From Deseret News archives:
Utah Valley home prices rising fast
Costs create affordability gap for would-be buyers
How hot?
Three years ago, a $250,000 home was a premium home in Utah Valley. Now, the average sale price of a Utah County home is $254,000.
In fact, the number of valley homes sold for at least $500,000 jumped from 95 three years ago to 368 last year.
Real estate expert Kevin Call now tracks the valley's high-end housing market by counting the million-dollar homes: 44 sold last year, 73 on the market right now.
The surge is raising prices at the bottom end of the market, too, great news for homeowners but bad news for would-be homebuyers who now can't afford most of the homes in Utah Valley, said Call, executive vice president for the Utah County Association of Realtors.
How bad is the affordability gap?
Only 3 percent of homes on the market right now are listing for less than $160,000. And 90 percent of all homes on the market this week list for $200,000 or more.
Don't expect new construction to ease the problem, either.
"You can't find a new construction home for under $160,000," Call said. "Even downtown Eagle Mountain has passed that threshold."
The reason is a stark leap in lot prices. For example, in 2004, a lot in the Val Vista subdivision in American Fork sold for $75,000. Last year, a nearby lot that was the same size sold for $149,500.
The lowest-priced, developed single-family lot listed Wednesday in Santaquin, one of the most affordable cities in the valley, was $67,000 for .17 acres.
The affordability situation is compounded by a low inventory: Only a small supply of homes are for sale for less than $160,000 or even up to $200,000.
"The group that can handle the least competition is facing the most competition," Call said of lower-income homebuyers.
The good news is that homeowners are seeing an excellent return on their investments.
Last year, half of all single-family homes in Utah Valley sold for more than $213,075 in 2006, and half sold for less. That median sale price was up 33 percent from $160,000 at the end of 2004.
The median price in Orem jumped from $151,525 to $180,000 over the same period. In Provo, it went from $143,450 to $170,000. The highest appreciation was in the Highland-Alpine area, where it grew roughly 23 percent last year alone.
"I expect 2007 to be approximately the same in unit sales as it was in 2006," Call said. "I expect prices to increase, but certainly not at 22 to 24 percent. Our market is beginning to settle, to stabilize a bit. I believe that's healthy for our market."
One reason is new construction. More building permits were issued in Utah County in 2006 than ever before. Even Provo hit an eight-year high, Mayor Lewis Billings said recently.
E-mail: twalch@desnews.com
Comments
- Jazz game at a glance 11:09 p.m.
- Sports briefs 10:55 p.m.
- Tavernari has matured 10:54 p.m.
- Williams plays despite back and calf... 10:45 p.m.
- Wade honored to join 'Air Jordan' 10:25 p.m.
- PTSD lingers for war veterans 10:25 p.m.
- Veterans event on chopping block? 10:24 p.m.
- Pride Center lauds service from gays 10:20 p.m.
- Historic Armistice Day in Paris 10:19 p.m.
- Obama honors veterans at Arlington 10:17 p.m.
- SLC council OKs gay rights policies
- Utah Jazz have a problem at point
- 'Love story' of crash victim ends
- BYU football recruit turning heads
- Alta's Ohai is Ms. Soccer 2009
- Prep football: Felt's Facts Week
- 12 Utes return to Texas
- Cougars' defensive hoops clinic
- Wyoming writer amazed by BYU
- Gays get Mormon support in SLC
- House passes health care bill
285 - SLC council OKs gay rights policies
241 - TCU showdown has big implications
193 - Senators want food tax restored
157 - Cougars crush hapless Cowboys
155 - Utah Jazz fall apart against Kings
131 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - S.L. vote pending on gay protections
109 - No 'backlash' for pioneers, gays analogy
108 - Pratt pleads not guilty to sex charges
101
This week, I'm compiling my annual list of restaurants serving...
Don't forget about the blown clock violation later in the game either. I...
Why are Boozer and Okur EVER in the game at the same time? Why are Koufos and...
Utes in the BCS baby !!!
I cannot wait for this game! Two high powered similar offences, this game is...
Zyprexa is also called Olanzapine and is an ingredient in many drugs... ...
We are so confident in him, we went out a week later and added another QB...
Hey! I just saw that guy in the RB!
Utes win by 3 !!!
Oh no soccer is doing great in Utah.. waah waaaa waaa. 5 years ago you were...
I think it will be well used!


You can be the first to comment on this story.