Posts Tagged Provo
Salt Lake City and Provo have been added to the Improving Housing Markets (IHM) list maintained by the National Association of Home Builders (NAHB). Since December the list has added 57 metro areas around the U.S., signaling at least a stabilization, if not a recovery, of the housing market in America.
Building permits for the Salt Lake City metropolitan area have increased 2.3% since it’s lowest point in March 2009, home prices are up 0.4% from it’s lowest point in March 2011 and employment is up 3.6% since February 2010.
Building Permits for the Provo metropolitan area are up 2.7% from it’s low in February 2009, home prices are up 1.1% since March 2011 and employment is up 4.6% since December 2009.
The Improving Housing Markets list identifies metropolitan areas that have shown improvements in employment, housing permits and home prices for at least six consecutive months. To measure market performance, the National Association of Builders gathers information from Freddie Mac, U.S. Census Bureau and the Bureau of Labor Statistics.
I personally think that increased home sales is a good thing for long-term values in Salt Lake County and adjoining areas. As homes sell the values will again start to inch up. At least as soon as we get rid of the REO’s (Real Estate Owned by banks).
I also agree with Joshua Stern of Keller Williams – right now we are seeing the perfect buyer situation in the balance of low interest rates and lower prices of homes. Prices could go lower, and interest rates could hold at current levels for a few more months, but I wouldn’t count on either.
Most economists agree that mortgage rates simply cannot remain this low over the long term and that as the economy improves, those rates will drift upward. “With rates this low, you may not get a better deal by waiting for prices to bottom,” said Joshua Stern, an agent with Keller Williams in Salt Lake City.