CELL: 801-231-2051  TOLL FREE: 877-870-6380
 Welcome to the RealEstateInUtah.com Blog

2016-02-11 10:24:38
2016 Forecast for Salt Lake area Housing Market

SALT LAKE CITY — The Salt Lake area housing market experienced near historic growth in 2015, and this year is predicted to be another 'very good year,' a new report says.

According to the Salt Lake Housing Forecast, 2016 is primed to be another year of double-digit increases in the volume of existing homes sales.

The Salt Lake Board of Realtors Friday reported that 13,323 existing single-family homes were sold last year in Salt Lake County — the highest level in nearly a decade and the third highest in the county's history. Only 2005, when 15,317 units sold, and 2006, when 15,283 units sold, registered higher sales levels.

The number of single-family homes sold in 2015 represented a value of $4.1 billion — a 22 percent year-over-year increase, the report states.

'The gains achieved in 2015 were driven primarily by exceptional market fundamentals, strong job growth, improving income and wages, solid demographic growth and, of course, very favorable mortgage rates,' said the report's author, James Wood, Ivory-Boyer senior fellow at the Kem C. Gardner Policy Institute at the University of Utah.

He said local market fundamentals and conditions will likely continue to be favorable for the area real estate market in 2016.

The strong demand for housing was not limited to single-family homes, Wood noted. The sale of multifamily units such as condominiums, town houses and twin homes set an all-time record of 3,800 units and accounted for 22 percent of all residential sales last year — the highest share ever. The value of multifamily units sold last year was $774 million — an increase of 36 percent above the prior year, the report states.

Affordability factor

Meanwhile, the market has maintained a relatively high affordability factor, according to the report. In 2014, the median household income in Salt Lake County was about $63,000. Assuming a household with a median income devoted 30 percent of their income to a mortgage payment — including taxes and insurance — that household could carry a mortgage of about $290,000.

Last year, approximately 56 percent of the single-family homes sold in the county were priced under that amount.

Economists have predicted interest rates moving between 4 percent and 5 percent this year, said Cheryl Acker, president of the Salt Lake Board of Realtors. For 2016, the Salt Lake Board of Realtors predicts that total countywide residential home sales will surpass 19,000 units sold — an 11 percent increase over last year.

Prices

With demand for housing continuing to outpace available inventory, the price of a single-family home will rise 5 percent to 7 percent this year to a median price of $290,000, the report states. The price of a multifamily home is expected to increase to a median value of 8 percent to 10 percent to around $205,000.

'There is still room for moderate house-price increases provided mortgage rate increases are gradual,' Acker said. 'In Salt Lake County, housing prices over the past 15 years have increased at about 1.8 percent annually in inflation-adjusted dollars.'

 
Blog Archive
2019-01-28 09:56:07
The Gamble of Overpricing Your'e Home

2017-10-30 10:07:23
Salt Lake County single-family home median price reaches $330,000

2017-08-28 13:53:53
Most Salt Lake County Homes Sell for Under $350,000

2017-08-07 15:45:17
Median Single Family Home Prices Reach $327,000 in Salt Lake County

2017-02-07 13:11:41
Is There a Housing Bubble?

2017-02-07 13:03:48
Predictions for 2017: Total Residential Home Sales

2017-01-31 09:34:22
Q 4 Housing Report

2016-02-11 10:24:38
2016 Forecast for Salt Lake area Housing Market

2016-01-25 18:11:50
Local Home Sales Data 4th Quarter 2015

2015-04-27 11:40:31
Mistakes people make when selling a home

2015-04-27 11:36:59
Save for down payment or buy a home now?

2015-04-27 11:31:13
Salt Lake Home Sales Climbed 16% in the First Quar

2015-02-06 12:20:37
Salt Lake County housing market positive for 2015

2015-01-15 15:10:58
FHA Mortgage Insurance Premiums Reduced by 0.50%

2014-02-05 15:27:36
Salt Lake Housing Prices Returning near 2007 Highs

2014-01-27 16:51:39
Salt Lake home sales in 2013 are highest on record

2013-10-31 09:38:09
Condo sales at a 7 year-high

2013-10-30 10:45:15
Median single-family home prices reach 255k

2013-02-12 17:09:58
Salt Lake County 2013 Housing Forecast

2013-01-23 13:57:04
'Fiscal Cliff' Real Estate Provisions

2013-01-02 09:23:42
Cliff Bill Retains Mortgage Debt Relief

2012-12-10 11:26:33
Home Buyers need to be ready to compete!

2012-10-23 15:25:42
Median Single Family Home Prices Increase 7.5%

2012-07-23 10:31:38
'Medicare tax on Real Estate' update: 3.8 percent

2012-05-09 16:01:14
National Report says SLC is among top 10 places to

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.