Thoughts about rising Tooele Utah home values may be a hot topic.
Or not so much?
Prices and values of property in Tooele County keep going up. Up, & up. Frankly, no indication that will end soon.
The percentage of appreciation of homes in the County is already pretty impressive. It has been in double digits every month this year in spite of limited inventory which can put a damper on any market.
Many home owners and would be buyers are not so thrilled. They claim to see the same signs that were attached to the “bubble market” 10 years ago. Remember, the bubble burst and equity in terms of house values was all but eliminated.
Many of these folks lost their homes, many more damaged their credit opting to not service debt that was no longer less than the collateral being serviced.
Frankly, they are concerned.
I’m not, and I have put together some info that I hope will not only comfort, but encourage everyone to get out there and start looking at real estate. Preferably in Tooele County.
So What Else Can Rising Prices Mean
Earlier in the year I posted about what was happening in Tooele and many of my clients upgraded their housing situation, or jumped in to become the traditional first time home buyer we love so much to help. You can read that article about rising Tooele housing prices right here.
And now, my friends at KCM, (Keeping Current Matters) has posted an interesting article with charts that I think you should read. It’s really assurances that even though some of the signs that many think model the bubble years of about 10 years ago. Remember? Where home-owners used the equity in their house to borrow money against. That created higher mortgage payments and reduced the value of many families biggest asset.
Here is the KCM article… ENJOY!
However, a closer look at the numbers shows that homeowners are being much more responsible with their home equity this time around.
What Happened Back Then…
When real estate values began to surge last decade, people started using their homes as personal ATMs. Homeowners would refinance their houses and convert their equity into instant cash (known as “cash-out” refinances). Because homes were appreciating so rapidly, many homeowners tapped into their equity multiple times.
This left homeowners with little-or-no equity left in their homes, so when prices started to fall many homeowners found their houses in a negative equity situation (where the mortgage amount was greater than the value of the home). When some of these homeowners saw that there was no value left in their houses, they just stopped paying their mortgages altogether.
Banks eventually foreclosed on those homes and the foreclosures drove prices down even further and put more homes in the negative equity category. This cycle continued, leading to the worst housing crash in almost one hundred years.
What’s Happening Now With Local Real Estate
Again, Americans are seeing their home equity grow. Today, over 48% of all single-family homes in the country have over 50% equity, and yes, some families are tapping into that equity. However, this time around, homeowners are not making irresponsible decisions. According to the latest information from Freddie Mac, the total equity being “cashed out” is a fraction of what it was leading up to the crash. Here are the numbers:
Bottom Line About Rising Property Values
The recklessness that accompanied the build-up in equity prior to the last crash does not exist today. That makes this housing market much more secure than the one we had heading into 2008.
These factors go a long way to frame my thoughts about rising Tooele Utah home values. You might want to do a quick check about roughly what your Tooele home is worth.
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There is a lot here to consider. I hope that what we have shared with you will give the assurances you need to move forward with any plans you may have had that included real estate. Specifically Tooele County real estate.
I’d like to help with that. I’m qualified, I’m local, and with almost 25 years of full time practice, I’m like the AFLAC duck, I’ve seen a thing or two.
or, just pick up the phone and call me, Berna, 435-840-5029, if Chris answers you can talk to him as well. He knows stuff. Just tell him you’d like his thoughts on rising Tooele Utah home values.