The Office of Federal Housing Enterprise Oversight just released it’s latest report which shows, among many other things, that Utah is now ranked #10 nationally in year-over-year appreciation at 15.17%.
Arizona tops the list at 24.05% followed by Florida (21.28%), Idaho (20.14%) and Oregon (19.47%).
Utah’s quarter-over-quarter appreciation rate for the second quarter of 2006 (over Q2 of 2005) came in at 3.75%, which would put it #2 among the top ten states behind New Mexico (4.22%). This means that while Utah’s real estate market is strong, it also didn’t slow during the second quarter.
*Chart from Deseret News*
The market is, however, beginning to show it’s seasonal slowing and will most certainly slow even more as the weather grows colder, snow falls, and the holidays come around, but that is to be expected in a true four-season market like northern Utah.
What this report shows is that the demand is still high for the area, and with a net increase of over 53,900 new jobs created from June 2005 to June 2006, the real estate market should stay healthy.
The nation appreciated 10.06% during this past year overall. At the bottom of the list is Michigan at 1.01% appreciation over the last year. Above Michigan is Ohio (2.14%), Indiana (2.76%), Massachusetts (3.40%), Nebraska (3.63%), Kansas (4.15%) and Colorado (4.20%).
In the top 20 Metro areas for appreciation this last year Utah’s St. George ranked #8 with a 25.15% rise in prices this last year. The top Metro area was Bend, Oregon with a staggering 36.65% jump in prices, followed by Boise, Idaho with 28.78%, Lakeland, Florida (27.13%) and the Utah/Arizona border city of Flagstaff at 26.69%.
Salt Lake City comes in at #35 in the nation with a 17.63% rise during the last year and 5.20% for the quarter. Provo comes in at #77 (12.84%) and Ogden followed at #99 (10.88%).
While the market will slow down during the winter months, the market should stay relatively good for a while with the state’s job growth as strong as it is. With the influx of people moving into the area, the strong job growth, and the countries youngest workforce, Utah’s future is looking pretty bright.