Following a slow start in the early part of 2011, the Utah real estate market has is making a substantial recovery. In Salt Lake county alone, nearly 600 more homes were sold in the June, July and August time frame compared to last summer, accounting for a twenty-two percent increase. This is due in part, to Utah’s surging job market. According to BEBR, 30,000 more jobs have been created in Utah in the last twelve months.
Several industries in the past year have shown significant job gains, including 2,400 jobs in construction, 4,800 jobs in Manufacturing, 2,000 in trade and transportation, 4,000 jobs in the leisure and hospitality industry and 8,000 professional and business service related jobs.
The number of homes sold in Salt Lake county in the last eight months of 2011 are up nearly two percent, compared to the same period last year.
Utah’s improving economy and pent up demand is supporting the increases in home sales, an increase of 12 percent in homes and 10 percent increase in condominiums. Sales in 2011 should approach 9,500 homes.
Sales in the luxury home market has been brisk, with 148 homes so far being sold in Salt Lake, Davis, Summit, Weber and Wasatch counties. Many of these transactions are cash sales.
Another factor in driving the sales is affordability. With the current interest rate at 4± percent and lowered home pricing, more people are able to qualify for a home.
The median home price in Utah is now $187,000, down 11 percent from a year ago. With the median yearly income in Utah at about $59,000 and using the 1:3 income/house ratio, the median home price dovetails nicely within lender guidelines.
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Diana Russell, Broker | Real Estate Utah | PH: 801-444-2388 | Fax: 801-544-9395
Web: www.diana@realestateutah.com | E-Mail: diana@realestateutah.com
