State Real Estate Market Outlook
Realty Market Outlook Utah State Profile - Spring 2006
Housing market conditions remained solid
Utah continued to attract new residents and reported a record level of residential housing permits issued in 2005. Year-over-year home price gains in Utah accelerated to 13.4 percent in fourth quarter 2005, the highest growth rate since the mid-1990s. The state will likely continue to report construction job gains in 2006 as a result.
Nevertheless, deteriorating housing affordability, particularly in St. George, and rising interest rates may weigh on the housing market.
Innovative mortgages and investors may be influencing Utah housing demand. Interest-only and negative amortization loans accounted for 47 percent of non-prime mortgage originations in the state during the first 11 months of 2005. During the same period, investors and second-home purchasers accounted for 27 percent of Utah Alt-A mortgage originations.
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