Salt Lake City Joins Top Housing Markets as FHA Raises Loan Limits

Paper with words fha loanRealtor.com ranked Utah’s capital as the top 6th housing market in the U.S. for 2018 when the Federal Housing Administration (FHA) plans to increase loan limits in almost every part of the country.

The online property portal listed Salt Lake City among the “hot” markets for homebuyers, based on its National Housing Forecast report. On the other hand, the FHA will implement the new limits on or after Jan. 1, 2018.

Easier Times Ahead

Danielle Hale, Realtor.com chief economist, believes that home buyers in Salt Lake City will find it easier to purchase properties next year. This expected scenario will stem from a bigger housing inventory, which will help in controlling price hikes and moderately hasten home sales, according to the report.

The city’s real estate market also reflects a strong economy, as prices and sales are expected to grow 4.5% in 2018, Hale said. This will exceed the anticipated nationwide average for property price growth at 3.2%, down from around 5.5% this year. Prices in Salt Lake City may be higher than the national average, but an FHA loan lender may help your budget for a home purchase.

Higher Limits

FHA has expanded the coverage of higher loan limits in 2018 to 3,011 counties in the U.S from 2,948 counties this year. Only 223 counties will still have the same limits on borrowed funds.

The agency will raise the ceiling amount in expensive areas to $679,650 from $636,150 in 2017, while the minimum amount will increase from $275,665 to $294,515. The current minimum amount comprises 65% of the national conforming loan limit of $453,100, which applies to counties where 115% of the median home price amounts to less than minimum limit.

Conclusion

Salt Lake City’s housing market will be in-demand next year, which is why home buyers should be ready to compete with rival bidders on property listings by planning their financing strategies.