I only want to say this once, and upfront, In my opinion there will be no housing crash in Tooele County Utah. Not next week, not next month, and I don’t think we need to worry about a housing downturn this whole year.
Why? Well for a lot of reasons. Let’s talk about a few. From the perspective of:
- The National Real Estate Market.
- The Utah Housing Market
- Local Tooele County Utah Market
My friends at Keeping Current Matters have mentioned 4 generic reasons there will not be a crisis in the following article. It points out reasons why the industry is strong nationally. I think in Tooele County we should all feel comforted.
Check these KCM deals out and then read the links and comments that address the housing crash possibilities from a local perspective.
There is a lot of uncertainty regarding the real estate market heading into 2019. That uncertainty has raised concerns that we may be headed toward another housing crash like the one we experienced a decade ago.
Here are four reasons why today’s market is much different:
1. There are fewer foreclosures now than there were in 2006
A major challenge in 2006 was the number of foreclosures. There will always be foreclosures, but they spiked by over 100% prior to the crash. Foreclosures sold at a discount and, in many cases, lowered the values of adjacent homes. We are ending 2018 with foreclosures at historic pre-crash numbers – much fewer foreclosures than we ended 2006 with.
2. Most homeowners have tremendous equity in their homes
Ten years ago, many homeowners irrationally converted much, if not all, of their equity into cash with a cash-out refinance. When foreclosures rose and prices fell, they found themselves in a negative equity situation where their homes were worth less than their mortgage amounts. Many just walked away from their houses which led to even more foreclosures entering the market. Today is different. Over forty-eight percent of homeowners have at least 50% equity in their homes and they are not extracting their equity at the same rates they did in 2006.
3. Lending standards are much tougher
One of the causes of the crash ten years ago was that lending standards were almost non-existent. NINJA loans (no income, no job, and no assets) no longer exist. ARMs (adjustable rate mortgages) still exist but only as a fraction of the number from a decade ago. Though mortgage standards have loosened somewhat during the last few years, we are nowhere near the standards that helped create the housing crisis ten years ago.
4. Affordability is better now than in 2006
Though it is difficult to afford a home for many Americans, data shows that it is more affordable to purchase a home now than it was from 1985 to 2000. And, it requires much less of a percentage of your income today than it did in 2006.
The housing industry is facing some rough waters heading into 2019. However, the graphs above show that the market is much healthier than it was prior to the crash ten years ago.
The Other Side of The Housing Bubble Coin in Utah.
While Utah stacks up pretty well against the warning signs of a collapse nationwide, let’s see how the State is doing using other parameters. Here are a few articles contributed by professionals in the field that examines our position at a state level that are important to the equation. Click on the read more buttons to see the entire offering.
Apr 11, 2018 … Here are some reasons why the housing market in Utah is so competitive. … hotbeds for tech startups, with Forbes ranking Salt Lake city No.
Feb 13, 2018 … Here’s a look at the 10 housing markets with the biggest gap … No. 9: St. George, Utah (Washington County) Median sales price: $262,802
These pivotal 12 crash factors could start a housing market crash in a … There is no reason to believe that this time will be any different — Forbes report. …. CA; Dallas, TX; Salt Lake City, UT…
Jun 5, 2018 … When you keep getting outbid on homes, you wonder if it’s wise to offer more for the … As a Utah resident, I’m happy to say job growth has been … While there’s no way to know wha…
But How About a Housing Bubble in Tooele County:
Jul 26, 2018 … The latest report shows that in Tooele County — something of a go-to area … A recently released study found that housing prices in Utah have …
Feb 22, 2018 … Utah’s residential real estate market has had a similar story over the past few years: … “We don’t want to lose that competitive advantage. … Wood also expects Tooele County to…
Oct 30, 2018 … Home prices in many counties along the Wasatch Front jumped double … homes climbed 14.6 percent in Tooele County, 11.3 percent in Utah County, … “You just kind of feel like you’…
Frequently requested statistics for: Tooele County, Utah; Utah.