Utah Real Estate is looking up, and I say it's about time.

Each week, this year,as  President of the Utah Association of Realtors I have tried to bring every one a message that would hopefully ease the pain from the trials and tribulations that many have never before seen in our Industry. That hasn't always been easy.

This week however, the message and the Utah Real Estate facts that make up that message give all of us that make a living helping folks buy and sell their homes a reason for optimism.

Why? ... Heres Why  !!! 

                Utah homes are the most affordable they've been since 2004, according to a new report from the National Association of Home Builders and Wells Fargo. The Housing Opportunity Index, which uses home prices, mortgage rates and median household incomes to measure affordability, shows a clear trend that homes are becoming more affordable in all of Utah's major metropolitan areas.

                That's good news for Utah home buyers who are spending less on their housing costs or are using the savings to trade up to another house. The NAHB considers a home affordable if a family making the area's median income spends less than 28 percent of their pay on housing costs.

                In Salt Lake County, a family making the median income of $67,800 could afford to buy 70.6 percent of the homes sold in the second quarter, according to the report. That's up from last year's second quarter when only 54.6 percent of homes sold were considered affordable and up substantially from the record low affordability in third quarter 2007, when only 30.8 percent of homes sold were affordable.

                In the Provo-Orem metro area, the affordability improvements were even more pronounced. In the second quarter, 71.3 percent of the homes sold were considered affordable to families making the median income of $62,900, up from only 48.5 percent last year and up dramatically from the record low of 22.5 percent in third quarter 2007.

Ogden-Clearfield had the highest affordability in the state at 81.5 percent (up from 68 percent last year), and St. George, at 57.2 percent, saw a substantial rise in affordability (up from 36.8 percent last year).

The affordability gains are the result of a combination of reduced home prices and lower mortgage rates. Although home prices are still slightly higher than they were in 2004, today's super-low interest rates have put affordability back to 2004 levels. In Salt Lake, for example, 70.6 percent of homes were considered affordable in the most recent data, compared to 75.2 percent in 2004.

The numbers in the Provo-Orem area were even closer to 2004 levels. In the second quarter, 71.3 percent of the homes sold were considered affordable, only a tad off from the 72.6 percent recorded in 2004.

                Wells Fargo Chief Economist Kelly Matthews conducted a separate analysis with findings similar to the NAHB report. He said although average home prices are still higher today than in 2004, homes are about as affordable as they were five years ago because mortgage rates are closer to 5 percent rather than the near 6 percent rates in 2004.

                "It shows basically along the Wasatch Front, as of year-end, our affordability is back to levels that existed in 2004 [when the real estate market here was doing well]," Matthews said. It was also a time when The Wall Street Journal highlighted Salt Lake City as one of the most undervalued markets in the country.

                Now that we're back to those 2004 levels, home buyers are taking notice of the new found affordability. In July, sales of existing Wasatch Front homes were up for the second consecutive month, rising 4 percent, while nationally sales increased 5 percent. Furthermore, the newest data from the National Association of Realtors shows that pending home sales are up for a record sixth consecutive month.

NAR Chief Economist Lawrence Yun said buyers are taking advantage of the low home values before prices turn upward. The first-time home buyer tax credit and record high affordability are also providing momentum to the market. According to Yun, the typical mortgage payment now takes less than 25 percent of a middle-income family's income, the lowest amount on records dating back to 1970.

 "If someone feels secure in their employment and income and needs a larger home, in actuality it's probably the best time to buy in a generation," Matthews said.

For more information about the housing market and to find a home that's affordable for you, contact your local Realtor.

If you don't have a Realtor, and are looking to buy or sell a home in Tooele County, Berna and I would like you to consider working with us.

To check us out, or to find out about Real Estate in Tooele, Stansbury Park, Grantsville UT, stop by our website @ Tooele Real Estate.

 To search for properties in the Utah click on Utah Homes For Sale and access every House, Condo, & Town Home listed in the Beehive State

Or you can just call us @ 435-840-5029. We'd love to talk about Utah Real Estate looking up. 

Published Thursday, September 10, 2009 10:35 AM by Chris & Berna Sloan