This story says there is an extreme need for single family and multi-unit
housing. This means there is an opportunity for builders to come in even more
than they have with a reasonable expectation that when they build now these new
properties will sell. The economy is booming in Utah. More built homes and
condos mean more carpeting, tile, lumber, appliances, windows, glass and other
items bought and sold. This helps the Utah economy as well. Banks are
still constrained by Dodd-Frank so Impartials artificial cost raising regulation
is still in place but they complain on costs and values rising. Impartial has
set a 300,000 dollar limit on homes artificially. Based on what? Just what they
think! A standard Socialist ploy. Make up a number. The key to
remodeling a home is remodeling if needed and valuations are maintained. Be
prudent and do not over extend. Do not turn your home into a overextending ATM.
Do not borrow up to your home value. Maintain equity. Do not have debt in credit
cards and cars which ruin your debt ratio and creates stress in budgets when
income flattens or falls. A hot home market means jobs for plumbers,
electricians, carpenters, etc
This is one reason I probably won't be staying in Utah after I graduate
from BYU. With all of the people being born here, I don't see how it will
ever get cheaper. Soon enough, the valleys will fill up, and where will Utahns
be able to live then?
And this pushes a lot of people out of the housing market, such as police
officers, teachers, etc. It also contributes to the gridlock on our freeways as
people are forced to move farther and farther away from their jobs in order to
We didn't learn anything from 2006. My brother in-law is a General
Contractor, specializing in major remodels. People are paying inflated costs for
homes in Sugar House, Millcreek, and Holladay. Homes built in the late
50's, early 60's are selling for 350-450 K. Same homes sold for 250K
in 2008. They need plumbing, electrical and HVAC systems entirely replaced. They
get 125K construction loans & gut the homes. They end up with 550K in a 2800
sq.ft. 1958 home. Realistic price should be about 300K. Banks are lending money
for overpriced properties to marginally qualified buyers. The American public
will be bailing out the banks and Wall Street all over again. Amateur house
flippers are in the market. The correction is around the corner.
Yes, I am a home owner, but these kind of increases in housing values sadden me
because they make it harder for young families to get into a home and are more
evidence of the financialization of our economy and the prevalence of a get rich
quick mentality in our society.
Beware of the bubble, friends and neighbors...