Despite Reduced Interest Rates, Utah's First-Time Homebuyers to Encounter Challenging Market in 2024

Quite the headline... Is it true?

What challenges could lie ahead for the first time homebuyer in Utah this year? Let's dive into it.

For most first time buyers the biggest obstacle to buying a home is the cash needed to close. Even though the 20% downpayment myth has all but been busted at this point that doesn't mean you can buy a home with absolutely $0 with a traditional mortgage. There are costs to cover. Earnest money, inspections, appraisals on top of the down payment and closing costs.

A challenge for first time home buyers could be coming up with all of that cash to cover each expense. Luckily as of this writing there are many ways to get help with both closing costs, interest reduction, and down payments.

Let's start with closing costs. Less competition means more negotiation power plain and simple. Most deal I have closed over the last 8 months have had some sort of seller contribution for closing costs. So depending on the abilities of your realtor and the particular situation on the home you're bidding on you likely could get help from the seller to cover your closing costs.

Interest reduction. The best place to go for help with this is the builders. There is massive opportunity in new construction right now. Builders are throwing money at buyers with incentives to move their inventory. They will pay for your interest rate reduction which translates to lower payments for you.

Last of all down payments. Down payment assistance programs are not in short supply here in Utah. Utah housing is perhaps the most popular but by no means the only one. Mountain America Credit Union also has a tremendous first time buyer program (I think better than Utah Housing). Perhaps the best in the state!

The point that I want to convey is that despite challenges in the market there are also solutions if you know where to find them. Hence the caveat...

Competition reduces buyer negotiating power and as rates drop more and more buyers will flood the market. That is not my opinion, that is data! If you need some help, you can get it.

For a limited time, while supplies last.

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