New Homes in Utah - More Vacant Than Last Year
The number of new homes available in Utah has nearly doubled from last year according to a recent report.
At the end of September the Wasatch front had 93 percent more newly built vacant homes than they did one year ago, according to a Metrostudy report.
This is bad news for home builders, but good news for home buyers. Much of the excess new inventory is concentrated in Northern Utah County in communities like Traverse Mountain. Multiple cases of mortgage fraud in Utah County aren’t helping home values either.
Not all new homes are created equal. Some communities are still seeing demand. Based on a search of existing inventory from a builder I’m familiar with, I noticed certain homes in Lehi were seeing discounts of tens of thousands of dollars. Meanwhile homes in Daybreak weren’t being discounted at all.
Home builders in Utah may be willing to deal even more than their advertised, or sale prices. If you’re in the market for a new home, be prepared to offer less than the list price. In addition, make sure you are pre-qualified for a loan before you make an offer. This will help you in the negotiation process and help you determine if the builder’s preferred lender is worth considering. (Many of the current discounts are tied to using the in house lender.) Additionally, be prepared to close the transaction in less than thirty days.
I don’t think now is a time people must buy, but I certainly do think market conditions are good for buyers right now. Interest rates are low, builders are willing to deal and there are plenty of houses to choose from. There are almost twice as many ready to move in new homes in Utah as last year. As a buyer, why not take advantage of it?