Talk about a national housing boom.
There’s even buzz from the Beehive State.
Better known for its share of the Rocky Mountains, vividly colored plateau and canyon vistas, salt flats, Mormons, a bright, multilingual workforce and the likes of outlaw Butch Cassidy (Circleville), Donny and Marie Osmond (Ogden), Roseanne Barr (Salt Lake City), James Woods (Vernal), and Loretta Young (Salt Lake City), Utah is swiftly coming into it’s own as a hot housing habitat.
“We have been through a weak cycle that has affected all areas of the State of Utah. However, this year looks very promising,” Mark Watterson, from Keller Williams in Midvale, UT reported to the Realty Times Market Conditions Report.
How hot is it?
The 45th State to join the Union, Utah now ranks 35th in home appreciation, moving up fast, 15 spots from its dead last position a year ago, according to the just released Office of Federal Housing Enterprise Oversight’s First Quarter 2005 Home Price Index.
The index says the selling price of Utah homes rose 6.3 percent from the first quarter of 2004 to the same period this year. That’s only about half the national rate of increase, at 12.5 percent, but some Utah markets are much, much hotter.
The Utah Association of Realtors own first quarter report revealed Salt Lake County, the state’s largest real estate market, clocked an 8.09 percent increase in the average sale price of single-family detached homes, put at $204,311 in the first quarter this year, up from $189,013 in the first quarter 2004. During the first quarter this year, nearly 3,500 homes (single-family detached and condos) sold in the Salt Lake County market. Condo prices rose only 5.98 percent.
In smaller markets, some of them resort areas, first quarter prices truly skyrocketed.
According to the association, after Salt Lake County, the next largest markets and their quarterly sales (all homes), along with average price increases, were:
* Utah County, 1,015 home sales, house prices up more than 19 percent, condo prices up 15 percent.
* Washington County, 724 home sales, house prices up more than 21 percent, condos up more than 15 percent.
* Weber County, 690 home sales, house and condo prices both up nearly 18 percent.
* Davis County, 686 home sales, house prices up nearly 10 percent, condo prices up by more than 14 percent.
* Resort town Park City yielded more condo sales (184) than single-family home sales (140) and clocked a 15.5 percent increase in average condo prices and 19.3 percent for houses.
“Some experts feel that Utah is unvalued by 25 percent. I feel a 10 percent growth rate is extremely likely,” said Watterson.
“With all the out-of-state investors looking into Utah, it can only improve our appreciation over current levels. This is an exciting time as we watch our most important investment become more valuable. This is a great time to be in the game and not on the side lines,” Watterson advised buyers and sellers who’ve been waiting to move in, up or out.
Utah’s more affordable housing market is enjoying some housing market spill over from it’s booming neighbors.
“Utah real estate values have appreciated more solidly in recent months, a trend expected to pick up speed in 2005 and 2006. The reasons include more impressive economic growth and the fact that Utah real estate is again ‘bargain priced’ versus its neighbors,” said area economist Jeff Thredgold.
On it’s western border, Nevada currently has the nation’s fastest appreciating home prices, which rose more than 31 percent in the last year. The nation’s most populous state, California, just west of Nevada, is No. 2 on the OFHEO’s Home Price Index list with home price appreciation higher than 25 percent. To the south, Arizona enjoyed a 19.43 percent home price appreciation during the first quarter and ranks No. 7 in the nation on the OFHEO Home Price Index list.
However, Thredgold says Utah is leaving in the dust its first recession in 50 years (from 2002 to 2003) and can hold its own economically. The state is a mecca of academic and higher education institutions that produce a well-educated workforce and its pro-business climate attracts existing and start-up businesses in the technology, pharmaceutical and biomedicine fields, among others.
The state’s net job creation is second in the nation only to Nevada during the last 12-month period and the jobs aren’t just lower-paying service jobs, but employment gains in manufacturing, finance, trade, transportation, utilities, professional and business services and construction, as well as the leisure and hospitality sectors.
Unemployment is down to 4.6 percent from the nearly 6 percent two years ago, Thredgold reported.
“Utah is the 5th fastest growing state and the real estate market is showing it,” Mayra Sanchez Johnson of Prostar Realty reported to Realty Times’ Market Conditions Report.
“Prices are steadily rising and a well-maintained home will sell in less than 30 days. New housing is booming and there are offerings from condos and townhouses to starter homes and luxury homes at very affordable prices,” she added.
