Posted in Salt Lake City Market | Posted on 10-26-2013 | Written by Metrostudy News
(Salt Lake City, UT – October 29, 2013) The turmoil surrounding the government shutdown has certainly had an adverse effect on buyer sentiment, however as key economic indicators improve, it is fair to expect continued stability in the housing market. This is 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 Metrostudy’s quarterly survey of the Greater Salt Lake market, there were a total of 2,452 new homes started (both attached and detached) during the third quarter of 2013, the most starts in a single quarter since 2007. This total is 19% higher than last year at this time and a 9% increase from last quarter. Builders started 8,037 homes in the previous twelve months ending in September, which is 30% higher than the annual pace last year at this time. New home closings during the third quarter increased 5% compared to a year ago for a total of 1,968, however decreased 1% from last quarter. Annual closings totaled 7,346 over the past twelve months, which is an increase of 28% compared to 3Q12.
As of the end of September, total new home inventory for detached homes totaled 3,248, an increase of 23% from a year ago and 14% more than last quarter. Despite the consistent increase, the supply remains healthy at 7 months. The total number of detached homes under construction has increased 33% from last year, and up another 17% from last quarter. However, the supply remains within equilibrium at 5.5 months, which increased from 4.9 months recorded last quarter. Finished vacant home inventory is a leading indicator of market changes, and based on the level of detached inventory, the market has been underserved for some time now. There are currently only 526 detached finished vacant homes on the ground in the entire Greater Salt Lake market, which is -2% fewer than a year ago, however increased 4% from last quarter. Despite this slight increase, the supply has remained unchanged for the past three quarters and sits at a low 1.1 months.
“The low supply of available lots has been a topic of concern for some time now and continues to intensify. While the overall supply of vacant developed lots may seem high, builders continue to face difficulty finding appropriately prices lots in desirable areas,” said Eric Allen, Regional Director of Metrostudy’s Utah/Idaho Region. There are currently 15,206 single-family vacant developed lots in the Greater Salt Lake market, which is down -15% from last year and another -6% from last quarter. The supply has dropped from 44 months a year ago to 29.7 months currently. There are also 3,507 vacant developed lots for attached homes/units, down -9.2% from last year and -.4% from last quarter. At the current pace of absorption, this translates to a 22.2 month supply, down from 34.4 months a year ago.
For information contact:
eric allen @ 801.571.7700 x424
Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide. Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. www.metrostudy.com
About Hanley Wood
Hanley Wood, LLC is the premier information, media, event, and strategic marketing services company serving the residential, commercial design and construction industries. Utilizing the largest editorial- and analytics-driven construction market database, the company produces powerful market data and insights; award-winning publications, newsletters and websites; marquee trade shows and executive events; and strategic marketing solutions. To learn more, visit hanleywood.com.