What’s going on with Utah real estate?

[Utemachine]

I am entertaining an offer with a company to return to SLC. Naturally I went to look at potential houses and was floored by the increase in prices since we moved 2.5 years ago. Are people really getting some of the prices they are asking or are they swinging for the fences right now and will get serious about price in the summer? I was looking specifically in the Sandy, Draper areas. The Denver market has been going crazy but anecdotally it seems like SLC is increasing at a greater rate. 

[EagleMountainUte]

Prices are rucking fiducolous right now. I sold and plan to move to Washington by May. Living with in laws sucks. 

I will have five to six acres in the Vancouver area with a four bedroom home. Compared to smelling every time my neighbor farts in Salt Lake County. They are cramming way too many people in an area where it can’t be sustained. 

[Utah]

Are you moving to Battle Ground? We used to live up there a few years ago (we lived in Camas). Now we are out on the coast. 

We moved back to Utah, taking less pay when we did in 2015 and we were shocked at home prices. We thought we’d tough it out, but when we were offered a job making 2x’s what we were making in Utah with home prices being about the same…we headed back to the NW. It’s insane. 

I hope your salary is high enough to cover the home costs. 

[EagleMountainUte]

The home costs seem even to me and yes salary is doubling. What are property taxes like in Clark County?

[Puget Ute]

It looks like Clark is 1.183%, so $4,732 on $400k for instance.

Our sales taxes are high (no tax on food) and we have some of the highest gas prices in the nation. But we have no income tax and our power and heating bills are low, so it evens out to some extent.

Come on up, we will welcome you to the great PNW!

 

[EagleMountainUte]

My uncle in Ridgefield says best way to get around sales tax is smuggle stuff in from Oregon. Everyone seems to work in Oregon anyways. 

I am very excited. 

[belli1976]

BGU- I live and work in Camas. My financial services company is hiring. If you are interested and have some experience, the state income tax is great. Let me know. 

[UtahFanSir]

No need to “smuggle” stuff in from Oregon. Just drive across the bridge over the Columbia River or purchase stuff from Amazon.

If you work in Oregon but live in Washington, you will not get out of paying Oregon state income tax. That loop hole has been closed. You will pay non-resident Oregon state income tax.

[belli1976]

Amazon loophole does not work anymore. They tax it all now. 

 

Going down may get less attractive as Oregon is trying to make the bridges across the Columbia tolls. SW WA politicians are fighting the toll but have little help from Olympia. 

[belli1976]

Camas is great. It is growing and the city is doing little to improve infrastructure. It will be interesting to see what happens over the 5-10 years

[Tony (admin)]

Yes it is crazy now.  Bagillions of new construction for apartments, rentals especially.  The area is blowing up and so are the prices.  I was house shopping in the fall/winter of 2017 and I’d go to look at a house that went up for sale at 9am and by 9:15 it was sold.  

[UteFanatic]

The U.S. is at full employment and the Utah economy is doing really, really well right now. Couple that with still low interest rates and land constraints along the Wasatch Front and you get legitimate housing demand.

The Fed has commited to raising interest rates, so that will put downward pressure on housing prices. However, that doesn’t do much for people wanting entry into the housing market because lower home prices doesn’t mean a lower monthly payment when rates are increasing. 

There isn’t an artificial price inflator anymore, like with NINJA loans during the early 2000s so don’t expect a crash like in 2008.

I think high home prices is the new reality in Utah  

[Utah]

I agree. The costs are finally coming up with other larger cities in the US. The question is, are salaries high enough to meet that demand? At least in my line of work, pay is much, much, much higher out of state, justifying the higher out of state home prices. 

[EagleMountainUte]

That is the problem right there. Utah doesn’t want to pay anyone a fair wage. I don’t know how people can afford this crap in Utah. 

[ladyinred]

This is exactly it. I am on the east side of liberty park and the only people who are moving in around here are from out of state/on out of state wages. We were lucky to buy what was a fixer-upper in 2013, otherwise we’d be priced out of the area. 

[UteFanatic]

I’m in the same situation. I bought our current home in 2013. There is no way I could afford it today. Its value has increased by more than $100K.

[Stone]

Utah doesn’t want to pay anyone a fair wage? Are you talking about the state government? Regardless, I would imagine the market pays what the market demands. Affordability concerns are not limited to Utah, it is an issue in many hot markets, particularly along the west coast.

Even high salaried tech employees in the Bay Area are having a hard time affording housing. The reality is it all comes down to basic economics: supply and demand.

In California, the supply of housing is constrained by many factors (government regulation/fees, environmental laws, geography, NIMBYs, etc.) and there is a strong demand. Supply in Utah, or really the Wasatch front, is probably mostly impacted by geography (mountains on one side, lake on the other), but there is also a very high demand (where else are the California refugees going to go?).

[EagleMountainUte]

I agree with everything you said.  But Utah businesses and especially the state government are not keeping pace with COLI. Just my opinion. Also the tax breaks Utah does to get businesses to come or stay here don’t equal competitive wages. I feel businesses have found a cheaper labor plus tax breaks in Utah. 

Also we are headed to another bubble again in housing.

[TheNuschler]

I bought my house in the neighborhood just south of Sugarhouse park south of i-80 for 196 with an unfurnished basement in 2011. Finished the basement and bath (that was already plumbed) and could turn 250k off it. When my 15 year old is in his last year of HS I’m looking at the Camas Washington area myself. I mean, it’s good for me but terrible for anyone trying to buy at the moment or for the future.

[belli1976]

Camas isn’t cheap. My 2400 sq ft TOWNHOME could easily fetch $400k, if I had to move quickly. That is similar sq ft price as my brothers higher quality 6600 sq ft home in Highland. 

[TheNuschler]

Oh, I just like the area and I’m downsizing.

[Utah]

He’s right, Camas is very pricey. BUT, it’s
amazing. 15 mins from the airport, beautiful location, small town but close to everything. I love Camas and would move back in a heartbeat. 

[Tony (admin)]

Had to google map Camas.  

[EagleMountainUte]

I am looking at East Battleground in the woods. Not quite Yacolt. I love Woodland as well. Wife likes Washougal/Camas but houses are more expensive there and you get more neighbors in my price point of homes. 

[Utah]

I like your area a lot too. I signed a three year deal here, but my wife and I have talked about moving back to Camas but worry it might be too pricey for our tastes. 

Battle Ground is our #2 choice. Great area. 

[Puget Ute]

My sister just sold her house in the same area as you, South of I-80 and East of Highland. Great neighborhood, great yard, but the house was a cracker box and the kitchen was smaller than a closet. Still, it sold for a grundle and she was able to move into a much larger home a few miles south. 

[ironman1315]

In the 7 or so months since we bought our present home, the price of it has increased by $20k based on similar homes sale prices in the exact same neighborhood. It’s insane.