Posted in Salt Lake City Market | Posted on 01-27-2014 | Written by Metrostudy News
(Salt Lake City, UT – January 27, 2014) The Greater Salt Lake market experienced significant growth throughout 2013, and despite some of the headwinds, expectations remain positive for 2014. 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, annual new home starts (both attached and detached) totaled 8,428 for the year 2013, a number not seen since 2008. New home starts during the 4th quarter totaled 2,048, which is 20% higher than last year at this time, however decreased -19% from last quarter. “Despite this decrease, the market is experiencing a normal seasonal trend, and poses no reason for concern at this point” said Eric Allen, Regional Director of Metrostudy’s Salt Lake Market. Quarterly closings totaled 2,044 during the 4th quarter, which is 25% higher than 4Q12, and experienced a -2% decrease from last quarter. Annual new home closings increased 26% compared to 2012, with a total of 7,848 as of the end of December 2013.
As of December, there is a 6.4 month supply of single family detached homes in the Greater Salt Lake market, which is down from 7.0 months recorded at this time last year. Under construction inventory for detached homes rose 20% compared to last year at this time, however decreased -3% from last quarter. “While this drop is a normal seasonal trend, winter set in a bit early this year and began wetter than normal, which may also had an effect on the decrease in under construction inventory form last quarter” said Allen.
Inventory of vacant developed lots (VDL), or finished lots, for single family detached homes declined -10% over the past year to 15,554. The decline in lots, combined with an increase in home starts has allowed the supply of VDL’s to fall to 29.2 months, down from 39 months a year ago. While the overall supply is slightly above equilibrium, it is important to note that the supply varies significantly by geography. There are also 3,553 vacant developed lots for attached homes/units, which has decreased -4% from last year, however up 1.6% from last quarter. At the current pace of absorption, this translates to a 21 month supply, down from 30.5 months a year ago.
Metrostudy is the leading provider of primary and secondary market information to the housing and related industries nationwide. Metrostudy provides research, data, analytics and consulting services to help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. For more information, visit www.metrostudy.com
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