Jan
25
Utah’s Economy: Housing Demand and Prices

Utah's Economy- Housing Demand and PricesSince World War II there have been two severe contractions in the local real estate market; 1979 – 1982 and 2007 – 2010. The primary causes of the 1979 – 1982 collapse were severe overbuilding, 13 percent inflation rates, and 18.5 mortgage rates. Compare these conditions with the current contraction; modest overbuilding, two percent inflation rates and four percent mortgage rates. Remarkably, in the current contraction the lowest inflation and mortgage rates in 60 years, combined with 15 to 20 percent declines in home prices have done little to stimulate demand for housing. The current weakness in Utah’s housing market is due primarily to a loss of demand, rather than any imbalance on the supply side…

 

Read the entire report: Download Utah Economy December 2010

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