Sales of existing single-family homes in Salt Lake County surged in last year’s fourth quarter, ending a three-year decline in falling home sales, according to the Salt Lake Board of Realtors’ Housing Market Report.
Overall, more than 2,400 single-family homes were sold in the fourth quarter, a 36 percent increase compared to 1,785 sales in the same quarter in 2008. Home sales also showed a 19 percent gain in the month of December compared to the same month a year earlier.
“Nearly every ZIP code in Salt Lake County saw double-digit increases in home sales,” said Bill Heiner, president of the Salt Lake Board of Realtors. “Existing home sales are surging because of more affordable home prices and the federal government’s home buyer tax credit. In addition, there are fewer newer homes being built. Because of that buyers are turning to existing inventory.”
Single-family home sales were up 113 percent in Holladay in the fourth quarter compared to last year. In Midvale, sales rose 109 percent. In Draper, sales were up 52 percent. In West Valley, home sales climbed 38 percent.
In the 12 months ended Dec. 31, there were 9,146 single-family homes sold in Salt Lake County, up 4 percent compared to 8,796 sales in 2008. The rise in home sales in 2009 ends a three-year downturn in annual single-family home sales and suggests that the bottom of the housing market occurred in 2008.
Home sales in 2010 could reach as high as 10,000 units sold, a nearly 10 percent rise over 2009 levels, according to a 2010 Housing Forecast commissioned by the Salt Lake Board of Realtors.
Condominium sales across Salt Lake County also showed huge increases. In the fourth quarter, there were 544 condos sold, up 42 percent compared to 384 sales a year ago.
Across the Wasatch Front, sales of single-family homes also surged. Sales were up 26 percent in Davis County. In Tooele County, sales increased 61 percent. In Utah County, home sales were up 46 percent. In Weber County, sales rose 19 percent.
“The anticipated expiration of the first-time home buyer tax credit brought strong support to Wasatch Front housing markets,” said Lerron Little, 2010 president of the Utah Association of Realtors. “Utah County home sales were particularly strong as buyers found affordable home options and good values. The area’s increase in single-family and condo sales was the highest on fourth quarter records dating back to 1996.”
The past housing downturn in Salt Lake County ranks No. 2 in terms of its severity, according to the Salt Lake Board of Realtors. The area’s most severe housing downturn began in 1977 when home sales fell by 55 percent over a four-year period.
Info provided by realestatenewsutah.com
Wednesday, January 27, 2010
Salt Lake Board of Realtors Releases 2010 Housing Forecast
The Salt Lake Board of Realtors released its 2010 Housing Forecast. After two very difficult years, existing home sales in Salt Lake County are poised for a rebound.
The past housing downturn ranks No. 2 in terms of its severity, according to the report. Beginning in 1977 Salt Lake County experienced a housing downturn that lasted four years, with home sales falling 55 percent.
The latest downturn lasted two years, but was vicious in its magnitude. Between 2007 and 2008 home sales dropped 42 percent, falling from 15,300 home sales to 8,800 home sales. However, in 2009 home sales increased to 9,100 sales, a 3 percent increase compared to 2008.
The increase in home sales in 2009 suggests that 2008 was the bottom of the downturn. In 2010, as many as 10,000 homes could be sold in Salt Lake County, a nearly 10 percent increase compared to sales in 2009.
Since the peak, single-family home prices have retreated 13 percent. Local housing prices will continue their drift downward in 2010, falling another 3 to 5 percent, the report noted. At the end of the fourth quarter, the median price of a single-family home in Salt Lake County was $222,000, down 13 percent compared to $255,000 at the peak of the market (third quarter 2007).
The Salt Lake Board of Realtors commissioned James Wood, economist and director of the University of Utah’s Bureau of Economic and Business Research, to conduct the study. For a complete copy of the study, please contact Dave Anderton, communications director of the Salt Lake Board of Realtors at 435.671.0777.
The past housing downturn ranks No. 2 in terms of its severity, according to the report. Beginning in 1977 Salt Lake County experienced a housing downturn that lasted four years, with home sales falling 55 percent.
The latest downturn lasted two years, but was vicious in its magnitude. Between 2007 and 2008 home sales dropped 42 percent, falling from 15,300 home sales to 8,800 home sales. However, in 2009 home sales increased to 9,100 sales, a 3 percent increase compared to 2008.
The increase in home sales in 2009 suggests that 2008 was the bottom of the downturn. In 2010, as many as 10,000 homes could be sold in Salt Lake County, a nearly 10 percent increase compared to sales in 2009.
Since the peak, single-family home prices have retreated 13 percent. Local housing prices will continue their drift downward in 2010, falling another 3 to 5 percent, the report noted. At the end of the fourth quarter, the median price of a single-family home in Salt Lake County was $222,000, down 13 percent compared to $255,000 at the peak of the market (third quarter 2007).
The Salt Lake Board of Realtors commissioned James Wood, economist and director of the University of Utah’s Bureau of Economic and Business Research, to conduct the study. For a complete copy of the study, please contact Dave Anderton, communications director of the Salt Lake Board of Realtors at 435.671.0777.
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