Although low supply and tight credit standards are still hurdles to recovery, prices continue to rise in most local areas. Job growth has strengthened lately, but wage growth has not kept pace with the price gains we have seen. Buoyed by stable and continuously lower interest rates, affordability is still historically high yet below its all-time peak. Rising inventory levels will lead to more choices for qualified buyers, but as the summer reaches toward fall, the prospect of more homes coming on the market begins to wane.
New Listings in the state of Utah increased 2.0 percent to 6,406. Pending Sales were up 5.8 percent to 4,142. Inventory levels rose 5.2 percent to 21,803 units.
Prices forged onward. The Median Sales Price increased 2.3 percent to $218,000. Days on Market was up 9.9 percent to 66 days. Absorption rates slowed as Months Supply of Inventory was up 3.6 percent to 6.4 months.
The U.S. Department of Commerce reported that GDP grew at a 4.0 percent annual rate in the second quarter and that the first quarter was less bad than previously thought. Consumer spending in the first quarter rose 2.5 percent, which is encouragingly in tandem with savings rates. Increased consumer spending means more demand for goods and labor; increased savings rates means more resources for down payments. Rates are still low, rents still rising, and private job growth is accelerating.