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Today 750 real estate industry people including myself got together over breakfast to hear local economists James Wood- Senior fellow of the Kem C. Gardner Policy Institute at the University of Utah and Natalie Gochnour- Associate Dean and Director of the Kem C. Gardner Policy Institute at the University of Utah predict what this year will bring as far as our Wasatch Front economy and real estate sales.
Predictions and Perspective
Shortly after I took my seat the person I sat next to informed me that they haven’t got it right for the last two years! Remember these are only predictions based on numbers that have been studied by local economists over the last few years. The numbers also depend on exactly how they were derived! Following is a brief report.
The Annual Salt Lake Board of Realtors Forecast for 2016
The report was optimistic. Sales are expected to do well. We will remain in a sellers market. Builders inventory is low currently and the average number of days on the market for single family homes was 21 days, condos were 29 days average in 2015. The prediction for the increase in home prices that stuck with me is that sales prices are expected to continue to rise about 2% this year which is a healthy amount. No one wants to see any bubbles as we experienced in the past!
We are a High Growth State
It was noted that we are a high growth state compared to most other states because we are a high growth state there is some volatility involved. No one really knows what the future will bring or what might happen this year in the world.
Median Sales Price and Household Income
The median household income for the Wasatch Front was $65,000. Depending on the debt structure of those household’s they could possibly afford a $290,000 home. Our median sales price is approximately $273,000 so our affordability index is good compared to many other places.
Interest Rates will Remain Low
Interest rates are predicted to be between 4% -5% for 2016 rising slowly throughout the year. The concern was about affordability and people being able to qualify. In our area there are only 2.5% loans underwater so this means there are very few bank owned and short sale properties right now. The number of people with negative equity is estimated to b at 4% of all area mortgages. That number is down form the year before.
Low Unemployment and Job growth in 2015 Lead to a Good 2016
Salt Lake and Utah county ranked very high in new job creation with the Tech Industry scoring higher than many other areas. We ranked very low in unemployment. All of these things lead to a rosy picture for the real estate industry in 2016.
For a copy of the complete forecast report send me an email or text.
by Teresa Larson, Village Real Estate, Murray, Utah
20+ years real estate experience
(801) 750-5446 cell
© CopyrightTeresa O Larson PC, 2004-2016