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Utah Housing Market Industry Update

December 14, 2022
The state’s robust economy and attractive taxes mean the Utah housing market continues to attract buyers from around the country.

The U.S. housing market finally is showing signs of cooling, but Utah home prices remain strong.

The median single-family home price in the state rose 6.5% from September 2021 to September 2022, according to the Utah Association of Realtors.

The rate of appreciation has slowed from the torrid pace earlier in 2022, but sellers are experiencing still-strong demand for Utah properties. The state’s combination of a robust economy and attractive taxes mean Utah continues to attract buyers from around the country, and especially from California and other expensive West Coast markets. Utah’s unemployment rate of 2.1 percent was the lowest in the nation in September 2022, according to Labor Department data. What’s more, Utah’s tax burden is among the lowest in the nation, according to the Tax Foundation.

All that has added up to make Utah the hottest housing market in the country. From 1991 through mid-2022, Utah home prices have soared a whopping 622%, according to the Federal Housing Finance Administration. In the Salt Lake City metro area, home prices have soared 702% over the past three decades. The national rate of appreciation is 290%.

While Utah remains a seller’s market, the inventory squeeze has eased. At the end of September, the Utah housing market had 3.1 months of inventory. That’s a significant improvement from the 1.5 months in September 2021. 

Meanwhile, average days on market increased to 40 days in September 2022 compared to 21 days in September 2021. And homes are selling for 96 percent of their list price, down from 100 percent of asking price a year ago.

With the housing market slowing, having a mortgage partner you can trust is more crucial than ever. LendSure wants to make your job easier, and we can sign off on approved exceptions quickly and with ease.

To match the heat in Utah’s real estate market, LendSure offers some hot loan products that will help you build your business:

  • Bridge loans. Many homeowners are equity-rich but cash-poor. That reality complicates homeowners’ hopes of moving to another house. In an effort to address this common challenge, LendSure offers bridge loans to help equity-rich homeowners. Our Bridge Financing program empowers borrowers to access equity from their current home to purchase a new home, with no monthly payments on the bridge financing. Borrowers can gain a competitive advantage in a hot housing market by making a non-contingent offer on the new property.
  • Non-warrantable condo loans. LendSure prides itself on being a flexible lender, one that qualifies borrowers based on commonsense rather than rigid rules. The latest condo guidelines from Fannie Mae and Freddie Mac, introduced in early 2022 to address structural integrity of condo buildings, caused upheaval in the condo market. If you have a borrower whose conventional deal has been rejected or stalled because of the agencies’ onerous rules, we can help. LendSure’s commonsense rules allow for approvals of condo units that the agencies reject, including condotels.
  • The high DTI program. Utah’s median home price was $490,000 in September 2022. At that price level, borrowers are looking for flexibility in terms of amortization schedules and qualifying parameters. Enter LendSure’s 55% DTI 30-year IO product. This innovative loan allows borrowers to show a debt-to-income ratio of up to 55%, and the interest-only feature reduces payments even farther.
  • Second homes. Utah’s ski resorts, parks and trails make the state a prime destination for second home buyers. LendSure offers a full array of loans for second homes and other investment properties, including full doc and bank statement loans. Mortgages are available for up to $2 million, and up to 80% LTV.
  • DSCR loans for investment properties. LendSure’s debt-service coverage ratio (DSCR) program is designed to be attractive to property investors. LendSure looks at market rents to qualify the property (instead of considering only currently rented units to support the loan amount), creating an easier path to approval. In other words, not all units need to be rented. LendSure underwrites the investment property based on both current and future rent. For an explanation of our DSCR loans, see this short video. Meanwhile, LendSure has expanded its DSCR program beyond the typical one to four units – we make DSCR loans on properties with up to eight units.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios and data to consider, but we know that, behind every file, there’s an individual with a unique circumstance seeking a loan.  We work hard to offer our commonsense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.

Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, the tools, support and the guidance they need in order to say “yes” to more of their clients.  This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!

Are you ready to benefit from a commonsense approach to lending?  Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.


Contact Us: (888) 707-7811