Study: Greater Salt Lake new-home market near or at bottom

(The Enterprise) Rapid reduction of new-home inventory is the most positive trend occurring in the Greater Salt Lake housing market. This conclusion is according to Metrostudy, a national housing data and consulting firm. Inventory of detached new single-family homes has decreased 56 perfect in the last year. At the end of the third quarter, there were only 1,005 detached finished vacant homes available for sale. Metrostudy uses finished vacant inventory as a key indicator to monitor the health of housing markets. Greater Salt Lake’s supply will last only 2.6 months at the current annual closings rate, which is just slightly over the ideal balanced supply of two months. Although activity in the new-home market for both housing starts and closings remains weak, there was a 13 percent increase in new-home starts during the third quarter. The Home Run Grants from the state of Utah provided buyers with incentives to buy new homes this year. Earlier in 2009, a $6,000 grant program was offered to any qualified buyer, and in September, a $4,000 grant program became available. Combined with the $8,000 federal tax credit, the local housing market was stimulated. The total inventory of attached homes has also been declining. Finished vacant inventory for attached homes was reduced 5 percent from last quarter. Attached units under construction continued to retract to a total of 2,301 in the third quarter, a 25 percent decrease from the previous year. Eric Allen, director of Metrostudy’s Utah/Idaho region says, “Despite the weak job market, continued foreclosures and the end of housing grants, all housing indicators are headed toward recovery.”