05 May 2009

Utah Homes For Sale Under Contract May Mean Bottom!

Pending Home Sales for March 2009For the second consecutive month, the number of Utah homes for sale that are under contract to sell increased -- further evidence that housing markets may have already bottomed.

According to the Wasatch Front Regional Multiple Listing Service, (MLS), the three most populated areas in Northern Utah Salt Lake County, Davis County, and Utah County showed tremendous increases in the number of houses and condominiums placed under contract last Month.

Salt Lake County:  Homes under contract increased by 658 houses.

Utah County:  Homes or condos listings as under contract up 408 units.

Davis County: Homes for sale under contract increased 192 houses/condos.

As reported by an industry trade association, the National Pending Home Sales Index rose by 3-plus percent last month.

In Utah, and particularly the three major northern counties, Salt Lake. Davis, Utah,  the index rose by more than the 3%, and actually showed an increase of "pending" Utah Homes For Sale in the double figures

A "pending" home is one that's under contract but has yet to close.  This is one reason why the Pending Home Sales Index is an imperfect statistic.

Just because a home is under contract doesn't mean it will actually sell.  A lot can go wrong between the date of agreement and the date of closing.  Deals fall apart all the time.  But, when the number of pending contracts rises, we can infer that buy-side demand for homes is strong.

It's likely that the number of Utah homes under contract is being influenced by a combination of low mortgage rates, relatively inexpensive homes, the federal tax credits,Utah's Home Run program for first time home buyers and builders incentives for certain home-buyers.  Overall, it's spurring demand and that's part of what's captured by the Pending Home Sales Index.

So long as the demand for homes outpaces its supply, home prices are expected to rise.

In Utah we are not there yet, but it looks closer than ever

To view a complete list of homes for sale in Salt Lake, Davis, Utah, and Tooele Counties go to our website @ Utah Homes For Sale and find pictures of houses, maps of homes and condos, and a lot of the information you need to help with your home search.

Or to talk Utah Real Estate give us a call at 435-840-5029. We can discuss whether The increase of Utah Homes For Sale Under Contract means we may have hit bottom.

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