Monday, May 25, 2009

Northern Utah Real Estate Update

Prices Holding to Slightly Down,
Volume Falling

The Salt Lake Board of Realtors announced on April 28, 2009 the median home price in Salt Lake County sold through the Multiple Listing Service (MLS) fell by less than 1% when compared to Q1 2008. The median home price during Q1 2009 was $240,000 compared to $242,000 during Q1 2008. Volume was down by 24% compared to the same period in 2008.
The statics for Weber County, where Clear Day Capital does most of its lending, show a slightly upward trend in prices. The median home price, for homes sold through the MLS, in Weber County during Q1 2009 was $165,000, up from $164,000 during Q1 2008. Volume was down 28%.
Why are prices relatively stable when volume is down? Some possibilities:
  • Seller Financing Transactions Are Up- These sales are often not recorded on the MLS
  • People Don't Need To Move- Many moves in Utah are local moves to upgrade, update, or be nearer family. People are waiting instead of dropping price.
  • People Are Renting Their Homes- Instead of panic selling, they are renting their residence.
Utah a Strong State
While the nation is heading towards double digit unemployment, Utah remains under 5% and business are still investing in Utah.
  • Utah Ranked America's "Best State to Live"- Forbes Magazine ranked Utah #1 in it's March issue. "Residents reported a high level of satisfaction in several areas, including work environment, emotional health, and their local communities."
  • Investments from Federal and State stimulus packages will create up to 60,000 jobs for Utahns, according to the Salt Lake Chamber.

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