellers and homebuyers - would love to see those types of rates come back. In fact, if you're currently an agent working with living breathing homebuyers, the Go To we've heard is: "I'm waiting for the interest rates to go down" or "I'm waiting from home prices to go down" and even (I've heard this one) "Get back to me when rates are back down to 2%-3%"....seriously, what movie are some people watching?

Spoiled.

2020/2021 were anomilies, and SHOULD NOT be looked at as a benchmark or deciding factor for purchasing a home. By looking at the big picture - in other words, other decades - homebuyers were accustomed to pre-qualifying for interest rates from 10%-17%...so in essence, yes, the 7%-8% that we have seen in the last 36 months are on the LOW end.

David Contreras | Realtor | @theactorsellinghomes on Instagram, Facebook, and YouTubePhoto byElle J Schabel Contreras | www.ElleJStudios.com

Despite home sales dramatically slowing down during those years, thousands of wise sellers and homebuyers capitalized on the uneasiness of the rest of Americans, by purchasing properties without much competition - aka madening multiple offers. On top of that, due to sellers not receiving a wave of offers, many sellers opted for helping buyers with money out of their own pockets for concessions. That's lingo for free money from the seller in order for the buyer to use towards closing costs and/or interest rate buy downs.

That is a luxury that buyers did not get during the years that we dare not speak of. This is where it can get frustrating for professionals in the real estate and lending industries. As we represent clients, we are fully vested in helping people from all walks of life in probably their biggest investment yet. I'm sure that for most agents, such as myself, we will go into the homebuying process as if we were the buyer - our money, our investment. We will not jeopardize our money, aka, the client's money.

Because we live and breath real estate. We are in constant communication with lenders that are constantly updating us about where the market stands. In addition, we stay up to date with the Fed, and any information coming from Washington. We truly are the experts in what we do.

The frustrating part is when you educate the client using the best, and most updated information, and they opt for listening to everyone BUT the expert(s).

Time and time again, I've advised potential homebuyers to 'look ahead'. The moment when interest rates drop substantially, is when we will see waves of buyers flood the market. This will bring back the aformentioned multiple offer scenarios that we saw in 2021; offers for surreal amounts well over asking; rising property values.

In summary, if you get what you have been waiting for, i.e. decreasing interest rates and property values - that in turn brings more people to the playing field with heavier wallets.

It decreases or in some cases, eliminates your buying power.

So, as a buyer, how do you avoid this?

You capitalize on the current interest rates, and then set a calendar reminder to refinance in the future when the rates have more promising drops.

A good way to put it is, do you wait until you have some ideal interest rate, but when it's here, property values have gone up so much that you wish you would've taken advantage of slightly higher rates but a lower home price - food for thought.

Wasatch Front Mountains in Salt Lake CityPhoto byDouglas Pulsipher

So with the talk of declining interest rates out of the way, let's focus on why Utah should be at the top of your locations for real estate investment.

Post 2002 Winter Olympics, the state has become one of the top magnets attracting new talent in various industries. The low unemployment rate coupled with thousands of multi-lingual business professionals, has gained attraction by top-tier hiring companies like out-of-state giants Facebook, Adobe, Oracle, eBay, Texas Instruments and local companies like Domo, Weave, Qualtrics, etc. Needless to say, Utah has experienced a massive tech boom, and continues to flourish.

Americans have been noticing, and many have made Utah their home. Many more will be flocking to the state in 2024, which should alert locals that have been hesitant to pull the trigger purchasing a home. The time is now.

The Silicon Slopes will only continue to bring, create, and launch new business with a wide spectrum of innovation.

Just south of the Silicon slopes in Lehi, UT, you are welcomed into Draper, UT, one of the most affluent areas in the greater Salt Lake City area. For years the south end of Draper housed a minimum and maximum security prisons. After many years of waiting, the now more than 600 acres will now be home to innovation and technological advancement, support economic growth, and enhance Utahns' quality of life with new parks and open space. In fact, Utah will now have its own Central Park, plus more housing, retail, shopping, and dining establishments.

The Silicon Slopes will now expand from Utah County into Salt lake County :)

Mock up of The Point Utah located in Draper, UT.Photo byThePointUtah.org

If you continue north along the Wasatch Front, you run into yet another oppulent area of the Salt Lake valley in the likes of Holladay, UT.

Like Draper, Holladay is also getting a face lift, although to be honest, Holladay is already a high-priced market with listings up into the 8-digits. However, I'd like to share with you a project that has also taken a while and will actually be completed before The Point in Draper.

I am speaking of Utah's very own Hollywood Hills...er, dubbed 'The Holladay Hills'...nice play on words, am I right?

Locals know this area as the location of the old Cottonwood Mall. Now the invigorated area will house high-end shopping along Rodeo Walk Dr, luxury high-rise condos and apartments, various dining spots, and Utah's 2nd LifeTime Fitness location.

Screenshot of Concept Animation for The Holladay Hills in Holladay, UT.Photo bygrandeurliving.com

It's an exciting time to be in Utah, or for you out-of-towner, to consider relocation to Utah.

From Holladay, we head directly west towards the other set of mountains - the Oquirrh Mountains. Nestled on the south west end of Salt Lake County is the city of South Jordan, UT.

However, I want to spotlight a community within South Jordan, a community that has received implants from all over the nation, and even from outside of the United States. Studies have showed that 1 in 6 homes sold in Utah, are located inside of this community.

Welcome to Daybreak!

Stunning homes surround Oquirrh Lake in Daybreak, a community inside of South Jordan, UT.Photo byAdobe Stock

Initially conceived in the early 2000s, Daybreak quickly gained attention by creating a new aesthetic, and focused on offering amenities to its residents that wanted to be active and social. With homes in every color of the spectrum, property prices have been constantly climbing. Long gone are the days when you could easily get a single family home in the low 300s.

However, whether you're open to a condo or a townhome, you will still be able to find something within that budget. Do take note, the HOA fees are pretty high no matter where in Daybreak you reside.

As mentioned, property values have steadily climbed over the years, with some of its fanciest homes surpassing the 2.5 million dollar price range.

There is no denying that this area will continue to attract thousands of homebuyers in the coming years. You are sure to enjoy one of the many community parks, pools, SoDa Row with its boutiques and shops, Halloween Street, Classic Car Shows, Summer Concert Series, the Daybreak Farmer's Market, miles of trails, and the newly acquired Salt Lake Bees (AAA baseball) with its new stadium. In addition, said stadium will be built inside of the official Daybreak downtown, which as you may expect - will bring more housing, shopping, and dining alternatives.

I could keep you here all night breaking down all of the reasons why Utah is going to make you fall in love with its many communites and residents, but you need to rest your eyes.

I didn't even get into the Sugar House area with its hipster vibes, Park City with its world renowned ski resorts, Hallmark's infatuation with Ogden's Historic Downtown, the Bonneville salt flats, Heber Valley with its majestic views, and Garden City bordering Bear Lake and its direct access to stellar boating.

Ogden's Historic 25th street has been the backdrop for countless Hallmark movies in recent years.Photo byBarry Allen

In conclusion, with interest rates on the decline, Utah's cost of living, low unemployment rate, and low crime rate, 2024 will be an impactful year for everyone dipping their toe in Utah real estate.

Happy investing!