The real estate bubble has burst. Home values are falling in areas that were the hottest markets, including California and Florida.
Apparently someone forgot to inform Utah. Home values continue to rise in almost every city along the Wasatch Front. Draper, Utah, real estate is just one example. According to the Salt Lake Tribune, the median home in this Salt Lake suburb for the first quarter of 2006 was $358,000–an increase of 12.6% over the previous year.
Using the median in this measure means that of the 117 units sold in Draper, 58 sold for less than $358,000, and 58 units sold for some amount over $358,000.
The Salt Lake Tribune data also indicates that the overall trend in Draper, Utah, real estate values has sharply increased in this quarter. After holding steady through Q3 and Q4 of 2005, in Q1 of 2006 home values jumped by almost as much as they had increased the previous year. That is to say, in 2005, the median home value rose $21,000, while in the first three months of 2006 alone the median home value rose $19,000.
The housing boom may have affected Draper, Utah, real estate later than other areas, but you can still profit from these rising home values. If you buy a home in Draper now, you could sell it–whether later this month, later this year or simply later on–at a significant profit. For example, if home values continue at the present rate (ie the rate from 2005 Q4 to 2006 Q1), one year from now the median home value in Draper will reach over $445,000. That’s nearly $100,000 in profit in just one year. If you were to make additional “flipping” improvements, while increasing your initial investment, you could most likely sell the home at an even greater profit, and even more quickly.
If you’re looking for a home in Draper, this trend means that now is the time to buy before home values get any higher. If you plan on reselling your house later on, you could stand to profit if the general upward trend continues.
Whether you’re an investor or a home buyer, financing your Draper, Utah real estate is an important step in procuring that potentially profitable property. It can help to get pre-qualified for a loan. Pre-qualification not only indicates to agents and home owners that you’re serious about real estate shopping, but you can afford a house in that range. The pre-qualification process can be as simple as filling out a form online.
If you’re planning on staying the home a little longer, a mortgage advisor can help you find the right loan for you, based on your current budget, debt load and income. Professional mortgage advisors offer you the advantage of experience in the industry as well as a finger on the pulse of real estate and loan trends.
Don’t rely exclusively on the advice of Uncle Merl who last bought a home 20 years ago or Cousin Pearl who bought one two weeks ago. Even newspaper analysis of trends is usually insufficient advice to help you decide if it’s better for you to rent or buy, what you can afford, or which loan is for you. A bank or pure mortgage lender looks out for their own profits and may “help” you into a home and a loan that you really can’t afford.
On the other hand, a good, professional mortgage advisor has your best interests at heart. Getting you into a home you can afford is their ultimate goal. A professional mortgage advisor is the best route in financing your Draper, Utah real estate.