Eric Allen, Metrostudy’s Director – Utah/Idaho Region will present the 4Q11/Year End review of the Greater Salt Lake economy and housing market, along with insight into expectations for 2012.

The presentation will be held on February 2, 2012 at the Hyatt Summerfield Suites located at 9685 S. Monroe St., Sandy Utah.   

The meeting is for current subscribing clients of Metrostudy, however you are welcome to contact Eric Allen with any questions or if you would like to attend.

Eric Allen, Director for Metrostudy – Utah / Idaho Region will present an Economic and Housing market overview of the Utah market.
The conference will be held on February 15, 2012 at the University Park Marriott, 480 Wakara Way, Salt Lake City, UT.

(Salt Lake City, UT– January 25, 2012) In the Greater Salt Lake market, job growth and positive signs in the housing market indicate potential improvement at the end of 2011, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

The Greater Salt Lake market continues to outshine the national economy, as far as job growth is concerned. As of December 2011, the Greater Salt Lake market had created 31,300 new jobs during the previous 12 months, a growth rate of 3.2%. “This is a major improvement when compared to the 6,100 jobs at this time last year,” said Eric Allen, director of Metrostudy’s Utah/Idaho Region.

The Greater Salt Lake market is beginning to pick up speed with annual new home starts increasing 1.7% compared to last quarter. Annual new home closings are down 16.8% from last year at this time, however have increased .9% from last quarter’s pace. “Metrostudy anticipated an increase would come in the second half of the year as traffic and contracts increased during the summer, along with the growing economy, low interest rates and the absence of closeable inventory,” said Allen.

“While detached inventory appears to be well managed, the attached market remains weak in housing, more specifically condos,” said Allen. At the end of 2011, there were 2,046 new detached single family homes in inventory, a 7.1 month supply. Finished vacant inventory decreased another 12.7% from last year to 568 homes, a 2 month supply. There are 2,452 attached (for sale) units in inventory, a 23.1 month supply.

“While overall new home starts have decreased from 2010, (due to the slowdown in the attached market), detached starts have increased for the past three quarters, a good indication that builders still have confidence in the market,” said Allen.

“The consensus among market professionals seems to be that the worst is behind us. Assuming the economy continues with slow improvements, and resale’s, foreclosures and home values remain relatively static, Metrostudy expects builders to continue increasing production through 2012, “said Allen.

For information contact:
Eric Allen @ 801.571.7700 x424
email: eallen@metrostudy.com

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

As we close out yet another year, the resounding sentiment in the market seems to be “Goodbye 2011, looking forward to a fresh start with 2012.”

If there’s one prediction that has been realized during this recession, it has been that a slow and painful recovery was what we thought…and a slow and painful recovery is what we got.  Many industry professionals had been forecasting for the past few years that the housing industry would take many years to recover from the damage that was done to the market from 2005-2007.  A slow recovery has typically been the only prediction consistent among these individuals.  For the last 12 months, within our primary housing research, we (Metrostudy) have noted that many micro areas within larger metro areas are fully engaged in recovery mode, or in some instances have already recovered.  This does not discount the fact that there are still many areas across the country still feeling the pain of the recession. Read the rest of this entry »

Eric Allen, Director for Metrostudy – Utah / Idaho Region will present an Economic and Housing market overview for the Northern Wasatch market area.

The presentation will be at the NWHBA monthly meeting on Thursday, Jan. 19 2012.

The meeting begins at 11:30am at the Valley View Golf Course, 2501 E. Gentile, Layton, UT.

(Salt Lake City, UT– November 1, 2011) In the Greater Salt Lake market, job growth and positive signs in the housing market indicate potential improvement in 2011, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

Over the past 12 months, there have been a total of 22,600 new jobs created in the market, which is an annual growth rate of approximately 2.3%. “While the national economy remains weak, there are a few bright spots, one of which being the Greater Salt Lake market. The Greater Salt Lake market has recently been highlighted by many economists as one of the healthiest markets across the nation,” said Eric Allen, director of Metrostudy’s Greater Salt Lake Division.

Annual new home starts for the Greater Salt Lake market totaled 4,577 as of 3Q11, which is a 10% decrease compared to the annual pace last year at this time. Annual new home closings have also declined, to a total of 4,743, which represents a 27% decrease compared to last years pace and 5.2% from last quarter. “However, when comparing quarter over quarter, new home starts have shown improvements,” said Allen. During the 3rd quarter, builders started 1,443 new homes, which is an increase of 22% compared to 3Q10, and 43% above last quarter (2Q11).

“At this time last year, the market was benefiting from the surge of the tax credit, therefore new home closings were much higher than today, thus resulting an increase in the supply of homes,” said Allen. The number of finished vacant single family homes has decreased just over 27% compared to last year to 532 homes; however the supply has remained nearly unchanged at a low 1.9 months.

“The Greater Salt Lake market is receiving much praise as being one of the strongest and most healthy markets around the country, and the results are beginning to resonate throughout the housing market,” said Allen.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@metrostudy.com

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

(Salt Lake City, UT– August 1, 2011) In the Greater Salt Lake market, job growth and positive signs in the housing market indicate potential improvement in 2011, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

Over the past 12 months through June, the Greater Salt Lake market has experienced a net increase of 19,100 jobs, which makes for 12 months of consecutive job growth. The unemployment rate for the Greater Salt Lake market sits at 7.3%, up only .2% from last year. “While the economy continues to struggle in many markets across the country, the Greater Salt Lake economy remains one of the strongest in terms of job growth,” said Eric Allen, director of Metrostudy’s Greater Salt Lake Division.

Annual new home starts for the Greater Salt Lake market totaled 4,339 as of 2Q11, which is a 12.3% decrease compared to the 5,306 at this time last year. “Now that the expiration of the tax credit is nearly a year behind us, it is not surprising that new home starts remain low,” said Allen. “The market should be reaching bottom again, in terms of production, and should start to see slight increases as we move forward.” There have been a total of 5,081 new homes closed over the past 12 months, which is also a decrease of 17.8% compared to last year’s pace.

“While annual closings did not experience the same increase as starts during 2009-2010, they have remained above starts, which has helped new home inventory remain in balance,” said Allen. New home inventory for detached product in the Greater Salt Lake market has increased for the past 3 quarters to 2,000, a 6.7-month supply. Finished vacant home inventory has decreased every quarter since the peak in 4Q07 when there were 2,988 finished homes to a current total of only 615, only a 2.1-month supply.

“Home buyer activity has improved when compared to last year at this time,” said Allen. “This trend indicates homebuilding may improve earlier rather than later, leading us to believe that 2011 should improve at least slightly over 2010.”

For information contact:
eric allen @ 801.571.7700 x424
email eallen@metrostudy.com

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

(Salt Lake City, UT – May 1, 2011) The Greater Salt Lake housing market is showing fundamentals for improvement, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

According to recently released data, which was also adjusted by the Bureau of
Labor Statistics (BLS), the Greater Salt Lake market began adding jobs on a year over year basis in July 2010. As of March, there has been a net increase of 14,000 jobs, which represents a 1.4% annual growth rate. This growth rate ranks the market in the top 6 nationally among metro areas with over one million people. “The return in actual job growth is a major hurdle for the market and will have a positive affect on the housing market as we continue to climb out of the recession,” said Eric Allen, director of Metrostudy’s Greater Salt Lake Division. The unemployment rate was at 7.4% as of March 2011, which is lower than the national average of 8.8%.

While new home annual starts through March 2011 are down 9.5% from the annual pace one year ago to 4,697, most of this is in the attached market, which decreased 17.8% compared to last year at this time. The detached market experienced only a 5.8% decrease from last year’s annual pace. “This is more evidence that the attached market continues to face headwinds when competing with the detached market,” said Allen. While quarter over quarter starts for attached homes experienced a 60.4% decrease since 4Q10, starts for detached homes increased 23.5% over 4Q10.

Overall new home inventory in the Greater Salt Lake market remains near equilibrium, and based on current demand there is a 10-month supply for both attached and detached homes. Finished vacant home inventory continues to diminish with 25.5% fewer finished homes on the ground when compared to last year and 2.6% less than last quarter. At the current pace of absorption, this translates to a 2 month supply for detached homes and 6.7 months for attached units. “As the market continues to maintain a very low level of finished vacant home inventory, builders are being forced to start building new homes in order to keep up with demand,” said Allen.

“While the market will face some headwinds throughout the year, the fundamentals for an improving economy are in place—job growth, the potential for improving starts, and inventory within equilibrium,” said Allen. “Job growth especially is a key factor in the recovery process.”

For information contact:
eric allen @ 801.571.7700 x424
email eallen@metrostudy.com

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

(Salt Lake City, UT– February 1, 2011) The Greater Salt Lake housing market endured a tough year in 2010 but shows some signs of improvement, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

“The Greater Salt Lake market has endured yet another trying year for those involved with the building industry. Nonetheless, there have been some positive changes with indications of more in the future,” said Eric Allen, director of Metrostudy’s Utah / Idaho Region. While quarter over quarter new home starts declined 22%, annual new home starts for 2010 total 5,025, which is a 7.4% increase compared to the annual pace in 2009. Annual new home closings in the market totaled 5,887 for the year (2010), which is an 18.7% decrease from 2009.

“With production low, at the current pace of absorption overall new home inventory for detached homes in the Greater Salt Lake market remains within acceptable equilibrium levels,” said Allen. There are currently a total of 1,951 new detached homes in inventory, a 5.8 month supply.

Finished vacant home inventory continues to show improvement with 659 new detached homes currently on the ground, a 2.0 month supply. “Finished vacant inventory has steadily decreased since 2007, when it peaked at nearly 3,000 homes, which in large part has made it possible for builders to start building again.,” said Allen.

“New home inventory is within healthy equilibrium levels, home prices have reset and land has been written down. These are many positive factors influencing the Greater Salt Lake market, and are essential in the recovery process,” said Allen. “We now anxiously await the return of jobs and a more confident consumer, which should slowly return to the market late 2011.” As of December 2010 there has been a net decrease of 4,200 jobs within the Greater Salt Lake market, which is an improvement when compared to the 41,400 jobs lost at this same time in 2009.

For information contact:
eric allen @ 801.571.7700 x424
email eallen@metrostudy.com

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

 You may ask the question, “What is Buying Power”, and furthermore, how does it relate to home buying?  Simply put, it is the projected dollar amount that an individual can spend on a home based on their household income and the current interest rate.  Assessing buying power is essential in understanding the broader condition of the housing market.  Home affordability has weighed heavy on the minds of many would be buyers as well as home builders for many years, and as such consumer buying power is crucial to judging both the stability of housing demand and any projected growth. 

The affordability chart below highlights historical interest rates and how they can affect home buying power.  For demonstration purposes, the criteria set forth in the Affordability Chart below are based on an annual household income of $60,000, and a 20% down payment towards the home purchase, which will be referred to as our “general household”.  In 2004 when interest rates were roughly around 6.25% and the median home price was $190,000, our general household qualified for $190,000, making the buying power for the consumer equal to the median home price.  These conditions essentially allowed the home buyer to qualify, and afford the home they purchased, keeping the housing market healthy and well in check.  Read the rest of this entry »