Home prices increases in Utah were late to the party when prices were increasing across the country so Utah never really had a bubble in housing. Yes, prices have come down but not as severely as in other places like Nevada. The first time buyers’ tax credit helped moved the market for homes and there was hope that low mortgage rates would entice home owners to trade up. The later hasn’t happened yet mainly because many owners are under water on there homes and couldn’t sell even if they wanted too nor could they refinance even though refinance rates are at 50 year lows.
Home sales in the state of Utah are expected to be low as in the rest of the country. Home prices might see a slight increase or a slight decrease for the entire 2011 year.
Jumbo home loans are still hard to come by and are putting a strain on higher end home prices in Salt Lake City and the second home market for homes over $750,000.
Thankfully home prices are back to a more historical norm as compared to renting. Basically the ratio of annual rent to the cost of a home is back to a normal level of 10.