On top of the 38% increase in existing home sales Utah enjoyed in Q3 2011 (over Q3 2010), our state’s inventory has been drastically reduced. This is supply and demand 101 folks. Supply is declining, both existing (on the market) inventory and shadow inventory (pent up foreclosures not released to market by banks) are down.
Simply stated supply is down, demand is up and home prices should follow.
Another positive indicator for future real estate values are the drastically declined vacancy rates for real estate investors and the increased rents landlords are fetching. I personally just re-rented a $500k rental home in 12 days. It was rented by a professional basketball player for over $40k per year. When investors (like me) can get top rents, with very little vacancy, we buy!
Every indicator I can see points up for our local Utah market.
Read more about home prices and home sales.
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