Salt Lake ranked fourth in 2007 appreciation forecast

A new report provides some evidence that buyers waiting on the sidelines may be missing out on opportunities if they wait to buy.

Recently, Fortune, with help from Moody's Economy.com and Fiserv Lending Solutions, issued a forecast ranking the Salt Lake City metropolitan area No. 4 in the U.S. for 2007 appreciation, saying prices will increase 5.40 percent in 2007 and 1.90 percent in 2008. The only three areas to rank above Salt Lake were McAllen-Mission, Texas (8.5 percent), El Paso, Texas (7.10 percent) and Albuquerque, N.M. (5.90 percent). The report studied the nation's 100 largest metropolitan areas and found that more than half would experience price increases in 2007.

The results of the Fortune report also show that the areas that largely missed out on the housing boom are the ones least affected by the national slowdown. For example, in the Midwest none of the top metro areas are expected to have price decreases. However, places that experienced huge housing booms - like Las Vegas (which came in second to last) and areas in California, are expected to have some of the largest prices declines in the country.

The only Utah metro area studied in the report was Salt Lake City. More information on the report's findings is available online by clicking here.

Cache County Market Update as of March 15th 2007

Current Active Listings: 430

Currently Under Contract: 161

Homes Sold in 2007: 192

Absorption Rate: About 2.67

Which means that in 80 days there will be no more homes on the market assuming that there are no new listings. In a hot seller's market you would expect the absorption rate to be about 0.5. Our market is steadily becoming more robust as more homebuyers make purchases. If you were to look at the absorption rate just for the month of March you would see it somewhere around .87 which is fantastic. So buyers if you are truly looking for a great time to buy now is the time!