With 2015 near, some are pontificating about a potential change in interest rates. With virtually no inflation, rates will likely remain low for most of 2015 but could flirt with 5.0 percent toward the end of next year. Construction permits and housing starts have upward momentum, which is news in some areas but familiar in others. Prices should continue their ascent but at a tempered pace compared to recent years, which helps preserve affordability for first-time buyers.
New Listings in the state of Utah decreased 5.1 percent to 3,775. Pending Sales were up 9.1 percent to 3,022. Inventory levels fell 6.3 percent to 19,580 units.
Prices continued to gain traction. The Median Sales Price increased 5.6 percent to $220,000. Days on Market was up 6.9 percent to 70 days. Sellers were encouraged as Months Supply of Inventory was down 9.9 percent to 5.5 months.
It has largely been another recovery year in 2014, yet mortgage credit and student debt remain obstacles even as the U.S. leads the global economy toward recovery. As this recovery matures, many metrics are approaching a healthy balancing point. Rates have remained much lower than most forecasters expected, and inventory levels finally started rising in most areas as sellers generally listed more properties as a result of stronger prices. Job growth should continue and wage growth is expected to pick up.
Additional reports, including a Monthly Indicators and Housing Supply Report, may be found on the Utah Association of REALTORS® website, or by clicking HERE.