Opportunity Knocks  


.   

SALT LAKE CITY - While other housing markets have cooled to the rampant, nation-wide house-buying frenzy that struck the nation throughout 2004 and 2005, Utah seems to have dug in its heels and decidedly stay put - undaunted by rising interest rates and virtually unaffected by threats like slowed consumer demand.

Yet again, 2005 proved to be another landmark year for home sales in the Beehive State. A recent article in the Deseret Morning News reported that the median price of a single-family home in Salt Lake County has risen 12.4 percent since 2004 - and shows a jump in average price from $165,000 to $185,000.

On top of that, the state's net migration for 2005 totaled 40,647 people, according to a recent state economic report. With numbers like these, it's safe to say that Utah's housing market will do anything but slow.

"We have seen a very strong market, high demand and lower supply that have driven sales," says John Thibeault, ex-marketing director for Peterson Homes. He's quick to point out, though, that other markets aren't so undervalued. "Phoenix and Denver aren't in the same price bracket - that's why real estate investors are giving the Salt Lake Valley a nod."

For Riverton homeowner Sue Johnson, that undervalued market combined with a family-oriented community is all it took to leave her then-home of Modesto, Calif. "We were ready to settle down and wanted to invest in an appreciating market," she says. "The numbers in this area looked right. They are more promising than other locations we looked in to."

The good news for would-be homeowners is that about 21 percent of new construction - one-fifth of all new construction homes - are priced under $150,000, according to Thibeault. "All Peterson homes are right around that price, which is still very affordable," he says, though that affordability might not always be around. "Prices are going to continue to go up, not because builders are taking advantage, but because labor shortages, concrete shortages and the effect of natural disasters like Hurricane Katrina often result in escalating prices."

So, what's a first-time homebuyer to do given the current and near-future real estate forecast? "Try to find a home in the $150,000 range and take advantage of homeownership at a reasonable, fixed rate. It's a good place to be," says Thibeault.

Aside from the investment factor, most pine for ownership because it allows for personalization, customization and that must-have this-is-mine-and-mine-alone feeling. There's an undeniable sense of pride that comes with owning your first home. And with ever increasing rent prices, it's looking like a better option to more and more Utahns.

"Enjoy the opportunities of homeownership and then roll your equity into something nicer and bigger, when you're ready," advises Thibeault. "That's the beauty of ownership - being able to use your appreciation and obtain something more suitable as your needs change."

But, Thibeault reminds, it's important to strike while the iron is hot. "If you're going to buy, now is a good time to do it. All signs point to 2006 being another good year for real estate in the Valley and it's more than likely that prices will only keep growing."

Although obtaining attached-home permits has become increasingly difficult for builders, the Salt Lake area still offers a myriad of attached-home and condominium-living options, which according to Thibeault, make a great starting point.

Townhomes are an attractive outfit for first-timers thanks to their low-maintenance, low-cost niche. But location continues to hold its essential outpost, especially if you have limited resources and don't want to spend money and time commuting back and forth, he says.

"We have absolutely wonderful locations," Thibeault says. "We like to create neighborhoods in growing cities that aren't too far west." Peterson Homes has one sold-out community in North Salt Lake, and two others, Country View (Riverton) and Stone Creek (West Jordan) with single and attached homes still available for purchase.

"Our locations eliminate the annoyance of bottle-neck driving every morning," says Thibeault. "Riverton may be a little further south, but with convenient access to I-15 and Bangerter Highway, you can be downtown in as little as 15 minutes. You can just hop on the freeway and get to where you need to be going with relative ease."

Thibeault's other prediction? "Women make 80 percent of the buying decisions," he says. So, gents, if the rest of the forecast plays out as foreseen, it might be best to pass this article along to your better halves.

For more information on Peterson Homes, visit their Web site at www.choosepeterson.com. Contact Barrett Peterson at (801) 746-3615 for more information on the Country View and Stone Creek Communities.