January 04, 2010

The Next 10 Years!

Welcome to a new year! We survived the 2009 real estate market! In fact, we actually had some good news in last half of 2009 with unit sales rising in many parts of the country and some price ranges actually seeing some appreciation. In some areas in Layton and other parts of Northern Utah we saw some appreciation. We don’t want to be overly optimistic because we know that recovery will be slow and some economists fear a “double-dip” economic recession if unemployment numbers don’t show greater improvement. There will be some rough waters to navigate this year as well.

In 2010 we still face a higher than normal inventory, declining home values in most price ranges, high unemployment leading to delinquencies, short sales, and even foreclosures. Credit is still tight but the worst is likely behind us. Recovery will be slower than we all wish for, but still we will see progress in 2010 in the Utah housing market.

A recent Deseret News article outlines some of the changes coming to Utah in the next decade that will impact our lives in the next 10 years. Here are the full details of the article.

Utah, especially Northern Utah, will have some great things to look forward to starting with an estimated increase of 700,000 new residents in the next 10 years. The bulk of that population growth will be centered in Northern Utah. Additionally, Utah will draw some high tech jobs and companies as part of its “entrepreneurial heritage.” Research now being conducted at Utah’s major Universities will continue to draw top notch companies which will want to employ Utah’s highly educated work force.

Transportation will be expanded with new smart-car technology that will communicate with each other adding new features and greater safety. Utah Transit Authority (UTA) will have five new Trax lines completed by 2015. Real estate values will increase around the station locations. In addition, the Mountain View Corridor will be completed to Provo and I-15 expanded to accommodate the new growth coming to Utah. Each expansion of transportation will lead to more growth and an increased demand for new housing, existing housing and a strong rental market through the next ten years.

Utah’s economic growth will outpace the US economy in the next 10 years with the real question being how well will the US economy do in the next 10 years. Utah’s advantage has always been in its educated, reasonably priced work force. That advantage is expected to continue into the next decade.

To review the top 10 stories for national real estate trends in 2009, we refer you to Steve Harney’s blog which we have highlighted in a previous blog post. For the statistics on how we in the Beehive State did in 2009, please refer to this NAR report for Utah.

One thing we know for sure is that there is nothing to fear in 2010 that a buyer, seller, or investor with the right information cannot use to their advantage. For those in Northern Utah who want to know how the recent market changes have impacted home values, please contact us for a free, no obligation, Competitive Market Analysis. Welcome 2010!

Posted By: Steve Randall