Utah – Homebuyers Starting to Swarm in the Beehive State
During the height of the Great Recession, 8% of Utahans were unemployed. The suffering here may not have been as widespread as it was in other states, but the people here weren’t exactly rushing out to buy new homes, either. Now that the recession is officially over, Utahans think it’s time for their housing market to finally be on the road back to health.
But realtors in Utah aren’t just crossing their fingers and hoping for the best. They’ve got solid facts and figures to back up their optimism. According to Fiserv Case-Shiller, a group of economists that study the average home price changes in certain markets, home sales in Utah are about to get a whole lot more profitable. They say home prices around the state will rise 7% between mid-2013 and mid-2014.
A big reason for the predicted jump is the decrease in foreclosures around the Beehive State. When foreclosures stop dragging down sales prices, “normal” homeowners will see bigger jumps in value – especially in Salt Lake City, a place that has been dominated by foreclosures in recent years.
In addition to predictions, realtors in southern Utah already have something strong working on their side – the jobs market. The southern part of the state has a strong technology sector, and throughout 2012, it posted about a 6% job growth rate. That’s still about half as fast as the area was adding jobs before the housing bubble burst, but it’s definitely a step in the right direction – and it’s far better than what the U.S. is doing as a whole.
Because the Beehive State is making strides, expect to see a glut of new homes for sale around Utah in 2013. In St. George, for example, new homes are going up at rates not seen since before the housing bubble burst. In fact, realtors here are calling it a boom that could be strong enough to extend to other parts of the state!
St. George isn’t the only place that’s generating excitement, though. Thanks to home values that have increased more than 20% since 2011, Provo has been named one of the top cities in the country when it comes to recovery.
Why are home values rising so much here?
It’s due to a combination of things. First, the inventory of available homes is low – which leads to a lower supply and, thus, higher demand. Second, the economy here is getting stronger – which is also leading to an increase in demand. As a result, the homes for sale in Provo are selling quickly, and for prices that have realtors and sellers smiling!
And, if all of these trends can continue, it will give Utahans plenty of other reasons to smile!