It has been another recovery year in 2014 but not the same as 2013. With a broad pattern of rising prices and stable to improving inventory, the market has shifted from being drastically undersupplied to approaching equilibrium. Price gains are still positive but less robust than last year. The metrics to watch in 2015 include days on market, percent of list price received and absorption rates, as these can offer deeper and more meaningful insights into the future direction of housing.
New Listings in the state of Utah increased 13.5 percent to 3,287. Pending Sales were up 29.4 percent to 2,680. Inventory levels fell 9.1 percent to 17,549 units.
Prices continued to gain traction. The Median Sales Price increased 5.7 percent to $222,000. Days on Market was up 7.2 percent to 73 days. Sellers were encouraged as Months Supply of Inventory was down 12.8 percent to 4.9 months.
Interest rates remained lower than anyone expected for the entire year. That trend snowballed with solid and accelerating private job growth to empower more consumers to buy homes. This coupled nicely on the governmental side with mortgage debt forgiveness and interest deduction preservation. Student loan debt, sluggish wage growth and a lack of sufficient mortgage liquidity still remain hurdles to greater recovery.
Additional reports, including a Monthly Indicators and Housing Supply Report, may be found on the Utah Association of REALTORS® website, or by clicking HERE.