Utah Home Values level out, could be the bottom!
On A Monthly Basis, Home Values Look Better Than Press-Reported Annual Figures
Each month, researchers measure home values in 20 large U.S. cities, then compile their findings in a report called the Case-Shiller Index. It's a popular measurement of housing health across the country, but it's far from perfect.
As 3 examples:
- It gives more weight to expensive homes than inexpensive ones
- Its sample set includes just 37 states of 50 states
- Real estate isn't a "national" market -- it's local
All that said, however, the data is still important. The Case-Shiller Index helps identify broader trends in housing and it's widely believed that the economy won't recover until the sector starts to stabilize.
Looking at Homes sold in three of the major population centers in Utah, Salt Lake County, Davis County, and Tooele County you can use the comparison with the above numbers to claim that Real Estate in Utah is moving rapidly towards recovery.
EXAMPLES:
Salt Lake County :
The difference in the price of homes sold in Salt Lake County between January 09 and 28 May 09 is less than 1%.
Davis County Utah:
Home prices in Davis County have actually increased $2.63 per sqft from January thru today.
Tooele County:
Homes and Condominiums sold in Tooele County since January reflect a value decrease of $0.78 per sqft.
Based on these trends, and comparing them with the numbers associated with the study's 20 cities, we may be at that recovery point now in Utah
Despite newspaper headlines blaring about 19 percent drops from March 2008, the month-to-month values appear to be stabilizing and the latter is the more important development. 15 of the 20 markets covered by Case-Shiller either improved, stayed flat, or declined by 0.2 percent or less.
Versus 2008, the rate of speed at which home values are falling is slowing.
Furthermore, because the Case-Shiller Index is on a 2-month delay, it doesn't account for all of this year's Spring Buyers, or first-timers taking the $8,000 first-time homebuyer tax credit.
Two months don't make a trend, but if Case-Shiller Index continues to report similar data for April and May, it could be the signal that housing finally bottomed.
For more information on Real Estate in various cities and towns in the state, check out our website @ Utah Real Estate. Or give us a call @ 435-840-5029 and talk to us about why Utah Home Values are better than most.
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