Construction of new homes in Utah slowed down a bit in 2014, but most of the state welcomed the new year with mostly positive signs for real estate sales, this according to year-end reports.
Building permits for single-family homes totaled 10,470 in 2014, down about five percent from 11,070 in 2013, based on recent data from the National Association of Home Builders.Dip in Home Building
Experts say the slight drop in home building statistics is just a minor road bump. Consumers want to have their home quick; most would rather buy an already existing one rather than wait and build from the ground up.
Industry experts, however, are bullish on the market heading into a new year. While 2014 numbers are lower than 2013, it is still much healthier than any other period since before the Great Recession. There were 15,790 home building permits approved in 2012, and these are lower in the years before.Rise in Home Buying
The overall recovering real estate market has more consumers interested in buying a new home instead of building one. Sales increased during the last quarter of 2014, and are likely to go up, especially with predictions that the Beehive State’s population will grow dramatically in the coming decades.
HeatherSellsUtah.com, a local real estate agent company, urges homebuyers to buy now before rates (interests and home prices) go up. At the end of 2014, home values in the state have gone up 1.2% according to numbers from Zillow, with a prediction it’ll go up as high as 3.2% in 2015. The median home value in Utah is estimated at $210,000.A Generally Positive Year
Analysts said the drop in new construction was expected last year since the number of new homes started to outpace the overall market growth. Mortgages across the state are still at record lows, and home prices have yet to drop out of range from the typical buyer’s budget.
Overall, the real estate market outlook for Utah is looking good for buyers, sellers, and realtors. It’ll all come down to timing: the best time to buy, sell, or provide assistance.